YUM BRANDS INC, 10-K filed on 2/22/2018
Annual Report
v3.8.0.1
Document and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2017
Feb. 14, 2018
Jun. 30, 2017
Document And Entity Information [Abstract]      
Entity Registrant Name YUM BRANDS INC    
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2017    
Entity Central Index Key 0001041061    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Filer Category Large Accelerated Filer    
Entity Public Float     $ 25,400,000,000
Entity Common Stock, Shares Outstanding   332,513,103  
Document Fiscal Year Focus 2017    
Document Fiscal Period Focus FY    
v3.8.0.1
Consolidated Statements of Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Revenues      
Total revenues   $ 6,356 $ 6,418
Company restaurants      
Refranchising (gain) loss $ (1,083) (163) 23
Operating Profit 2,761 1,682 1,434
Other Pension (income) expense [1] 47 [2] 32 [2] 40
Interest expense, net [1] 440 305 141
Income from Continuing Operations Before Income Taxes 2,274 1,345 1,253
Income from continuing operations   1,018 926
Income from discontinued operations, net of tax   625 357
Net Income $ 1,340 $ 1,643 $ 1,283
Basic Earnings Per Common Share (in dollars per share) $ 3.86 $ 4.17 $ 2.95
Diluted Earnings Per Common Share (in dollars per share) 3.77 4.10 2.90
Dividends Declared Per Common Share (in dollars per share) $ 0.90 $ 1.73 $ 1.74
Continuing Operations [Member]      
Revenues      
Company sales $ 3,572 $ 4,189 $ 4,336
Franchise and license fees and income 2,306 2,167 2,082
Total revenues 5,878 6,356 6,418
Company restaurants      
Food and paper 1,103 1,267 1,340
Payroll and employee benefits 939 1,106 1,125
Occupancy and other operating expenses 912 1,116 1,162
Company restaurant expenses 2,954 3,489 3,627
General and administrative expenses 999 1,129 1,058
Franchise and license expenses 237 201 240
Closures and impairment (income) expenses 3 15 16
Refranchising (gain) loss (1,083) (163) 23
Other (income) expense 7 3 20
Operating Expenses 3,117 4,674 4,984
Operating Profit 2,761 [3] 1,682 [4] 1,434
Other Pension (income) expense 47 32 40
Interest expense, net 440 305 141
Income from Continuing Operations Before Income Taxes 2,274 1,345 1,253
Income tax provision 934 327 327
Income from continuing operations $ 1,340 $ 1,018 $ 926
Basic Earnings Per Common Share (in dollars per share) $ 3.86 $ 2.58 $ 2.13
Diluted Earnings Per Common Share (in dollars per share) $ 3.77 $ 2.54 $ 2.09
Discontinued Operations [Member]      
Revenues      
Company sales   $ 5,667 [5] $ 6,789
Franchise and license fees and income   109 [5] 120
Company restaurants      
Company restaurant expenses   4,766 [5] 5,913
General and administrative expenses [6]   406 [5] 405
Franchise and license expenses   45 [5] 48
Closures and impairment (income) expenses   57 [5] 64
Refranchising (gain) loss   (12) [5] (13)
Interest expense, net   (8) [5] (7)
Income tax provision   (65) [5],[7] 164
Income from discontinued operations, net of tax $ 0 $ 625 [5] $ 357
Basic Earnings Per Common Share (in dollars per share)   $ 1.59 $ 0.82
Diluted Earnings Per Common Share (in dollars per share)   $ 1.56 $ 0.81
[1] Amounts have not been allocated to any segment for performance reporting purposes.
[2] Amounts in 2017 include a non-cash charge of $22 million related to the adjustment of certain historical deferred vested liability balances in our qualified U.S. plan. Amounts in 2016 include a settlement charge of $24 million related to the Company allowing certain former employees with deferred vested balances in the Yum Retirement Plan an opportunity to voluntarily elect early payout of their pension benefits. See Note 5.
[3] Includes net gains from refranchising initiatives of $111 million, $19 million, $201 million and $752 million in the first, second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $7 million, $4 million, $4 million and $8 million in the first, second, third and fourth quarters, respectively, costs associated with the Pizza Hut U.S. Transformation Agreement of $12 million, $8 million and $11 million in the second, third and fourth quarters, respectively, costs associated with the KFC U.S. Acceleration Agreement of $3 million, $5 million, $4 million and $5 million in the first, second, third and fourth quarters, respectively and non-cash charges associated with the modification of share-based compensation awards in connection with the Separation of $2 million and $16 million in the first and second quarters, respectively.
[4] Includes net gains from refranchising initiatives of $54 million, $21 million and $88 million in the second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $4 million, $30 million and $33 million in the second, third and fourth quarters, respectively, a non-cash charge primarily associated with the modification of share-based compensation awards in connection with the Separation of $30 million in the fourth quarter and costs associated with KFC U.S. Acceleration Agreement of $9 million, $8 million and $9 million in the first, second and fourth quarters, respectively. See Note 5.
[5] Includes Yum China financial results from January 1, 2016 to October 31, 2016.
[6] Includes costs incurred to execute the Separation of $68 million and $9 million for 2016 and 2015, respectively. Such costs primarily relate to transaction advisors, legal and other consulting fees.
[7] During 2016, we recorded a tax benefit of $233 million related to previously recorded losses associated with our Little Sheep business. The tax benefit associated with these losses was able to be recognized as a result of legal entity restructuring completed in anticipation of the Separation.
v3.8.0.1
Consolidated Statement of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Net Income (loss) - YUM! Brands, Inc. $ 1,340 $ 1,643 $ 1,283
Adjustments and gains (losses) arising during the year 115 (174) (231)
Reclassifications of adjustments and (gains) losses into Net Income 55 (11) 115
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax 170 (185) (116)
Tax (expense) benefit (8) 21 0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax 162 (164) (116)
Unrealized gains (losses) arising during the year (17) (62) 101
Reclassification of (gains) losses into Net Income 52 44 53
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Unrealized Gains (Losses), before Tax 35 (18) 154
Tax (expense) benefit (14) 4 (57)
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax 21 (14) 97
Unrealized gains (losses) arising during the year (52) 57 48
Reclassification of (gains) losses into Net Income 58 (22) (53)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax 6 35 (5)
Tax (expense) benefit (2) (16) 0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax 4 19 (5)
Other Comprehensive Income (Loss), Net of Tax 187 (159) (24)
Comprehensive Income - Yum! Brands, Inc. $ 1,527 $ 1,484 $ 1,259
v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Cash Flows - Operating Activities      
Net Income $ 1,340 $ 1,643 $ 1,283
Income from discontinued operations, net of tax   (625) (357)
Depreciation and amortization 253 310 319
Refranchising (gain) loss (1,083) (163) 23
Cash Flows - Investing Activities      
Proceeds from refranchising of restaurants 1,773 370 213
Continuing Operations [Member]      
Cash Flows - Operating Activities      
Depreciation and amortization 253 310 319
Closures and impairment (income) expenses 3 15 16
Refranchising (gain) loss (1,083) (163) 23
Contributions to defined benefit pension plans (55) (41) (98)
Deferred income taxes 634 28 (101)
Share-based compensation expense 65 80 46
Changes in accounts and notes receivable (19) (23) (36)
Changes in inventories 3 1 (4)
Changes in prepaid expenses and other current assets (13) (1) (14)
Changes in accounts payable and other current liabilities (173) (40) 55
Changes in income taxes payable (55) 20 53
Other, net 130 44 75
Net Cash Provided by Operating Activities 1,030 1,248 1,260
Cash Flows - Investing Activities      
Capital spending (318) (427) (442)
Proceeds from refranchising of restaurants 1,773 370 213
Other, net 17 53 30
Net Cash Used in Investing Activities 1,472 (4) (199)
Cash Flows - Financing Activities      
Proceeds from long-term debt 1,088 6,900 0
Repayments of long-term debt (385) (323) (267)
Revolving credit facilities, three months or less, net 0 (685) 303
Short-term borrowings by original maturity      
More than three months - proceeds 0 1,400 609
More than three months - payments 0 (2,000) 0
Three months or less, net 0 0 0
Repurchase shares of Common Stock (1,960) (5,403) (1,200)
Dividends paid on Common Stock (416) (744) (730)
Debt issuance costs (32) (86) 0
Other, net (90) (92) (39)
Net Cash Used in Financing Activities (1,795) (744) (1,089)
Effect of Exchange Rate on Cash and Cash Equivalents 61 (34) 0
Net Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - Continuing Operations 768 466 (28)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - Beginning of Year 831 365 393
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - End of Year 1,599 831 365
Discontinued Operations [Member]      
Cash Flows - Operating Activities      
Income from discontinued operations, net of tax 0 (625) [1] (357)
Closures and impairment (income) expenses   57 [1] 64
Refranchising (gain) loss   (12) [1] (13)
Net Cash Provided by Operating Activities 0 829 931
Cash Flows - Investing Activities      
Net Cash Used in Investing Activities 0 (287) (493)
Short-term borrowings by original maturity      
Net transfers from discontinued operations 0 289 235
Net Cash Used in Financing Activities $ 0 $ (292) $ (234)
[1] Includes Yum China financial results from January 1, 2016 to October 31, 2016.
v3.8.0.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Current Assets    
Total Current Assets $ 2,507 $ 1,505
Total Assets 5,311 5,453
Current Liabilities    
Short-term borrowings 375 66
Total Current Liabilities 1,512 1,306
Long-term debt 9,429 9,059
Total Liabilities 11,645 11,068
Shareholders' Equity    
Total Shareholders' Equity (6,334) (5,615)
Total Liabilities, Redeemable Noncontrolling Interest and Shareholders' Equity 5,311 5,453
Continuing Operations [Member]    
Current Assets    
Cash and cash equivalents 1,522 725
Accounts and notes receivable, net 400 370
Inventories 13 37
Prepaid expenses and other current assets 371 236
Advertising cooperative assets, restricted 201 137
Property, Plant and equipment, net 1,697 2,113
Goodwill 512 536
Intangible assets, net 110 151
Other assets 346 376
Deferred income taxes 139 772
Total Assets 5,311 5,453
Current Liabilities    
Accounts payable and other current liabilities 813 1,067
Income taxes payable 123 36
Short-term borrowings 375 66
Advertising cooperative liabilities 201 137
Long-term debt 9,429 9,059
Other liabilities and deferred credits 704 703
Shareholders' Equity    
Common stock, no par value, 750 shares authorized; 332 shares and 355 shares issued in 2017 and 2016, respectively 0 0
Retained earnings (6,063) (5,157)
Accumulated other comprehensive income (loss) $ (271) $ (458)
v3.8.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
shares in Millions, $ / shares in Millions
Dec. 31, 2017
Dec. 31, 2016
Shareholders' Equity (Deficit)    
Common Stock, par value $ 0 $ 0
Common Stock, shares authorized 750 750
Common Stock, shares issued 332 355
v3.8.0.1
Consolidated Statements of Shareholders' Equity
shares in Thousands, $ in Millions
USD ($)
shares
Common Stock
USD ($)
shares
Retained Earnings
USD ($)
Accumulated Other Comprehensive Income (Loss)
USD ($)
Noncontrolling Interest
USD ($)
Total Permanent Equity
USD ($)
Redeemable Noncontrolling Interest
USD ($)
Discontinued Operations [Member]
Retained Earnings
USD ($)
Discontinued Operations [Member]
Accumulated Other Comprehensive Income (Loss)
USD ($)
Discontinued Operations [Member]
Noncontrolling Interest
USD ($)
Discontinued Operations [Member]
Total Permanent Equity
USD ($)
Balance at Dec. 31, 2014   $ 0 $ 1,784 $ (228) $ 57 $ 1,613 $ 9        
Balance (in shares) at Dec. 31, 2014 | shares   434,000                  
Net Income (loss) - YUM! Brands, Inc. $ 1,283   1,283                
Net Income (loss) - noncontrolling interests         6            
Net Income (loss) - including noncontrolling interest           1,289 (1)        
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature (net of tax impact)       (228)              
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature - noncontrolling interest (net of tax impact)         (4)            
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature - including noncontrolling interest (net of tax impact)           (232) (2)        
Reclassifications of adjustments and (gains) losses into Net Income 115     112   112          
Pension and post-retirement benefit plans (net of tax impact) 97     97   97          
Net unrealized gain (loss) on derivative instruments (net of tax impact)       (5)   (5)          
Comprehensive income - including noncontrolling interests           1,261 (3)        
Dividends declared     (756)     (756)          
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests   $ (1)     1 0          
Repurchase of shares of Common Stock $ (1,200) $ (76) (1,124)     (1,200)          
Repurchase of shares of Common Stock (in shares) | shares (15,942) (16,000)                  
Employee stock option and SARs exercises (includes tax impact)   $ (7)       (7)          
Employee stock option and SARs exercises (in shares) | shares   2,000                  
Compensation-related events (includes tax impact)   $ 68       68          
Balance at Dec. 31, 2015   $ 0 1,187 (252) 58 993 6        
Balance (in shares) at Dec. 31, 2015 | shares   420,000                  
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax $ 3                    
Other Comprehensive Income (Loss), Foreign Currency Translation Reclassification Adjustment from AOCI, Tax (3)                    
Pension and post-retirement benefit plans (tax impact) (57)                    
Employee Stock Option And SARs Exercises Value, Tax (50)                    
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax 0                    
Net Income (loss) - YUM! Brands, Inc. 1,643   1,643                
Net Income (loss) - noncontrolling interests         18            
Net Income (loss) - including noncontrolling interest           1,661 (7)        
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature (net of tax impact)       (153)              
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature - noncontrolling interest (net of tax impact)         (3)            
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature - including noncontrolling interest (net of tax impact)           (156) 1        
Reclassifications of adjustments and (gains) losses into Net Income (11)     (11)   (11)          
Pension and post-retirement benefit plans (net of tax impact) (14)     (14)   (14)          
Net unrealized gain (loss) on derivative instruments (net of tax impact)       19   19          
Comprehensive income - including noncontrolling interests           1,499 (6)        
Dividends declared     (661)   (6) (667)          
Separation of China business               (1,927) (47) (67) (2,041)
Repurchase of shares of Common Stock $ (5,447) [1] $ (49) (5,399)     (5,448)          
Repurchase of shares of Common Stock (in shares) | shares (67,963) [1] (68,000)                  
Employee stock option and SARs exercises (includes tax impact)   $ 4       4          
Employee stock option and SARs exercises (in shares) | shares   3,000                  
Compensation-related events (includes tax impact)   $ 53       53          
Balance at Dec. 31, 2016 $ (5,615) $ 0 (5,157) (458) 0 (5,615) 0        
Balance (in shares) at Dec. 31, 2016 | shares   355,000                  
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax 21                    
Pension and post-retirement benefit plans (tax impact) 4                    
Employee Stock Option And SARs Exercises Value, Tax (85)                    
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax (16)                    
Net Income (loss) - YUM! Brands, Inc. 1,340   1,340                
Net Income (loss) - including noncontrolling interest           1,340          
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature (net of tax impact)       107              
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature - including noncontrolling interest (net of tax impact)           107          
Reclassifications of adjustments and (gains) losses into Net Income 55     55   55          
Pension and post-retirement benefit plans (net of tax impact) 21     21   21          
Net unrealized gain (loss) on derivative instruments (net of tax impact)       4   4          
Comprehensive income - including noncontrolling interests           1,527          
Dividends declared     (311)     (311)          
Repurchase of shares of Common Stock $ (1,915) [1] $ 0 (1,915)     (1,915)          
Repurchase of shares of Common Stock (in shares) | shares (26,561) [1] (27,000)                  
Employee stock option and SARs exercises (includes tax impact)   $ 58 (20)     78          
Employee stock option and SARs exercises (in shares) | shares   4,000                  
Compensation-related events (includes tax impact)   $ 58       58          
Balance at Dec. 31, 2017 $ (6,334) $ 0 $ (6,063) $ (271) $ 0 $ (6,334) $ 0        
Balance (in shares) at Dec. 31, 2017 | shares   332,000                  
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax (8)                    
Pension and post-retirement benefit plans (tax impact) (14)                    
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax $ (2)                    
[1] 2017 amount excludes and 2016 amount includes the effect of $45 million in share repurchases (0.7 million shares) with trade dates prior to December 31, 2016 but settlement dates subsequent to December 31, 2016.
v3.8.0.1
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement of Stockholders' Equity [Abstract]      
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax $ (8) $ 21 $ 3
Other Comprehensive Income (Loss), Foreign Currency Translation Reclassification Adjustment from AOCI, Tax     (3)
Pension and post-retirement benefit plans (tax impact) (14) 4 (57)
Employee Stock Option And SARs Exercises Value, Tax   (85) (50)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax $ (2) $ (16) $ 0
v3.8.0.1
Description of Business
 12 Months Ended
Dec. 31, 2017
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 “YUM” or the “Company”) comprise the worldwide operations of KFC, Pizza Hut and Taco Bell (collectively the “Concepts”).  YUM has over 45,000 units of which 60% are located outside the U.S. in more than 135 countries and territories.  YUM was created as an independent, publicly-owned company on October 6, 1997 via a tax-free distribution by our former parent, PepsiCo, Inc., of our Common Stock to its shareholders.  References to YUM throughout these Consolidated Financial Statements are made using the first person notations of “we,” “us” or “our.”

Through our widely-recognized Concepts, we develop, operate or franchise a system of both traditional and non-traditional quick service 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. Each Concept has proprietary menu items and emphasizes the preparation of food with high quality ingredients as well as unique recipes and special seasonings to provide appealing, convenient, tasty and attractive food at competitive prices.  Our traditional restaurants feature dine-in, carryout and, in some instances, drive-thru or delivery service.  Non-traditional units include express units and kiosks 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.  We also operate multibrand units, where two or more of our Concepts are operated in a single unit.  

As of December 31, 2017, YUM consisted of three operating segments:  

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

On October 31, 2016 (the “Distribution Date”), we completed the spin-off of our China business (the "Separation") into an independent, publicly-traded company under the name of Yum China Holdings, Inc. (“Yum China”). On the Distribution Date, we distributed to each of our shareholders of record as of the close of business on October 19, 2016 (the “Record Date”) one share of Yum China common stock for each share of our Common Stock held as of the Record Date. The distribution was structured to be a tax free distribution to our U.S. shareholders for federal income tax purposes in the U.S. Yum China’s common stock trades on the New York Stock Exchange under the symbol “YUMC.” After the distribution, we do not beneficially own any shares of Yum China common stock.

Concurrent with the Separation, a subsidiary of the Company entered into a Master License Agreement with a subsidiary of Yum China for the exclusive right to use and sublicense the use of intellectual property owned by YUM and its affiliates for the development and operation of KFC, Pizza Hut and Taco Bell restaurants in China. Prior to the Separation, our operations in mainland China were reported in our former China Division segment results. As a result of the Separation, the results of operations and cash flows of the separated business are presented as discontinued operations in our Consolidated Statements of Income and Consolidated Statements of Cash Flows for all periods presented. See additional information related to the impact of the Separation in Note 4.
v3.8.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2017
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies

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 entities that operate restaurants under our Concepts’ franchise and license arrangements.  We do not have an equity interest in any of our franchisee businesses.  Additionally, we do not typically provide significant financial support such as loans or guarantees to our franchisees.  However, we do have variable interests in certain franchisees through real estate lease arrangements to which we are a party.  At the end of 2017, YUM has future lease payments due from franchisees, on a nominal basis, of approximately $725 million, and we are contingently liable on certain other lease agreements that have been assigned to franchisees. See the Lease Guarantees and Franchise Loan Pool and Equipment Guarantees sections in Note 20. As our franchise and license 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.

See Note 20 for additional information on our entity that operates a franchise lending program that is a VIE in which we have a variable interest but for which we are not the primary beneficiary and thus do not consolidate.

We participate in various advertising cooperatives with our franchisees 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 its franchise owners. 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.  Advertising cooperative assets, consisting primarily of cash received from the Company and franchisees and accounts receivable from franchisees, can only be used to settle obligations of the respective cooperative.  Advertising cooperative liabilities represent the corresponding obligation arising from the receipt of the contributions to purchase advertising and promotional programs for which creditors do not have recourse to the general credit of the Company as the primary beneficiary.  Therefore, we report all assets and liabilities of these advertising cooperatives that we consolidate as Advertising cooperative assets, restricted and Advertising cooperative liabilities in the Consolidated Balance Sheet.  As the contributions to these cooperatives are designated and segregated for advertising, we act as an agent for the franchisees with regard to these contributions.  Thus, we do not reflect franchisee contributions to these cooperatives in our Consolidated Statements of Income or Consolidated Statements of Cash Flows.

Fiscal Year.  Our fiscal years have historically ended on the last Saturday in December and, as a result, a 53rd week was added every five or six years.  The first three quarters of each fiscal year consisted of 12 weeks and the fourth quarter consisted of 16 weeks in fiscal years with 52 weeks and 17 weeks in fiscal years with 53 weeks.  Our U.S. subsidiaries and certain international subsidiaries operated on similar fiscal calendars. Our remaining international subsidiaries operated on a monthly calendar, and thus never had a 53rd week, with two months in the first quarter, three months in the second and third quarters and four months in the fourth quarter.  Certain international subsidiaries within our KFC, Pizza Hut and Taco Bell divisions have historically closed approximately one month or one period earlier to facilitate consolidated reporting.

Fiscal year 2016 included 53 weeks for our U.S. businesses and for our international subsidiaries that reported on a period calendar. The 53rd week added $76 million to Total revenues and $28 million to Operating Profit in our 2016 Consolidated Statement of Income.

On January 27, 2017, YUM’s Board of Directors approved a change in the Company's fiscal year from a year ending on the last Saturday of December to a year beginning on January 1 and ending December 31 of each year, commencing with the year ending December 31, 2017. In connection with this change, the Company moved from a 52-week periodic fiscal calendar with three 12-week interim quarters and a 16-week fourth quarter to a monthly reporting calendar with each quarter comprised of three months. Our U.S. subsidiaries continue to report on a period calendar as described above.

Concurrent with the change in the Company's fiscal year, we also eliminated the one month or one period reporting lags of our international subsidiaries. As a result of removing these reporting lags, each international subsidiary operates either on a monthly calendar consistent with the Company’s new calendar or on a periodic calendar consistent with our U.S. subsidiaries. We believe this change in our international subsidiary reporting calendars and the resulting elimination of reporting lags is preferable because a more current reporting calendar allows the Consolidated Financial Statements to more consistently and more timely reflect the impact of current events, economic conditions and global trends.

The change to the Company’s fiscal year and removal of the international reporting lags is effective in 2017. We have applied this change in accounting principle retrospectively to all prior financial periods presented and the impact of this change is summarized in Note 5. The impact of the change in accounting principle on the current period Consolidated Financial Statements is similar to the impact on the prior period results discussed in Note 5.

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, 2017, net cumulative translation adjustment losses of $174 million are recorded in Accumulated other comprehensive loss ("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, 2017. These reclassifications had no effect on previously reported Net Income, as restated.

Franchise Operations.  We execute store-level franchise agreements for units operated by third parties which set out the terms of our arrangement with the franchisee. Our franchise agreements typically require the franchisee to pay an initial, non-refundable fee upon an individual store opening and continuing fees based upon a percentage of sales.  Subject to our approval and their payment of a renewal fee, a franchisee may generally renew the franchise agreement upon its expiration. Additionally, we execute master franchise agreements in certain regions that transfer administrative and development obligations and sub-franchising rights to a franchisee in exchange for reduced franchise fees.  

The internal costs we incur to provide support services to our franchisees are charged to General and administrative expenses (“G&A”) as incurred.  Certain direct costs of our franchise operations are charged to Franchise and license expenses.  These costs include provisions for estimated uncollectible fees, rent or depreciation expense associated with restaurants we lease or sublease to franchisees, franchise marketing funding, amortization expense for franchise-related intangible assets, value added taxes on royalties and certain other direct incremental franchise support costs.

Revenue Recognition. Revenues from Company-owned restaurants are recognized when payment is tendered at the time of sale.  The Company presents sales net of sales-related taxes.  Income from our franchisees includes initial fees, continuing fees, renewal fees and rental income from restaurants we lease or sublease to them.  We recognize initial fees received from a franchisee as revenue when we have performed substantially all initial services required by the franchise agreement, which is generally upon the opening of a store.  We recognize continuing fees, which are based upon a percentage of franchisee sales as those sales occur and rental income is recognized as it is earned.  We recognize renewal fees when a renewal agreement with a franchisee becomes effective.  

While the majority of our franchise agreements are entered into with terms and conditions consistent with those at a prevailing market rate, there are instances when we enter into franchise agreements with terms that are not at market rates (for example, below-market continuing fees) for a specified period of time. We recognize the estimated value of terms in franchise agreements entered into concurrently with a refranchising transaction that are not consistent with market terms as part of the upfront Refranchising (gain) loss and amortize that amount into Franchise and license fees and income over the period such terms are in effect. The value of terms that are not considered to be at market within franchise agreements is estimated based upon the difference between the present value of the cash expected to be received under the franchise agreement and the present value of the cash that would have been expected to be received under a franchise agreement with terms substantially consistent with market.

Direct Marketing Costs.  To the extent we participate in advertising cooperatives, we expense our contributions as incurred which are based on a percentage of sales.  We charge direct marketing costs incurred outside of a cooperative to expense ratably in relation to revenues over the year in which incurred and, in the case of advertising production costs, in the year the advertisement is first
shown.  Deferred direct marketing costs, which are classified as prepaid expenses, consist of media and related advertising production costs which will generally be used for the first time in the next fiscal year and have historically not been significant.  Our advertising expenses were $245 million, $260 million and $253 million in 2017, 2016 and 2015, respectively.  We report the majority of our direct marketing costs in Occupancy and other operating expenses as they are incurred as a percentage of sales by Company-owned restaurants. Advertising incurred on behalf of franchised restaurants is recorded within Franchise and license expenses, including $25 million related to the Pizza Hut U.S. Transformation Agreement and $20 million related to the KFC U.S. Acceleration Agreement in 2017. See Note 5 for further discussion of these agreements.

Research and Development Expenses.  Research and development expenses, which we expense as incurred, are reported in G&A.  Research and development expenses were $22 million, $24 million and $23 million in 2017, 2016 and 2015, respectively.

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.  We present this compensation cost consistent with the other compensation costs for the employee recipient in either Payroll and employee benefits 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 Property, Plant and Equipment.  Property, plant and equipment (“PP&E”) is 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 and allocated intangible assets subject to amortization) semi-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 semi-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 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.

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, 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.  Refranchising (gain) loss includes the gains or losses from the sales of our restaurants to new and existing franchisees, including any impairment charges discussed above, and associated termination, relocation or retention costs associated with store-level employees of refranchised stores or employees of restaurant-support centers which we have closed due to refranchising. 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 and 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.  Additionally, at the date we cease using a property under an operating lease, we record a liability for the net present value of any remaining lease obligations, net of estimated sublease income, if any.  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 Closures and impairment (income) expenses.   To the extent we sell assets, primarily land, associated with a closed store, any gain or loss upon that sale is also recorded in Closures and impairment (income) expenses.

Considerable 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.  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 the fair value of such lease guarantees upon refranchising and upon subsequent renewals of such leases when we remain contingently 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 license expense.

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. 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 (except for the U.S. tax provided for as part of the Tax Act enacted on December 22, 2017, see Note 18) 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 and lease agreements.  Trade receivables consisting of royalties from franchisees, including Yum China, 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.  Yum China is our largest franchisee and we recorded franchise fee revenues of approximately $260 million from Yum China in 2017. Our provision for uncollectible franchisee receivable balances is based upon pre-defined aging criteria or upon the occurrence of other events that indicate that we may not collect the balance due.  Additionally, we monitor the financial condition of our franchisees and record provisions for estimated losses on receivables when we believe it probable that our franchisees will be unable to make their required payments.  While we use the best information available in making our determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond our control.  We recorded $5 million, less than $1 million and $6 million in net provisions within Franchise and license expenses in 2017, 2016 and 2015, respectively, related to uncollectible franchise and license trade receivables.Trade 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.
 
 
 
2017
 
2016
Accounts and notes receivable
 
$
419

 
$
384

Allowance for doubtful accounts
 
(19
)
 
(14
)
Accounts and notes receivable, net
 
$
400

 
$
370


 
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.  We monitor the financial condition of our franchisees and record provisions for estimated losses on receivables when we believe it is probable that our franchisees will be unable to make their required payments.  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 $38 million and $29 million (net of an allowance of $2 million) at December 31, 2017 and December 31, 2016, 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.

Inventories.  We value our inventories at the lower of cost (computed on the first-in, first-out method) or market.

Property, Plant and Equipment.  We state PP&E at cost less 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, 3 to 20 years for machinery and equipment and 3 to 7 years for capitalized software costs.  We suspend depreciation and amortization on assets that are held for sale.

Leases and Leasehold Improvements.  The Company leases land, buildings or both for certain of its restaurants and restaurant support centers worldwide.  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 capital or operating and 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 assured at the inception of the lease.  The primary penalty to which we are subject is the economic detriment associated with the existence of leasehold improvements which 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.  Additionally, certain of the Company's operating leases contain predetermined fixed escalations of the minimum rent during the lease term.  For leases with fixed escalating payments and/or rent holidays, we record rent expense on a straight-line basis over the lease term, including any option periods considered in the determination of that lease term.  Contingent rentals are based on sales levels in excess of stipulated amounts, and thus are not considered minimum lease payments and are included in rent expense when attainment of the contingency is considered probable (e.g. when Company sales occur).

Internal Development Costs and Abandoned Site Costs.  We capitalize direct costs associated with the site acquisition and construction of a Company unit on that site, including direct internal payroll and payroll-related costs.  Only those site-specific costs incurred subsequent to the time that the site acquisition is considered probable are capitalized.  If we subsequently make a determination that it is probable a site for which internal development costs have been capitalized will not be acquired or developed, any previously capitalized internal development costs are expensed and included in G&A.

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, Pizza Hut and Taco Bell 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 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.  If the carrying value of a reporting unit exceeds its fair value, goodwill is written down to its implied 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.

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.

Derivative Financial Instruments. We use derivative instruments primarily to hedge interest rate and foreign currency risks. 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, the effective portion of the 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. Any ineffective portion of the gain or loss on the derivative instrument for a cash flow hedge is recorded in the results of operations immediately. 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, 2017 and December 31, 2016, all of the counterparties to our interest rate swaps, foreign currency 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 such as shares cancelled upon employee share-based award exercises, 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, $1,915 million, $5,399 million and $1,124 million in share repurchases in 2017, 2016 and 2015, respectively, and $20 million related to shares cancelled upon employee share-based award exercises in 2017 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, it 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. We recognize differences in the fair value versus the market-related value of plan assets evenly over five years. 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. 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.

Recent Accounting Pronouncements. The Financial Accounting Standards Board (“FASB”) has issued standards to provide principles within a single framework for revenue recognition of transactions involving contracts with customers across all industri
es. These standards are effective for the Company in our first quarter of 2018 and we will adopt the standards using the modified retrospective method. Upon adoption, we will record an increase in Total Shareholders’ Deficit of approximately $230 million on our Consolidated Balance Sheet, which includes the impact to deferred taxes from adopting the standards. We expect the adoption of the standards to negatively impact 2018 Operating Profit by approximately $45 million. Significant changes to the Company’s accounting policies are summarized below.

These standards require that the transaction price received from customers be allocated to each separate and distinct performance obligation. The transaction price attributable to each separate and distinct performance obligation is then recognized as the performance obligations are satisfied. The services we provide related to upfront fees we receive from franchisees such as initial or renewal fees do not contain separate and distinct performance obligations from the franchise right and thus those upfront fees will be recognized as revenue over the term of each respective franchise agreement. We currently recognize upfront franchise fees such as initial and renewal fees when the related services have been provided, which is when a store opens for initial fees and when renewal options become effective for renewal fees. These standards require any unamortized portion of fees received prior to adoption be presented in our Consolidated Balance Sheet as a contract liability. Upon adoption we expect the recognition of unamortized upfront fees to increase Total Liabilities by approximately $390 million.

Similarly, the benefits we receive from incentive payments we may make to our franchisees (e.g. equipment funding provided under the KFC U.S. Acceleration Agreement, see Note 5) are not separate and distinct from the benefits we receive from the franchise right and thus those incentive payments will be amortized as a reduction of revenue over the period of expected cash flows from the franchise agreements to which the payment relates. Currently, we recognize any payments made to franchisees within our Consolidated Statements of Income when we are obligated to make the payment. These standards require any such unamortized portion of payments prior to adoption to be presented in our Consolidated Balance Sheet as an asset. Upon adoption we expect the recognition of unamortized incentive payments to increase Total Assets by approximately $140 million.

These standards will also have an impact on transactions currently not included in our revenues and expenses such as franchisee contributions to and subsequent expenditures from advertising cooperatives that we are required to consolidate and other cost reimbursement arrangements we have with our franchisees. We do not currently include these contributions and expenditures in our Consolidated Statements of Income or Cash Flows. The new standards will impact the principal/agent determinations in these arrangements by superseding industry-specific guidance included in current GAAP. When we are the principal in these transactions we will include the related contributions and expenditures within our Consolidated Statements of Income and Cash Flows. As a result of this change, we expect the increase in both Total revenues and Total costs and expenses, net in 2018 will approximate $1.0 billion, with no significant impact to Net Income. The assets and liabilities held by advertising cooperatives, which have historically been reported as Advertising cooperative assets, restricted and Advertising cooperative liabilities, respectively, will be included within the respective balance sheet caption to which the assets and liabilities relate.

These standards will not impact the recognition of our two largest sources of revenue, sales in company-owned restaurants and sales-based continuing fees from franchisees. Additionally, the new standards will not impact the recognition of refranchising gains and losses as these transactions are divestitures of businesses and thus outside the scope of the standards.

We are evaluating the impact of the standards on our disclosures of the Company’s revenues. Further, we are currently implementing internal controls related to the recognition and presentation of the Company’s revenues under these new standards.

In March 2016, the FASB issued guidance related to stock-based compensation which is intended to simplify several aspects of the accounting for employee share-based payment transactions, including their income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. We adopted this standard beginning with the quarter ended March 31, 2017.

The impact of adoption included the recognition of excess tax benefits within our income tax provision for share-based payments made of $117 million during the year ended December 31, 2017. Additionally, the standard requires these excess tax benefits be reported as operating activities in the Consolidated Statements of Cash Flows as opposed to within financing activities as they have been historically reported. We elected retrospective presentation of excess tax benefits as operating cash flows for prior years. As a result, $83 million and $46 million of excess tax benefits previously presented as a financing activity have been reclassified to operating activities for the years ended December 31, 2016 and 2015, respectively, in our Consolidated Statements of Cash Flows. No other provisions of this standard had a material impact on the Company's Consolidated Financial Statements or disclosures.

In March 2017, the FASB issued guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost (collectively, "Benefit Costs"). The standard does not change the requirement that an employer report the service cost component of these Benefit Costs in the same line item or items as other compensation costs arising from services rendered by
employees during the period. However, the standard requires that the non-service components of these Benefit Costs be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. We early adopted the standard beginning with the quarter ended March 31, 2017, on a retrospective basis. As a result, for 2016 and 2015, we have reclassified $32 million and $40 million, respectively, related to non-service components of Benefit Costs from their prior Financial Statement captions (Payroll and employee benefits and G&A) into a new Financial Statement caption titled Other pension (income) expense in our Consolidated Statements of Income. The adoption of this standard does not impact Net Income.
v3.8.0.1
Earnings Per Common Share ("EPS")
 12 Months Ended
Dec. 31, 2017
Earnings Per Share [Abstract]  
Earnings Per Common Share (EPS) Earnings Per Common Share (“EPS”)

 
 
2017
 
2016
 
2015
Income from continuing operations
 
$
1,340

 
$
1,018

 
$
926

Income from discontinued operations
 
N/A

 
625

 
357

Net Income
 
$
1,340


$
1,643


$
1,283

Weighted-average common shares outstanding (for basic calculation)
 
347

 
394

 
435

Effect of dilutive share-based employee compensation
 
8

 
6

 
8

Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)
 
355

 
400

 
443

Basic EPS from continuing operations
 
$
3.86

 
$
2.58

 
$
2.13

Basic EPS from discontinued operations
 
N/A

 
1.59

 
0.82

Basic EPS
 
$
3.86


$
4.17


$
2.95

Diluted EPS from continuing operations
 
$
3.77

 
$
2.54

 
$
2.09

Diluted EPS from discontinued operations
 
N/A

 
1.56

 
$
0.81

Diluted EPS
 
$
3.77


$
4.10


$
2.90

Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation(a)
 
2.3

 
5.0

 
4.5


(a)
These unexercised employee stock options and stock appreciation rights were not included in the computation of diluted EPS because to do so would have been antidilutive for the periods presented.
v3.8.0.1
Discontinued Operations
 12 Months Ended
Dec. 31, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] Discontinued Operations

As discussed in Note 1, on October 31, 2016, the Company completed the Separation of our China business.

In connection with the Separation, the Company and Yum China entered into a Separation and Distribution Agreement as well as various other agreements that provide a framework for the relationships between the parties, including among others a Tax Matters Agreement, an Employee Matters Agreement, a Transition Services Agreement and a Master License Agreement. These agreements provided for the allocation between the Company and Yum China of assets, employees, liabilities and obligations (including investments, property, employee benefits and tax-related assets and liabilities) attributable to periods prior to, at and after the Separation and govern certain relationships between the Company and Yum China after the Separation.

For all the periods prior to the Separation, the financial results of Yum China are presented as Income from discontinued operations, net of tax in the Consolidated Statements of Income and Cash flows from discontinued operations in our Consolidated Statements of Cash Flows.

The financial results of Yum China presented in discontinued operations reflect the results of the former China Division, an operating segment of the Company until the Separation, adjusted for the inclusion of certain G&A, non-cash impairment charges, refranchising gains, interest and income taxes that were previously not allocated to but were related to the former China Division's historical results of operations.

Additionally, these financial results reflect a deduction for royalties on sales of KFC and Pizza Hut Company-owned stores in China that prior to the Separation were paid, pursuant to an intercompany franchise agreement, by an entity of Yum China to a Company entity. This royalty expense was not reflected in our China Division results that were presented prior to the Separation,
as it was then an intercompany transaction that was eliminated in consolidation, but has been reflected in our Company's discontinued operations as such royalty arrangement continued pursuant to the Master License Agreement. Additionally, our China Division results that were presented prior to the Separation have been adjusted to exclude the portion of the royalties paid by third-party franchisees in China that have historically and continue to be remitted to a Company entity. These adjustments to our previously presented China Division results in determining Income from discontinued operations, net of tax were offset by adjustments to our KFC and Pizza Hut Divisions' results such that there was no impact on total reported Net Income.

The following table presents the financial results of the Company’s discontinued operations:
 
 
2016(a)
 
2015
Company sales
 
$
5,667

 
$
6,789

Franchise and license fees and income
 
109

 
120

Company restaurant expenses
 
(4,766
)
 
(5,913
)
G&A expenses(b)
 
(406
)
 
(405
)
Franchise and license expenses
 
(45
)
 
(48
)
Closures and impairment expenses
 
(57
)
 
(64
)
Refranchising gain
 
12

 
13

Other income(c)
 
49

 
27

Interest income, net
 
8

 
7

Income from discontinued operations before income taxes
 
571

 
526

Income tax benefit (provision)(d)
 
65

 
(164
)
Income from discontinued operations - including noncontrolling interests
 
636

 
362

(Income) loss from discontinued operations - noncontrolling interests
 
(11
)
 
(5
)
Income from discontinued operations, net of tax
 
$
625

 
$
357


(a)
Includes Yum China financial results from January 1, 2016 to October 31, 2016.

(b)
Includes costs incurred to execute the Separation of $68 million and $9 million for 2016 and 2015, respectively. Such costs primarily relate to transaction advisors, legal and other consulting fees.

(c)
Primarily relates to equity income from KFC franchisees in which Yum China owns a minority interest.

(d)
During 2016, we recorded a tax benefit of $233 million related to previously recorded losses associated with our Little Sheep business. The tax benefit associated with these losses was able to be recognized as a result of legal entity restructuring completed in anticipation of the Separation.


Cash inflows from Yum China to the Company in 2017 and 2016, subsequent to the Separation, related to the Master License Agreement was $217 million and $16 million, respectively, net of taxes paid and primarily related to royalty revenues.
v3.8.0.1
Items Affecting Comparability of Net Income and Cash Flows
 12 Months Ended
Dec. 31, 2017
Items Affecting Comparability Of Net Income And Cash Flows Disclosure [Abstract]  
Items Affecting Comparability of Net Income and Cash Flows Items Affecting Comparability of Net Income and Cash Flows

Tax Cuts and Jobs Act of 2017 (“Tax Act”)

We recognized $434 million in our 2017 Income tax provision as a result of the December 22, 2017 enactment of the Tax Act. See Note 18 for a discussion of the charge.

Refranchising (Gain) Loss

The Refranchising (gain) loss by reportable segment 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 segment performance. As such, we do not allocate such gains and losses to our segments for performance reporting purposes.

During the years ended December 31, 2017, 2016 and 2015, we refranchised 1,470, 432 and 270 restaurants, respectively. We received $1,773 million, $370 million and $213 million in pre-tax proceeds in 2017, 2016 and 2015, respectively, related to these transactions.

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

 
 
Refranchising (gain) loss
 
 
 
 
 
 
 
2017
 
2016
 
2015
 
 
 
 
 
KFC Division(a)
 
$
(581
)
 
$
(44
)
 
$
32

 
 
 
 
 
Pizza Hut Division(a)
 
(16
)
 
(48
)
 
56

 
 
 
 
 
Taco Bell Division
 
(486
)
 
(71
)
 
(65
)
 
 
 
 
 
Worldwide
 
$
(1,083
)
 
$
(163
)
 
$
23

 
 
 
 
 

(a)
In 2010, we refranchised our then-remaining Company-operated restaurants in Mexico. To the extent we owned it, we did not sell the real estate related to certain of these restaurants, instead leasing it to the franchisee. During 2015, we sold the real estate for approximately $58 million. While these proceeds exceeded the book value of the real estate, the sale represented a substantial liquidation of our Mexican foreign entities under GAAP. As such, the accumulated translation losses associated with our Mexican business were included in our loss on the sale. We recorded charges of $80 million representing the excess of the sum of the book value of the real estate and other related assets and our accumulated translation losses over the sales price. Consistent with the classification of the original Mexico market-wide refranchising transaction, these charges were classified as Refranchising (gain) loss. Refranchising losses of $40 million were associated with both the KFC and Pizza Hut Divisions. We continue to earn U.S. dollar-denominated franchise fees, most of which are sales-based royalties, under our existing franchise contracts with our Mexico franchisee.

As a result of classifying restaurant and related assets as held-for-sale and ceasing depreciation expense as well as recording any related write-downs to fair value, depreciation expense was reduced versus what would have otherwise been recorded by $10 million during the year ended December 31, 2017. Our CODM does not consider the impact of these depreciation reductions, which were recorded within Occupancy and other operating expenses when assessing segment performance. These depreciation reductions were not allocated to the Division segments resulting in depreciation expense continuing to be recorded within our Divisional results at the rate at which it was prior to the held-for-sale classification.

YUM's Strategic Transformation Initiatives

In October 2016, we announced our strategic transformation plans to drive global expansion of the KFC, Pizza Hut and Taco Bell brands ("YUM's Strategic Transformation Initiatives") following the then anticipated separation of our China business on October 31, 2016. Major features of the Company’s strategic transformation plans involve being more focused on the development of our three brands, increasing our franchise ownership and creating a leaner, more efficient cost structure. We incurred pre-tax costs of $23 million and $67 million related to our Strategic Transformation Initiatives in 2017 and 2016, respectively. In 2017, these costs were primarily recorded in G&A and included contract termination costs and relocation and severance costs for restaurant-support center employees. In 2016, these costs were primarily recorded in G&A and included restaurant-support center employee severance costs, charges associated with a voluntary retirement program offered to certain U.S. restaurant-support center employees, consulting costs incurred to facilitate YUM's Strategic Transformation Initiatives, and losses associated with our sale of Corporate aircraft upon our decision to no longer own aircraft. YUM's Strategic Transformation Initiatives represent the continuation of YUM's transformation of its operating model and capital structure following the Separation and recapitalization of YUM. Due to the scope of the initiatives as well as their significance, our CODM does not consider the associated cost when assessing segment performance. As such, these costs are not being allocated to any of our segment operating results for performance reporting purposes.

Modifications of Share-based Compensation Awards

In connection with the Separation, we modified certain share-based compensation awards held as part of our Executive Income Deferral ("EID") Plan in phantom shares of YUM Common Stock to provide one phantom Yum China share-based award for each outstanding phantom YUM share-based award. These Yum China awards may now be settled in cash, as opposed to stock, which requires recognition of the fair value of these awards within G&A in our Consolidated Income Statement. During 2017 and 2016, we recorded G&A charges related to these awards of $18 million and $30 million, respectively. Given these charges were a direct
result of the Separation, our CODM does not consider their impact when assessing segment performance. As such, these costs are not being allocated to any of our segment operating results for performance reporting purposes.

Pizza Hut U.S. Transformation Agreement

In May 2017, we reached an agreement with Pizza Hut U.S. franchisees that will improve brand marketing alignment, accelerate enhancements in operations and technology and includes a permanent commitment to incremental advertising and digital and technology contributions by franchisees. In connection with this agreement, we anticipate investing approximately $90 million to upgrade restaurant equipment to improve operations, fund improvements in restaurant technology and enhance digital and e-commerce capabilities. We currently expect the majority of this investment will be split between 2017 and 2018. During 2017, we recorded pre-tax charges of $31 million, primarily within Franchise and license expenses or G&A, and capitalized $8 million of costs primarily related to digital and e-commerce initiatives. Due to their unique and long-term brand-building nature, our CODM does not consider the impact of these investments when assessing segment performance. As such, these investments are not being allocated to the Pizza Hut Division segment operating results for performance reporting purposes.

In addition to the investments above, we have agreed to fund $37.5 million of incremental system advertising dollars from the second half of 2017 through 2018. During 2017, we incurred $25 million in related incremental system advertising expense. These advertising amounts were recorded primarily in Franchise and license expenses and are included in Pizza Hut's segment operating results.

KFC U.S. Acceleration Agreement

During 2015, we reached an agreement with our KFC U.S. franchisees that gave us brand marketing control as well as an accelerated path to expanded menu offerings, improved assets and enhanced customer experience. In connection with this agreement we anticipate investing a total of approximately $130 million from 2015 through 2018 primarily to fund new back-of house equipment for franchisees and to provide incentives to accelerate franchisee store remodels. We recorded pre-tax charges for the portion of these investments made in 2017, 2016 and 2015 of $17 million, $26 million and $72 million, respectively. These amounts were recorded primarily as Franchise and license expenses. These payments constitute a significant portion of the approximately $140 million asset for incentive payments made to franchisees which we will establish upon adoption of the new revenue recognition standard in 2018 (see Note 2). Due to their size and unique long-term brand building nature, our CODM does not consider the impact of these investments when assessing segment performance. As such, these charges are not being allocated to the KFC Division segment operating results for performance reporting purposes.

In addition to the investments above, we agreed to fund $60 million of incremental system advertising. During 2017, 2016 and 2015, we incurred $20 million, $20 million and $10 million in incremental system advertising expense, respectively, with the remaining funding of approximately $10 million to occur in 2018. The incremental system advertising amounts recorded were primarily in Franchise and license expenses and are included in the KFC Division segment operating results.

Items Impacting Other Pension (Income) Expense

During the fourth quarter of 2016, the Company allowed certain former employees with deferred vested balances in the YUM Retirement Plan ("the Plan") an opportunity to voluntarily elect an early payout of their pension benefits. As a result of settlement payments made of approximately $205 million related to this program, all of which were funded from existing Plan assets, we recorded a settlement charge of $24 million to Other pension (income) expense. Due to the size and non-recurring nature of the program, our CODM does not consider the impact of these charges when assessing performance so they were not allocated to any of our segment operating results for performance reporting purposes.

During the first quarter of 2017, as a result of the completion of a pension data review and reconciliation, we recorded a non-cash, out-of-year charge of $22 million to Other pension (income) expense to adjust our historical U.S. pension liability related to our deferred vested participants. Our CODM does not consider the impact of this charge when assessing segment performance given the number of years over which it accumulated. As such, this cost is not being allocated to any of our segment operating results for performance reporting purposes. See Note 15 for further discussion of our pension plans.

Store Closure and Impairment Activity

Store closure (income) costs and Store impairment charges by reportable segment are presented below.
 
 
2017
 
 
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
Store closure (income) costs(a)
 
$
—

 
$
—

 
$
(1
)
 
$
(1
)
Store impairment charges
 
2

 
1

 
1

 
4

Closure and impairment (income) expenses
 
$
2

 
$
1

 
$
—

 
$
3


 
 
2016
 
 
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
Store closure (income) costs(a)
 
$
3

 
$
(5
)
 
$
—

 
$
(2
)
Store impairment charges
 
8

 
6

 
3

 
17

Closure and impairment (income) expenses
 
$
11

 
$
1

 
$
3

 
$
15


 
 
2015
 
 
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
Store closure (income) costs(a)
 
$
1

 
$
(1
)
 
$
(1
)
 
$
(1
)
Store impairment charges
 
8

 
5

 
4

 
17

Closure and impairment (income) expenses
 
$
9

 
$
4

 
$
3

 
$
16


(a)
Store closure (income) costs include the net gain or loss on sales of real estate on which we formerly operated a Company-owned restaurant that was closed, lease reserves established when we cease using a property under an operating lease and subsequent adjustments to those reserves and other facility-related expenses from previously closed stores. Remaining lease obligations for closed stores were not material at December 31, 2017 or December 31, 2016.

Impact of Change in Reporting Calendar

As discussed in Note 2, we have changed our fiscal year from a year ending on the last Saturday of December to a year beginning on January 1 and ending on December 31 of each year commencing with the year ending December 31, 2017. We also removed the monthly or period reporting lags certain of our international subsidiaries historically used to report results. The impacts on our Consolidated Financial Statements of retrospectively applying these changes are included below:

 
 
2016
 
 
As Previously Reported
 
Adjustments
 
After Change in Reporting Calendar
Total revenues
 
$
6,366

 
$
(10
)
 
$
6,356

 
Operating Profit
 
1,625

 
25

(a) 
1,650

(b) 
Income from continuing operations
 
994

 
24

 
1,018

 
Income from discontinued operations, net of tax
 
625

 
—

 
625

 
Net Income
 
$
1,619

 
$
24

 
1,643

 
 
 
 
 
 
 
 
 
Diluted EPS from continuing operations
 
$
2.48

 
$
0.06

 
$
2.54

 
Diluted EPS from discontinued operations
 
1.56

 
—

 
1.56

 
Diluted EPS
 
$
4.04

 
$
0.06

 
$
4.10

 

 
 
2015
 
 
As Previously Reported
 
Adjustments
 
After Change in Reporting Calendar
Total revenues
 
$
6,440

 
$
(22
)
 
$
6,418

 
Operating Profit
 
1,402

 
(8
)
 
1,394

(b) 
Income from continuing operations
 
936

 
(10
)
 
926

 
Income from discontinued operations, net of tax
 
357

 
—

 
357

 
Net Income
 
$
1,293

 
$
(10
)
 
$
1,283

 
 
 
 
 
 
 
 
 
Diluted EPS from continuing operations
 
$
2.11

 
$
(0.02
)
 
$
2.09

 
Diluted EPS from discontinued operations
 
0.81

 
—

 
0.81

 
Diluted EPS
 
$
2.92

 
$
(0.02
)
 
$
2.90

 

(a)
Primarily represents gains of $24 million related to the refranchising of certain international restaurants which occurred in December 2016.

(b)
Amount does not reconcile to our Consolidated Statements of Income for the year ended December 31, 2016 and December 31, 2015 due to the impact of retrospectively adopting a new accounting standard on Benefit Costs of $32 million and $40 million, respectively. See Note 2.

In 2016, the impact on our Consolidated Statement of Cash Flows was a decrease in cash provided by operating activities of $39 million, a decrease in cash used in investing activities of $20 million and a decrease in cash used in financing activities of $16 million.

In 2015, the impact on our Consolidated Statement of Cash Flows was an increase in cash used in investing activities of $10 million and a decrease in cash used in financing activities of $16 million. There was no impact to cash provided by operating activities.

Our Shareholders' Equity, as of December 31, 2014, increased $9 million as a result of the change in reporting calendar.
v3.8.0.1
Supplemental Cash Flow Data
 12 Months Ended
Dec. 31, 2017
Supplemental Cash Flow Elements [Abstract]  
Supplemental Cash Flow Data Supplemental Cash Flow Data
 
 
 
2017
 
2016
 
2015
Cash Paid For:
 
 
 
 
 
 
Interest
 
$
442

 
$
297

 
$
141

Income taxes
 
346

 
314

 
392

Significant Non-Cash Investing and Financing Activities:
 
 
 
 
 
 
Capital lease obligations incurred
 
$
8

 
$
10

 
$
26

Capital lease and other debt obligations transferred through refranchising
 
(35
)
 
(1
)
 
—

Reconciliation of Cash and cash equivalents to Consolidated Statements of Cash Flows:
 
 
 
 
 
 
Cash and cash equivalents as presented in Consolidated Balance Sheets
 
$
1,522

 
$
725

 
$
345

Restricted cash included in Prepaid expenses and other current assets(a)
 
60

 
55

 
—

Restricted cash included in Other assets(b)
 
17

 
51

 
20

Cash, Cash Equivalents and Restricted Cash as presented in Consolidated Statements of Cash Flows
 
$
1,599

 
$
831

 
$
365



(a)
Restricted cash within Prepaid expenses and other current assets reflects the Taco Bell Securitization interest reserves. See Note 11.

(b)
Primarily trust accounts related to our self-insurance program. 2016 also includes cash balances required, to the extent necessary, to meet statutory minimum net worth requirements for legal entities which enter into U.S. franchise agreements.
v3.8.0.1
Franchise and License Fees and Income
 12 Months Ended
Dec. 31, 2017
Franchise And License Fees And Income Disclosure [Abstract]  
Franchise and license fees and income Franchise and License Fees and Income

 
 
2017
 
2016
 
2015
Initial fees, including renewal fees
 
$
96

 
$
72

 
$
71

Continuing fees and rental income
 
2,210

 
2,095

 
2,011

Franchise and license fees and income
 
$
2,306


$
2,167


$
2,082
v3.8.0.1
Other (Income) Expense
 12 Months Ended
Dec. 31, 2017
Other Income and Expenses [Abstract]  
Other (Income) Expense Other (Income) Expense

 
 
2017
 
2016
 
2015
Foreign exchange net (gain) loss and other
 
$
5

 
$
(6
)
 
$
20

Loss associated with corporate aircraft(a)
 
2

 
9

 
—

Other (income) expense
 
$
7


$
3


$
20



(a)
During 2016, we made the decision to no longer operate a corporate aircraft fleet and offered our owned aircraft for sale, one of which was sold during 2016 and one that was sold in 2017. The losses associated with these sales reflect the shortfall of the proceeds, including estimated proceeds in held-for-sale impairment evaluations, less any selling costs, over the carrying value of the aircraft.
v3.8.0.1
Supplemental Balance Sheet Information
 12 Months Ended
Dec. 31, 2017
Supplemental Balance Sheet Information Disclosure [Abstract]  
Supplemental Balance Sheet Information Supplemental Balance Sheet Information

Prepaid Expenses and Other Current Assets
 
2017
 
2016
Income tax receivable
 
$
175

 
$
44

Assets held for sale(a)
 
37

 
57

Other prepaid expenses and current assets
 
159

 
135

Prepaid expenses and other current assets
 
$
371


$
236



(a)
Reflects 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. 2016 amounts also include a corporate aircraft sold in 2017.

Property, Plant and Equipment
 
2017
 
2016
Land
 
$
452

 
$
438

Buildings and improvements
 
1,661

 
2,149

Capital leases, primarily buildings
 
123

 
141

Machinery and equipment
 
941

 
1,380

Property, plant and equipment, gross
 
3,177

 
4,108

Accumulated depreciation and amortization
 
(1,480
)
 
(1,995
)
Property, plant and equipment, net
 
$
1,697


$
2,113



Depreciation and amortization expense related to PP&E was $238 million, $295 million and $302 million in 2017, 2016 and 2015, respectively.

Accounts Payable and Other Current Liabilities
 
2017
 
2016
Accounts payable
 
$
119

 
$
142

Accrued capital expenditures
 
21

 
39

Accrued compensation and benefits
 
252

 
372

Dividends payable
 
—

 
106

Accrued taxes, other than income taxes
 
90

 
66

Other current liabilities
 
331

 
342

Accounts payable and other current liabilities
 
$
813


$
1,067
v3.8.0.1
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets

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

 
 
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
Balance as of December 31, 2015
 
 
 
 
 
 
 
 
Goodwill, gross
 
$
266

 
$
206

 
$
113

 
$
585

Accumulated impairment losses
 
—

 
(17
)
 
—

 
(17
)
Goodwill, net
 
266

 
189

 
113

 
568

Disposals and other, net(a)
 
2

 
(32
)
 
(2
)
 
(32
)
Balance as of December 31, 2016
 
 
 
 
 
 
 
 
Goodwill, gross
 
268

 
174

 
111

 
553

Accumulated impairment losses
 
—

 
(17
)
 
—

 
(17
)
Goodwill, net
 
268

 
157

 
111

 
536

Disposals and other, net(a)
 
(21
)
 
5

 
(8
)
 
(24
)
Balance as of December 31, 2017
 
 
 
 
 
 
 
 
Goodwill, gross
 
247

 
179

 
103

 
529

Accumulated impairment losses
 
—

 
(17
)
 
—

 
(17
)
Goodwill, net
 
$
247

 
$
162

 
$
103

 
$
512



(a)
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 2017 and 2016 are as follows:
 
 
 
2017
 
2016
 
 
Gross Carrying Amount
 
Accumulated Amortization
 
Gross Carrying Amount
 
Accumulated Amortization
Definite-lived intangible assets
 
 
 
 
 
 
 
 
Reacquired franchise rights
 
$
60

 
$
(42
)
 
$
83

 
$
(49
)
Franchise contract rights
 
100

 
(77
)
 
99

 
(73
)
Lease tenancy rights
 
32

 
(6
)
 
56

 
(9
)
Other
 
37

 
(25
)
 
36

 
(23
)
 
 
$
229

 
$
(150
)
 
$
274

 
$
(154
)
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets
 
 
 
 
 
 
 
 
KFC trademark
 
$
31

 
 
 
$
31

 
 
 
 
 
 
 
 
 
 
 


Amortization expense for all definite-lived intangible assets was $10 million in 2017, $12 million in 2016 and $13 million in 2015.  Amortization expense for definite-lived intangible assets is expected to approximate $7 million in 2018, $7 million in 2019, $6 million in 2020, $6 million in 2021 and $6 million in 2022.

v3.8.0.1
Short-term Borrowings and Long-term Debt
 12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
Short-term Borrowings and Long-term Debt Short-term Borrowings and Long-term Debt

 
 
2017
 
2016
Short-term Borrowings
 
 
 
 
Current maturities of long-term debt
 
$
386

 
$
66

Other
 
—

 
8

 
 
$
386

 
$
74

Less current portion of debt issuance costs and discounts
 
(11
)
 
(8
)
Short-term borrowings
 
$
375

 
$
66

 
 
 
 
 
Long-term Debt
 
 
 
 
Securitization Notes
 
$
2,271

 
$
2,294

Subsidiary Senior Unsecured Notes
 
2,850

 
2,100

Term Loan A Facility
 
500

 
500

Term Loan B Facility
 
1,975

 
1,990

YUM Senior Unsecured Notes
 
2,200

 
2,200

Capital lease obligations (See Note 12)
 
105

 
120

 
 
9,901

 
9,204

Less debt issuance costs and discounts
 
(86
)
 
(79
)
Less current maturities of long-term debt
 
(386
)
 
(66
)
Long-term debt
 
$
9,429


$
9,059



Securitization Notes

On May 11, 2016 Taco Bell Funding, LLC (the “Issuer”), a newly formed, special purpose limited liability company and a direct, wholly-owned subsidiary of Taco Bell Corp. ("TBC") completed a securitization transaction and issued $800 million of its Series 2016-1 3.832% Fixed Rate Senior Secured Notes, Class A-2-I (the “Class A-2-I Notes”), $500 million of its Series 2016-1 4.377% Fixed Rate Senior Secured Notes, Class A-2-II (the “Class A-2-II Notes”) and $1.0 billion of its Series 2016-1 4.970% Fixed Rate Senior Secured Notes, Class A-2-III (the “Class A-2-III Notes” and, together with the Class A-2-I Notes and the Class A-2-II Notes, the “Class A-2 Notes”).  In connection with the issuance of the Class A-2 Notes, the Issuer also entered into a revolving financing facility of Series 2016-1 Senior Notes, Class A-1 (the “Variable Funding Notes”), which allowed for the borrowing of up to $100 million and the issuance of up to $50 million in letters of credit.  The Class A-2 Notes and the Variable Funding Notes are referred to collectively as the “Securitization Notes”.  The Class A-2 Notes were issued under a Base Indenture, dated as of May 11, 2016 (the “Base Indenture”), and the related Series 2016-1 Supplement thereto, dated as of May 11, 2016 (the “Series 2016-1 Supplement”).  The Base Indenture and the Series 2016-1 Supplement (collectively, the “Indenture”) allow the Issuer to issue additional series of notes. On October 16, 2017, the Issuer terminated the Variable Funding Notes.

The Securitization Notes were issued in a transaction 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, a limited liability company ("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.

Payments of interest and principal on the Securitization Notes are made from the royalty 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 Class A-2 Notes are due on a quarterly basis. In general, no amortization of principal of the Class A-2 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 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 is required. As of the most recent quarterly measurement date the consolidated leverage ratio exceeded 5.0:1 and, as a result, amortization payments are required. The legal final maturity
date of the Notes is in May 2046, but the anticipated repayment dates of the Class A-2-I Notes, the Class A-2-II Notes and the Class A-2-III Notes will be 4, 7 and 10 years, respectively (the “Anticipated Repayment Dates”) from the date of issuance.  If the Issuer has not repaid or refinanced a series of Class A-2 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 Class A-2 Notes, as stated in the Indenture.

The Company paid debt issuance costs of $31 million in connection with the 2016 issuance of the Securitization Notes. 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. As of December 31, 2017, the effective interest rates, including the amortization of debt issuance costs, were 4.18%, 4.59%, and 5.14% for the Class A-2-I Notes, Class A-2-II Notes and Class A-2-III Notes, respectively. During 2017, $2 million of unamortized debt issuance costs were recognized within Interest expense, net due to the termination of the Variable Funding 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 Class A-2 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 Indenture) of at least 1.1:1, gross domestic sales for branded 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 Class A-2 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, 2017, 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, 2017, the Company had restricted cash of $60 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 quarter ended December 31, 2017, the Securitization Entities maintained a debt service coverage ratio significantly in excess of the 1.75:1 requirement.

Credit Facilities and Subsidiary Senior Unsecured Notes

On June 16, 2016, KFC Holding Co., Pizza Hut Holdings, LLC, a limited liability company, and TBA, each of which is a wholly-owned subsidiary of the Company, as co-borrowers (the "Borrowers"), entered into a credit agreement providing for senior secured credit facilities consisting of a $500 million Term Loan A facility (the “Term Loan A Facility"), a $2.0 billion Term Loan B facility (the “Term Loan B Facility”) and a $1.0 billion revolving facility (the “Revolving Facility”), each of which may be increased subject to certain conditions. The Term Loan A Facility, the Term Loan B Facility, and the Revolving Facility are collectively referred to as the "Credit Agreement". There are no outstanding borrowings under the Revolving Facility and $4 million of letters of credit outstanding as of December 31, 2017.

The Term Loan A Facility was originally subject to quarterly amortization payments beginning one full fiscal quarter after the first anniversary of the closing date, in an amount equal to 1.25% of the initial principal amount of the facility, in each of the second and third years of the facility; in an amount equal to 1.875% of the initial principal amount of the facility, in the fourth year of the facility; and in an amount equal to 3.75% of the initial principal amount of the facility, in the fifth year of the facility, with the balance payable at maturity on the fifth anniversary of the closing date. (Subsequently, this amortization schedule was delayed by approximately one year and the maturity date was extended to June 7, 2022 as a result of the Term Loan A repricing in 2017. See
below.) 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, with the balance payable at maturity on the seventh anniversary of the closing date.

On March 21, 2017, the Borrowers completed the repricing of the then existing $1.99 billion under the Term Loan B Facility pursuant to an amendment to the Credit Agreement. The amendment reduces the interest rate applicable to the Term Loan B Facility by 75 basis points to LIBOR plus2.00% or Base Rate plus1.00%, at the Borrower’s election, with an additional rate stepdown to LIBOR plus 1.75% or Base Rate plus 0.75% in the event the secured net leverage ratio (as defined in the Credit Agreement) is less than 1 to 1. As a result of repricing the Term Loan B Facility, $192 million in principal was assigned to new lenders or existing lenders electing to increase their holdings in the loan. The maturity date and all other material provisions under the Credit Agreement remained unchanged as a result of this amendment.

On June 7, 2017, the Borrowers completed the repricing of the existing $500 million under the Term Loan A Facility and $1 billion under the Revolving Facility pursuant to an amendment to the Credit Agreement. The amendment reduced the interest rate applicable to the Term Loan A Facility and for borrowings under the Revolving Facility by 75 basis points. Subsequent to the repricing the interest rate ranges from 1.25% to 1.75% plus LIBOR or from 0.25% to 0.75% plus the Base Rate, at the Borrower’s election, based upon the total net leverage ratio of the Borrowers and the Specified Guarantors (as defined in the Credit Agreement). As a result of repricing the Term Loan A Facility, $146 million in principal was assigned to new lenders or existing lenders electing to increase their holdings in the loan. There was no change in lender participation in the Revolving Facility. The maturity date for the Term Loan A Facility and the Revolving Facility has been extended to June 7, 2022. Amortization payments on the Term Loan A Facility will begin one full fiscal quarter after the first anniversary of the amendment effective date, which delays the original amortization schedule by approximately one year. 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, 2017.

On June 16, 2016, the Borrowers issued $1.05 billion aggregate principal amount of 5.00% Senior Unsecured Notes due 2024 and $1.05 billion aggregate principal amount of 5.25% Senior Unsecured Notes due 2026 (together, the “Subsidiary Senior Unsecured Notes”). Interest on each series of Subsidiary Senior Unsecured Notes is payable semi-annually in arrears on June 1 and December 1, beginning on December 1, 2016. Additionally, on June 15, 2017, the Borrowers issued$750 million aggregate principal amount of 4.75% Senior Notes due June 1, 2027 (the “2027 Notes”). Interest on the 2027 Notes is payable semi-annually in arrears on June 1 and December 1, beginning on December 1, 2017. The Subsidiary Senior Unsecured Notes are guaranteed on a senior unsecured basis by (i) the Company, (ii) the Specified Guarantors 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, 2017.

During 2016, the Company paid debt issuance costs of $56 million in connection with the issuance of the Credit Agreement and the Subsidiary Senior Unsecured Notes. During 2017, $32 million of fees related to the repricing of the Term Loan A, Term Loan B and Revolving Facilities and the issuance of the 2027 Notes were capitalized as debt issuance costs. The debt issuance costs are being amortized to Interest expense, net through the contractual maturity of the agreements utilizing the effective interest rate method. We classify these deferred costs on our Consolidated Balance Sheet as a reduction in the related debt when borrowings are outstanding or within Other assets if borrowings are not outstanding. Additionally, $8 million of fees and unamortized debt issuance costs were recognized within Interest expense, net due to the repricings in the year ended December 31, 2017. As of December 31, 2017, the effective interest rates, including the amortization of debt issuance costs and the impact of the interest
rate swaps on Term Loan B Facility (See Note 13), were 5.16%, 5.39%, 4.90%, 3.24%, and 3.82% for the Subsidiary Senior Unsecured Notes due 2024, the Subsidiary Senior Unsecured Notes due 2026, the Subsidiary Senior Unsecured Notes due 2027, the Term Loan A Facility, and the Term Loan B Facility, respectively.

YUM Senior Unsecured Notes

The majority of our remaining long-term debt primarily comprises YUM Senior Unsecured Notes with varying maturity dates from 2019 through 2043 and stated interest rates ranging from 3.75% to 6.88%.  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 cross-default provisions whereby the acceleration of the maturity of any of our indebtedness in a principal amount in excess of $50 million 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 following table summarizes all YUM Senior Unsecured Notes issued that remain outstanding at December 31, 2017:
 
 
 
 
 
 
Interest Rate
Issuance Date(a)
 
Maturity Date
 
Principal Amount (in millions)
 
Stated
 
Effective(b)
October 2007
 
March 2018
 
$
325

 
6.25
%
 
6.36
%
October 2007
 
November 2037
 
325

 
6.88
%
 
7.45
%
August 2009
 
September 2019
 
250

 
5.30
%
 
5.59
%
August 2010
 
November 2020
 
350

 
3.88
%
 
4.01
%
August 2011
 
November 2021
 
350

 
3.75
%
 
3.88
%
October 2013
 
November 2023
 
325

 
3.88
%
 
4.01
%
October 2013
 
November 2043
 
275

 
5.35
%
 
5.42
%

(a)
Interest payments commenced approximately six months after issuance date and are payable semi-annually thereafter.

(b)
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.

The annual maturities of short-term borrowings and long-term debt as of December 31, 2017, excluding capital lease obligations of $105 million are as follows:
 
Year ended:
 
2018
$
380

2019
318

2020
1,190

2021
441

2022
410

Thereafter
7,057

Total
$
9,796



Interest expense on short-term borrowings and long-term debt was $473 million, $331 million and $153 million in 2017, 2016 and 2015, respectively.
v3.8.0.1
Leases
 12 Months Ended
Dec. 31, 2017
Leases [Abstract]  
Leases Leases

At December 31, 2017, we operated 1,481 restaurants, leasing the underlying land and/or building in approximately 900 of those restaurants with the vast majority of our commitments expiring within 20 years from the inception of the lease.  In addition, the Company leases or subleases approximately 900 units to franchisees, principally in the U.S., United Kingdom, Germany, Australia and France.

We also lease office space for headquarters and support functions, as well as certain office and restaurant equipment.  We do not consider any of these individual leases material to our operations.  Most leases require us to pay related executory costs, which include property taxes, maintenance and insurance.

Future minimum commitments and amounts to be received as lessor or sublessor under non cancelable leases are set forth below:
 
 
Commitments
 
Lease Receivables
 
 
 
Capital
 
 
Operating
 
Direct
 Financing
 
 
Operating
2018
 
$
13

 
$
124

 
$
5

 
$
64

2019
 
13

 
111

 
4

 
58

2020
 
12

 
87

 
4

 
51

2021
 
11

 
75

 
3

 
47

2022
 
11

 
67

 
3

 
44

Thereafter
 
76

 
435

 
24

 
415

 
 
$
136

 
$
899

 
$
43

 
$
679



At December 31, 2017 and December 31, 2016, the present value of minimum payments under capital leases was $105 million and $120 million, respectively.  At December 31, 2017, unearned income associated with direct financing lease receivables was $12 million.

The details of rental expense and income are set forth below:
 
 
2017
 
2016
 
2015
Rental expense
 
 
 
 
 
 
Minimum
 
$
193

 
$
208

 
$
225

Contingent
 
21

 
26

 
29

 
 
$
214

 
$
234

 
$
254

Rental income
 
$
86

 
$
73

 
$
73
v3.8.0.1
Derivative Instruments (Notes)
 12 Months Ended
Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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 our variable-rate debt interest payments related to $1.55 billion of our Term Loan B Facility, resulting in a fixed rate of 3.92% on the swapped portion of the Term Loan B Facility. These interest rate swaps will expire in July 2021 and the notional amount, maturity date and variable rate of these swaps match those of the related debt. 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 interest payments on the related variable-rate debt. There were no other interest rate swaps outstanding as of December 31, 2017.

The effective portion of gains or losses on the interest rate swaps is reported as a component of AOCI and reclassified into Interest expense, net in our Consolidated Statement of Income in the same period or periods during which the related hedged interest payments affect earnings. Gains or losses on the swaps representing hedge ineffectiveness are recognized in current earnings. As of December 31, 2017, the swaps were highly effective cash flow hedges and no ineffectiveness has been recorded.

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.

The effective portion of gains or losses on the foreign currency contracts is 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. Gains or losses on the foreign currency contracts representing hedge ineffectiveness are recognized in current earnings. As of December 31, 2017, all foreign currency contracts outstanding have been highly effective cash flow hedges and no ineffectiveness has been recorded.

As of December 31, 2017 and December 31, 2016, foreign currency forward and swap contracts outstanding had total notional amounts of $456 million and $437 million, respectively. As of December 31, 2017, we have foreign currency forward and swap contracts with durations expiring as early as February 2018 and as late as 2020.

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, 2017, 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 AOCI and reclassifications from AOCI into Net Income:

 
Gains/(Losses) Recognized in AOCI
 
(Gains)/Losses Reclassified from AOCI into Net Income
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
Interest rate swaps
$
4

 
$
47

 
$
2

 
$
(4
)
Foreign currency contracts
(56
)
 
10

 
56

 
(18
)
Income tax benefit/(expense)
1

 
(20
)
 
(3
)
 
4



As of December 31, 2017, the estimated net gain included in AOCI related to our cash flow hedges that will be reclassified into earnings in the next 12 months is $14 million, based on current LIBOR interest rates.

See Note 14 for the fair value of our derivative assets and liabilities.
v3.8.0.1
Fair Value Disclosures
 12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Fair Value Disclosures Fair Value Disclosures

As of December 31, 2017 the carrying values of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, 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:

 
12/31/2017
 
12/31/2016
 
Carrying Value
 
Fair Value (Level 2)
 
Carrying Value
 
Fair Value (Level 2)
Debt obligations
 
 
 
 
 
 
 
Securitization Notes(a)
$
2,271

 
$
2,367

 
$
2,294

 
$
2,315

Subsidiary Senior Unsecured Notes(b)
2,850

 
2,983

 
2,100

 
2,175

Term Loan A Facility(b)
500

 
503

 
500

 
501

Term Loan B Facility(b)
1,975

 
1,990

 
1,990

 
2,016

YUM Senior Unsecured Notes(b)
2,200

 
2,277

 
2,200

 
2,216

 
(a)
We estimated the fair value of the Securitization Notes by obtaining broker quotes from two separate brokerage firms that are knowledgeable about the Company’s Securitization Notes and, at times, trade these notes. 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 forwards and swaps accounted for as cash flow hedges 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.  No transfers among the levels within the fair value hierarchy occurred during the years ended December 31, 2017 or December 31, 2016.
 
 
 
 
Fair Value
 
 
 
Level
 
2017
 
2016
 
Consolidated Balance Sheet
Interest Rate Swaps - Liability
 
2

 
$
—

 
$
3

 
Accounts payable and other current liabilities
Interest Rate Swaps - Asset
 
2

 
9

 
—

 
Prepaid expenses and other current assets
Interest Rate Swaps - Asset
 
2

 
40

 
47

 
Other assets
Foreign Currency Contracts - Liability
 
2

 
46

 
—

 
Other Liabilities and deferred credits
Foreign Currency Contracts - Asset
 
2

 
5

 
6

 
Prepaid expenses and other current assets
Foreign Currency Contracts - Asset
 
2

 
—

 
10

 
Other assets
Other Investments
 
1

 
29

 
24

 
Other assets

The fair value of the Company’s foreign currency forwards and swaps 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 upon observable inputs. The other investments include investments in mutual funds, which are used to offset fluctuations in deferred compensation liabilities that employees have chosen to invest in phantom shares of a Stock Index Fund or Bond Index Fund. The other investments are classified as trading securities in Other assets in our Consolidated Balance Sheet and their fair value is determined based on the closing market prices of the respective mutual funds as of December 31, 2017 and December 31, 2016.

Non-Recurring Fair Value Measurements

The following table presents expense recognized from all non-recurring fair value measurements during the years ended December 31, 2017 and December 31, 2016. These amounts exclude fair value measurements made for assets that were subsequently dispo
sed 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, 2017 and December 31, 2016 is insignificant.

 
 
2017
 
2016
 
Aircraft impairment(a)
 
$
—

 
$
3

 
Restaurant-level impairment(b)
 
2

 
9

 
Total
 
$
2

 
$
12

 

(a)
During 2016, we made the decision to dispose of a corporate aircraft. The loss associated with this then planned sale reflected the shortfall of the expected proceeds, less any selling costs, over the carrying value of the aircraft. The expected proceeds were based on actual bids received from potential buyers for similar assets (Level 2).

(b)
Restaurant-level impairment charges are recorded in Closures and impairment (income) expenses and resulted primarily from our semi-annual 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).
v3.8.0.1
Pension, Retiree Medical and Retiree Savings Plans
 12 Months Ended
Dec. 31, 2017
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 provide 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 2018. Our two significant U.S. plans 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.

During the fourth quarter of 2016, the Company allowed certain former employees with deferred vested balances in the Plan an opportunity to voluntarily elect an early payout of their benefits. See Note 5 for details.

We do not anticipate any plan assets being returned to the Company during 2018 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.

 
 
2017
 
2016
Change in benefit obligation:
 
 
 
 
Benefit obligation at beginning of year
 
$
993

 
$
1,134

Service cost
 
10

 
17

Interest cost
 
41

 
54

Plan amendments
 
2

 
4

Curtailments
 
(2
)
 
(4
)
Special termination benefits
 
2

 
3

Benefits paid
 
(76
)
 
(26
)
Settlement payments(a)
 
(73
)
 
(260
)
Actuarial (gain) loss
 
115

 
77

Administrative expense
 
(5
)
 
(6
)
Benefit obligation at end of year
 
$
1,007

 
$
993

 
 
 
 
 
Change in plan assets:
 
 
 
 
Fair value of plan assets at beginning of year
 
$
837

 
$
1,004

Actual return on plan assets
 
129

 
87

Employer contributions
 
52

 
38

Settlement payments(a)
 
(73
)
 
(260
)
Benefits paid
 
(76
)
 
(26
)
Administrative expenses
 
(5
)
 
(6
)
Fair value of plan assets at end of year
 
$
864

 
$
837

 Funded status at end of year
 
$
(143
)
 
$
(156
)


(a)
For discussion of the settlement payments made in connection with the deferred vested program in 2016, see Note 5.

Amounts recognized in the Consolidated Balance Sheet:
 
 
2017
 
2016
Accrued benefit liability - current
 
$
(8
)
 
$
(16
)
Accrued benefit liability - non-current
 
(135
)
 
(140
)
 
 
$
(143
)
 
$
(156
)


The accumulated benefit obligation was $976 million and $960 million at December 31, 2017 and December 31, 2016, respectively.

Information for pension plans with an accumulated benefit obligation in excess of plan assets:
 
 
2017
 
2016
Projected benefit obligation
 
$
1,007

 
$
993

Accumulated benefit obligation
 
976

 
960

Fair value of plan assets
 
864

 
837



Information for pension plans with a projected benefit obligation in excess of plan assets:
 
 
2017
 
2016
Projected benefit obligation
 
$
1,007

 
$
993

Accumulated benefit obligation
 
976

 
960

Fair value of plan assets
 
864

 
837



Components of net periodic benefit cost:
 
 
2017
 
2016
 
2015
Service cost
 
$
10

 
$
17

 
$
18

Interest cost
 
41

 
54

 
55

Amortization of prior service cost(a)
 
6


6


1

Expected return on plan assets
 
(45
)
 
(65
)
 
(62
)
Amortization of net loss
 
5

 
6

 
45

Net periodic benefit cost
 
$
17

 
$
18

 
$
57


Additional (gain) loss recognized due to:

Settlement charges(b)
 
$
19

 
$
32

 
$
5

Special termination benefits
 
$
2

 
$
3

 
$
1

Pension data adjustment(c)
 
$
22

 
$
—

 
$
—


(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.

(c)
Reflects a non-cash, out-of-year charge related to the adjustment of certain historical deferred vested liability balances in the Plan during the first quarter of 2017 recorded in Other pension (income) expense. See Note 5.

Pension gains (losses) in AOCI:
 
 
2017
 
2016
Beginning of year
 
$
(180
)
 
$
(170
)
Net actuarial gain (loss)
 
(10
)
 
(54
)
Curtailments
 
2

 
4

Amortization of net loss
 
5

 
6

Amortization of prior service cost
 
6

 
6

Prior service cost
 
(2
)
 
(4
)
Settlement charges
 
19

 
32

End of year
 
$
(160
)
 
$
(180
)


Accumulated pre-tax losses recognized within AOCI:
 
 
2017
 
2016
Actuarial net loss
 
$
(134
)
 
$
(150
)
Prior service cost
 
(26
)
 
(30
)
 
 
$
(160
)
 
$
(180
)


The estimated net loss that will be amortized from AOCI into net periodic pension cost in 2018 is $16 million.  The estimated prior service cost that will be amortized from AOCI into net periodic pension cost in 2018 is $6 million.

Weighted-average assumptions used to determine benefit obligations at the measurement dates:
 
 
2017
 
2016
Discount rate
 
3.90
%
 
4.60
%
Rate of compensation increase
 
3.75
%
 
3.75
%

Weighted-average assumptions used to determine the net periodic benefit cost for fiscal years:
 
 
2017(a)
 
2016
 
2015
Discount rate
 
4.53
%
 
4.90
%
 
4.30
%
Long-term rate of return on plan assets
 
6.06
%
 
6.75
%
 
6.75
%
Rate of compensation increase
 
3.75
%
 
3.75
%
 
3.75
%


(a)    Reflects a weighted average due to interim remeasurements in 2017.

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, 2017 and December 31, 2016 by asset category and level within the fair value hierarchy are as follows:

 
 
2017
 
2016
Level 1:
 
 
 
 
Cash
 
$
3

 
$
2

Cash Equivalents(a)
 
12

 
12

Fixed Income Securities - U.S. Corporate(b)
 
177

 
172

Equity Securities – U.S. Large cap(b)
 
257

 
244

Equity Securities – U.S. Mid cap(b)
 
43

 
41

Equity Securities – U.S. Small cap(b)
 
43

 
43

Equity Securities – Non-U.S.(b)
 
87

 
83

Level 2:
 
 
 
 
Fixed Income Securities – U.S. Corporate(c)
 
86

 
76

Fixed Income Securities – U.S. Government and Government Agencies(d)
 
177

 
152

Fixed Income Securities – Other(d)
 
35

 
31

Total fair value of plan assets(e)
 
$
920

 
$
856



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

(b)
Securities held in common trusts.

(c)
Investments held directly by the Plan.

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

(e)
2017 and 2016 exclude net unsettled trade payables of $56 million and $19 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.  The Plan's equity securities, currently targeted to be 50% of our investment mix, consist primarily of low-cost index funds focused on achieving long-term capital appreciation.  The Plan diversifies its equity risk by investing in several different U.S. and foreign market index funds.  Investing in these index funds provides the Plan with the adequate liquidity required to fund benefit payments and plan expenses.  The fixed income asset allocation, currently targeted to be 50% of our mix, is actively managed and consists of long-duration fixed income securities that help to reduce exposure to interest rate variation and to better correlate asset maturities with obligations. The fair values of all pension plan assets are determined based on closing market prices or net asset values.

A mutual fund held as an investment by the Plan includes shares of Common Stock valued at $0.3 million at both December 31, 2017 and December 31, 2016 (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:
 
 
2018
 
$
65

2019
 
37

2020
 
39

2021
 
42

2022
 
44

2023 - 2027
 
257


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 2017 and 2016, the projected benefit obligations of these UK plans totaled $287 million and $261 million, respectively and plan assets totaled $358 million and $305 million, respectively. These plans were both in a net overfunded position at the end of 2017 and 2016 and related expense amounts recorded in each of 2017, 2016 and 2015 were not significant.

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 2018.

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.  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 both 2017 and 2016, the accumulated post-retirement benefit obligation was $55 million.  Actuarial gains of $8 million and $10 million were recognized in AOCI at the end of 2017 and 2016, respectively. The net periodic benefit cost recorded was $2 million in 2017 and $3 million in both 2016 and 2015, 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.  Our assumed heath care cost trend rates for the following year as of 2017 and 2016 are 6.3% and 6.6%, respectively, with expected ultimate trend rates of 4.5% reached in 2038.

There is a cap on our medical liability for certain retirees.  The cap for Medicare-eligible retirees was reached in 2000 and the cap for non-Medicare eligible retirees was reached in 2014; with the cap, our annual cost per retiree will not increase.  A one-percentage-point increase or decrease in assumed health care cost trend rates would have no impact on total service and interest cost or on the post-retirement benefit obligation.  The benefits expected to be paid in each of the next five years are approximately $5 million and in aggregate for the five years thereafter are $17 million.

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 $13 million in 2017, $14 million in 2016 and $13 million in 2015.
v3.8.0.1
Share-based and Deferred Compensation Plans
 12 Months Ended
Dec. 31, 2017
Compensation Related Costs [Abstract]  
Share-based and Deferred Compensation Plans Share-based and Deferred Compensation Plans

Overview

At year end 2017, we had one stock award plan in effect: the YUM! Brands, Inc. Long-Term Incentive Plan (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.

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.  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 expire ten years after grant.

At year end 2017, approximately 28 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 a 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 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 2018.

In connection with the Separation of our China business in the prior year, under the provisions of our LTIP, employee stock options, SARs, RSUs and PSUs 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 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. Share-based compensation as recorded in Income from continuing operations is based on the amortization of the fair value for both YUM and Yum China awards held by YUM employees.

The shareholder method was based on the premise that employees holding YUM awards prior to the Separation should receive an equal number of awards of both YUM and Yum China. For stock options and SARs, exercise prices of these post-Separation YUM and Yum China awards were established that, on a combined basis, maintained the intrinsic value on the YUM award prior to the Separation. The exercise prices provided for an initial intrinsic value in each of the post-Separation YUM and YUM China awards that was proportionate to the market value of the two companies on November 1, 2016. For RSUs and PSUs modified under the shareholder method, each YUM award was modified into one YUM award and one Yum China award.

Under the employer method, employees holding YUM awards prior to the Separation had their awards converted into awards of the company that they worked for subsequent to the Separation. For stock options and SARs modified under the employer method,
the exercise prices of the awards were modified to maintain the pre-Separation intrinsic value of the awards in relation to the post-Separation stock price of the applicable company. For RSUs and PSUs modified under the employer method, the number of awards was modified to maintain the pre-Separation intrinsic value of the awards in relation to the post-Separation stock price of the applicable company.

The modifications to the outstanding equity awards resulted in an insignificant amount of additional compensation expense in the year ended December 31, 2016.

Investments in phantom shares of our Common Stock held within our EID Plan by employees that remained with YUM post-Separation that were converted into phantom investments in Yum China at Separation under the shareholder method are allowed to be transferred into cash, phantom shares of a Stock Index Fund and phantom shares of a Bond Index Fund within the EID Plan. As such, distributions of current investments in phantom shares of Yum China may now be settled in cash, as opposed to stock, at a date as elected by the employee and, therefore, are classified as a liability and remeasured to fair value at each reporting period in our Consolidated Balance Sheet. During 2017 and 2016, we recorded $18 million and $30 million, respectively, within G&A related to these awards (See Note 5).

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:

 
 
2017
 
2016
 
2015
Risk-free interest rate
 
1.9
%
 
1.4
%
 
1.3
%
Expected term (years)
 
6.4 years

 
6.4 years

 
6.4 years

Expected volatility
 
22.9
%
 
27.0
%
 
26.9
%
Expected dividend yield
 
1.8
%
 
2.6
%
 
2.2
%


We believe it is appropriate to group our stock option and SAR awards into two homogeneous groups when estimating expected term.  These groups consist of grants made primarily to restaurant-level employees, which cliff-vest after 4 years and expire 10 years after grant, and grants made to executives, which typically have a graded vesting schedule of 25% per year over 4 years and expire 10 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 restaurant-level employees and our executives exercised the awards on average after 5 years and 6.5 years, respectively.

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 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
 
21,242

 
 
 
$
40.78

 
 
 
 
Granted
 
2,879

 
 
 
67.93

 
 
 
 
Exercised
 
(4,269
)
 
 
 
36.45

 
 
 
 
Forfeited or expired
 
(1,567
)
 
 
 
54.98

 
 
 
 
Outstanding at the end of the year
 
18,285

(a) 
 
 
44.85

 
5.42

 
$
672

Exercisable at the end of the year
 
11,971

 
 
 
$
38.07

 
4.00

 
$
521



(a)
Outstanding awards include 943 options and 17,342 SARs with weighted average exercise prices of $36.63 and $45.30, 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 2017, 2016 and 2015 was $14.08, $14.40 and $15.95, respectively.  The total intrinsic value of stock options and SARs exercised during the years ended December 31, 2017, December 31, 2016 and December 31, 2015, was $154 million, $263 million and $153 million, respectively.

As of December 31, 2017, $55 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 1.8 years.  This reflects unrecognized cost for both YUM and Yum China awards held by YUM employees. The total fair value at grant date of awards for both YUM and Yum China awards held by YUM employees that vested during 2017, 2016 and 2015 was $33 million, $41 million and $42 million, respectively.

RSUs and PSUs

As of December 31, 2017, there was $20 million of unrecognized compensation cost related to 1.0 million unvested RSUs and PSUs. The total fair value at grant date of awards that vested during 2017, 2016 and 2015 was $10 million, $7 million and $11 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:

 
 
2017
 
2016
 
2015
Options and SARs
 
$
30

 
$
38

 
$
41

Restricted Stock Units
 
26

 
38

 
3

Performance Share Units
 
9

 
4

 
2

Total Share-based Compensation Expense
 
$
65

(a) 
$
80

(b) 
$
46

Deferred Tax Benefit recognized
 
$
22

(c) 
$
26

 
$
15

 
 
 
 
 
 
 
EID compensation expense not share-based
 
$
12

 
$
5

 
$
1


(a)    Includes $18 million due to appreciation in the market price of Yum China's stock. See Note 5.

(b)    Includes $30 million due to modifications of awards in connection with the Separation that was not allocated to any of
our operating segments for performance purposes. See Note 5.

(c)    Deferred tax benefit recognized does not reflect the impact of the Tax Act. See Note 18.

Cash received from stock option exercises for 2017, 2016 and 2015, was $12 million, $5 million and $12 million, respectively.  Tax benefits realized on our tax returns from tax deductions associated with share-based compensation for 2017, 2016 and 2015 totaled $153 million, $109 million and $62 million, respectively.
v3.8.0.1
Shareholders' Equity
 12 Months Ended
Dec. 31, 2017
Stockholders' Equity Note [Abstract]  
Shareholders' Equity Shareholders’ Deficit

Under the authority of our Board of Directors, we repurchased shares of our Common Stock during 2017, 2016 and 2015.  All amounts exclude applicable transaction fees.  
 
 
 
Shares Repurchased
(thousands)
 
 
Dollar Value of Shares
Repurchased
 
Authorization Date
 
2017

 
 
2016

 
 
2015

 
 
2017

 
 
2016

 
 
2015

 
November 2017
 
—

 
 
—

 
 
—

 
 
$
—

 
 
$
—

 
 
$
—

 
November 2016
 
26,561

 
 
1,337

 
 
—

 
 
1,915

 
 
85

 
 
—

 
May 2016
 
—

 
 
50,435

 
 
—

 
 
—

 
 
4,200

 
 
—

 
March 2016
 
—

 
 
2,823

 
 
—

 
 
—

 
 
229

 
 
—

 
December 2015
 
—

 
 
13,368

 
 
932

 
 
—

 
 
933

 
 
67

 
November 2014
 
—

 
 
—

 
 
13,231

 
 
—

 
 
—

 
 
1,000

 
November 2013
 
—

 
 
—

 
 
1,779

 
 
—

 
 
—

 
 
133

 
Total
 
26,561

(a) 
 
67,963

(a) 
 
15,942

 
 
$
1,915

(a) 
 
$
5,447

(a) 
 
$
1,200

 

(a)
2017 amount excludes and 2016 amount includes the effect of $45 million in share repurchases (0.7 million shares) with trade dates prior to December 31, 2016 but settlement dates subsequent to December 31, 2016.

On November 16, 2017, our Board of Directors authorized share repurchases through December 2018 of up to $1.5 billion (excluding applicable transaction fees) of our outstanding Common Stock. As of December 31, 2017, we have remaining capacity to repurchase up to $1.5 billion of Common Stock under this authorization.

Changes in AOCI are presented below.
 
 
Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature(a)
 
Pension and Post-Retirement Benefits(b)
 
Derivative Instruments(c)
 
Total
Balance at December 31, 2015, net of tax
 
$
(125
)
 
$
(113
)
 
$
(14
)
 
$
(252
)
 
 
 
 
 
 
 
 
 
Gains (losses) arising during the year classified into AOCI, net of tax
 
(153
)
 
(41
)
 
37

 
(157
)
 
 
 
 
 
 
 
 
 
(Gains) losses reclassified from AOCI, net of tax

 
(11
)
 
27

 
(18
)
 
(2
)
 
 
 
 
 
 
 
 
 
OCI, net of tax
 
(164
)
 
(14
)
 
19

 
(159
)
 
 
 
 
 
 
 
 
 
Separation of China business
 
(47
)
 
—

 
—

 
(47
)
 
 
 
 
 
 
 
 
 
Balance at December 31, 2016, net of tax
 
$
(336
)
 
$
(127
)
 
$
5

 
$
(458
)
 
 
 
 
 
 
 
 
 
Gains (losses) arising during the year classified into AOCI, net of tax
 
107

 
(13
)
 
(51
)
 
43

 
 
 
 
 
 
 
 
 
(Gains) losses reclassified from AOCI, net of tax

 
55

 
34

 
55

 
144

 
 
 
 
 
 
 
 
 
OCI, net of tax
 
162

 
21

 
4

 
187

 
 
 
 
 
 
 
 
 
Balance at December 31, 2017, net of tax
 
$
(174
)
 
$
(106
)
 
$
9

 
(271
)
 
 
 
 
 
 
 
 
 

(a)
Amounts reclassified from AOCI are due to substantially complete liquidations of foreign entities related to KFC Turkey, Pizza Hut Turkey, Pizza Hut Thailand and Pizza Hut Korea refranchising transactions during 2017 and the Pizza Hut Australia refranchising transaction during 2016.

(b)
Amounts reclassified from AOCI for pension and post-retirement benefit plan losses during 2017 include amortization of net losses of $5 million, historical pension data adjustment of $22 million, settlement charges of $20 million, amortization of prior service cost of $5 million and related income tax benefit of $18 million. Amounts reclassified from AOCI for pension and post-retirement benefit plan losses during 2016 include amortization of net losses of $6 million, settlement charges of $33 million, amortization of prior service cost of $5 million and related income tax benefit of $17 million. See Note 15.

(c)
See Note 13 for details on amounts reclassified from AOCI.
v3.8.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes

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

 
 
2017
 
2016
 
2015
U.S.
 
$
662

 
$
366

 
$
480

Foreign
 
1,612

 
979

 
773

 
 
$
2,274

 
$
1,345

 
$
1,253



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

 
 
 
 
2017
 
2016
 
2015
Current:
 
Federal
 
$
(2
)
 
$
126

 
$
267

 
 
Foreign
 
290

 
160

 
133

 
 
State
 
12

 
13

 
28

 
 
 
 
$
300

 
$
299

 
428

 
 
 
 
 
 
 
 
 
Deferred:
 
Federal
 
$
603

 
$
19

 
(116
)
 
 
Foreign
 
19

 
3

 
15

 
 
State
 
12

 
6

 
—

 
 
 
 
$
634

 
$
28

 
$
(101
)
 
 
 
 
$
934


$
327


$
327



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

 
 
2017
 
2016
 
2015
U.S. federal statutory rate
 
$
797

 
35.0
 %
 
$
473

 
35.0
 %
 
$
438

 
35.0
 %
State income tax, net of federal tax benefit
 
11

 
0.5

 
15

 
1.1

 
12

 
0.9

Statutory rate differential attributable to foreign operations
 
(212
)
 
(9.3
)
 
(143
)
 
(10.5
)
 
(175
)
 
(13.7
)
Adjustments to reserves and prior years
 
12

 
0.5

 
(11
)
 
(0.8
)
 
13

 
1.0

Share-based payments
 
(117
)
 
(5.1
)
 
—

 
—

 
—

 
—

Change in valuation allowances
 
34

 
1.5

 
(3
)
 
(0.2
)
 
41

 
3.0

Other, net
 
(25
)
 
(1.1
)
 
(4
)
 
(0.3
)
 
(2
)
 
(0.1
)
Tax Act Enactment
 
434

 
19.1

 
—

 
—

 
—

 
—

Effective income tax rate
 
$
934

 
41.1
 %
 
$
327

 
24.3
 %
 
$
327

 
26.1
 %


Statutory rate differential attributable to foreign operations.  This item includes local taxes, withholding taxes, and shareholder-level taxes, net of foreign tax credits.  The favorable impact is primarily attributable to a majority of our income being earned outside of the U.S. where tax rates are generally lower than the U.S. rate.

In 2015, this benefit was positively impacted by the repatriation of current year foreign earnings as we recognized excess foreign tax credits, resulting from the related effective foreign tax rate being higher than the U.S. federal statutory rate.

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. The impact of certain effects or changes may offset items reflected in the 'Statutory rate differential attributable to foreign operations' line.

In 2016, this item was favorably impacted by the resolution of uncertain tax positions in the U.S.

Share-based payments. 2017 includes a $117 million tax benefit related to the excess tax benefits from share-based payments. These excess benefits were largely associated with deferred compensation payouts to recently retired employees. See Note 2 for discussion related to the adoption of a new accounting standard for share based payments in 2017.

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.  The impact of certain changes may offset items reflected in the 'Statutory rate differential attributable to foreign operations' line.

In 2017, $34 million of net tax expense was driven by valuation allowances recorded against deferred tax assets generated in the current year. This amount excludes a valuation allowance of $189 million related to the Tax Act.

In 2016, $3 million of net tax benefit was driven by $14 million in net tax expense for valuation allowances recorded against deferred tax assets generated in the current year and $17 million in net tax benefit for valuation allowances resulting from a change in judgment regarding the future use of certain deferred tax assets that existed at the beginning of the year.

In 2015, $41 million of net tax expense was driven by $17 million for valuation allowances recorded against deferred tax assets generated in the current year and $24 million in net tax expense resulting from a change in judgment regarding the future use of certain deferred tax assets that existed at the beginning of the year.

Other.  This item primarily includes the impact of permanent differences related to current year earnings as well as U.S. tax credits and deductions.

In 2017, this item was primarily driven by the favorable impact of certain international refranchising gains.

Tax Act Enactment. On December 22, 2017, the U.S. government enacted comprehensive Federal tax legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). The Tax Act significantly modifies the U.S. corporate income tax system by, among other things, reducing the federal income tax rate from 35% to 21%, limiting certain deductions, including limiting the deductibility of interest expense to 30% of U.S. Earnings Before Interest, Taxes, Depreciation and Amortization, imposing a mandatory one-time deemed repatriation tax on accumulated foreign earnings and creating a territorial tax system that changes the manner in which future foreign earnings are subject to U.S. tax. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin 118 that allows us to record provisional amounts related to the impacts of the Tax Act during a measurement period not to extend beyond one year of the enactment date. We currently are analyzing the Tax Act and have made reasonable estimates of the effects on our Consolidated Financial Statements and tax disclosures, including the amount of the deemed repatriation tax and changes to our existing deferred tax balances.

The deemed repatriation tax is based on our accumulated foreign earnings and profits that we previously deferred from U.S. income taxes. We recorded an estimated amount for our repatriation tax liability of $170 million as of December 31, 2017. In addition, we remeasured certain net deferred tax assets and liabilities based on the tax rates at which they are expected to reverse in the future. The estimated amount recorded related to the remeasurement of these balances was a net expense of $75 million. Lastly, we recorded a valuation allowance of $189 million on our remaining foreign tax credit carryforwards which are unlikely to be realized under the U.S. territorial tax system. The estimated total impact upon enactment of the Tax Act is $434 million.

We consider the key estimates on the deemed repatriation tax, net deferred tax remeasurement and the impact on our foreign tax credit carryforwards to be incomplete due to our continuing analysis of final year-end data and tax positions. Our analysis could affect the measurement of these balances and give rise to new deferred and other tax assets and liabilities. Since the Tax Act was passed late in the fourth quarter of 2017, and further guidance and accounting interpretation is expected over the next 12 months, our review is still pending. We expect to complete our analysis of the amounts recorded upon enactment of the Tax Act within the measurement period of one year.

The details of 2017 and 2016 deferred tax assets (liabilities) are set forth below:
 
 
2017
 
2016
Operating losses
 
$
216

 
$
172

Capital losses
 
4

 
184

Tax credit carryforwards
 
311

 
284

Employee benefits
 
94

 
185

Share-based compensation
 
58

 
100

Self-insured casualty claims
 
7

 
32

Lease-related liabilities
 
51

 
65

Various liabilities
 
51

 
56

Property, plant and equipment
 
24

 
37

Deferred income and other
 
31

 
32

Gross deferred tax assets
 
847

 
1,147

Deferred tax asset valuation allowances
 
(421
)
 
(195
)
Net deferred tax assets
 
$
426

 
$
952

Intangible assets, including goodwill
 
$
(69
)
 
$
(107
)
Property, plant and equipment
 
(18
)
 
(46
)
Deemed repatriation tax
 
(170
)
 
—

Other
 
(36
)
 
(34
)
Gross deferred tax liabilities
 
$
(293
)
 
$
(187
)
Net deferred tax assets (liabilities)
 
$
133


$
765


Reported in Consolidated Balance Sheets as:
 
 
 
 
Deferred income taxes
 
$
139


$
772

Other liabilities and deferred credits
 
(6
)
 
(7
)
 
 
$
133


$
765



As of December 31, 2017, we had approximately $3.2 billion of unremitted foreign earnings. We have historically reinvested all the unremitted earnings of our foreign subsidiaries and affiliates, and therefore have not recognized any U.S. deferred tax liability on these earnings. However, upon the enactment of the Tax Act, the unremitted earnings of our foreign subsidiaries and affiliates are subject to U.S. tax due to the mandatory deemed repatriation tax on accumulated foreign earnings provision. As a result, we recognized a one-time income tax expense of $170 million. Our intent is to indefinitely reinvest our unremitted earnings outside the U.S. and our current plans do not demonstrate a need to repatriate these amounts to fund our U.S. operations. Thus, for our investments in foreign subsidiaries where the carrying values for financial reporting exceed the tax basis, we have not provided taxes, other than U.S. federal taxes, for the portion of the excess that we believe is permanently invested, as we have the ability and intent to indefinitely postpone these basis differences from reversing with a tax consequence. However, if these funds were repatriated, we would be required to accrue and pay applicable income taxes (if any) and withholding taxes payable to various countries. A determination of the deferred tax liability on this amount is not practicable.

At December 31, 2017, the Company has foreign operating and capital loss carryforwards of $0.5 billion and U.S. state operating loss and tax credit carryforwards of $1.1 billion and U.S. federal tax credit carryforwards of $0.3 billion.  A valuation allowance of $434 million has been recorded against the carryforwards that are not likely to be realized. These losses are being carried forward in jurisdictions where we are permitted to use tax losses from prior periods to reduce future taxable income and will expire as follows:

 
 
Year of Expiration
 
 
 
 
2018
 
2019-2022
 
2023-2036
 
Indefinitely
 
Total
Foreign
 
$
9

 
$
46

 
$
85

 
$
376

 
$
516

U.S. state
 
—

 
61

 
1,012

 
—

 
1,073

U.S. federal
 
—

 
67

 
238

 
—

 
305

 
 
$
9

 
$
174

 
$
1,335

 
$
376

 
$
1,894



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.

The Company had $100 million and $91 million of unrecognized tax benefits at December 31, 2017 and December 31, 2016, respectively, $10 million and $87 million of which are temporary in nature and if recognized, would not impact the effective income tax rate.  A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
 
 
2017
 
2016
Beginning of Year
 
$
91

 
$
98

     Additions on tax positions - current year
 
3

 
—

     Additions for tax positions - prior years
 
8

 
1

     Reductions for tax positions - prior years
 
—

 
(5
)
     Reductions for settlements
 
(1
)
 
(1
)
     Reductions due to statute expiration
 
(1
)
 
(2
)
     Foreign currency translation adjustment
 
—

 
—

End of Year
 
$
100

 
$
91



The Company believes its unrecognized tax benefits will not materially increase or decrease in the next 12 months.

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 2010. 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.

The accrued interest and penalties related to income taxes at December 31, 2017 and December 31, 2016 are set forth below:
 
 
2017
 
2016
Accrued interest and penalties
 
$
14

 
$
9



During 2017, 2016 and 2015, a net expense of $5 million, a net benefit of $4 million and a net expense of $5 million, respectively, for interest and penalties was recognized in our Consolidated Statements of Income as components of its Income tax provision.

In October 2016, the Company completed the separation of its China business into an independent publicly-traded company. The transaction has been treated as qualifying as a tax-free reorganization for U.S. income tax purposes. In addition, the Company considered the China indirect income tax on indirect transfers of assets by nonresident enterprises and concluded that it does not apply to the separation transaction.
v3.8.0.1
Reportable Operating Segments
 12 Months Ended
Dec. 31, 2017
Reportable Operating Segments [Abstract]  
Reportable Operating Segments Reportable Operating Segments

See Note 1 for a description of our operating segments.
 
 
Revenues
 
 
2017
 
2016
 
2015
KFC Division(a)
 
$
3,110


$
3,225


$
3,222

Pizza Hut Division(a)
 
893


1,108


1,205

Taco Bell Division(a)
 
1,880

 
2,025

 
1,991

Unallocated(b)(f)
 
(5
)
 
(2
)
 
—

 
 
$
5,878


$
6,356


$
6,418



 
 
Operating Profit; Interest Expense, Net; and
Income Before Income Taxes
 
 
2017
 
2016
 
2015
KFC Division
 
$
981


$
871


$
835

Pizza Hut Division
 
341


367


351

Taco Bell Division
 
619

 
595

 
546

Unallocated Franchise and license fees and income(b)(f)
 
(5
)
 
(2
)
 
—

Unallocated restaurant costs(b)(i)
 
10


—


—

Unallocated Franchise and license expenses(b)(f)
 
(30
)
 
(24
)
 
(71
)
Corporate and unallocated G&A expenses(b)(g)
 
(230
)

(280
)

(180
)
Unallocated Refranchising gain (loss)(b)
 
1,083


163


(23
)
Unallocated Other income (expense)(b)(h)
 
(8
)

(8
)

(24
)
Operating Profit
 
2,761


1,682


1,434

Other pension income (expense)(b)(j)
 
(47
)
 
(32
)
 
(40
)
Interest expense, net(b)
 
(440
)

(305
)

(141
)
Income from continuing operations before income taxes
 
$
2,274


$
1,345


$
1,253


 
 
Depreciation and Amortization
 
 
2017
 
2016
 
2015
KFC Division
 
$
138

 
$
172

 
180

Pizza Hut Division
 
26

 
36

 
40

Taco Bell Division
 
82

 
90

 
89

Corporate
 
7

 
12

 
10

 
 
$
253

 
$
310

 
$
319


 
 
Capital Spending
 
 
2017
 
2016
 
2015
KFC Division
 
$
176

 
$
216

 
$
260

Pizza Hut Division
 
42

 
69

 
54

Taco Bell Division
 
95

 
132

 
116

Corporate
 
5

 
10

 
12

 
 
$
318

 
$
427

 
$
442


 
 
Identifiable Assets
 
 
2017
 
2016
KFC Division(e)
 
$
1,791

 
$
2,158

Pizza Hut Division(e)
 
628

 
639

Taco Bell Division(e)
 
1,086

 
1,178

Corporate(c)(e)
 
1,806

 
1,478

 
 
$
5,311

 
$
5,453


 
 
Long-Lived Assets(d)
 
 
2017
 
2016
KFC Division
 
$
1,200

 
$
1,537

Pizza Hut Division
 
310

 
372

Taco Bell Division
 
778

 
859

Corporate
 
31

 
32

 
 
$
2,319

 
$
2,800



(a)
U.S. revenues included in the combined KFC, Pizza Hut and Taco Bell Divisions totaled $2.8 billion in 2017, $3.1 billion in 2016 and $3.1 billion in 2015.

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

(c)    Primarily includes cash and deferred tax assets.

(d)    Includes PP&E, goodwill, and intangible assets, net.

(e)
U.S. identifiable assets included in the combined Corporate and KFC, Pizza Hut and Taco Bell Divisions totaled $3.0 billion and $3.1 billion in 2017 and 2016, respectively.

(f)
Represents costs associated with the KFC U.S. Acceleration Agreement and Pizza Hut U.S. Transformation Agreement. See Note 5.

(g)
Amounts in 2017 include costs related to YUM’s Strategic Transformation Initiatives of $21 million, non-cash charges associated with modifications of share-based compensation awards of $18 million and costs associated with the Pizza Hut U.S. Transformation Agreement of $13 million. Amounts in 2016 included costs related to YUM's Strategic Transformation Initiatives of $61 million and non-cash charges associated with the modifications of share-based compensation awards of $30 million. See Note 5.
(h)
Amounts include losses associated with the sale of corporate aircraft related to YUM’s Strategic Transformation Initiatives of $2 million and $9 million in 2017 and 2016, respectively. See Note 8.
(i)
Represents depreciation reductions arising primarily from KFC restaurants that were held-for-sale. See Note 5.
(j)
Amounts in 2017 include a non-cash charge of $22 million related to the adjustment of certain historical deferred vested liability balances in our qualified U.S. plan. Amounts in 2016 include a settlement charge of $24 million related to the Company allowing certain former employees with deferred vested balances in the Yum Retirement Plan an opportunity to voluntarily elect early payout of their pension benefits. See Note 5.
v3.8.0.1
Contingencies
 12 Months Ended
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]  
Contingencies Contingencies

Lease Guarantees

As a result of having assigned our interest in obligations under real estate leases as a condition to the refranchising of certain Company-owned restaurants, and guaranteeing certain other leases, we are frequently contingently liable on lease agreements.  These leases have varying terms, the latest of which expires in 2065.  As of December 31, 2017, the potential amount of undiscounted payments we could be required to make in the event of non-payment by the primary lessee was approximately $600 million.  The present value of these potential payments discounted at our pre-tax cost of debt at December 31, 2017 was
approximately $500 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.  Accordingly, the liability recorded for our probable exposure under such leases at December 31, 2017 and December 31, 2016 was not material.

Franchise Loan Pool and Equipment Guarantees

We have agreed to provide financial support, if required, to a variable interest entity that operates a franchisee lending program used primarily to assist franchisees in the development of new restaurants or the upgrade of existing restaurants and, to a lesser extent, in connection with the Company’s refranchising programs in the U.S. We have determined that we are not required to consolidate this entity as we share the power to direct this entity’s lending activity with other parties. We have provided guarantees of 20% of the outstanding loans of the franchisee loan program. As such, at December 31, 2017 our guarantee exposure under this program is $3 million based on total loans outstanding of $15 million.

In addition to the guarantees described above, YUM has agreed to provide guarantees of up to $43 million on behalf of franchisees for several financing programs related to equipment purchases and refranchising. At December 31, 2017, our guarantee exposure under these financing programs is $10 million based on total loans outstanding of $31 million.

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 2017 and 2016 activity related to our net self-insured property and casualty reserves as of December 31, 2017.

 
 
Beginning Balance
 
Expense
 
Payments
 
Ending Balance
2017 Activity
 
$
98

 
27

 
(41
)
 
$
84

2016 Activity
 
$
102

 
42

 
(46
)
 
$
98



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.

We are currently engaged in various 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.
v3.8.0.1
Selected Quarterly Financial Data (Unaudited)
 12 Months Ended
Dec. 31, 2017
Selected Quarterly Financial Data (Unaudited) [Abstract]  
Selected Quarterly Financial Data (Unaudited) Selected Quarterly Financial Data (Unaudited)

 
 
2017
 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
 
Total
Revenues:
 
 
 
 
 
 
 
 
 
 
Company sales
 
$
902

 
$
909

 
$
871

 
$
890

 
$
3,572

Franchise and license fees and income
 
515

 
539

 
565

 
687

 
2,306

Total revenues
 
1,417

 
1,448

 
1,436

 
1,577

 
5,878

Restaurant profit
 
144

 
161

 
154

 
159

 
618

Operating Profit(a)
 
484

 
419

 
643

 
1,215

 
2,761

Net Income
 
280

 
206

 
418

 
436

 
1,340

Basic earnings per common share from continuing operations
 
0.78

 
0.59

 
1.21

 
1.29

 
3.86

Diluted earnings per common share from continuing operations
 
0.77

 
0.58

 
1.18

 
1.26

 
3.77

Dividends declared per common share
 
0.30

 
0.30

 
—

 
0.30

 
0.90

 
 
2016
 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
 
Total
Revenues:
 
 
 
 
 
 
 
 
 
 
Company sales
 
$
953

 
$
1,006

 
$
992

 
$
1,238

 
$
4,189

Franchise and license fees and income
 
490

 
503

 
526

 
648

 
2,167

Total revenues
 
1,443

 
1,509

 
1,518

 
1,886

 
6,356

Restaurant profit
 
148

 
167

 
161

 
224

 
700

Operating Profit(b)
 
349

 
415

 
398

 
520

 
1,682

Income from continuing operations, net of tax
 
226

 
266

 
218

 
308

 
1,018

Income (loss) from discontinued operations, net of tax
 
138

 
70

 
422

 
(5
)
 
625

Net Income
 
364

 
336

 
640

 
303

 
1,643

Basic earnings per common share from continuing operations
 
0.55

 
0.65

 
0.56

 
0.84

 
2.58

Basic earnings (loss) per common share from discontinued operations
 
0.33

 
0.17

 
1.09

 
(0.01
)
 
1.59

Basic earnings per common share
 
0.88

 
0.82

 
1.65

 
0.83

 
4.17

Diluted earnings per common share from continuing operations
 
0.54

 
0.64

 
0.55

 
0.83

 
2.54

Diluted earnings (loss) per common share from discontinued operations
 
0.33

 
0.17

 
1.07

 
(0.01
)
 
1.56

Diluted earnings per common share
 
0.87

 
0.81

 
1.62

 
0.82

 
4.10

Dividends declared per common share
 
0.46

 
0.46

 
0.51

 
0.30

 
1.73


(a)
Includes net gains from refranchising initiatives of $111 million, $19 million, $201 million and $752 million in the first, second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $7 million, $4 million, $4 million and $8 million in the first, second, third and fourth quarters, respectively, costs associated with the Pizza Hut U.S. Transformation Agreement of $12 million, $8 million and $11 million in the second, third and fourth quarters, respectively, costs associated with the KFC U.S. Acceleration Agreement of $3 million, $5 million, $4 million and $5 million in the first, second, third and fourth quarters, respectively and non-cash charges associated with the modification of share-based compensation awards in connection with the Separation of $2 million and $16 million in the first and second quarters, respectively.

(b)
Includes net gains from refranchising initiatives of $54 million, $21 million and $88 million in the second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $4 million, $30 million and $33 million in the second, third and fourth quarters, respectively, a non-cash charge primarily associated with the modification of share-based compensation awards in connection with the Separation of $30 million in the fourth quarter and costs associated with KFC U.S. Acceleration Agreement of $9 million, $8 million and $9 million in the first, second and fourth quarters, respectively. See Note 5.
v3.8.0.1
Subsequent Events - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2017
Feb. 07, 2018
Subsequent Event [Line Items]    
Subsequent Events [Text Block] Subsequent Events

On February 7, 2018, certain of our subsidiaries entered into a master services agreement with a subsidiary of Grubhub Inc. (“Grubhub”), the leading online and mobile takeout food-ordering company in the U.S., which is intended to provide dedicated support for the KFC and Taco Bell branded online delivery channels in the U.S. through Grubhub’s online ordering platform, logistics and last-mile support for delivery orders, as well as point-of-sale integration to streamline operations. Concurrently with the master services agreement, one of our subsidiaries entered into an investment agreement with Grubhub to invest $200 million in exchange for approximately 2.8 million shares of Grubhub common stock, subject to customary closing conditions. In connection with the closing of the investment, Grubhub has agreed to appoint a YUM representative to Grubhub’s Board of Directors. We expect the closing of the investment to occur prior to the end of the first quarter of 2018. 		 
Investments in unconsolidated affiliates   $ 200
Investment Owned, Balance, Shares   2.8
v3.8.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2017
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 entities that operate restaurants under our Concepts’ franchise and license arrangements.  We do not have an equity interest in any of our franchisee businesses.  Additionally, we do not typically provide significant financial support such as loans or guarantees to our franchisees.  However, we do have variable interests in certain franchisees through real estate lease arrangements to which we are a party.  At the end of 2017, YUM has future lease payments due from franchisees, on a nominal basis, of approximately $725 million, and we are contingently liable on certain other lease agreements that have been assigned to franchisees. See the Lease Guarantees and Franchise Loan Pool and Equipment Guarantees sections in Note 20. As our franchise and license 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.

See Note 20 for additional information on our entity that operates a franchise lending program that is a VIE in which we have a variable interest but for which we are not the primary beneficiary and thus do not consolidate.

We participate in various advertising cooperatives with our franchisees 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 its franchise owners. 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.  Advertising cooperative assets, consisting primarily of cash received from the Company and franchisees and accounts receivable from franchisees, can only be used to settle obligations of the respective cooperative.  Advertising cooperative liabilities represent the corresponding obligation arising from the receipt of the contributions to purchase advertising and promotional programs for which creditors do not have recourse to the general credit of the Company as the primary beneficiary.  Therefore, we report all assets and liabilities of these advertising cooperatives that we consolidate as Advertising cooperative assets, restricted and Advertising cooperative liabilities in the Consolidated Balance Sheet.  As the contributions to these cooperatives are designated and segregated for advertising, we act as an agent for the franchisees with regard to these contributions.  Thus, we do not reflect franchisee contributions to these cooperatives in our Consolidated Statements of Income or Consolidated Statements of Cash Flows.
Fiscal Year Fiscal Year.  Our fiscal years have historically ended on the last Saturday in December and, as a result, a 53rd week was added every five or six years.  The first three quarters of each fiscal year consisted of 12 weeks and the fourth quarter consisted of 16 weeks in fiscal years with 52 weeks and 17 weeks in fiscal years with 53 weeks.  Our U.S. subsidiaries and certain international subsidiaries operated on similar fiscal calendars. Our remaining international subsidiaries operated on a monthly calendar, and thus never had a 53rd week, with two months in the first quarter, three months in the second and third quarters and four months in the fourth quarter.  Certain international subsidiaries within our KFC, Pizza Hut and Taco Bell divisions have historically closed approximately one month or one period earlier to facilitate consolidated reporting.

Fiscal year 2016 included 53 weeks for our U.S. businesses and for our international subsidiaries that reported on a period calendar. The 53rd week added $76 million to Total revenues and $28 million to Operating Profit in our 2016 Consolidated Statement of Income.

On January 27, 2017, YUM’s Board of Directors approved a change in the Company's fiscal year from a year ending on the last Saturday of December to a year beginning on January 1 and ending December 31 of each year, commencing with the year ending December 31, 2017. In connection with this change, the Company moved from a 52-week periodic fiscal calendar with three 12-week interim quarters and a 16-week fourth quarter to a monthly reporting calendar with each quarter comprised of three months. Our U.S. subsidiaries continue to report on a period calendar as described above.

Concurrent with the change in the Company's fiscal year, we also eliminated the one month or one period reporting lags of our international subsidiaries. As a result of removing these reporting lags, each international subsidiary operates either on a monthly calendar consistent with the Company’s new calendar or on a periodic calendar consistent with our U.S. subsidiaries. We believe this change in our international subsidiary reporting calendars and the resulting elimination of reporting lags is preferable because a more current reporting calendar allows the Consolidated Financial Statements to more consistently and more timely reflect the impact of current events, economic conditions and global trends.

The change to the Company’s fiscal year and removal of the international reporting lags is effective in 2017. We have applied this change in accounting principle retrospectively to all prior financial periods presented and the impact of this change is summarized in Note 5. The impact of the change in accounting principle on the current period Consolidated Financial Statements is similar to the impact on the prior period results discussed in Note 5.
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, 2017, net cumulative translation adjustment losses of $174 million are recorded in Accumulated other comprehensive loss ("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, 2017. These reclassifications had no effect on previously reported Net Income, as restated.
Franchise and License Operations Franchise Operations.  We execute store-level franchise agreements for units operated by third parties which set out the terms of our arrangement with the franchisee. Our franchise agreements typically require the franchisee to pay an initial, non-refundable fee upon an individual store opening and continuing fees based upon a percentage of sales.  Subject to our approval and their payment of a renewal fee, a franchisee may generally renew the franchise agreement upon its expiration. Additionally, we execute master franchise agreements in certain regions that transfer administrative and development obligations and sub-franchising rights to a franchisee in exchange for reduced franchise fees.  

The internal costs we incur to provide support services to our franchisees are charged to General and administrative expenses (“G&A”) as incurred.  Certain direct costs of our franchise operations are charged to Franchise and license expenses.  These costs include provisions for estimated uncollectible fees, rent or depreciation expense associated with restaurants we lease or sublease to franchisees, franchise marketing funding, amortization expense for franchise-related intangible assets, value added taxes on royalties and certain other direct incremental franchise support costs.
Revenue Recognition Revenue Recognition. Revenues from Company-owned restaurants are recognized when payment is tendered at the time of sale.  The Company presents sales net of sales-related taxes.  Income from our franchisees includes initial fees, continuing fees, renewal fees and rental income from restaurants we lease or sublease to them.  We recognize initial fees received from a franchisee as revenue when we have performed substantially all initial services required by the franchise agreement, which is generally upon the opening of a store.  We recognize continuing fees, which are based upon a percentage of franchisee sales as those sales occur and rental income is recognized as it is earned.  We recognize renewal fees when a renewal agreement with a franchisee becomes effective.  

While the majority of our franchise agreements are entered into with terms and conditions consistent with those at a prevailing market rate, there are instances when we enter into franchise agreements with terms that are not at market rates (for example, below-market continuing fees) for a specified period of time. We recognize the estimated value of terms in franchise agreements entered into concurrently with a refranchising transaction that are not consistent with market terms as part of the upfront Refranchising (gain) loss and amortize that amount into Franchise and license fees and income over the period such terms are in effect. The value of terms that are not considered to be at market within franchise agreements is estimated based upon the difference between the present value of the cash expected to be received under the franchise agreement and the present value of the cash that would have been expected to be received under a franchise agreement with terms substantially consistent with market.
Direct Marketing Costs Direct Marketing Costs.  To the extent we participate in advertising cooperatives, we expense our contributions as incurred which are based on a percentage of sales.  We charge direct marketing costs incurred outside of a cooperative to expense ratably in relation to revenues over the year in which incurred and, in the case of advertising production costs, in the year the advertisement is first shown.  Deferred direct marketing costs, which are classified as prepaid expenses, consist of media and related advertising production costs which will generally be used for the first time in the next fiscal year and have historically not been significant.  Our advertising expenses were $245 million, $260 million and $253 million in 2017, 2016 and 2015, respectively.  We report the majority of our direct marketing costs in Occupancy and other operating expenses as they are incurred as a percentage of sales by Company-owned restaurants. Advertising incurred on behalf of franchised restaurants is recorded within Franchise and license expenses, including $25 million related to the Pizza Hut U.S. Transformation Agreement and $20 million related to the KFC U.S. Acceleration Agreement in 2017. See Note 5 for further discussion of these agreements.
Research and Development Expenses Research and Development Expenses.  Research and development expenses, which we expense as incurred, are reported in G&A.  Research and development expenses were $22 million, $24 million and $23 million in 2017, 2016 and 2015, respectively.
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.  We present this compensation cost consistent with the other compensation costs for the employee recipient in either Payroll and employee benefits 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 Property, Plant and Equipment.  Property, plant and equipment (“PP&E”) is 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 and allocated intangible assets subject to amortization) semi-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 semi-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 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.

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, 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.  Refranchising (gain) loss includes the gains or losses from the sales of our restaurants to new and existing franchisees, including any impairment charges discussed above, and associated termination, relocation or retention costs associated with store-level employees of refranchised stores or employees of restaurant-support centers which we have closed due to refranchising. 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 and 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.  Additionally, at the date we cease using a property under an operating lease, we record a liability for the net present value of any remaining lease obligations, net of estimated sublease income, if any.  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 Closures and impairment (income) expenses.   To the extent we sell assets, primarily land, associated with a closed store, any gain or loss upon that sale is also recorded in Closures and impairment (income) expenses.

Considerable 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.  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 the fair value of such lease guarantees upon refranchising and upon subsequent renewals of such leases when we remain contingently 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 license expense.
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. 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 (except for the U.S. tax provided for as part of the Tax Act enacted on December 22, 2017, see Note 18) 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 and lease agreements.  Trade receivables consisting of royalties from franchisees, including Yum China, 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.  Yum China is our largest franchisee and we recorded franchise fee revenues of approximately $260 million from Yum China in 2017. Our provision for uncollectible franchisee receivable balances is based upon pre-defined aging criteria or upon the occurrence of other events that indicate that we may not collect the balance due.  Additionally, we monitor the financial condition of our franchisees and record provisions for estimated losses on receivables when we believe it probable that our franchisees will be unable to make their required payments.  While we use the best information available in making our determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond our control.  We recorded $5 million, less than $1 million and $6 million in net provisions within Franchise and license expenses in 2017, 2016 and 2015, respectively, related to uncollectible franchise and license trade receivables.Trade 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.
 
 
 
2017
 
2016
Accounts and notes receivable
 
$
419

 
$
384

Allowance for doubtful accounts
 
(19
)
 
(14
)
Accounts and notes receivable, net
 
$
400

 
$
370


 
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.  We monitor the financial condition of our franchisees and record provisions for estimated losses on receivables when we believe it is probable that our franchisees will be unable to make their required payments.  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 $38 million and $29 million (net of an allowance of $2 million) at December 31, 2017 and December 31, 2016, 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.
Inventories Inventories.  We value our inventories at the lower of cost (computed on the first-in, first-out method) or market.
Property, Plant and Equipment Property, Plant and Equipment.  We state PP&E at cost less 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, 3 to 20 years for machinery and equipment and 3 to 7 years for capitalized software costs.  We suspend depreciation and amortization on assets that are held for sale.
Leases and Leasehold Improvements Leases and Leasehold Improvements.  The Company leases land, buildings or both for certain of its restaurants and restaurant support centers worldwide.  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 capital or operating and 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 assured at the inception of the lease.  The primary penalty to which we are subject is the economic detriment associated with the existence of leasehold improvements which 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.  Additionally, certain of the Company's operating leases contain predetermined fixed escalations of the minimum rent during the lease term.  For leases with fixed escalating payments and/or rent holidays, we record rent expense on a straight-line basis over the lease term, including any option periods considered in the determination of that lease term.  Contingent rentals are based on sales levels in excess of stipulated amounts, and thus are not considered minimum lease payments and are included in rent expense when attainment of the contingency is considered probable (e.g. when Company sales occur).
Internal Development Costs and Abandoned Site Costs Internal Development Costs and Abandoned Site Costs.  We capitalize direct costs associated with the site acquisition and construction of a Company unit on that site, including direct internal payroll and payroll-related costs.  Only those site-specific costs incurred subsequent to the time that the site acquisition is considered probable are capitalized.  If we subsequently make a determination that it is probable a site for which internal development costs have been capitalized will not be acquired or developed, any previously capitalized internal development costs are expensed and included in G&A.
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, Pizza Hut and Taco Bell 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 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.  If the carrying value of a reporting unit exceeds its fair value, goodwill is written down to its implied 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.

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.
Derivative Financial Instruments Derivative Financial Instruments. We use derivative instruments primarily to hedge interest rate and foreign currency risks. 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, the effective portion of the 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. Any ineffective portion of the gain or loss on the derivative instrument for a cash flow hedge is recorded in the results of operations immediately. 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, 2017 and December 31, 2016, all of the counterparties to our interest rate swaps, foreign currency 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 such as shares cancelled upon employee share-based award exercises, 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, $1,915 million, $5,399 million and $1,124 million in share repurchases in 2017, 2016 and 2015, respectively, and $20 million related to shares cancelled upon employee share-based award exercises in 2017 were recorded as an addition to Accumulated deficit. See Note 17 for additional information on our share repurchases.
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, it 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. We recognize differences in the fair value versus the market-related value of plan assets evenly over five years. 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. 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.
v3.8.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2017
Accounting Policies [Abstract]  
Accounts and notes receivable, net
 
 
2017
 
2016
Accounts and notes receivable
 
$
419

 
$
384

Allowance for doubtful accounts
 
(19
)
 
(14
)
Accounts and notes receivable, net
 
$
400

 
$
370
v3.8.0.1
Earnings Per Common Share ("EPS") (Tables)
 12 Months Ended
Dec. 31, 2017
Earnings Per Share [Abstract]  
Earnings Per Common Share
 
 
2017
 
2016
 
2015
Income from continuing operations
 
$
1,340

 
$
1,018

 
$
926

Income from discontinued operations
 
N/A

 
625

 
357

Net Income
 
$
1,340


$
1,643


$
1,283

Weighted-average common shares outstanding (for basic calculation)
 
347

 
394

 
435

Effect of dilutive share-based employee compensation
 
8

 
6

 
8

Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)
 
355

 
400

 
443

Basic EPS from continuing operations
 
$
3.86

 
$
2.58

 
$
2.13

Basic EPS from discontinued operations
 
N/A

 
1.59

 
0.82

Basic EPS
 
$
3.86


$
4.17


$
2.95

Diluted EPS from continuing operations
 
$
3.77

 
$
2.54

 
$
2.09

Diluted EPS from discontinued operations
 
N/A

 
1.56

 
$
0.81

Diluted EPS
 
$
3.77


$
4.10


$
2.90

Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation(a)
 
2.3

 
5.0

 
4.5


(a)
These unexercised employee stock options and stock appreciation rights were not included in the computation of diluted EPS because to do so would have been antidilutive for the periods presented.
v3.8.0.1
Discontinued Operations (Tables)
 12 Months Ended
Dec. 31, 2017
Discontinued Operations [Member]  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Condensed Income Statement [Table Text Block] The following table presents the financial results of the Company’s discontinued operations:
 
 
2016(a)
 
2015
Company sales
 
$
5,667

 
$
6,789

Franchise and license fees and income
 
109

 
120

Company restaurant expenses
 
(4,766
)
 
(5,913
)
G&A expenses(b)
 
(406
)
 
(405
)
Franchise and license expenses
 
(45
)
 
(48
)
Closures and impairment expenses
 
(57
)
 
(64
)
Refranchising gain
 
12

 
13

Other income(c)
 
49

 
27

Interest income, net
 
8

 
7

Income from discontinued operations before income taxes
 
571

 
526

Income tax benefit (provision)(d)
 
65

 
(164
)
Income from discontinued operations - including noncontrolling interests
 
636

 
362

(Income) loss from discontinued operations - noncontrolling interests
 
(11
)
 
(5
)
Income from discontinued operations, net of tax
 
$
625

 
$
357


(a)
Includes Yum China financial results from January 1, 2016 to October 31, 2016.

(b)
Includes costs incurred to execute the Separation of $68 million and $9 million for 2016 and 2015, respectively. Such costs primarily relate to transaction advisors, legal and other consulting fees.

(c)
Primarily relates to equity income from KFC franchisees in which Yum China owns a minority interest.

(d)
During 2016, we recorded a tax benefit of $233 million related to previously recorded losses associated with our Little Sheep business. The tax benefit associated with these losses was able to be recognized as a result of legal entity restructuring completed in anticipation of the Separation.
v3.8.0.1
Items Affecting Comparability of Net Income and Cash Flows (Tables)
 12 Months Ended
Dec. 31, 2017
Facility Actions [Line Items]  
Impact of Change in Reporting Calendar [Table Text Block] The impacts on our Consolidated Financial Statements of retrospectively applying these changes are included below:

 
 
2016
 
 
As Previously Reported
 
Adjustments
 
After Change in Reporting Calendar
Total revenues
 
$
6,366

 
$
(10
)
 
$
6,356

 
Operating Profit
 
1,625

 
25

(a) 
1,650

(b) 
Income from continuing operations
 
994

 
24

 
1,018

 
Income from discontinued operations, net of tax
 
625

 
—

 
625

 
Net Income
 
$
1,619

 
$
24

 
1,643

 
 
 
 
 
 
 
 
 
Diluted EPS from continuing operations
 
$
2.48

 
$
0.06

 
$
2.54

 
Diluted EPS from discontinued operations
 
1.56

 
—

 
1.56

 
Diluted EPS
 
$
4.04

 
$
0.06

 
$
4.10

 

 
 
2015
 
 
As Previously Reported
 
Adjustments
 
After Change in Reporting Calendar
Total revenues
 
$
6,440

 
$
(22
)
 
$
6,418

 
Operating Profit
 
1,402

 
(8
)
 
1,394

(b) 
Income from continuing operations
 
936

 
(10
)
 
926

 
Income from discontinued operations, net of tax
 
357

 
—

 
357

 
Net Income
 
$
1,293

 
$
(10
)
 
$
1,283

 
 
 
 
 
 
 
 
 
Diluted EPS from continuing operations
 
$
2.11

 
$
(0.02
)
 
$
2.09

 
Diluted EPS from discontinued operations
 
0.81

 
—

 
0.81

 
Diluted EPS
 
$
2.92

 
$
(0.02
)
 
$
2.90

 

(a)
Primarily represents gains of $24 million related to the refranchising of certain international restaurants which occurred in December 2016.

(b)
Amount does not reconcile to our Consolidated Statements of Income for the year ended December 31, 2016 and December 31, 2015 due to the impact of retrospectively adopting a new accounting standard on Benefit Costs of $32 million and $40 million, respectively. See Note 2.
Refranchising (gain) loss [Member]  
Facility Actions [Line Items]  
Facility Actions Refranchising (Gain) Loss

The Refranchising (gain) loss by reportable segment 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 segment performance. As such, we do not allocate such gains and losses to our segments for performance reporting purposes.

During the years ended December 31, 2017, 2016 and 2015, we refranchised 1,470, 432 and 270 restaurants, respectively. We received $1,773 million, $370 million and $213 million in pre-tax proceeds in 2017, 2016 and 2015, respectively, related to these transactions.

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

 
 
Refranchising (gain) loss
 
 
 
 
 
 
 
2017
 
2016
 
2015
 
 
 
 
 
KFC Division(a)
 
$
(581
)
 
$
(44
)
 
$
32

 
 
 
 
 
Pizza Hut Division(a)
 
(16
)
 
(48
)
 
56

 
 
 
 
 
Taco Bell Division
 
(486
)
 
(71
)
 
(65
)
 
 
 
 
 
Worldwide
 
$
(1,083
)
 
$
(163
)
 
$
23

 
 
 
 
 

(a)
In 2010, we refranchised our then-remaining Company-operated restaurants in Mexico. To the extent we owned it, we did not sell the real estate related to certain of these restaurants, instead leasing it to the franchisee. During 2015, we sold the real estate for approximately $58 million. While these proceeds exceeded the book value of the real estate, the sale represented a substantial liquidation of our Mexican foreign entities under GAAP. As such, the accumulated translation losses associated with our Mexican business were included in our loss on the sale. We recorded charges of $80 million representing the excess of the sum of the book value of the real estate and other related assets and our accumulated translation losses over the sales price. Consistent with the classification of the original Mexico market-wide refranchising transaction, these charges were classified as Refranchising (gain) loss. Refranchising losses of $40 million were associated with both the KFC and Pizza Hut Divisions. We continue to earn U.S. dollar-denominated franchise fees, most of which are sales-based royalties, under our existing franchise contracts with our Mexico franchisee.

As a result of classifying restaurant and related assets as held-for-sale and ceasing depreciation expense as well as recording any related write-downs to fair value, depreciation expense was reduced versus what would have otherwise been recorded by $10 million during the year ended December 31, 2017. Our CODM does not consider the impact of these depreciation reductions, which were recorded within Occupancy and other operating expenses when assessing segment performance. These depreciation reductions were not allocated to the Division segments resulting in depreciation expense continuing to be recorded within our Divisional results at the rate at which it was prior to the held-for-sale classification.
Closures and impairment (income) expenses  
Facility Actions [Line Items]  
Facility Actions Store Closure and Impairment Activity

Store closure (income) costs and Store impairment charges by reportable segment are presented below.
 
 
2017
 
 
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
Store closure (income) costs(a)
 
$
—

 
$
—

 
$
(1
)
 
$
(1
)
Store impairment charges
 
2

 
1

 
1

 
4

Closure and impairment (income) expenses
 
$
2

 
$
1

 
$
—

 
$
3


 
 
2016
 
 
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
Store closure (income) costs(a)
 
$
3

 
$
(5
)
 
$
—

 
$
(2
)
Store impairment charges
 
8

 
6

 
3

 
17

Closure and impairment (income) expenses
 
$
11

 
$
1

 
$
3

 
$
15


 
 
2015
 
 
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
Store closure (income) costs(a)
 
$
1

 
$
(1
)
 
$
(1
)
 
$
(1
)
Store impairment charges
 
8

 
5

 
4

 
17

Closure and impairment (income) expenses
 
$
9

 
$
4

 
$
3

 
$
16


(a)
Store closure (income) costs include the net gain or loss on sales of real estate on which we formerly operated a Company-owned restaurant that was closed, lease reserves established when we cease using a property under an operating lease and subsequent adjustments to those reserves and other facility-related expenses from previously closed stores. Remaining lease obligations for closed stores were not material at December 31, 2017 or December 31, 2016.
v3.8.0.1
Supplemental Cash Flow Data (Tables)
 12 Months Ended
Dec. 31, 2017
Supplemental Cash Flow Elements [Abstract]  
Cash paid for interest and income taxes, and significant non-cash investing and financing activities
 
 
2017
 
2016
 
2015
Cash Paid For:
 
 
 
 
 
 
Interest
 
$
442

 
$
297

 
$
141

Income taxes
 
346

 
314

 
392

Significant Non-Cash Investing and Financing Activities:
 
 
 
 
 
 
Capital lease obligations incurred
 
$
8

 
$
10

 
$
26

Capital lease and other debt obligations transferred through refranchising
 
(35
)
 
(1
)
 
—

Reconciliation of Cash and cash equivalents to Consolidated Statements of Cash Flows:
 
 
 
 
 
 
Cash and cash equivalents as presented in Consolidated Balance Sheets
 
$
1,522

 
$
725

 
$
345

Restricted cash included in Prepaid expenses and other current assets(a)
 
60

 
55

 
—

Restricted cash included in Other assets(b)
 
17

 
51

 
20

Cash, Cash Equivalents and Restricted Cash as presented in Consolidated Statements of Cash Flows
 
$
1,599

 
$
831

 
$
365



(a)
Restricted cash within Prepaid expenses and other current assets reflects the Taco Bell Securitization interest reserves. See Note 11.

(b)
Primarily trust accounts related to our self-insurance program. 2016 also includes cash balances required, to the extent necessary, to meet statutory minimum net worth requirements for legal entities which enter into U.S. franchise agreements.
v3.8.0.1
Franchise and License Fees and Income (Tables)
 12 Months Ended
Dec. 31, 2017
Franchise And License Fees And Income Disclosure [Abstract]  
Franchise and License Fees and Income
 
 
2017
 
2016
 
2015
Initial fees, including renewal fees
 
$
96

 
$
72

 
$
71

Continuing fees and rental income
 
2,210

 
2,095

 
2,011

Franchise and license fees and income
 
$
2,306


$
2,167


$
2,082
v3.8.0.1
Other (Income) Expense (Tables)
 12 Months Ended
Dec. 31, 2017
Other Income and Expenses [Abstract]  
Other (Income) Expense Table
 
 
2017
 
2016
 
2015
Foreign exchange net (gain) loss and other
 
$
5

 
$
(6
)
 
$
20

Loss associated with corporate aircraft(a)
 
2

 
9

 
—

Other (income) expense
 
$
7


$
3


$
20



(a)
During 2016, we made the decision to no longer operate a corporate aircraft fleet and offered our owned aircraft for sale, one of which was sold during 2016 and one that was sold in 2017. The losses associated with these sales reflect the shortfall of the proceeds, including estimated proceeds in held-for-sale impairment evaluations, less any selling costs, over the carrying value of the aircraft.

v3.8.0.1
Supplemental Balance Sheet Information (Tables)
 12 Months Ended
Dec. 31, 2017
Supplemental Balance Sheet Information Disclosure [Abstract]  
Prepaid Expenses and Other Current Assets
Prepaid Expenses and Other Current Assets
 
2017
 
2016
Income tax receivable
 
$
175

 
$
44

Assets held for sale(a)
 
37

 
57

Other prepaid expenses and current assets
 
159

 
135

Prepaid expenses and other current assets
 
$
371


$
236



(a)
Reflects 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. 2016 amounts also include a corporate aircraft sold in 2017.

Property, Plant and Equipment
Property, Plant and Equipment
 
2017
 
2016
Land
 
$
452

 
$
438

Buildings and improvements
 
1,661

 
2,149

Capital leases, primarily buildings
 
123

 
141

Machinery and equipment
 
941

 
1,380

Property, plant and equipment, gross
 
3,177

 
4,108

Accumulated depreciation and amortization
 
(1,480
)
 
(1,995
)
Property, plant and equipment, net
 
$
1,697


$
2,113
Accounts Payable and Other Current Liabilities
Accounts Payable and Other Current Liabilities
 
2017
 
2016
Accounts payable
 
$
119

 
$
142

Accrued capital expenditures
 
21

 
39

Accrued compensation and benefits
 
252

 
372

Dividends payable
 
—

 
106

Accrued taxes, other than income taxes
 
90

 
66

Other current liabilities
 
331

 
342

Accounts payable and other current liabilities
 
$
813


$
1,067
v3.8.0.1
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2017
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
 
Pizza Hut
 
Taco Bell
 
Worldwide
Balance as of December 31, 2015
 
 
 
 
 
 
 
 
Goodwill, gross
 
$
266

 
$
206

 
$
113

 
$
585

Accumulated impairment losses
 
—

 
(17
)
 
—

 
(17
)
Goodwill, net
 
266

 
189

 
113

 
568

Disposals and other, net(a)
 
2

 
(32
)
 
(2
)
 
(32
)
Balance as of December 31, 2016
 
 
 
 
 
 
 
 
Goodwill, gross
 
268

 
174

 
111

 
553

Accumulated impairment losses
 
—

 
(17
)
 
—

 
(17
)
Goodwill, net
 
268

 
157

 
111

 
536

Disposals and other, net(a)
 
(21
)
 
5

 
(8
)
 
(24
)
Balance as of December 31, 2017
 
 
 
 
 
 
 
 
Goodwill, gross
 
247

 
179

 
103

 
529

Accumulated impairment losses
 
—

 
(17
)
 
—

 
(17
)
Goodwill, net
 
$
247

 
$
162

 
$
103

 
$
512



(a)
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 2017 and 2016 are as follows: 
 
 
2017
 
2016
 
 
Gross Carrying Amount
 
Accumulated Amortization
 
Gross Carrying Amount
 
Accumulated Amortization
Definite-lived intangible assets
 
 
 
 
 
 
 
 
Reacquired franchise rights
 
$
60

 
$
(42
)
 
$
83

 
$
(49
)
Franchise contract rights
 
100

 
(77
)
 
99

 
(73
)
Lease tenancy rights
 
32

 
(6
)
 
56

 
(9
)
Other
 
37

 
(25
)
 
36

 
(23
)
 
 
$
229

 
$
(150
)
 
$
274

 
$
(154
)
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets
 
 
 
 
 
 
 
 
KFC trademark
 
$
31

 
 
 
$
31

 
 
 
 
 
 
 
 
 
 
 
v3.8.0.1
Short-term Borrowings and Long-term Debt (Tables)
 12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
Schedule of Debt [Table Text Block]
 
 
2017
 
2016
Short-term Borrowings
 
 
 
 
Current maturities of long-term debt
 
$
386

 
$
66

Other
 
—

 
8

 
 
$
386

 
$
74

Less current portion of debt issuance costs and discounts
 
(11
)
 
(8
)
Short-term borrowings
 
$
375

 
$
66

 
 
 
 
 
Long-term Debt
 
 
 
 
Securitization Notes
 
$
2,271

 
$
2,294

Subsidiary Senior Unsecured Notes
 
2,850

 
2,100

Term Loan A Facility
 
500

 
500

Term Loan B Facility
 
1,975

 
1,990

YUM Senior Unsecured Notes
 
2,200

 
2,200

Capital lease obligations (See Note 12)
 
105

 
120

 
 
9,901

 
9,204

Less debt issuance costs and discounts
 
(86
)
 
(79
)
Less current maturities of long-term debt
 
(386
)
 
(66
)
Long-term debt
 
$
9,429


$
9,059

The following table presents the carrying value and estimated fair value of the Company’s debt obligations:

 
12/31/2017
 
12/31/2016
 
Carrying Value
 
Fair Value (Level 2)
 
Carrying Value
 
Fair Value (Level 2)
Debt obligations
 
 
 
 
 
 
 
Securitization Notes(a)
$
2,271

 
$
2,367

 
$
2,294

 
$
2,315

Subsidiary Senior Unsecured Notes(b)
2,850

 
2,983

 
2,100

 
2,175

Term Loan A Facility(b)
500

 
503

 
500

 
501

Term Loan B Facility(b)
1,975

 
1,990

 
1,990

 
2,016

YUM Senior Unsecured Notes(b)
2,200

 
2,277

 
2,200

 
2,216

 
(a)
We estimated the fair value of the Securitization Notes by obtaining broker quotes from two separate brokerage firms that are knowledgeable about the Company’s Securitization Notes and, at times, trade these notes. 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.
Debt Instrument [Line Items]  
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments The annual maturities of short-term borrowings and long-term debt as of December 31, 2017, excluding capital lease obligations of $105 million are as follows: 
Year ended:
 
2018
$
380

2019
318

2020
1,190

2021
441

2022
410

Thereafter
7,057

Total
$
9,796
Senior Unsecured Notes [Member]  
Debt Instrument [Line Items]  
Senior Unsecured Notes issued that remain outstanding The following table summarizes all YUM Senior Unsecured Notes issued that remain outstanding at December 31, 2017:
 
 
 
 
 
 
Interest Rate
Issuance Date(a)
 
Maturity Date
 
Principal Amount (in millions)
 
Stated
 
Effective(b)
October 2007
 
March 2018
 
$
325

 
6.25
%
 
6.36
%
October 2007
 
November 2037
 
325

 
6.88
%
 
7.45
%
August 2009
 
September 2019
 
250

 
5.30
%
 
5.59
%
August 2010
 
November 2020
 
350

 
3.88
%
 
4.01
%
August 2011
 
November 2021
 
350

 
3.75
%
 
3.88
%
October 2013
 
November 2023
 
325

 
3.88
%
 
4.01
%
October 2013
 
November 2043
 
275

 
5.35
%
 
5.42
%

(a)
Interest payments commenced approximately six months after issuance date and are payable semi-annually thereafter.

(b)
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.
v3.8.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2017
Leases [Abstract]  
Future minimum commitments and amounts to be received as lessor or sublessor under non-cancelable leases Future minimum commitments and amounts to be received as lessor or sublessor under non cancelable leases are set forth below:
 
 
Commitments
 
Lease Receivables
 
 
 
Capital
 
 
Operating
 
Direct
 Financing
 
 
Operating
2018
 
$
13

 
$
124

 
$
5

 
$
64

2019
 
13

 
111

 
4

 
58

2020
 
12

 
87

 
4

 
51

2021
 
11

 
75

 
3

 
47

2022
 
11

 
67

 
3

 
44

Thereafter
 
76

 
435

 
24

 
415

 
 
$
136

 
$
899

 
$
43

 
$
679
Details of rental expense and income The details of rental expense and income are set forth below:
 
 
2017
 
2016
 
2015
Rental expense
 
 
 
 
 
 
Minimum
 
$
193

 
$
208

 
$
225

Contingent
 
21

 
26

 
29

 
 
$
214

 
$
234

 
$
254

Rental income
 
$
86

 
$
73

 
$
73
v3.8.0.1
Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2017
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 AOCI and reclassifications from AOCI into Net Income:

 
Gains/(Losses) Recognized in AOCI
 
(Gains)/Losses Reclassified from AOCI into Net Income
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
Interest rate swaps
$
4

 
$
47

 
$
2

 
$
(4
)
Foreign currency contracts
(56
)
 
10

 
56

 
(18
)
Income tax benefit/(expense)
1

 
(20
)
 
(3
)
 
4
v3.8.0.1
Fair Value Disclosures (Tables)
 12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
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.  No transfers among the levels within the fair value hierarchy occurred during the years ended December 31, 2017 or December 31, 2016.
 
 
 
 
Fair Value
 
 
 
Level
 
2017
 
2016
 
Consolidated Balance Sheet
Interest Rate Swaps - Liability
 
2

 
$
—

 
$
3

 
Accounts payable and other current liabilities
Interest Rate Swaps - Asset
 
2

 
9

 
—

 
Prepaid expenses and other current assets
Interest Rate Swaps - Asset
 
2

 
40

 
47

 
Other assets
Foreign Currency Contracts - Liability
 
2

 
46

 
—

 
Other Liabilities and deferred credits
Foreign Currency Contracts - Asset
 
2

 
5

 
6

 
Prepaid expenses and other current assets
Foreign Currency Contracts - Asset
 
2

 
—

 
10

 
Other assets
Other Investments
 
1

 
29

 
24

 
Other assets
Fair Value Measurements and Total Losses, Non-Recurring Basis The following table presents expense recognized from all non-recurring fair value measurements during the years ended December 31, 2017 and December 31, 2016. These amounts exclude fair value measurements made for assets that were subsequently dispo
sed 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, 2017 and December 31, 2016 is insignificant.

 
 
2017
 
2016
 
Aircraft impairment(a)
 
$
—

 
$
3

 
Restaurant-level impairment(b)
 
2

 
9

 
Total
 
$
2

 
$
12

 

(a)
During 2016, we made the decision to dispose of a corporate aircraft. The loss associated with this then planned sale reflected the shortfall of the expected proceeds, less any selling costs, over the carrying value of the aircraft. The expected proceeds were based on actual bids received from potential buyers for similar assets (Level 2).

(b)
Restaurant-level impairment charges are recorded in Closures and impairment (income) expenses and resulted primarily from our semi-annual 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).
v3.8.0.1
Pension, Retiree Medical and Retiree Savings Plans (Tables)
 12 Months Ended
Dec. 31, 2017
Retirement Benefits [Abstract]  
Funded status of pension plans 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.

 
 
2017
 
2016
Change in benefit obligation:
 
 
 
 
Benefit obligation at beginning of year
 
$
993

 
$
1,134

Service cost
 
10

 
17

Interest cost
 
41

 
54

Plan amendments
 
2

 
4

Curtailments
 
(2
)
 
(4
)
Special termination benefits
 
2

 
3

Benefits paid
 
(76
)
 
(26
)
Settlement payments(a)
 
(73
)
 
(260
)
Actuarial (gain) loss
 
115

 
77

Administrative expense
 
(5
)
 
(6
)
Benefit obligation at end of year
 
$
1,007

 
$
993

 
 
 
 
 
Change in plan assets:
 
 
 
 
Fair value of plan assets at beginning of year
 
$
837

 
$
1,004

Actual return on plan assets
 
129

 
87

Employer contributions
 
52

 
38

Settlement payments(a)
 
(73
)
 
(260
)
Benefits paid
 
(76
)
 
(26
)
Administrative expenses
 
(5
)
 
(6
)
Fair value of plan assets at end of year
 
$
864

 
$
837

 Funded status at end of year
 
$
(143
)
 
$
(156
)


(a)
For discussion of the settlement payments made in connection with the deferred vested program in 2016, see Note 5.
Amounts recognized in the Consolidated Balance Sheet
Amounts recognized in the Consolidated Balance Sheet:
 
 
2017
 
2016
Accrued benefit liability - current
 
$
(8
)
 
$
(16
)
Accrued benefit liability - non-current
 
(135
)
 
(140
)
 
 
$
(143
)
 
$
(156
)
Pension plans with an accumulated benefit obligation in excess of pan assets
Information for pension plans with an accumulated benefit obligation in excess of plan assets:
 
 
2017
 
2016
Projected benefit obligation
 
$
1,007

 
$
993

Accumulated benefit obligation
 
976

 
960

Fair value of plan assets
 
864

 
837
Pension plans with a projected benefit obligation in excess of plan assets
Information for pension plans with a projected benefit obligation in excess of plan assets:
 
 
2017
 
2016
Projected benefit obligation
 
$
1,007

 
$
993

Accumulated benefit obligation
 
976

 
960

Fair value of plan assets
 
864

 
837
Components of net periodic benefit cost Components of net periodic benefit cost:
 
 
2017
 
2016
 
2015
Service cost
 
$
10

 
$
17

 
$
18

Interest cost
 
41

 
54

 
55

Amortization of prior service cost(a)
 
6


6


1

Expected return on plan assets
 
(45
)
 
(65
)
 
(62
)
Amortization of net loss
 
5

 
6

 
45

Net periodic benefit cost
 
$
17

 
$
18

 
$
57


Additional (gain) loss recognized due to:

Settlement charges(b)
 
$
19

 
$
32

 
$
5

Special termination benefits
 
$
2

 
$
3

 
$
1

Pension data adjustment(c)
 
$
22

 
$
—

 
$
—


(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.

(c)
Reflects a non-cash, out-of-year charge related to the adjustment of certain historical deferred vested liability balances in the Plan during the first quarter of 2017 recorded in Other pension (income) expense. See Note 5.
Pension losses in accumulated other comprehensive income (loss)
Pension gains (losses) in AOCI:
 
 
2017
 
2016
Beginning of year
 
$
(180
)
 
$
(170
)
Net actuarial gain (loss)
 
(10
)
 
(54
)
Curtailments
 
2

 
4

Amortization of net loss
 
5

 
6

Amortization of prior service cost
 
6

 
6

Prior service cost
 
(2
)
 
(4
)
Settlement charges
 
19

 
32

End of year
 
$
(160
)
 
$
(180
)
Schedule of Accumulated pre-tax losses recognized in Accumulated Other Comprehensive Income
Accumulated pre-tax losses recognized within AOCI:
 
 
2017
 
2016
Actuarial net loss
 
$
(134
)
 
$
(150
)
Prior service cost
 
(26
)
 
(30
)
 
 
$
(160
)
 
$
(180
)
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:
 
 
2017
 
2016
Discount rate
 
3.90
%
 
4.60
%
Rate of compensation increase
 
3.75
%
 
3.75
%

Weighted-average assumptions used to determine the net periodic benefit cost for fiscal years:
 
 
2017(a)
 
2016
 
2015
Discount rate
 
4.53
%
 
4.90
%
 
4.30
%
Long-term rate of return on plan assets
 
6.06
%
 
6.75
%
 
6.75
%
Rate of compensation increase
 
3.75
%
 
3.75
%
 
3.75
%


(a)    Reflects a weighted average due to interim remeasurements in 2017.
Fair values of pension plan assets The fair values of our pension plan assets at December 31, 2017 and December 31, 2016 by asset category and level within the fair value hierarchy are as follows:

 
 
2017
 
2016
Level 1:
 
 
 
 
Cash
 
$
3

 
$
2

Cash Equivalents(a)
 
12

 
12

Fixed Income Securities - U.S. Corporate(b)
 
177

 
172

Equity Securities – U.S. Large cap(b)
 
257

 
244

Equity Securities – U.S. Mid cap(b)
 
43

 
41

Equity Securities – U.S. Small cap(b)
 
43

 
43

Equity Securities – Non-U.S.(b)
 
87

 
83

Level 2:
 
 
 
 
Fixed Income Securities – U.S. Corporate(c)
 
86

 
76

Fixed Income Securities – U.S. Government and Government Agencies(d)
 
177

 
152

Fixed Income Securities – Other(d)
 
35

 
31

Total fair value of plan assets(e)
 
$
920

 
$
856



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

(b)
Securities held in common trusts.

(c)
Investments held directly by the Plan.

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

(e)
2017 and 2016 exclude net unsettled trade payables of $56 million and $19 million, respectively.
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:
 
 
2018
 
$
65

2019
 
37

2020
 
39

2021
 
42

2022
 
44

2023 - 2027
 
257
v3.8.0.1
Share-based and Deferred Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2017
Compensation Related Costs [Abstract]  
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:

 
 
2017
 
2016
 
2015
Risk-free interest rate
 
1.9
%
 
1.4
%
 
1.3
%
Expected term (years)
 
6.4 years

 
6.4 years

 
6.4 years

Expected volatility
 
22.9
%
 
27.0
%
 
26.9
%
Expected dividend yield
 
1.8
%
 
2.6
%
 
2.2
%
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
 
21,242

 
 
 
$
40.78

 
 
 
 
Granted
 
2,879

 
 
 
67.93

 
 
 
 
Exercised
 
(4,269
)
 
 
 
36.45

 
 
 
 
Forfeited or expired
 
(1,567
)
 
 
 
54.98

 
 
 
 
Outstanding at the end of the year
 
18,285

(a) 
 
 
44.85

 
5.42

 
$
672

Exercisable at the end of the year
 
11,971

 
 
 
$
38.07

 
4.00

 
$
521



(a)
Outstanding awards include 943 options and 17,342 SARs with weighted average exercise prices of $36.63 and $45.30, 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:

 
 
2017
 
2016
 
2015
Options and SARs
 
$
30

 
$
38

 
$
41

Restricted Stock Units
 
26

 
38

 
3

Performance Share Units
 
9

 
4

 
2

Total Share-based Compensation Expense
 
$
65

(a) 
$
80

(b) 
$
46

Deferred Tax Benefit recognized
 
$
22

(c) 
$
26

 
$
15

 
 
 
 
 
 
 
EID compensation expense not share-based
 
$
12

 
$
5

 
$
1


(a)    Includes $18 million due to appreciation in the market price of Yum China's stock. See Note 5.

(b)    Includes $30 million due to modifications of awards in connection with the Separation that was not allocated to any of
our operating segments for performance purposes. See Note 5.

(c)    Deferred tax benefit recognized does not reflect the impact of the Tax Act. See Note 18.
[1] Outstanding awards include 943 options and 17,342 SARs with weighted average exercise prices of $36.63 and $45.30, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.
v3.8.0.1
Shareholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2017
Stockholders' Equity Note [Abstract]  
Repurchase Of Shares Of Common Stock
 
 
Shares Repurchased
(thousands)
 
 
Dollar Value of Shares
Repurchased
 
Authorization Date
 
2017

 
 
2016

 
 
2015

 
 
2017

 
 
2016

 
 
2015

 
November 2017
 
—

 
 
—

 
 
—

 
 
$
—

 
 
$
—

 
 
$
—

 
November 2016
 
26,561

 
 
1,337

 
 
—

 
 
1,915

 
 
85

 
 
—

 
May 2016
 
—

 
 
50,435

 
 
—

 
 
—

 
 
4,200

 
 
—

 
March 2016
 
—

 
 
2,823

 
 
—

 
 
—

 
 
229

 
 
—

 
December 2015
 
—

 
 
13,368

 
 
932

 
 
—

 
 
933

 
 
67

 
November 2014
 
—

 
 
—

 
 
13,231

 
 
—

 
 
—

 
 
1,000

 
November 2013
 
—

 
 
—

 
 
1,779

 
 
—

 
 
—

 
 
133

 
Total
 
26,561

(a) 
 
67,963

(a) 
 
15,942

 
 
$
1,915

(a) 
 
$
5,447

(a) 
 
$
1,200

 

(a)
2017 amount excludes and 2016 amount includes the effect of $45 million in share repurchases (0.7 million shares) with trade dates prior to December 31, 2016 but settlement dates subsequent to December 31, 2016.
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(a)
 
Pension and Post-Retirement Benefits(b)
 
Derivative Instruments(c)
 
Total
Balance at December 31, 2015, net of tax
 
$
(125
)
 
$
(113
)
 
$
(14
)
 
$
(252
)
 
 
 
 
 
 
 
 
 
Gains (losses) arising during the year classified into AOCI, net of tax
 
(153
)
 
(41
)
 
37

 
(157
)
 
 
 
 
 
 
 
 
 
(Gains) losses reclassified from AOCI, net of tax

 
(11
)
 
27

 
(18
)
 
(2
)
 
 
 
 
 
 
 
 
 
OCI, net of tax
 
(164
)
 
(14
)
 
19

 
(159
)
 
 
 
 
 
 
 
 
 
Separation of China business
 
(47
)
 
—

 
—

 
(47
)
 
 
 
 
 
 
 
 
 
Balance at December 31, 2016, net of tax
 
$
(336
)
 
$
(127
)
 
$
5

 
$
(458
)
 
 
 
 
 
 
 
 
 
Gains (losses) arising during the year classified into AOCI, net of tax
 
107

 
(13
)
 
(51
)
 
43

 
 
 
 
 
 
 
 
 
(Gains) losses reclassified from AOCI, net of tax

 
55

 
34

 
55

 
144

 
 
 
 
 
 
 
 
 
OCI, net of tax
 
162

 
21

 
4

 
187

 
 
 
 
 
 
 
 
 
Balance at December 31, 2017, net of tax
 
$
(174
)
 
$
(106
)
 
$
9

 
(271
)
 
 
 
 
 
 
 
 
 

(a)
Amounts reclassified from AOCI are due to substantially complete liquidations of foreign entities related to KFC Turkey, Pizza Hut Turkey, Pizza Hut Thailand and Pizza Hut Korea refranchising transactions during 2017 and the Pizza Hut Australia refranchising transaction during 2016.

(b)
Amounts reclassified from AOCI for pension and post-retirement benefit plan losses during 2017 include amortization of net losses of $5 million, historical pension data adjustment of $22 million, settlement charges of $20 million, amortization of prior service cost of $5 million and related income tax benefit of $18 million. Amounts reclassified from AOCI for pension and post-retirement benefit plan losses during 2016 include amortization of net losses of $6 million, settlement charges of $33 million, amortization of prior service cost of $5 million and related income tax benefit of $17 million. See Note 15.

(c)
See Note 13 for details on amounts reclassified from AOCI.
v3.8.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Income before income taxes U.S. and foreign income before taxes are set forth below:

 
 
2017
 
2016
 
2015
U.S.
 
$
662

 
$
366

 
$
480

Foreign
 
1,612

 
979

 
773

 
 
$
2,274

 
$
1,345

 
$
1,253
Details of income tax provision (benefit) The details of our income tax provision (benefit) are set forth below:

 
 
 
 
2017
 
2016
 
2015
Current:
 
Federal
 
$
(2
)
 
$
126

 
$
267

 
 
Foreign
 
290

 
160

 
133

 
 
State
 
12

 
13

 
28

 
 
 
 
$
300

 
$
299

 
428

 
 
 
 
 
 
 
 
 
Deferred:
 
Federal
 
$
603

 
$
19

 
(116
)
 
 
Foreign
 
19

 
3

 
15

 
 
State
 
12

 
6

 
—

 
 
 
 
$
634

 
$
28

 
$
(101
)
 
 
 
 
$
934


$
327


$
327
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:

 
 
2017
 
2016
 
2015
U.S. federal statutory rate
 
$
797

 
35.0
 %
 
$
473

 
35.0
 %
 
$
438

 
35.0
 %
State income tax, net of federal tax benefit
 
11

 
0.5

 
15

 
1.1

 
12

 
0.9

Statutory rate differential attributable to foreign operations
 
(212
)
 
(9.3
)
 
(143
)
 
(10.5
)
 
(175
)
 
(13.7
)
Adjustments to reserves and prior years
 
12

 
0.5

 
(11
)
 
(0.8
)
 
13

 
1.0

Share-based payments
 
(117
)
 
(5.1
)
 
—

 
—

 
—

 
—

Change in valuation allowances
 
34

 
1.5

 
(3
)
 
(0.2
)
 
41

 
3.0

Other, net
 
(25
)
 
(1.1
)
 
(4
)
 
(0.3
)
 
(2
)
 
(0.1
)
Tax Act Enactment
 
434

 
19.1

 
—

 
—

 
—

 
—

Effective income tax rate
 
$
934

 
41.1
 %
 
$
327

 
24.3
 %
 
$
327

 
26.1
 %
Details of deferred tax assets (liabilities) The details of 2017 and 2016 deferred tax assets (liabilities) are set forth below:
 
 
2017
 
2016
Operating losses
 
$
216

 
$
172

Capital losses
 
4

 
184

Tax credit carryforwards
 
311

 
284

Employee benefits
 
94

 
185

Share-based compensation
 
58

 
100

Self-insured casualty claims
 
7

 
32

Lease-related liabilities
 
51

 
65

Various liabilities
 
51

 
56

Property, plant and equipment
 
24

 
37

Deferred income and other
 
31

 
32

Gross deferred tax assets
 
847

 
1,147

Deferred tax asset valuation allowances
 
(421
)
 
(195
)
Net deferred tax assets
 
$
426

 
$
952

Intangible assets, including goodwill
 
$
(69
)
 
$
(107
)
Property, plant and equipment
 
(18
)
 
(46
)
Deemed repatriation tax
 
(170
)
 
—

Other
 
(36
)
 
(34
)
Gross deferred tax liabilities
 
$
(293
)
 
$
(187
)
Net deferred tax assets (liabilities)
 
$
133


$
765


Reported in Consolidated Balance Sheets as:
 
 
 
 
Deferred income taxes
 
$
139


$
772

Other liabilities and deferred credits
 
(6
)
 
(7
)
 
 
$
133


$
765
Loss carryforwards, by year of expiration These losses are being carried forward in jurisdictions where we are permitted to use tax losses from prior periods to reduce future taxable income and will expire as follows:

 
 
Year of Expiration
 
 
 
 
2018
 
2019-2022
 
2023-2036
 
Indefinitely
 
Total
Foreign
 
$
9

 
$
46

 
$
85

 
$
376

 
$
516

U.S. state
 
—

 
61

 
1,012

 
—

 
1,073

U.S. federal
 
—

 
67

 
238

 
—

 
305

 
 
$
9

 
$
174

 
$
1,335

 
$
376

 
$
1,894
Unrecognized tax benefits reconciliation A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
 
 
2017
 
2016
Beginning of Year
 
$
91

 
$
98

     Additions on tax positions - current year
 
3

 
—

     Additions for tax positions - prior years
 
8

 
1

     Reductions for tax positions - prior years
 
—

 
(5
)
     Reductions for settlements
 
(1
)
 
(1
)
     Reductions due to statute expiration
 
(1
)
 
(2
)
     Foreign currency translation adjustment
 
—

 
—

End of Year
 
$
100

 
$
91
Summary of income tax examinations The accrued interest and penalties related to income taxes at December 31, 2017 and December 31, 2016 are set forth below:
 
 
2017
 
2016
Accrued interest and penalties
 
$
14

 
$
9
v3.8.0.1
Reportable Operating Segments (Tables)
 12 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
 
 
Revenues
 
 
2017
 
2016
 
2015
KFC Division(a)
 
$
3,110


$
3,225


$
3,222

Pizza Hut Division(a)
 
893


1,108


1,205

Taco Bell Division(a)
 
1,880

 
2,025

 
1,991

Unallocated(b)(f)
 
(5
)
 
(2
)
 
—

 
 
$
5,878


$
6,356


$
6,418



 
 
Operating Profit; Interest Expense, Net; and
Income Before Income Taxes
 
 
2017
 
2016
 
2015
KFC Division
 
$
981


$
871


$
835

Pizza Hut Division
 
341


367


351

Taco Bell Division
 
619

 
595

 
546

Unallocated Franchise and license fees and income(b)(f)
 
(5
)
 
(2
)
 
—

Unallocated restaurant costs(b)(i)
 
10


—


—

Unallocated Franchise and license expenses(b)(f)
 
(30
)
 
(24
)
 
(71
)
Corporate and unallocated G&A expenses(b)(g)
 
(230
)

(280
)

(180
)
Unallocated Refranchising gain (loss)(b)
 
1,083


163


(23
)
Unallocated Other income (expense)(b)(h)
 
(8
)

(8
)

(24
)
Operating Profit
 
2,761


1,682


1,434

Other pension income (expense)(b)(j)
 
(47
)
 
(32
)
 
(40
)
Interest expense, net(b)
 
(440
)

(305
)

(141
)
Income from continuing operations before income taxes
 
$
2,274


$
1,345


$
1,253


 
 
Depreciation and Amortization
 
 
2017
 
2016
 
2015
KFC Division
 
$
138

 
$
172

 
180

Pizza Hut Division
 
26

 
36

 
40

Taco Bell Division
 
82

 
90

 
89

Corporate
 
7

 
12

 
10

 
 
$
253

 
$
310

 
$
319


 
 
Capital Spending
 
 
2017
 
2016
 
2015
KFC Division
 
$
176

 
$
216

 
$
260

Pizza Hut Division
 
42

 
69

 
54

Taco Bell Division
 
95

 
132

 
116

Corporate
 
5

 
10

 
12

 
 
$
318

 
$
427

 
$
442


 
 
Identifiable Assets
 
 
2017
 
2016
KFC Division(e)
 
$
1,791

 
$
2,158

Pizza Hut Division(e)
 
628

 
639

Taco Bell Division(e)
 
1,086

 
1,178

Corporate(c)(e)
 
1,806

 
1,478

 
 
$
5,311

 
$
5,453


 
 
Long-Lived Assets(d)
 
 
2017
 
2016
KFC Division
 
$
1,200

 
$
1,537

Pizza Hut Division
 
310

 
372

Taco Bell Division
 
778

 
859

Corporate
 
31

 
32

 
 
$
2,319

 
$
2,800



(a)
U.S. revenues included in the combined KFC, Pizza Hut and Taco Bell Divisions totaled $2.8 billion in 2017, $3.1 billion in 2016 and $3.1 billion in 2015.

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

(c)    Primarily includes cash and deferred tax assets.

(d)    Includes PP&E, goodwill, and intangible assets, net.

(e)
U.S. identifiable assets included in the combined Corporate and KFC, Pizza Hut and Taco Bell Divisions totaled $3.0 billion and $3.1 billion in 2017 and 2016, respectively.

(f)
Represents costs associated with the KFC U.S. Acceleration Agreement and Pizza Hut U.S. Transformation Agreement. See Note 5.

(g)
Amounts in 2017 include costs related to YUM’s Strategic Transformation Initiatives of $21 million, non-cash charges associated with modifications of share-based compensation awards of $18 million and costs associated with the Pizza Hut U.S. Transformation Agreement of $13 million. Amounts in 2016 included costs related to YUM's Strategic Transformation Initiatives of $61 million and non-cash charges associated with the modifications of share-based compensation awards of $30 million. See Note 5.
(h)
Amounts include losses associated with the sale of corporate aircraft related to YUM’s Strategic Transformation Initiatives of $2 million and $9 million in 2017 and 2016, respectively. See Note 8.
(i)
Represents depreciation reductions arising primarily from KFC restaurants that were held-for-sale. See Note 5.
(j)
Amounts in 2017 include a non-cash charge of $22 million related to the adjustment of certain historical deferred vested liability balances in our qualified U.S. plan. Amounts in 2016 include a settlement charge of $24 million related to the Company allowing certain former employees with deferred vested balances in the Yum Retirement Plan an opportunity to voluntarily elect early payout of their pension benefits. See Note 5.
Reconciliation of Revenue from Segments to Consolidated
 
 
Revenues
 
 
2017
 
2016
 
2015
KFC Division(a)
 
$
3,110


$
3,225


$
3,222

Pizza Hut Division(a)
 
893


1,108


1,205

Taco Bell Division(a)
 
1,880

 
2,025

 
1,991

Unallocated(b)(f)
 
(5
)
 
(2
)
 
—

 
 
$
5,878


$
6,356


$
6,418
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
 
 
Operating Profit; Interest Expense, Net; and
Income Before Income Taxes
 
 
2017
 
2016
 
2015
KFC Division
 
$
981


$
871


$
835

Pizza Hut Division
 
341


367


351

Taco Bell Division
 
619

 
595

 
546

Unallocated Franchise and license fees and income(b)(f)
 
(5
)
 
(2
)
 
—

Unallocated restaurant costs(b)(i)
 
10


—


—

Unallocated Franchise and license expenses(b)(f)
 
(30
)
 
(24
)
 
(71
)
Corporate and unallocated G&A expenses(b)(g)
 
(230
)

(280
)

(180
)
Unallocated Refranchising gain (loss)(b)
 
1,083


163


(23
)
Unallocated Other income (expense)(b)(h)
 
(8
)

(8
)

(24
)
Operating Profit
 
2,761


1,682


1,434

Other pension income (expense)(b)(j)
 
(47
)
 
(32
)
 
(40
)
Interest expense, net(b)
 
(440
)

(305
)

(141
)
Income from continuing operations before income taxes
 
$
2,274


$
1,345


$
1,253
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated
 
 
Depreciation and Amortization
 
 
2017
 
2016
 
2015
KFC Division
 
$
138

 
$
172

 
180

Pizza Hut Division
 
26

 
36

 
40

Taco Bell Division
 
82

 
90

 
89

Corporate
 
7

 
12

 
10

 
 
$
253

 
$
310

 
$
319


 
 
Capital Spending
 
 
2017
 
2016
 
2015
KFC Division
 
$
176

 
$
216

 
$
260

Pizza Hut Division
 
42

 
69

 
54

Taco Bell Division
 
95

 
132

 
116

Corporate
 
5

 
10

 
12

 
 
$
318

 
$
427

 
$
442


 
 
Identifiable Assets
 
 
2017
 
2016
KFC Division(e)
 
$
1,791

 
$
2,158

Pizza Hut Division(e)
 
628

 
639

Taco Bell Division(e)
 
1,086

 
1,178

Corporate(c)(e)
 
1,806

 
1,478

 
 
$
5,311

 
$
5,453


 
 
Long-Lived Assets(d)
 
 
2017
 
2016
KFC Division
 
$
1,200

 
$
1,537

Pizza Hut Division
 
310

 
372

Taco Bell Division
 
778

 
859

Corporate
 
31

 
32

 
 
$
2,319

 
$
2,800
v3.8.0.1
Contingencies (Tables)
 12 Months Ended
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]  
Activity related to self-insured property and casualty reserves The following table summarizes the 2017 and 2016 activity related to our net self-insured property and casualty reserves as of December 31, 2017.

 
 
Beginning Balance
 
Expense
 
Payments
 
Ending Balance
2017 Activity
 
$
98

 
27

 
(41
)
 
$
84

2016 Activity
 
$
102

 
42

 
(46
)
 
$
98
v3.8.0.1
Selected Quarterly Financial Data (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2017
Schedule of Quarterly Financial Information [Abstract]  
Schedule of Quarterly Financial Information
 
 
2017
 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
 
Total
Revenues:
 
 
 
 
 
 
 
 
 
 
Company sales
 
$
902

 
$
909

 
$
871

 
$
890

 
$
3,572

Franchise and license fees and income
 
515

 
539

 
565

 
687

 
2,306

Total revenues
 
1,417

 
1,448

 
1,436

 
1,577

 
5,878

Restaurant profit
 
144

 
161

 
154

 
159

 
618

Operating Profit(a)
 
484

 
419

 
643

 
1,215

 
2,761

Net Income
 
280

 
206

 
418

 
436

 
1,340

Basic earnings per common share from continuing operations
 
0.78

 
0.59

 
1.21

 
1.29

 
3.86

Diluted earnings per common share from continuing operations
 
0.77

 
0.58

 
1.18

 
1.26

 
3.77

Dividends declared per common share
 
0.30

 
0.30

 
—

 
0.30

 
0.90

 
 
2016
 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
 
Total
Revenues:
 
 
 
 
 
 
 
 
 
 
Company sales
 
$
953

 
$
1,006

 
$
992

 
$
1,238

 
$
4,189

Franchise and license fees and income
 
490

 
503

 
526

 
648

 
2,167

Total revenues
 
1,443

 
1,509

 
1,518

 
1,886

 
6,356

Restaurant profit
 
148

 
167

 
161

 
224

 
700

Operating Profit(b)
 
349

 
415

 
398

 
520

 
1,682

Income from continuing operations, net of tax
 
226

 
266

 
218

 
308

 
1,018

Income (loss) from discontinued operations, net of tax
 
138

 
70

 
422

 
(5
)
 
625

Net Income
 
364

 
336

 
640

 
303

 
1,643

Basic earnings per common share from continuing operations
 
0.55

 
0.65

 
0.56

 
0.84

 
2.58

Basic earnings (loss) per common share from discontinued operations
 
0.33

 
0.17

 
1.09

 
(0.01
)
 
1.59

Basic earnings per common share
 
0.88

 
0.82

 
1.65

 
0.83

 
4.17

Diluted earnings per common share from continuing operations
 
0.54

 
0.64

 
0.55

 
0.83

 
2.54

Diluted earnings (loss) per common share from discontinued operations
 
0.33

 
0.17

 
1.07

 
(0.01
)
 
1.56

Diluted earnings per common share
 
0.87

 
0.81

 
1.62

 
0.82

 
4.10

Dividends declared per common share
 
0.46

 
0.46

 
0.51

 
0.30

 
1.73


(a)
Includes net gains from refranchising initiatives of $111 million, $19 million, $201 million and $752 million in the first, second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $7 million, $4 million, $4 million and $8 million in the first, second, third and fourth quarters, respectively, costs associated with the Pizza Hut U.S. Transformation Agreement of $12 million, $8 million and $11 million in the second, third and fourth quarters, respectively, costs associated with the KFC U.S. Acceleration Agreement of $3 million, $5 million, $4 million and $5 million in the first, second, third and fourth quarters, respectively and non-cash charges associated with the modification of share-based compensation awards in connection with the Separation of $2 million and $16 million in the first and second quarters, respectively.

(b)
Includes net gains from refranchising initiatives of $54 million, $21 million and $88 million in the second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $4 million, $30 million and $33 million in the second, third and fourth quarters, respectively, a non-cash charge primarily associated with the modification of share-based compensation awards in connection with the Separation of $30 million in the fourth quarter and costs associated with KFC U.S. Acceleration Agreement of $9 million, $8 million and $9 million in the first, second and fourth quarters, respectively. See Note 5.
v3.8.0.1
Description of Business (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
Months
operating_segments
restaurants
countries_and_territiories
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Segment Reporting Information [Line Items]      
Approximate Number Of System Units | restaurants 45,000    
Percent Of System Units Located Outside United States 60.00%    
Approximate Number Of Countries And Territories Where System Units Are Located | countries_and_territiories 135    
Number of Operating Segments | operating_segments 3    
Revenues   $ 6,356 $ 6,418
Operating Profit $ 2,761 1,682 1,434
Stock Repurchased During Period, Value $ 1,915 [1] 5,447 [1] 1,200
Fiscal period months standard first quarter | Months 2    
Fiscal period months standard second and third quarters | Months 3    
Fiscal period months standard fourth quarter | Months 4    
Number of periods or months in advance that certain of our international businesses close their books | Months 1    
KFC Global Division [Member]      
Segment Reporting Information [Line Items]      
Operating Profit $ 981 871 835
Pizza Hut Global Division [Member]      
Segment Reporting Information [Line Items]      
Operating Profit 341 367 351
Taco Bell Global Division [Member]      
Segment Reporting Information [Line Items]      
Operating Profit $ 619 $ 595 $ 546
[1] 2017 amount excludes and 2016 amount includes the effect of $45 million in share repurchases (0.7 million shares) with trade dates prior to December 31, 2016 but settlement dates subsequent to December 31, 2016.
v3.8.0.1
Summary of Significant Accounting Policies (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Schedule of Equity Method Investments [Line Items]      
Future lease payments due from franchisees on a nominal basis $ 725    
Reclassification of Retained Earnings to Common Stock for Share Repurchase 1,915 $ 5,399 $ 1,124
Retained Earnings      
Schedule of Equity Method Investments [Line Items]      
Employee Stock Option and SARs Exercises, Value $ 20    
v3.8.0.1
Summary of Significant Accounting Policies (Details 2)
$ in Millions
 3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2017
weeks
Sep. 30, 2017
weeks
Dec. 31, 2017
USD ($)
Months
Years
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Fiscal Period Adjustment [Line Items]          
Goodwill Written Off Related To Sale Of Business Unit Years From Acquisition     2    
Week added as a result of the fiscal year ending on last Saturday in December     53    
Frequency of adding a week as a result of the fiscal year ending on the last Saturday in December     five or six    
Number of weeks in each of the first three quarters of each fiscal year | weeks   12      
Number of weeks in the fourth quarter of each fiscal year with 52 weeks | weeks 16        
Number of weeks in the fourth quarter of each fiscal year with 53 weeks | weeks 17        
Fiscal period months standard first quarter | Months     2    
Fiscal period months standard second and third quarters | Months     3    
Fiscal period months standard fourth quarter | Months     4    
Revenues | $       $ 6,356 $ 6,418
Operating Profit | $     $ 2,761 $ 1,682 $ 1,434
Fair Value Goodwill Written Off Related To Sale Of Business Unit Minimum Years Refranchised     2    
Number of years notes receivable and direct financing leases are beyond and would be included in other assets     1    
Number of years notes receivable and direct financing leases are due within and would be included in accounts and notes receivable     1    
Number Of Consecutive Years Used As Primary Indicator Of Potential Impairment Of Restaurant Assets     2    
53rd Week Impact [Member]          
Fiscal Period Adjustment [Line Items]          
Revenues | $     $ 76    
Operating Profit | $     $ 28    
v3.8.0.1
Summary of Significant Accounting Policies (Details 3)
$ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
Years
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Impairment or Disposal of Property, Plant and Equipment [Abstract]      
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    
Leases and Leasehold Improvements [Abstract]      
Approximate number of restaurants operated on leased land and/or buildings 900    
Goodwill and Intangible Assets [Abstract]      
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    
Minimum [Member] | Buildings and improvements      
Property, Plant and Equipment [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 and equipment      
Property, Plant and Equipment [Line Items]      
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years) 3 years    
Minimum [Member] | Capitalized software costs      
Property, Plant and Equipment [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] | Buildings and improvements      
Property, Plant and Equipment [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 and equipment      
Property, Plant and Equipment [Line Items]      
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years) 20 years    
Maximum [Member] | Capitalized software costs      
Property, Plant and Equipment [Line Items]      
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years) 7 years    
Continuing Operations [Member]      
Property, Plant and Equipment [Line Items]      
Deferred Tax Assets, Net of Valuation Allowance, Current $ 139 $ 772  
Foreign Currency [Abstract]      
Foreign currency translation adjustment 174    
Direct Marketing Costs [Abstract]      
Advertising Expense 245 260 $ 253
Research and Development Expenses [Abstract]      
Research and development expenses $ 22 $ 24 $ 23
v3.8.0.1
Summary of Significant Accounting Policies (Details 4)
$ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Dec. 31, 2017
USD ($)
Sep. 30, 2017
USD ($)
Jun. 30, 2017
USD ($)
Mar. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Sep. 30, 2016
USD ($)
Jun. 30, 2016
USD ($)
Mar. 31, 2016
USD ($)
Jun. 30, 2016
USD ($)
Jun. 30, 2015
USD ($)
Dec. 31, 2017
USD ($)
Months
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Revenues                       $ 6,356 $ 6,418  
Fiscal period months standard first quarter | Months                     2      
Period Within Date Of Corresponding Sales In Which Trade Receivables Are Classified As Accounts And Notes Receivable                     30 days      
Accounts and notes receivable [Abstract]                            
Other Assets $ 375       $ 66           $ 375 66    
Repurchase Of Shares Of Common Stock [Abstract]                            
Stock Repurchased During Period, Value                     $ (1,915) [1] (5,447) [1] (1,200)  
Fiscal period months standard second and third quarters | Months                     3      
Fiscal period months standard fourth quarter | Months                     4      
Number of periods or months in advance that certain of our international businesses close their books | Months                     1      
Reduction to Retained earnings                            
Repurchase Of Shares Of Common Stock [Abstract]                            
Stock Repurchased During Period, Value                     $ (1,915) (5,399) (1,124)  
Accounting Standards Update 2016-09 [Member]                            
Repurchase Of Shares Of Common Stock [Abstract]                            
New Accounting Pronouncement or Change in Accounting Principle, Amounts Previously Presented as a Financing Activity now Reclassified to Operating Activities                     83 46    
Continuing Operations [Member]                            
Revenues 1,577 $ 1,436 $ 1,448 $ 1,417 1,886 $ 1,518 $ 1,509 $ 1,443     5,878 6,356 6,418  
Receivables [Abstract]                            
Net amounts included in Other Assets 38       29           38 29    
Allowance for doubtful accounts related to notes and direct financing lease receivables         2             2    
Accounts and notes receivable [Abstract]                            
Accounts and notes receivable 419       384           419 384    
Allowance for doubtful accounts (19)       (14)           (19) (14)    
Accounts and notes receivable, net 400       370           400 370    
Other Assets 375       66           375 66    
Deferred income taxes 139       772           139 772    
Other current liabilities 331       342           331 342    
Repurchase Of Shares Of Common Stock [Abstract]                            
Franchise and license fees and income 687 $ 565 $ 539 $ 515 648 $ 526 $ 503 $ 490     2,306 2,167 2,082  
Net Cash Provided by (Used in) Operating Activities                     1,030 1,248 1,260  
Cash, Cash Equivalents and Restricted Cash as presented in the Consolidated Statement of Cash Flows 1,599       $ 831           1,599 831 365 $ 393
Operating Expenses                     3,117 4,674 4,984  
CHINA | Continuing Operations [Member]                            
Repurchase Of Shares Of Common Stock [Abstract]                            
Franchise and license fees and income [2]                     260      
Franchise and license expenses [Member]                            
Repurchase Of Shares Of Common Stock [Abstract]                            
Sales Allowances, Services                     5 $ 1 $ 6  
Income Tax Expense (Benefit) [Domain] | Accounting Standards Update 2016-09 [Member]                            
Repurchase Of Shares Of Common Stock [Abstract]                            
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results                     117      
Other pension (income) expense [Member] | Accounting Standards Updated 2017-07 [Domain]                            
Repurchase Of Shares Of Common Stock [Abstract]                            
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results                 $ 32 $ 40        
2018 [Domain] [Member] | Accounting Standards Update 2014-09 [Member]                            
Revenues                     1,000      
Repurchase Of Shares Of Common Stock [Abstract]                            
Operating Expenses                     1,000      
2018 [Domain] [Member] | Operating Income (Loss) [Member] | Accounting Standards Update 2014-09 [Member]                            
Repurchase Of Shares Of Common Stock [Abstract]                            
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results                     45      
Stockholders' Equity, Total [Member] | 2018 [Domain] [Member] | Accounting Standards Update 2014-09 [Member]                            
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets 230                   230      
Liabilities, Total [Member] | 2018 [Domain] [Member] | Accounting Standards Update 2014-09 [Member]                            
Repurchase Of Shares Of Common Stock [Abstract]                            
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Total Liabilities                     390      
Assets, Total [Member] | 2018 [Domain] [Member] | Accounting Standards Update 2014-09 [Member]                            
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets $ 140                   $ 140      
[1] 2017 amount excludes and 2016 amount includes the effect of $45 million in share repurchases (0.7 million shares) with trade dates prior to December 31, 2016 but settlement dates subsequent to December 31, 2016.
[2] In 2010, we refranchised our then-remaining Company-operated restaurants in Mexico. To the extent we owned it, we did not sell the real estate related to certain of these restaurants, instead leasing it to the franchisee. During 2015, we sold the real estate for approximately $58 million. While these proceeds exceeded the book value of the real estate, the sale represented a substantial liquidation of our Mexican foreign entities under GAAP. As such, the accumulated translation losses associated with our Mexican business were included in our loss on the sale. We recorded charges of $80 million representing the excess of the sum of the book value of the real estate and other related assets and our accumulated translation losses over the sales price. Consistent with the classification of the original Mexico market-wide refranchising transaction, these charges were classified as Refranchising (gain) loss. Refranchising losses of $40 million were associated with both the KFC and Pizza Hut Divisions. We continue to earn U.S. dollar-denominated franchise fees, most of which are sales-based royalties, under our existing franchise contracts with our Mexico franchisee.
v3.8.0.1
Note 2. Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details 5) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Pizza Hut Global Division [Member] | Incremental Advertising [Member]      
Costs associated with PH U.S. Acceleration Agreement $ 25    
Franchise and license expenses [Member] | Pizza Hut Global Division [Member] | Incremental Advertising [Member]      
Costs associated with PH U.S. Acceleration Agreement 25    
Incremental Advertising [Member] | KFC Global Division [Member]      
Costs associated with KFC U.S. Acceleration Agreement $ 20 $ 20 $ 10
v3.8.0.1
Earnings Per Common Share ("EPS") (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income from continuing operations                   $ 1,018 $ 926
Income from discontinued operations                   625 357
Net Income         $ 303 $ 640 $ 336 $ 364 $ 1,340 $ 1,643 $ 1,283
Weighted-average common shares outstanding (for basic calculation) (in shares)                 347.0 394.0 435.0
Effect of dilutive share-based employee compensation (in shares)                 8.0 6.0 8.0
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) (in shares)                 355.0 400.0 443.0
Basic EPS (in dollars per share)         $ 0.83 $ 1.65 $ 0.82 $ 0.88 $ 3.86 $ 4.17 $ 2.95
Diluted EPS (in dollars per share)         $ 0.82 $ 1.62 $ 0.81 $ 0.87 $ 3.77 $ 4.10 $ 2.90
Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation (in shares) [1]                 2.3 5.0 4.5
Continuing Operations [Member]                      
Income from continuing operations $ 436 $ 418 $ 206 $ 280 $ 308 $ 218 $ 266 $ 226 $ 1,340 $ 1,018 $ 926
Basic EPS (in dollars per share) $ 1.29 $ 1.21 $ 0.59 $ 0.78 $ 0.84 $ 0.56 $ 0.65 $ 0.55 $ 3.86 $ 2.58 $ 2.13
Diluted EPS (in dollars per share) $ 1.26 $ 1.18 $ 0.58 $ 0.77 $ 0.83 $ 0.55 $ 0.64 $ 0.54 $ 3.77 $ 2.54 $ 2.09
Discontinued Operations [Member]                      
Income from discontinued operations         $ (5) $ 422 $ 70 $ 138 $ 0 $ 625 [2] $ 357
Basic EPS (in dollars per share)         $ (0.01) $ 1.09 $ 0.17 $ 0.33   $ 1.59 $ 0.82
Diluted EPS (in dollars per share)         $ (0.01) $ 1.07 $ 0.17 $ 0.33   $ 1.56 $ 0.81
[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.
[2] Includes Yum China financial results from January 1, 2016 to October 31, 2016.
v3.8.0.1
Discontinued Operations (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2017
USD ($)
restaurants
Sep. 30, 2017
USD ($)
Jun. 30, 2017
USD ($)
Mar. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Sep. 30, 2016
USD ($)
Jun. 30, 2016
USD ($)
Mar. 31, 2016
USD ($)
Dec. 31, 2017
USD ($)
restaurants
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Feb. 07, 2018
USD ($)
Income Statement [Abstract]                        
Refranchising (gain) loss $ 752 $ 201 $ 19 $ 111 $ 88 $ 21 $ 54   $ 1,083 $ 163 $ (23)  
Interest income [1]                 (440) (305) (141)  
Income from discontinued operations - YUM! Brands, Inc.                   625 357  
Asset Impairment Charges                 4 17 17  
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]                        
Total Current Assets 2,507       1,505       2,507 1,505    
Investments in unconsolidated affiliates                       $ 200
Total assets classified as discontinued operations 5,311       5,453       5,311 5,453    
Current liablilities of discontinued operations 1,512       1,306       1,512 1,306    
Long-term debt 9,429       9,059       9,429 9,059    
Total liabilities of discontinued operations $ 11,645       11,068       $ 11,645 11,068    
Number of Stores | restaurants 45,000               45,000      
Continuing Operations [Member]                        
Income Statement [Abstract]                        
Company sales $ 890 871 909 902 1,238 992 1,006 $ 953 $ 3,572 4,189 4,336  
Franchise and license fees and income 687 $ 565 $ 539 $ 515 648 526 503 490 2,306 2,167 2,082  
Company restaurant expenses                 (2,954) (3,489) (3,627)  
General and administrative expenses                 (999) (1,129) (1,058)  
Franchise and license expenses                 (237) (201) (240)  
Closures and impairment expenses                 (3) (15) (16)  
Refranchising (gain) loss                 1,083 163 (23)  
Interest income                 (440) (305) (141)  
Income tax provision                 (934) (327) (327)  
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]                        
Cash and cash equivalents 1,522       725       1,522 725 345  
Accounts and notes receivable, net 400       370       400 370    
Inventories 13       37       13 37    
Prepaid expenses and other current assets 371       236       371 236    
Property, Plant and equipment, net 1,697       2,113       1,697 2,113    
Goodwill 512       536       512 536 568  
Intangible assets, net 110       151       110 151    
Other assets 346       376       346 376    
Deferred income taxes 139       772       139 772    
Total assets classified as discontinued operations 5,311       5,453       5,311 5,453    
Accounts payable and other current liabilities 813       1,067       813 1,067    
Income taxes payable 123       36       123 36    
Long-term debt 9,429       9,059       9,429 9,059    
Other liabilities and deferred credits $ 704       703       704 703    
Discontinued Operations [Member]                        
Income Statement [Abstract]                        
Company sales                   5,667 [2] 6,789  
Franchise and license fees and income                   109 [2] 120  
Company restaurant expenses                   (4,766) [2] (5,913)  
General and administrative expenses [3]                   (406) [2] (405)  
Franchise and license expenses                   (45) [2] (48)  
Closures and impairment expenses                   (57) [2] (64)  
Refranchising (gain) loss                   12 [2] 13  
Other income [4]                   49 [2] 27  
Interest income                   8 [2] 7  
Income from discontinued operations before income taxes                   571 [2] 526  
Income tax provision                   65 [2],[5] (164)  
Income from discontinued operations - including noncontrolling interests                   636 [2] 362  
Income (loss) from discontinued operations - noncontrolling interests                   (11) [2] (5)  
Income from discontinued operations - YUM! Brands, Inc.         $ (5) $ 422 $ 70 $ 138 0 625 [2] 357  
Costs associated with the planned spin-off of the China business                   68 9  
Closures and impairment (income) expenses                        
Income Statement [Abstract]                        
Closures and impairment expenses                 (3) (15) (16)  
Little Sheep [Member] | Discontinued Operations [Member]                        
Income Statement [Abstract]                        
Income tax provision                   233    
Restatement Adjustment [Member]                        
Income Statement [Abstract]                        
Refranchising (gain) loss                   24    
Income from discontinued operations - YUM! Brands, Inc.                   0 $ 0  
CHINA | Continuing Operations [Member]                        
Income Statement [Abstract]                        
Franchise and license fees and income [6]                 260      
Discontinued Operation, Amount of Continuing Cash Flows after Disposal                 $ 217 $ 16    
[1] Amounts have not been allocated to any segment for performance reporting purposes.
[2] Includes Yum China financial results from January 1, 2016 to October 31, 2016.
[3] Includes costs incurred to execute the Separation of $68 million and $9 million for 2016 and 2015, respectively. Such costs primarily relate to transaction advisors, legal and other consulting fees.
[4] Primarily relates to equity income from KFC franchisees in which Yum China owns a minority interest.
[5] During 2016, we recorded a tax benefit of $233 million related to previously recorded losses associated with our Little Sheep business. The tax benefit associated with these losses was able to be recognized as a result of legal entity restructuring completed in anticipation of the Separation.
[6] In 2010, we refranchised our then-remaining Company-operated restaurants in Mexico. To the extent we owned it, we did not sell the real estate related to certain of these restaurants, instead leasing it to the franchisee. During 2015, we sold the real estate for approximately $58 million. While these proceeds exceeded the book value of the real estate, the sale represented a substantial liquidation of our Mexican foreign entities under GAAP. As such, the accumulated translation losses associated with our Mexican business were included in our loss on the sale. We recorded charges of $80 million representing the excess of the sum of the book value of the real estate and other related assets and our accumulated translation losses over the sales price. Consistent with the classification of the original Mexico market-wide refranchising transaction, these charges were classified as Refranchising (gain) loss. Refranchising losses of $40 million were associated with both the KFC and Pizza Hut Divisions. We continue to earn U.S. dollar-denominated franchise fees, most of which are sales-based royalties, under our existing franchise contracts with our Mexico franchisee.
v3.8.0.1
Items Affecting Comparability of Net Income and Cash Flows (Details)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2017
USD ($)
$ / shares
Sep. 30, 2017
USD ($)
$ / shares
Jun. 30, 2017
USD ($)
$ / shares
Mar. 31, 2017
USD ($)
$ / shares
Dec. 31, 2016
USD ($)
$ / shares
Sep. 30, 2016
USD ($)
$ / shares
Jun. 30, 2016
USD ($)
$ / shares
Mar. 31, 2016
USD ($)
$ / shares
Dec. 31, 2017
USD ($)
restaurants
$ / shares
Dec. 31, 2016
USD ($)
restaurants
$ / shares
Dec. 31, 2015
USD ($)
restaurants
$ / shares
Dec. 31, 2014
USD ($)
Facility Actions [Line Items]                        
Revenues                   $ 6,356.0 $ 6,418.0  
Proceeds from refranchising of restaurants                 $ 1,773.0 370.0 213.0  
Refranchising (gain) loss $ (752.0) $ (201.0) $ (19.0) $ (111.0) $ (88.0) $ (21.0) $ (54.0)   (1,083.0) (163.0) 23.0  
Impact of retrospectively adopting new accounting guidance on Benefit Costs                   32.0 40.0  
Store closure (income) costs(a) [1]                 (1.0) (2.0) (1.0)  
Business Combination                        
Pension settlement charges                 (20.0) (33.0)    
Facility Actions [Abstract]                        
Asset Impairment Charges                 4.0 17.0 17.0  
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax                 (55.0) 11.0 (115.0)  
Operating Profit                 2,761.0 1,682.0 1,434.0  
Income from continuing operations                   1,018.0 926.0  
Income from discontinued operations                   625.0 357.0  
Net Income (Loss) Attributable to Parent         $ 303.0 $ 640.0 $ 336.0 $ 364.0 $ 1,340.0 $ 1,643.0 $ 1,283.0  
Diluted EPS (in dollars per share) | $ / shares         $ 0.82 $ 1.62 $ 0.81 $ 0.87 $ 3.77 $ 4.10 $ 2.90  
Total Shareholders' Equity (6,334.0)       $ (5,615.0)       $ (6,334.0) $ (5,615.0)    
Gain (loss) on disposition of assets [Member]                        
Facility Actions [Line Items]                        
Number of Restaurants Refranchised | restaurants                 1,470 432 270  
Closures and impairment (income) expenses                        
Facility Actions [Abstract]                        
Closure and impairment (income) expenses                 $ 3.0 $ 15.0 $ 16.0  
MEXICO                        
Facility Actions [Line Items]                        
Transfer of Financial Assets Accounted for as Sales, Cash Proceeds Received for Assets Derecognized, Amount                     58.0  
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal                     80.0  
Taco Bell Global Division [Member]                        
Facility Actions [Line Items]                        
Store closure (income) costs(a) [1]                 (1.0) 0.0 (1.0)  
Facility Actions [Abstract]                        
Asset Impairment Charges                 1.0 3.0 4.0  
Closure and impairment (income) expenses                 0.0 3.0 3.0  
Pizza Hut Global Division [Member]                        
Facility Actions [Line Items]                        
Store closure (income) costs(a) [1]                 0.0 (5.0) (1.0)  
Facility Actions [Abstract]                        
Asset Impairment Charges                 1.0 6.0 5.0  
Closure and impairment (income) expenses                 1.0 1.0 4.0  
KFC Global Division [Member]                        
Facility Actions [Line Items]                        
Store closure (income) costs(a) [1]                 0.0 3.0 1.0  
Facility Actions [Abstract]                        
Asset Impairment Charges                 2.0 8.0 8.0  
Closure and impairment (income) expenses                 2.0 11.0 9.0  
Corporate and Other [Member] | General and Administrative Expense [Member]                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Restructuring and Related Cost, Incurred Cost 8.0 4.0 4.0 7.0 33.0 $ 30.0 $ 4.0   23.0 67.0    
KFC Global Division [Member]                        
Facility Actions [Line Items]                        
Refranchising (gain) loss                 (581.0) (44.0) 32.0 [2]  
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Operating Profit                 981.0 871.0 835.0  
KFC Global Division [Member] | MEXICO                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal                     40.0  
Unallocated and General and administrative expenses [Domain] | Franchise and license expenses [Member]                        
Facility Actions [Line Items]                        
Costs associated with KFC U.S. Acceleration Agreement 5.0 4.0 5.0 3.0 9.0   8.0 $ 9.0 17.0 26.0 72.0  
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Costs associated with PH U.S. Acceleration Agreement 11.0 8.0 12.0           31.0      
U.S.                        
Facility Actions [Line Items]                        
Revenues                 2,800.0 3,100.0 3,100.0  
Pizza Hut Global Division [Member]                        
Facility Actions [Line Items]                        
Refranchising (gain) loss                 (16.0) (48.0) 56.0 [2]  
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Operating Profit                 341.0 367.0 351.0  
Pizza Hut Global Division [Member] | MEXICO                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal                   40.0    
Taco Bell Global Division [Member]                        
Facility Actions [Line Items]                        
Refranchising (gain) loss                 (486.0) (71.0) (65.0)  
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Operating Profit                 619.0 595.0 546.0  
Retained Earnings                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Net Income (Loss) Attributable to Parent                 1,340.0 1,643.0 1,283.0  
Total Shareholders' Equity (6,063.0)       (5,157.0)       (6,063.0) (5,157.0) 1,187.0 $ 1,784.0
2017 to 2018 [Domain] | Unallocated and General and administrative expenses [Domain] | Franchise and license expenses [Member]                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Costs associated with PH U.S. Acceleration Agreement                 90.0      
2015 to 2018 [Domain] [Domain] | Unallocated and General and administrative expenses [Domain] | Franchise and license expenses [Member]                        
Facility Actions [Line Items]                        
Costs associated with KFC U.S. Acceleration Agreement                 130.0      
Incremental Advertising [Member] | KFC Global Division [Member]                        
Facility Actions [Line Items]                        
Costs associated with KFC U.S. Acceleration Agreement                 20.0 20.0 10.0  
Incremental Advertising [Member] | 2018 [Domain] [Member] | KFC Global Division [Member]                        
Facility Actions [Line Items]                        
Costs associated with KFC U.S. Acceleration Agreement                 10.0      
Incremental Advertising [Member] | 2015 to 2018 [Domain] | KFC Global Division [Member]                        
Facility Actions [Line Items]                        
Costs associated with KFC U.S. Acceleration Agreement                 60.0      
U.S. Pension Plans [Member]                        
Facility Actions [Line Items]                        
Deferred vested pension payout [3]                 73.0 260.0    
Business Combination                        
Pension settlement charges [4]                 (19.0) 32.0 5.0  
U.S. Pension Plans [Member] | Other pension (income) expense [Member]                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Pension data adjustment                 22.0 [5] 0.0 0.0  
U.S. Pension Plans [Member] | Deferred Vested Project [Member]                        
Facility Actions [Line Items]                        
Deferred vested pension payout [3]                 205.0      
Business Combination                        
Pension settlement charges [4]                 24.0      
U.S. Pension Plans [Member] | Deferred Vested Project [Member] | Other pension (income) expense [Member]                        
Business Combination                        
Pension settlement charges [4]                 24.0      
Executive Income Deferral Plan [Member] | Mark-to-Market of YUM China Funds [Member]                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
General and administrative expenses                 18.0 30.0    
Continuing Operations [Member]                        
Facility Actions [Line Items]                        
Net Cash Provided by (Used in) Operating Activities                 1,030.0 1,248.0 1,260.0  
Revenues 1,577.0 1,436.0 1,448.0 1,417.0 1,886.0 1,518.0 1,509.0 1,443.0 5,878.0 6,356.0 6,418.0  
Proceeds from refranchising of restaurants                 1,773.0 370.0 213.0  
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount                 434.0 0.0 0.0  
Refranchising (gain) loss                 (1,083.0) (163.0) 23.0  
Franchise and license expenses                 237.0 201.0 240.0  
Facility Actions [Abstract]                        
Closure and impairment (income) expenses                 3.0 15.0 16.0  
Carrying value of goodwill 512.0       536.0       512.0 536.0 568.0  
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
General and administrative expenses                 999.0 1,129.0 1,058.0  
Operating Profit 1,215.0 [6] 643.0 [6] 419.0 [6] 484.0 [6] 520.0 [7] 398.0 [7] 415.0 [7] 349.0 [7] 2,761.0 [6] 1,682.0 [7] 1,434.0  
Income from continuing operations $ 436.0 $ 418.0 $ 206.0 $ 280.0 $ 308.0 $ 218.0 $ 266.0 $ 226.0 $ 1,340.0 $ 1,018.0 $ 926.0  
Diluted EPS (in dollars per share) | $ / shares $ 1.26 $ 1.18 $ 0.58 $ 0.77 $ 0.83 $ 0.55 $ 0.64 $ 0.54 $ 3.77 $ 2.54 $ 2.09  
Net Cash Provided by (Used in) Investing Activities                 $ 1,472.0 $ (4.0) $ (199.0)  
Net Cash Used in Financing Activities                 (1,795.0) (744.0) (1,089.0)  
Continuing Operations [Member] | Pizza Hut                        
Facility Actions [Abstract]                        
Carrying value of goodwill $ 162.0       $ 157.0       162.0 157.0 189.0  
Continuing Operations [Member] | Corporate and Other [Member]                        
Facility Actions [Line Items]                        
Revenues [8]                 (5.0) [9] (2.0) [9] 0.0  
Continuing Operations [Member] | KFC Global Division [Member]                        
Facility Actions [Line Items]                        
Revenues [10]                 3,110.0 3,225.0 3,222.0  
Continuing Operations [Member] | Pizza Hut Global Division [Member]                        
Facility Actions [Line Items]                        
Revenues [10]                 893.0 1,108.0 1,205.0  
Continuing Operations [Member] | Taco Bell Global Division [Member]                        
Facility Actions [Line Items]                        
Revenues [10]                 1,880.0 2,025.0 1,991.0  
Discontinued Operations [Member]                        
Facility Actions [Line Items]                        
Net Cash Provided by (Used in) Operating Activities                 0.0 829.0 931.0  
Refranchising (gain) loss                   (12.0) [11] (13.0)  
Franchise and license expenses                   45.0 [11] 48.0  
Facility Actions [Abstract]                        
Closure and impairment (income) expenses                   57.0 [11] 64.0  
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
General and administrative expenses [12]                   406.0 [11] 405.0  
Income from discontinued operations         $ (5.0) $ 422.0 $ 70.0 $ 138.0 0.0 $ 625.0 [11] $ 357.0  
Diluted EPS (in dollars per share) | $ / shares         $ (0.01) $ 1.07 $ 0.17 $ 0.33   $ 1.56 $ 0.81  
Net Cash Provided by (Used in) Investing Activities                 0.0 $ (287.0) $ (493.0)  
Net Cash Used in Financing Activities                 0.0 (292.0) (234.0)  
Property, Plant and Equipment [Member]                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Costs associated with PH U.S. Acceleration Agreement                 8.0      
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Corporate and Other [Member]                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Depreciation                 (10.0)      
Incremental Advertising [Member] | Pizza Hut Global Division [Member]                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Costs associated with PH U.S. Acceleration Agreement                 25.0      
Incremental Advertising [Member] | Pizza Hut Global Division [Member] | Franchise and license expenses [Member]                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Costs associated with PH U.S. Acceleration Agreement                 25.0      
Incremental Advertising [Member] | Second half of 2017 to 2018 [Domain] | Pizza Hut Global Division [Member]                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Costs associated with PH U.S. Acceleration Agreement                 37.5      
Accounting Standards Update 2014-09 [Member] | 2018 [Domain] [Member]                        
Facility Actions [Line Items]                        
Revenues                 1,000.0      
Accounting Standards Update 2014-09 [Member] | 2018 [Domain] [Member] | Assets, Total [Member]                        
Facility Actions [Line Items]                        
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets $ 140.0               $ 140.0      
Scenario, Previously Reported [Member]                        
Facility Actions [Line Items]                        
Revenues                   6,366.0 6,440.0  
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Operating Profit                   1,625.0 1,402.0  
Income from continuing operations                   994.0 936.0  
Income from discontinued operations                   625.0 357.0  
Net Income (Loss) Attributable to Parent                   $ 1,619.0 $ 1,293.0  
Diluted EPS (in dollars per share) | $ / shares                   $ 4.04 $ 2.92  
Scenario, Previously Reported [Member] | Continuing Operations [Member]                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Diluted EPS (in dollars per share) | $ / shares                   2.48 2.11  
Scenario, Previously Reported [Member] | Discontinued Operations [Member]                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Diluted EPS (in dollars per share) | $ / shares                   $ 1.56 $ 0.81  
Restatement Adjustment [Member]                        
Facility Actions [Line Items]                        
Net Cash Provided by (Used in) Operating Activities                   $ 39.0    
Revenues                   (10.0) $ (22.0)  
Refranchising (gain) loss                   (24.0)    
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Operating Profit                   25.0 [13] (8.0)  
Income from continuing operations                   24.0 (10.0)  
Income from discontinued operations                   0.0 0.0  
Net Income (Loss) Attributable to Parent                   $ 24.0 $ (10.0)  
Diluted EPS (in dollars per share) | $ / shares                   $ 0.06 $ (0.02)  
Net Cash Provided by (Used in) Investing Activities                   $ 20.0 $ 10.0  
Net Cash Used in Financing Activities                   $ 16.0 $ 16.0  
Total Shareholders' Equity                       $ 9.0
Restatement Adjustment [Member] | Continuing Operations [Member]                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Diluted EPS (in dollars per share) | $ / shares                   $ 0.06 $ (0.02)  
Restatement Adjustment [Member] | Discontinued Operations [Member]                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Diluted EPS (in dollars per share) | $ / shares                   $ 0 $ 0  
Excluding the impact of retrospectively adopting new accounting guidance [Member]                        
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                        
Operating Profit [14]                   $ 1,650.0 $ 1,394.0  
[1] Store closure (income) costs include the net gain or loss on sales of real estate on which we formerly operated a Company-owned restaurant that was closed, lease reserves established when we cease using a property under an operating lease and subsequent adjustments to those reserves and other facility-related expenses from previously closed stores. Remaining lease obligations for closed stores were not material at December 31, 2017 or December 31, 2016.
[2] In 2010, we refranchised our then-remaining Company-operated restaurants in Mexico. To the extent we owned it, we did not sell the real estate related to certain of these restaurants, instead leasing it to the franchisee. During 2015, we sold the real estate for approximately $58 million. While these proceeds exceeded the book value of the real estate, the sale represented a substantial liquidation of our Mexican foreign entities under GAAP. As such, the accumulated translation losses associated with our Mexican business were included in our loss on the sale. We recorded charges of $80 million representing the excess of the sum of the book value of the real estate and other related assets and our accumulated translation losses over the sales price. Consistent with the classification of the original Mexico market-wide refranchising transaction, these charges were classified as Refranchising (gain) loss. Refranchising losses of $40 million were associated with both the KFC and Pizza Hut Divisions. We continue to earn U.S. dollar-denominated franchise fees, most of which are sales-based royalties, under our existing franchise contracts with our Mexico franchisee.
[3] For discussion of the settlement payments made in connection with the deferred vested program in 2016, see Note 5.
[4] 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.
[5] Reflects a non-cash, out-of-year charge related to the adjustment of certain historical deferred vested liability balances in the Plan during the first quarter of 2017 recorded in Other pension (income) expense. See Note 5.
[6] Includes net gains from refranchising initiatives of $111 million, $19 million, $201 million and $752 million in the first, second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $7 million, $4 million, $4 million and $8 million in the first, second, third and fourth quarters, respectively, costs associated with the Pizza Hut U.S. Transformation Agreement of $12 million, $8 million and $11 million in the second, third and fourth quarters, respectively, costs associated with the KFC U.S. Acceleration Agreement of $3 million, $5 million, $4 million and $5 million in the first, second, third and fourth quarters, respectively and non-cash charges associated with the modification of share-based compensation awards in connection with the Separation of $2 million and $16 million in the first and second quarters, respectively.
[7] Includes net gains from refranchising initiatives of $54 million, $21 million and $88 million in the second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $4 million, $30 million and $33 million in the second, third and fourth quarters, respectively, a non-cash charge primarily associated with the modification of share-based compensation awards in connection with the Separation of $30 million in the fourth quarter and costs associated with KFC U.S. Acceleration Agreement of $9 million, $8 million and $9 million in the first, second and fourth quarters, respectively. See Note 5.
[8] Amounts have not been allocated to any segment for performance reporting purposes.
[9] Represents costs associated with the KFC U.S. Acceleration Agreement and Pizza Hut U.S. Transformation Agreement. See Note 5.
[10] U.S. revenues included in the combined KFC, Pizza Hut and Taco Bell Divisions totaled $2.8 billion in 2017, $3.1 billion in 2016 and $3.1 billion in 2015.
[11] Includes Yum China financial results from January 1, 2016 to October 31, 2016.
[12] Includes costs incurred to execute the Separation of $68 million and $9 million for 2016 and 2015, respectively. Such costs primarily relate to transaction advisors, legal and other consulting fees.
[13] Primarily represents gains of $24 million related to the refranchising of certain international restaurants which occurred in December 2016.
[14] Amount does not reconcile to our Consolidated Statements of Income for the year ended December 31, 2016 and December 31, 2015 due to the impact of retrospectively adopting a new accounting standard on Benefit Costs of $32 million and $40 million, respectively. See Note 2.
v3.8.0.1
Supplemental Cash Flow Data (Details) - Continuing Operations [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Cash Paid For:        
Interest $ 442 $ 297 $ 141  
Income taxes 346 314 392 [1]  
Significant Non-Cash Investing and Financing Activities:        
Capital lease obligations incurred 8 10 26  
Capital lease and other debt obligations transferred through refranchising (35) (1) 0  
Cash and Cash Equivalents, at Carrying Value 1,522 725 345  
Cash, Cash Equivalents and Restricted Cash as presented in the Consolidated Statement of Cash Flows 1,599 831 365 $ 393
Prepaid Expenses and Other Current Assets [Member]        
Significant Non-Cash Investing and Financing Activities:        
Restricted Cash and Cash Equivalents, Current 60 [1] 55 [1] 0  
Other Assets [Member]        
Significant Non-Cash Investing and Financing Activities:        
Restricted Cash and Cash Equivalents, Noncurrent [2] $ 17 $ 51 $ 20  
[1] Restricted cash within Prepaid expenses and other current assets reflects the Taco Bell Securitization interest reserves. See Note 11.
[2] Primarily trust accounts related to our self-insurance program. 2016 also includes cash balances required, to the extent necessary, to meet statutory minimum net worth requirements for legal entities which enter into U.S. franchise agreements.
v3.8.0.1
Franchise and License Fees and Income (Details) - Continuing Operations [Member] - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Franchise And License Fees And Income [Abstract]                      
Initial fees, including renewal fees                 $ 96 $ 72 $ 71
Continuing fees and rental income                 2,210 2,095 2,011
Franchise and license fees and income $ 687 $ 565 $ 539 $ 515 $ 648 $ 526 $ 503 $ 490 $ 2,306 $ 2,167 $ 2,082
v3.8.0.1
Other (Income) Expense (Details) - Continuing Operations [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Other Income and Expenses [Line Items]      
Foreign currency transaction (gain) loss and other (income) expense, before tax $ 5 $ (6) $ 20
Loss associated with corporate aircraft 2 [1] 9 [1] 0
Other (income) expense $ 7 $ 3 $ 20
[1] During 2016, we made the decision to no longer operate a corporate aircraft fleet and offered our owned aircraft for sale, one of which was sold during 2016 and one that was sold in 2017. The losses associated with these sales reflect the shortfall of the proceeds, including estimated proceeds in held-for-sale impairment evaluations, less any selling costs, over the carrying value of the aircraft.
v3.8.0.1
Supplemental Balance Sheet Information (Details) - Continuing Operations [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Prepaid Expenses and Other Current Assets      
Income tax receivable $ 175 $ 44  
Assets held for sale [1] 37 57  
Other prepaid expenses and current assets 159 135  
Prepaid expenses and other current assets 371 236  
Property, Plant and equipment, gross 3,177 4,108  
Accumulated depreciation and amortization (1,480) (1,995)  
Property, Plant and equipment, net 1,697 2,113  
Depreciation and amortization 238 295 $ 302
Accounts Payable and Other Current Liabilities      
Accounts payable 119 142  
Accrued capital expenditures 21 39  
Accrued compensation and benefits 252 372  
Dividends payable 0 106  
Accrued taxes, other than income taxes 90 66  
Other current liabilities 331 342  
Accounts payable and other current liabilities 813 1,067  
Land      
Prepaid Expenses and Other Current Assets      
Property, Plant and equipment, gross 452 438  
Buildings and improvements      
Prepaid Expenses and Other Current Assets      
Property, Plant and equipment, gross 1,661 2,149  
Capital leases, primarily buildings      
Prepaid Expenses and Other Current Assets      
Property, Plant and equipment, gross 123 141  
Machinery and equipment      
Prepaid Expenses and Other Current Assets      
Property, Plant and equipment, gross $ 941 $ 1,380  
[1] Reflects 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. 2016 amounts also include a corporate aircraft sold in 2017.
v3.8.0.1
Goodwill and Intangible Assets (Details) - Continuing Operations [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Changes in the carrying amount of goodwill [Roll Forward]      
Goodwill, gross $ 529 $ 553 $ 585
Accumulated impairment losses (beginning balance) (17) (17)  
Goodwill, net 512 536 568
Disposals and other, net [1] (24) (32)  
Accumulated impairment losses (ending balance) (17) (17)  
KFC      
Changes in the carrying amount of goodwill [Roll Forward]      
Goodwill, gross 247 268 266
Accumulated impairment losses (beginning balance) 0 0  
Goodwill, net 247 268 266
Disposals and other, net [1] (21) 2  
Accumulated impairment losses (ending balance) 0 0  
Pizza Hut      
Changes in the carrying amount of goodwill [Roll Forward]      
Goodwill, gross 179 174 206
Accumulated impairment losses (beginning balance) (17) (17)  
Goodwill, net 162 157 189
Disposals and other, net [1] 5 (32)  
Accumulated impairment losses (ending balance) (17) (17)  
Taco Bell      
Changes in the carrying amount of goodwill [Roll Forward]      
Goodwill, gross 103 111 113
Accumulated impairment losses (beginning balance) 0 0  
Goodwill, net 103 111 $ 113
Disposals and other, net [1] (8) (2)  
Accumulated impairment losses (ending balance) $ 0 $ 0  
[1] Disposals and other, net includes the impact of foreign currency translation on existing balances and goodwill write-offs associated with refranchising.
v3.8.0.1
Goodwill and Intangible Assets (Details 2) - Continuing Operations [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Definite-lived intangible assets      
Gross Carrying Amount $ 229 $ 274  
Accumulated Amortization (150) (154)  
Definite-lived intangible assets, amortization expense 10 12 $ 13
Approximate amortization expense for definite-lived intangible assets - 2016 7    
Approximate amortization expense for definite-lived intangible assets - 2017 7    
Approximate amortization expense for definite-lived intangible assets - 2018 6    
Approximate amortization expense for definite-lived intangible assets - 2019 6    
Approximate amortization expense for definite-lived intangible assets - 2020 6    
Franchise contract rights [Member]      
Definite-lived intangible assets      
Gross Carrying Amount 100 99  
Accumulated Amortization (77) (73)  
Lease tenancy rights [Member]      
Definite-lived intangible assets      
Gross Carrying Amount 32 56  
Accumulated Amortization (6) (9)  
Reacquired franchise rights [Member]      
Definite-lived intangible assets      
Gross Carrying Amount 60 83  
Accumulated Amortization (42) (49)  
Other [Member]      
Definite-lived intangible assets      
Gross Carrying Amount 37 36  
Accumulated Amortization (25) (23)  
KFC | Trademarks/brands [Member]      
Indefinite-lived intangible assets      
Gross Carrying Amount $ 31 $ 31  
v3.8.0.1
Short-term Borrowings and Long-term Debt (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2017
Jun. 30, 2016
USD ($)
Dec. 31, 2017
USD ($)
Months
Years
Rate
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Debt Instrument [Line Items]          
Other Short-term Borrowings     $ 0 $ 8  
Short-term Debt, including debt issuance costs     386 74  
Debt Issuance Costs, Current, Net     (11) (8)  
Short-term Borrowings          
Total Short-term Borrowings     375 66  
Long-term Debt          
Long-term debt including hedge accounting adjustment     9,429 9,059  
Capital Lease Obligations Excluded from Annual Maturities     105    
Line of Credit Facility [Abstract]          
Capital Lease Obligations, Noncurrent     105 120  
Long-term debt and capital less obligations, including current maturities and debt issuance costs     9,901 9,204  
Debt Issuance Costs, Noncurrent, Net     $ (86) (79)  
Senior Unsecured Notes [Abstract]          
Maturity date     Nov. 01, 2043    
Long-term Debt, Current Maturities     $ 386 66  
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
2016     380    
2017     318    
2018     1,190    
2019     441    
2020     410    
Thereafter     7,057    
Total     9,796    
Interest expense on short-term borrowings and long-term debt     473 331 $ 153
Interest Income (Expense), Net [1]     $ (440) (305) (141)
Senior Unsecured Notes Due March 2018 [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date [2]     Oct. 19, 2007    
Maturity date     Mar. 15, 2018    
Principal amount     $ 325    
Interest rate, stated (in hundredths)     6.25%    
Interest rate, effective (in hundredths) [3]     6.36%    
Senior Unsecured Notes Due November 2037 [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date [2]     Oct. 19, 2007    
Maturity date     Nov. 15, 2037    
Principal amount     $ 325    
Interest rate, stated (in hundredths)     6.88%    
Interest rate, effective (in hundredths) [3]     7.45%    
Senior Unsecured Notes Due September 2019 [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date [2]     Aug. 25, 2009    
Maturity date     Sep. 15, 2019    
Principal amount     $ 250    
Interest rate, stated (in hundredths)     5.30%    
Interest rate, effective (in hundredths) [3]     5.59%    
Senior Unsecured Notes Due November 2020 [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date [2]     Aug. 31, 2010    
Maturity date     Nov. 01, 2020    
Principal amount     $ 350    
Interest rate, stated (in hundredths)     3.88%    
Interest rate, effective (in hundredths) [3]     4.01%    
Senior Unsecured Notes Due November 2021 [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date [2]     Aug. 29, 2011    
Maturity date     Nov. 01, 2021    
Principal amount     $ 350    
Interest rate, stated (in hundredths)     3.75%    
Interest rate, effective (in hundredths) [3]     3.88%    
Senior Unsecured Notes Due November 2023 [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date [2]     Oct. 31, 2013    
Maturity date     Nov. 01, 2023    
Principal amount     $ 325    
Interest rate, stated (in hundredths)     3.88%    
Interest rate, effective (in hundredths) [3]     4.01%    
Senior Unsecured Notes Due November 2043 [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date [2]     Oct. 31, 2013    
Principal amount     $ 275    
Interest rate, stated (in hundredths)     5.35%    
Interest rate, effective (in hundredths) [3]     5.42%    
Variable Funding Notes [Member]          
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Interest expense on short-term borrowings and long-term debt     $ 2    
Secured Debt [Member] | The Credit Agreement and Subsidiary Senior Unsecured Notes [Member] [Member]          
Line of Credit Facility [Abstract]          
Debt Issuance Costs, Gross     56    
Secured Debt [Member] | Term Loan A and B Facilities and Revolving Facility [Domain]          
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Debt Issuance Costs, Net     32    
Secured Debt [Member] | Term Loan A Facility [Member]          
Debt Instrument [Line Items]          
Proceeds from Issuance of Debt   $ 500      
Long-term Debt     $ 500 500  
Senior Unsecured Notes [Abstract]          
Maturity date     Jun. 07, 2022    
Interest rate, effective (in hundredths) | Rate     3.24%    
Frequency of interest payments     quarterly    
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Debt Instrument, Payment Terms     amortization payments beginning one full fiscal quarter after the first anniversary of the closing date    
Term Loan A Facility, Repayments of Principal in Year Two and Three | Rate     1.25%    
Term Loan A Facility, Repayments of Principal in Year Four | Rate     1.875%    
Term Loan A, Repayments of Principal in Year Five | Rate     3.75%    
Principal assigned to new lenders or existing lenders     $ 146    
Secured Debt [Member] | Revolving Credit Facility [Member]          
Line of Credit Facility [Abstract]          
Line of credit facility, maximum borrowing capacity     1,000    
Secured Debt [Member] | Term Loan B Facility [Member]          
Debt Instrument [Line Items]          
Proceeds from Issuance of Debt   $ 2,000      
Long-term Debt     $ 1,975 1,990  
Amount of basis points Term Loan B interest rate reduced by due to repricing     75    
Senior Unsecured Notes [Abstract]          
Maturity date     Jun. 16, 2023    
Interest rate, effective (in hundredths) | Rate     3.82%    
Frequency of interest payments     quarterly    
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Term Loan B, Repayment of Principal | Rate     0.25%    
Principal assigned to new lenders or existing lenders     $ 192    
Interest Income (Expense), Net     $ 8    
Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]          
Line of Credit Facility [Abstract]          
Amount of basis points Term Loan A and Revolving Facility interest rate reduced by due to repricing     75    
Secured Debt [Member] | Class A-2 Notes [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date   May 11, 2016      
Maturity date     May 01, 2046    
Frequency of interest payments     quarterly    
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Debt Instrument, Payment Terms     no amortization of principal of the Class A-2 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 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 is required. As of the most recent quarterly measurement date the consolidated leverage ratio exceeded 5.0:1 and, as a result, amortization payments are required.    
Secured Debt [Member] | Revolving Facility [Member]          
Line of Credit Facility [Abstract]          
Line of credit facility, maximum borrowing capacity     $ 1,000    
Outstanding borrowings     $ 0    
Secured Debt [Member] | the Credit Agreement [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date Jun. 16, 2016        
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
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.    
Debt Instrument, Covenant Compliance     We were in compliance with all debt covenants as of December 31, 2017    
Secured Debt [Member] | Class A-2-I Notes [Member]          
Debt Instrument [Line Items]          
Proceeds from Issuance of Debt   $ 800      
Senior Unsecured Notes [Abstract]          
Interest rate, stated (in hundredths) | Rate     3.832%    
Interest rate, effective (in hundredths) | Rate     4.18%    
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Long-term Debt, Anticipated Repayment Date | Years     4    
Secured Debt [Member] | Class A-2-II Notes [Member]          
Debt Instrument [Line Items]          
Proceeds from Issuance of Debt   500      
Senior Unsecured Notes [Abstract]          
Interest rate, stated (in hundredths) | Rate     4.377%    
Interest rate, effective (in hundredths) | Rate     4.59%    
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Long-term Debt, Anticipated Repayment Date | Years     7    
Secured Debt [Member] | Class A-2-III Notes [Member]          
Debt Instrument [Line Items]          
Proceeds from Issuance of Debt   1,000      
Senior Unsecured Notes [Abstract]          
Interest rate, stated (in hundredths) | Rate     4.97%    
Interest rate, effective (in hundredths) | Rate     5.14%    
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Long-term Debt, Anticipated Repayment Date | Years     10    
Secured Debt [Member] | Securitization Notes [Member]          
Short-term Borrowings          
Senior Notes, Noncurrent     $ 2,271 2,294  
Line of Credit Facility [Abstract]          
Debt Issuance Costs, Gross       31  
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
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    
Debt Instrument, Covenant Compliance     As of December 31, 2017, we were in compliance with all of our debt covenant requirements and were not subject to any rapid amortization events    
Senior Unsecured Notes [Member]          
Senior Unsecured Notes [Abstract]          
Number of months until first required interest payment after debt issuance | Months     6    
Frequency of interest payments     semi-annually    
Senior Unsecured Notes [Member] | Subsidiary Senior Unsecured Notes [Member]          
Short-term Borrowings          
Senior Notes, Noncurrent     $ 2,850 2,100  
Senior Unsecured Notes [Abstract]          
Issuance date Jun. 16, 2016        
Frequency of interest payments     semi-annually    
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Debt Instrument, Covenant Compliance     We were in compliance with all debt covenants as of December 31, 2017    
Senior Unsecured Notes [Member] | Subsidiary Senior Unsecured Notes due 2024 [Member]          
Debt Instrument [Line Items]          
Proceeds from Issuance of Debt   1,050      
Senior Unsecured Notes [Abstract]          
Maturity date     Jun. 01, 2024    
Interest rate, stated (in hundredths) | Rate     5.00%    
Interest rate, effective (in hundredths) | Rate     5.16%    
Senior Unsecured Notes [Member] | Subsidiary Senior Unsecured Notes due 2026 [Member]          
Debt Instrument [Line Items]          
Proceeds from Issuance of Debt   1,050      
Senior Unsecured Notes [Abstract]          
Maturity date     Jun. 01, 2026    
Interest rate, stated (in hundredths) | Rate     5.25%    
Interest rate, effective (in hundredths) | Rate     5.39%    
Senior Unsecured Notes [Member] | Subsidiary Senior Unsecured Notes due 2027 [Domain]          
Debt Instrument [Line Items]          
Proceeds from Issuance of Debt     $ 750    
Senior Unsecured Notes [Abstract]          
Interest rate, stated (in hundredths) | Rate     4.75%    
Interest rate, effective (in hundredths) | Rate     4.90%    
Frequency of interest payments     semi-annually    
Senior Unsecured Notes [Member] | YUM Senior Unsecured Notes [Member] [Domain]          
Short-term Borrowings          
Senior Notes, Noncurrent     $ 2,200 2,200  
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Debt Instrument, Debt Default, Description of Violation or Event of Default     Our YUM Senior Unsecured Notes contain cross-default provisions whereby the acceleration of the maturity of any of our indebtedness in a principal amount in excess of $50 million 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.    
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | Term Loan B Facility [Member]          
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Debt Instrument, Basis Spread on Variable Rate | Rate     2.00%    
Debt Instrument, Basis Spread on Variable Rate, Stepdown | Rate     1.75%    
Base Rate [Member] | Secured Debt [Member] | Term Loan B Facility [Member]          
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Debt Instrument, Basis Spread on Variable Rate | Rate     1.00%    
Debt Instrument, Basis Spread on Variable Rate, Stepdown | Rate     0.75%    
Minimum [Member] | Senior Unsecured Notes [Member] | YUM Senior Unsecured Notes [Member] [Domain]          
Senior Unsecured Notes [Abstract]          
Interest rate, stated (in hundredths) | Rate     3.75%    
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]          
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Debt Instrument, Basis Spread on Variable Rate | Rate     1.25%    
Minimum [Member] | Base Rate [Member] | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]          
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Debt Instrument, Basis Spread on Variable Rate | Rate     0.25%    
Maximum [Member] | Senior Unsecured Notes [Member] | YUM Senior Unsecured Notes [Member] [Domain]          
Senior Unsecured Notes [Abstract]          
Interest rate, stated (in hundredths) | Rate     6.88%    
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]          
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Debt Instrument, Basis Spread on Variable Rate | Rate     1.75%    
Maximum [Member] | Base Rate [Member] | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]          
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Debt Instrument, Basis Spread on Variable Rate | Rate     0.75%    
Total Leverage Ratio [Member] | Secured Debt [Member] | the Credit Agreement [Member]          
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Debt Instrument, Covenant Description     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    
Fixed Charge Coverage Ratio [Member] | Secured Debt [Member] | the Credit Agreement [Member]          
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Debt Instrument, Covenant Description     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    
Debt Service Coverage Ratio - Rapid Amortization Events [Member] | Secured Debt [Member] | Securitization Notes [Member]          
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Debt Instrument, Covenant Description     debt service coverage ratio (as defined in the Indenture) of at least 1.1:1    
Debt Service Coverage Ratio - Cash Trap Reserve Account [Member] | Secured Debt [Member] | Securitization Notes [Member]          
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Debt Instrument, Covenant Description     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    
Debt Instrument, Covenant Compliance     During the quarter ended December 31, 2017, the Securitization Entities maintained a debt service coverage ratio significantly in excess of the 1.75:1 requirement    
Line of Credit [Member] | Variable Funding Notes [Member]          
Line of Credit Facility [Abstract]          
Line of credit facility, maximum borrowing capacity   100      
Letter of Credit [Member] | Revolving Facility [Member]          
Line of Credit Facility [Abstract]          
Outstanding letters of credit     $ 4    
Letter of Credit [Member] | Variable Funding Notes [Member]          
Line of Credit Facility [Abstract]          
Line of credit facility, maximum borrowing capacity   $ 50      
Continuing Operations [Member]          
Short-term Borrowings          
Total Short-term Borrowings     375 66  
Long-term Debt          
Long-term debt including hedge accounting adjustment     9,429 9,059  
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Interest Income (Expense), Net     (440) (305) (141)
Continuing Operations [Member] | Prepaid Expenses and Other Current Assets [Member]          
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Restricted Cash and Cash Equivalents, Current     $ 60 [4] $ 55 [4] $ 0
[1] Amounts have not been allocated to any segment for performance reporting purposes.
[2] Interest payments commenced approximately six months after issuance date and are payable semi-annually thereafter.
[3] 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.
[4] Restricted cash within Prepaid expenses and other current assets reflects the Taco Bell Securitization interest reserves. See Note 11.
v3.8.0.1
Leases (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
Years
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Leases [Abstract]      
Approximate number of restaurants operated 1,481    
Approximate number of restaurants operated on leased land and/or buildings 900    
Maximum duration of lease commitments from inception for the vast majority of our lease commitments (in years) | Years 20    
Capital leases, future minimum commitments [Abstract]      
2016 $ 13    
2017 13    
2018 12    
2019 11    
2020 11    
Thereafter 76    
Capital leases, total future minimum commitments 136    
Operating leases, future minimum commitments [Abstract]      
2016 124    
2017 111    
2018 87    
2019 75    
2020 67    
Thereafter 435    
Operating leases, total future minimum commitments 899    
Direct financing leases, lease receivables [Abstract]      
2016 5    
2017 4    
2018 4    
2019 3    
2020 3    
Thereafter 24    
Direct financing leases, total lease receivables 43    
Operating leases, lease receivables [Abstract]      
2016 64    
2017 58    
2018 51    
2019 47    
2020 44    
Thereafter 415    
Operating leases, total lease receivables 679    
Present value of minimum payments under capital leases 105 $ 120  
Unearned income associated with direct financing lease receivables 12    
Rental expense      
Minimum 193 208 $ 225
Contingent 21 26 29
Total rental expense 214 234 254
Rental income $ 86 $ 73 $ 73
Approximate number of units leased or subleased to franchisees 900    
v3.8.0.1
Derivative Instruments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Derivative, Notional Amount $ 1,550  
Secured Debt [Member] | Term Loan B Facility [Member]    
Long-term Debt 1,975 $ 1,990
Cash Flow Hedging [Member]    
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months 14  
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member]    
Derivative, Notional Amount 456 $ 437
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net $ 0  
Cash Flow Hedging [Member] | Interest Rate Swap [Member]    
Derivative, Maturity Date Jul. 27, 2021  
Derivative, Fixed Interest Rate 3.92%  
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net $ 0  
Maximum [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member]    
Derivative, Maturity Date Jun. 12, 2020  
Minimum [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member]    
Derivative, Maturity Date Feb. 23, 2018  
v3.8.0.1
Derivative Instruments (Details 2) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]      
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax $ 2 $ 16 $ 0
Cash Flow Hedging [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax 1 (20)  
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax (3) 4  
Interest Rate Swap [Member] | Cash Flow Hedging [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net 4 47  
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net 2 (4)  
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net (56) 10  
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net $ 56 $ (18)  
v3.8.0.1
Fair Value Disclosures (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount $ 0 $ 0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount 0 0
Non-recurring basis    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
(Gains) losses recognized from all non-recurring fair value measurements 2 12
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]    
Total losses related to long-lived assets held for use and measured at fair value on a non-recurring basis [1] 2 9
Non-recurring basis | Fair Value, Inputs, Level 2 [Member] | Gain (Loss) on Disposition of Property Plant Equipment [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total losses related to long-lived assets held for use and measured at fair value on a non-recurring basis 0 3 [2]
Accounts Payable and Accrued Liabilities [Member] | Fair Value, Measurements, 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 0 3
Other Assets [Member] | Fair Value, Measurements, 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 10
Other Assets [Member] | Fair Value, Measurements, 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 Asset 40 47
Other Assets [Member] | Fair Value, Measurements, 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 29 24
Other Noncurrent Liabilities [Member] | Fair Value, Measurements, 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 Liability 46 0
Prepaid Expenses and Other Current Assets [Member] | Fair Value, Measurements, 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 5 6
Prepaid Expenses and Other Current Assets [Member] | Fair Value, Measurements, 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 Asset 9 0
Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Senior Notes, Noncurrent 2,850 2,100
Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term Debt, Fair Value [3] 2,983 2,175
Unsecured Debt [Member] | YUM Senior Unsecured Notes [Member] [Domain]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Senior Notes, Noncurrent 2,200 2,200
Unsecured Debt [Member] | YUM Senior Unsecured Notes [Member] [Domain] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term Debt, Fair Value [3] 2,277 2,216
Secured Debt [Member] | Securitization Notes [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Senior Notes, Noncurrent 2,271 2,294
Secured Debt [Member] | Securitization Notes [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term Debt, Fair Value [4] 2,367 2,315
Secured Debt [Member] | Term Loan A Facility [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term Debt 500 500
Secured Debt [Member] | Term Loan A Facility [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term Debt, Fair Value [3] 503 501
Secured Debt [Member] | Term Loan B Facility [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term Debt 1,975 1,990
Secured Debt [Member] | Term Loan B Facility [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term Debt, Fair Value [3] $ 1,990 $ 2,016
[1] Restaurant-level impairment charges are recorded in Closures and impairment (income) expenses and resulted primarily from our semi-annual 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).
[2] During 2016, we made the decision to dispose of a corporate aircraft. The loss associated with this then planned sale reflected the shortfall of the expected proceeds, less any selling costs, over the carrying value of the aircraft. The expected proceeds were based on actual bids received from potential buyers for similar assets (Level 2).
[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] We estimated the fair value of the Securitization Notes by obtaining broker quotes from two separate brokerage firms that are knowledgeable about the Company’s Securitization Notes and, at times, trade these notes. The markets in which the Securitization Notes trade are not considered active markets.
v3.8.0.1
Pension, Retiree Medical and Retiree Savings Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Dec. 31, 2016
Components of net periodic benefit cost:          
Amortization of prior service cost $ 5.0 $ 5.0      
Amortization of net loss (5.0) 6.0      
Pension losses in accumulated other comprehensive income (loss):          
Unrealized gains (losses) arising during the year $ (17.0) (62.0) $ 101.0    
Assumed health care cost trend rates [Abstract]          
Year that rate reaches ultimate trend rate 2038        
Effect of one-percentage point change in assumed health care cost trend rates [Abstract]          
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 $ 13.0 14.0 13.0    
Pension settlement charges (20.0) (33.0)      
Post-retirement Plan [Member]          
Benefit Payments [Abstract]          
2016       $ 5.0  
2017       5.0  
2018       5.0  
2019       5.0  
2020       5.0  
2021 - 2025       17.0  
Amounts recognized as a loss in Accumulated Other Comprehensive Income:          
Actuarial net gain       (8.0) $ (10.0)
Accumulated benefit obligation       $ 55.0 $ 55.0
Components of net periodic benefit cost:          
Net periodic benefit cost 2.0 3.0 3.0    
Assumed health care cost trend rates [Abstract]          
Assumed health care cost trend rate (in hundredths)       6.30% 6.60%
Ultimate trend rate (in hundredths)       4.50%  
Effect of one-percentage point change in assumed health care cost trend rates [Abstract]          
One percentage-point increase in assumed health care cost trend rates, maximum impact to service and interest cost 0.0        
One percentage-point decrease in assumed health care cost trend rates, maximum impact to service and interest cost 0.0        
One percentage-point increase in assumed health care cost trend rates, maximum impact to post-retirement benefit obligation 0.0        
One percentage-point decrease in assumed health care cost trend rates, maximum impact to post-retirement benefit obligation 0.0        
Foreign Pension Plan [Member]          
Change in benefit obligation          
Benefit obligation at beginning of year 261.0        
Benefit obligation at end of year 287.0 261.0      
Change in plan assets          
Fair value of plan assets at beginning of year 305.0        
Fair value of plan assets at end of year 358.0 305.0      
Plan Assets [Abstract]          
Fair value of plan assets by asset category 358.0 305.0   $ 358.0 $ 305.0
U.S. Pension Plans [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Net Payable For Unsettled Transactions       56.0 19.0
Defined Benefit Plan, Benefit Obligation, Benefits Paid $ 76.0 26.0      
Defined Benefit Plan, Assets Expected to be Returned to Employer, Description We do not anticipate any plan assets being returned to the Company during 2018 for any U.S. plans.        
Change in benefit obligation          
Benefit obligation at beginning of year $ 993.0 1,134.0      
Service cost 10.0 17.0 18.0    
Interest cost 41.0 54.0 55.0    
Plan amendments 2.0 4.0      
Curtailment (2.0) (4.0)      
Special termination benefits 2.0 3.0 1.0    
Settlement payments [1] (73.0) (260.0)      
Actuarial (gain) loss 115.0 77.0      
Defined Benefit Plan, Plan Assets, Administration Expense (5.0) (6.0)      
Benefit obligation at end of year 1,007.0 993.0 1,134.0    
Change in plan assets          
Fair value of plan assets at beginning of year 837.0 1,004.0      
Actual return on plan assets 129.0 87.0      
Employer contributions 52.0 38.0      
Settlement payments (73.0) (260.0) [1]      
Defined Benefit Plan, Administrative expenses (5.0) (6.0)      
Fair value of plan assets at end of year 864.0 837.0 1,004.0    
Funded status at end of year       (143.0) (156.0)
Benefit Payments [Abstract]          
2016       65.0  
2017       37.0  
2018       39.0  
2019       42.0  
2020       44.0  
2021 - 2025       257.0  
Amounts recognized in the Consolidated Balance Sheet:          
Accrued benefit liability - current       (8.0) (16.0)
Accrued benefit liability - non-current       (135.0) (140.0)
Accrued benefit amounts recognized       (143.0) (156.0)
Amounts recognized as a loss in Accumulated Other Comprehensive Income:          
Actuarial net gain       (134.0) (150.0)
Prior service cost       (26.0) (30.0)
Amounts recognized as a loss in Accumulated Other Comprehensive Income (180.0) (180.0) (170.0) (160.0) (180.0)
Accumulated benefit obligation       976.0 960.0
Information for pension plans with an accumulated benefit obligation in excess of plan assets:          
Projected benefit obligation       1,007.0 993.0
Accumulated benefit obligation       976.0 960.0
Fair value of plan assets       864.0 837.0
Information for pension plans with a projected benefit obligation in excess of plan assets:          
Projected benefit obligation       1,007.0 993.0
Accumulated benefit obligation       976.0 960.0
Fair value of plan assets       864.0 $ 837.0
Components of net periodic benefit cost:          
Service cost 10.0 17.0 18.0    
Interest cost 41.0 54.0 55.0    
Amortization of prior service cost [2] 6.0 6.0 1.0    
Expected return on plan assets (45.0) (65.0) (62.0)    
Amortization of net loss 5.0 6.0 45.0    
Net periodic benefit cost 17.0 18.0 57.0    
Additional loss recognized due to:          
Special termination benefits 2.0 3.0 1.0    
Pension losses in accumulated other comprehensive income (loss):          
Beginning of year (180.0) (170.0)      
Unrealized gains (losses) arising during the year (10.0) (54.0)      
Other Comprehensive Income (Loss),Defined Benefit Plans, Curtailment Gain (Loss), before Tax 2.0 4.0      
Curtailment gain 19.0 32.0      
Amortization of net loss 5.0 6.0      
Amortization of prior service cost 6.0 6.0      
Prior service cost (2.0) (4.0)      
End of year $ (160.0) $ (180.0) $ (170.0)    
Amounts that will be amortized from accumulated other comprehensive loss in next fiscal year [Abstract]          
Estimated net loss that will be amortized from accumulated other comprehensive loss into net periodic pension cost next year       16.0  
Estimated prior service cost that will be amortized from accumulated other comprehensive loss into net periodic pension cost next year       $ 6.0  
Weighted-average assumptions used to determine benefit obligations at the measurement dates:          
Discount rate (in hundredths)       3.90% 4.60%
Rate of compensation increase (in hundredths)       3.75% 3.75%
Weighted-average assumptions used to determine the net periodic benefit cost for fiscal years:          
Discount rate (in hundredths) 4.53% [3] 4.90% 4.30%    
Long-term rate return on plan assets (in hundredths) 6.06% [3] 6.75% 6.75%    
Rate of compensation increase (in hundredths) 3.75% [3] 3.75% 3.75%    
Plan Assets [Abstract]          
Fair value of plan assets by asset category $ 864.0 $ 1,004.0 $ 1,004.0 $ 864.0 $ 837.0
Value of mutual fund held as an investment that includes YUM stock       0.3 0.3
Approximate percentage of total plan assets in investment that includes YUM stock (in hundredths) 1.00% 1.00%      
Effect of one-percentage point change in assumed health care cost trend rates [Abstract]          
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year       0.0  
Pension settlement charges [4] $ (19.0) $ 32.0 5.0    
Defined Benefit Plan, Plan Assets, Benefits Paid 76.0 26.0      
U.S. Pension Plans [Member] | Fair Value, Inputs, Level 1 [Member] | Cash [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year 2.0        
Fair value of plan assets at end of year 3.0 2.0      
Plan Assets [Abstract]          
Fair value of plan assets by asset category 3.0 2.0   3.0 2.0
U.S. Pension Plans [Member] | Fair Value, Inputs, Level 1 [Member] | Cash Equivalents [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year [5] 12.0        
Fair value of plan assets at end of year [5] 12.0 12.0      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [5] 12.0 12.0   12.0 12.0
U.S. Pension Plans [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities - U.S. Large cap [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year [6] 244.0        
Fair value of plan assets at end of year [6] 257.0 244.0      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [6] 257.0 244.0   257.0 244.0
U.S. Pension Plans [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities - U.S. Mid cap [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year [6] 41.0        
Fair value of plan assets at end of year [6] 43.0 41.0      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [6] 43.0 41.0   43.0 41.0
U.S. Pension Plans [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities - U.S. Small cap [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year [6] 43.0        
Fair value of plan assets at end of year [6] 43.0 43.0      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [6] 43.0 43.0   43.0 43.0
U.S. Pension Plans [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities - Non-U.S. [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year [6] 83.0        
Fair value of plan assets at end of year [6] 87.0 83.0      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [6] 87.0 83.0   87.0 83.0
U.S. Pension Plans [Member] | Fair Value, Inputs, Level 1 [Member] | Fixed Income Securities - U.S. Corporate [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year [6] 172.0        
Fair value of plan assets at end of year [6] 177.0 172.0      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [6] 177.0 172.0   177.0 172.0
U.S. Pension Plans [Member] | Fair Value, Inputs, Level 2 [Member] | Fixed Income Securities - U.S. Corporate [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year [7] 76.0        
Fair value of plan assets at end of year [7] 86.0 76.0      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [7] 86.0 76.0   86.0 76.0
U.S. Pension Plans [Member] | Fair Value, Inputs, Level 2 [Member] | Fixed Income Securities - U.S. Government and Government Agencies [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year [8] 152.0        
Fair value of plan assets at end of year [8] 177.0 152.0      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [8] 177.0 152.0   177.0 152.0
U.S. Pension Plans [Member] | Fair Value, Inputs, Level 2 [Member] | Fixed Income Securities - Non-U.S. Government [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year [8] 31.0        
Fair value of plan assets at end of year [8] 35.0 31.0      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [8] 35.0 31.0   35.0 31.0
U.S. Pension Plans [Member] | Amount settled prior to year end [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year [9] 856.0        
Fair value of plan assets at end of year [9] 920.0 856.0      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [9] 920.0 856.0   $ 920.0 $ 856.0
U.S. Pension Plans [Member] | Equity Securities [Member]          
Plan Assets [Abstract]          
Equity securities, target allocation (in hundredths)       50.00%  
U.S. Pension Plans [Member] | Fixed Income Funds [Member]          
Plan Assets [Abstract]          
Equity securities, target allocation (in hundredths)       50.00%  
Other pension (income) expense [Member] | U.S. Pension Plans [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Pension data adjustment $ 22.0 [10] $ 0.0 $ 0.0    
[1] For discussion of the settlement payments made in connection with the deferred vested program in 2016, see Note 5.
[2] Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.
[3] Reflects a weighted average due to interim remeasurements in 2017.
[4] 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.
[5] Short-term investments in money market funds.
[6] Securities held in common trusts.
[7] Investments held directly by the Plan.
[8] Includes securities held in common trusts and investments held directly by the Plan.
[9] 2017 and 2016 exclude net unsettled trade payables of $56 million and $19 million, respectively.
[10] Reflects a non-cash, out-of-year charge related to the adjustment of certain historical deferred vested liability balances in the Plan during the first quarter of 2017 recorded in Other pension (income) expense. See Note 5.
v3.8.0.1
Share-based and Deferred Compensation Plans (Details)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 12 Months Ended
Jun. 30, 2017
USD ($)
Mar. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
$ / shares
shares
Dec. 31, 2017
USD ($)
groups
$ / shares
shares
Dec. 31, 2016
USD ($)
$ / shares
shares
Dec. 31, 2015
USD ($)
$ / shares
Award Valuation            
Risk-free interest rate (in hundredths)       1.90% 1.40% 1.30%
Expected term (years)       6 years 5 months 6 years 5 months 6 years 5 months
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate       22.90% 27.00% 26.90%
Expected dividend yield (in hundredths)       1.80% 2.60% 2.20%
Number of homogeneous groups appropriate to group awards into when estimating expected term | groups       2    
Summary of award activity - Stock options and SARs, additional disclosures [Abstract]            
Options outstanding at the end of the year (in shares) | shares       943    
SARs outstanding at the end of the year (in shares) | shares       17,342    
Options outstanding at the end of the year, Weighted-average exercise price (in dollars per share) | $ / shares       $ 36.63    
SARs outstanding at the end of the year, Weighted-average exercise price (in dollars per share) | $ / shares       $ 45.30    
Impact on net income [Abstract]            
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense       $ 117 $ 0 $ 0
Cash received from stock options exercises       12 $ 5 $ 12
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options       $ 153    
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)       P1Y10M0D    
Summary of award activity - Stock options and SARs [Roll Forward]            
Granted (in shares) | shares       2,879    
Exercised (in shares) | shares       (4,269)    
Forfeited or expired (in shares) | shares       (1,567)    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ / shares       $ 54.98    
Summary of award activity - Stock options and SARs, additional disclosures [Abstract]            
Granted, Weighted-average exercise price (in dollars per share) | $ / shares       67.93    
Exercised, Weighted-average exercise price (in dollars per share) | $ / shares       $ 36.45    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value       $ 672    
Exercisable at the end of the year (in shares) | shares       11,971    
Exercisable at the end of the year, Weighted-average exercise price (in dollars per share) | $ / shares       $ 38.07    
Share Based Compensation Arrangement By Share Based Payment Award, Options, Exercisable Weighted Average Remaining Contractual Term       4 years    
Exercisable at the end of the year, Aggregate intrinsic value (in dollars)       $ 521    
Options outstanding at the end of the year (in shares) | shares     21,242 18,285 [1] 21,242  
Options outstanding at the end of the year, Weighted-average exercise price (in dollars per share) | $ / shares     $ 40.78 $ 44.85 $ 40.78  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term       5 years 5 months    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares       $ 14.08 $ 14.40 $ 15.95
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value       $ 154 $ 263 $ 153
Unrecognized compensation cost       55    
Restricted Stock Units And Performance Share Units [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value       10 7 11
Summary of award activity - Stock options and SARs, additional disclosures [Abstract]            
Unrecognized compensation cost       $ 20    
Unvested RSUs and PSUs | shares       1,000    
Long Term Incentive Plans [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of stock award plans in effect       1    
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) | shares       28,000    
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%    
Executive Income Deferral Plan [Member] | Restricted Stock Units (RSUs) [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting period (in years)       2 years    
Employer Method [Member] | Stock Options and Stock Appreciation Rights [Member]            
Impact on net income [Abstract]            
Award Modification Description       the exercise prices of the awards were modified to maintain the pre-Separation intrinsic value of the awards in relation to the post-Separation stock price of the applicable company    
Employer Method [Member] | Restricted Stock Units And Performance Share Units [Member]            
Impact on net income [Abstract]            
Award Modification Description       the number of awards was modified to maintain the pre-Separation intrinsic value of the awards in relation to the post-Separation stock price of the applicable company    
Mark-to-Market of YUM China Funds [Member] | Executive Income Deferral Plan [Member]            
Impact on net income [Abstract]            
General and administrative expenses       $ 18 30  
Continuing Operations [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Expense       65 [2] 80 [3] 46
Employee Service Share-based Compensation, Deferred Tax Benefit from Compensation Expense [2]       22    
Impact on net income [Abstract]            
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense         26 15
EID compensation expense not share-based       12 5 1
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options         109 62
General and administrative expenses       999 1,129 1,058
Continuing Operations [Member] | Stock Options and Stock Appreciation Rights [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Expense       30 38 41
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value       33 41 42
Continuing Operations [Member] | Performance Share Units [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Expense       9 4 2
Continuing Operations [Member] | Restricted Stock Units (RSUs) [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Expense       26 38 $ 3
Unallocated amounts to segment [Member] | Mark-to-Market of YUM China Funds [Member] | Executive Income Deferral Plan [Member]            
Impact on net income [Abstract]            
General and administrative expenses       $ 18 $ 30  
Unallocated amounts to segment [Member] | Continuing Operations [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Expense [2] $ 16 $ 2 $ 30      
Restaurant-level Employees [Domain] | Long Term Incentive Plans [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period       10 years    
Share-based Compensation Arrangement by Share-based Payment Award, Average Exercise Period       5 years    
Vesting period (in years)       4 years    
Executives [Domain] | Long Term Incentive Plans [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period       10 years    
Share-based Compensation Arrangement by Share-based Payment Award, Average Exercise Period       6 years 6 months    
Vesting period (in years)       4 years    
Award Valuation            
Graded vesting schedule of grants made to executives under other stock award plans       25%    
[1] Outstanding awards include 943 options and 17,342 SARs with weighted average exercise prices of $36.63 and $45.30, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.
[2] Includes $18 million due to appreciation in the market price of Yum China's stock. See Note 5.
[3] Includes $30 million due to modifications of awards in connection with the Separation that was not allocated to any of our operating segments for performance purposes. See Note 5.
v3.8.0.1
Shareholders' Equity (Details) - USD ($)
shares in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Repurchase Of Shares Of Common Stock [Line Items]      
Value of share repurchases with trade dates prior to current reporting date but with settlement dates subsequent to the current reporting date.   $ 45  
Number of shares repurchased with trade dates prior to current reporting date but with settlement dates subsequent to the current reporting date.   700  
Stock Repurchased During Period, Shares 26,561 [1] 67,963 [1] 15,942
Stock Repurchased During Period, Value $ 1,915 [1] $ 5,447 [1] $ 1,200
November 2017 [Domain]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 0 0 0
Stock Repurchased During Period, Value $ 0 $ 0 $ 0
November 2016 [Member]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 26,561 1,337 0
Stock Repurchased During Period, Value $ 1,915 $ 85 $ 0
December 2015 [Member]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 0 13,368 932
Stock Repurchased During Period, Value $ 0 $ 933 $ 67
May 2016 [Member]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 0 50,435 0
Stock Repurchased During Period, Value $ 0 $ 4,200 $ 0
March 2016 [Member]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 0 2,823 0
Stock Repurchased During Period, Value $ 0 $ 229 $ 0
November 2014 [Member]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 0 0 13,231
Stock Repurchased During Period, Value $ 0 $ 0 $ 1,000
November 2013 [Member]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 0 0 1,779
Stock Repurchased During Period, Value $ 0 $ 0 $ 133
November 2017 [Domain]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchase Program, Authorized Amount 1,500    
Stock Repurchase Program, Remaining Authorized Repurchase Amount $ 1,500    
[1] 2017 amount excludes and 2016 amount includes the effect of $45 million in share repurchases (0.7 million shares) with trade dates prior to December 31, 2016 but settlement dates subsequent to December 31, 2016.
v3.8.0.1
Shareholders' Equity (Details 2) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]      
OCI, net of tax $ 187 $ (159) $ (24)
Defined Benefit Plan, Amortization of Gain (Loss) (5) 6  
Pension settlement charges (20) (33)  
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) 5 5  
Tax (expense) benefit on reclassification of pension and post-retirement losses to net income 18 17  
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 (336) (125)  
Amounts classified into OCI, net of tax 107 (153)  
Amounts reclassified from accumulated OCI, net of tax [1] 55 (11)  
OCI, net of tax 162 (164)  
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance (174) (336) (125)
Pension and Post-Retirement Benefit Plan Losses      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance (127) (113)  
Amounts classified into OCI, net of tax (13) (41)  
Amounts reclassified from accumulated OCI, net of tax [2] 34 27  
OCI, net of tax 21 (14)  
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance (106) (127) (113)
Net Unrealized Loss on Derivative Instruments      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance 5 (14)  
Amounts classified into OCI, net of tax (51) 37  
Amounts reclassified from accumulated OCI, net of tax [3] 55 (18)  
OCI, net of tax 4 19  
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance 9 5 (14)
Total      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance (458) (252)  
Amounts classified into OCI, net of tax 43 (157)  
Amounts reclassified from accumulated OCI, net of tax 144 (2)  
OCI, net of tax 187 (159)  
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance (271) (458) (252)
Discontinued Operations [Member] | Translation Adjustment and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Amounts reclassified from accumulated OCI, net of tax   (47)  
Discontinued Operations [Member] | Pension and Post-Retirement Benefit Plan Losses      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Amounts reclassified from accumulated OCI, net of tax   0  
Discontinued Operations [Member] | Net Unrealized Loss on Derivative Instruments      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Amounts reclassified from accumulated OCI, net of tax   0  
Discontinued Operations [Member] | Total      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Amounts reclassified from accumulated OCI, net of tax   (47)  
U.S. Pension Plans [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Defined Benefit Plan, Amortization of Gain (Loss) 5 6 45
Pension settlement charges [4] (19) 32 5
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) [5] 6 6 1
U.S. Pension Plans [Member] | Other pension (income) expense [Member]      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Pension data adjustment $ 22 [6] $ 0 $ 0
[1] Amounts reclassified from AOCI are due to substantially complete liquidations of foreign entities related to KFC Turkey, Pizza Hut Turkey, Pizza Hut Thailand and Pizza Hut Korea refranchising transactions during 2017 and the Pizza Hut Australia refranchising transaction during 2016.
[2] Amounts reclassified from AOCI for pension and post-retirement benefit plan losses during 2017 include amortization of net losses of $5 million, historical pension data adjustment of $22 million, settlement charges of $20 million, amortization of prior service cost of $5 million and related income tax benefit of $18 million. Amounts reclassified from AOCI for pension and post-retirement benefit plan losses during 2016 include amortization of net losses of $6 million, settlement charges of $33 million, amortization of prior service cost of $5 million and related income tax benefit of $17 million. See Note 15.
[3] See Note 13 for details on amounts reclassified from AOCI.
[4] Settlement losses result when benefit payments exceed the sum of the service cost and interest cost within a plan during the year. These losses were recorded in Other pension (income) expense.
[5] Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.
[6] Reflects a non-cash, out-of-year charge related to the adjustment of certain historical deferred vested liability balances in the Plan during the first quarter of 2017 recorded in Other pension (income) expense. See Note 5.
v3.8.0.1
Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Effective income tax rate reconciliation [Abstract]      
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense $ (117) $ 0 $ 0
U.S. and foreign income before income taxes [Abstract]      
Income from Continuing Operations Before Income Taxes 2,274 1,345 1,253
Current Year Operations      
Changes in valuation allowance [Roll Forward]      
Valuation Allowance, Change in Amount   (14) (17)
Changes in Judgement      
Changes in valuation allowance [Roll Forward]      
Valuation Allowance, Change in Amount   (17) $ (24)
Continuing Operations [Member]      
Valuation Allowance [Line Items]      
Deferred Tax Assets, Net of Valuation Allowance, Current $ 139 $ 772  
Effective income tax rate reconciliation [Abstract]      
U.S. federal statutory rate (in hundredths) 35.00% 35.00% 35.00%
State income tax, net of federal tax benefit (in hundredths) 0.50% 1.10% 0.90%
Statutory rate differential attributable to foreign operations (in hundredths) (9.30%) (10.50%) (13.70%)
Adjustments to reserves and prior years (in hundredths) 0.50% (0.80%) 1.00%
Change in valuation allowance (in hundredths) 1.50% (0.20%) 3.00%
Other, net (in hundredths) (1.10%) (0.30%) (0.10%)
Effective income tax rate (in hundredths) 41.10% 24.30% 26.10%
Employee Service Share-based Compensation, Excess Tax Benefit from Compensation Expense $ 117    
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense   $ (26) $ (15)
Effective Income Tax Rate Reconciliation Share Based Compensation (5.10%) 0.00% 0.00%
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]      
U.S. federal statutory rate $ 797 $ 473 $ 438
State income tax, net of federal tax benefit 11 15 12
Statutory rate differential attributable to foreign operations (212) (143) (175)
Adjustments to reserves and prior years 12 (11) 13
Change in valuation allowance (34) 3 (41)
Other, net (25) (4) (2)
Effective income tax rate 934 327 327
Details of income tax provision (benefit) [Abstract]      
Current: Federal (2) 126 267
Current: Foreign 290 160 133
Current: State 12 13 28
Total current income tax provision (benefit) 300 299 428
Deferred: Federal 603 19 (116)
Deferred: Foreign 19 3 15
Deferred: State 12 6 0
Total deferred income tax provision (benefit) 634 28 (101)
Effective income tax rate 934 327 327
U.S. and foreign income before income taxes [Abstract]      
U.S. 662 366 480
Foreign 1,612 979 773
Income from Continuing Operations Before Income Taxes 2,274 1,345 1,253
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount $ 434 $ 0 $ 0
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent 19.10% 0.00% 0.00%
v3.8.0.1
Income Taxes (Details 2) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Reported in Consolidated Balance Sheets as:      
Total Operating and Capital Loss Carryforwards $ 1,894    
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest 2,274 $ 1,345 $ 1,253
Tax Credit Carryforward, Valuation Allowance 189    
Foreign [Member]      
Reported in Consolidated Balance Sheets as:      
Total Operating and Capital Loss Carryforwards 516    
State and Local Jurisdiction [Member]      
Reported in Consolidated Balance Sheets as:      
Total Operating and Capital Loss Carryforwards 1,073    
Internal Revenue Service (IRS) [Member]      
Reported in Consolidated Balance Sheets as:      
Total Operating and Capital Loss Carryforwards 305    
Federal, State, Foreign and Local Tax Credits [Member]      
Reported in Consolidated Balance Sheets as:      
Tax Credit Carryforward, Valuation Allowance 434    
Continuing Operations [Member]      
Operating Loss Carryforwards [Line Items]      
Operating Loss Carryforwards 216 172  
Deferred Tax Assets, Capital Loss Carryforwards 4 184  
Net deferred tax assets (liabilities) [Abstract]      
Deferred Tax Assets, Tax Credit Carryforwards, Foreign 311 284  
Employee benefits 94 185  
Share-based compensation 58 100  
Self-insured casualty claims 7 32  
Lease related liabilities 51 65  
Various liabilities 51 56  
Deferred Tax Assets, Property, Plant and Equipment 24 37  
Deferred income and other 31 32  
Gross deferred tax assets 847 1,147  
Deferred tax asset valuation allowances (421) (195)  
Net deferred tax assets 426 952  
Intangible assets, including goodwill (69) (107)  
Property, plant and equipment (18) (46)  
Deferred Tax Liabilities Deemed Repatriation (170) 0  
Other (36) (34)  
Gross deferred tax liabilities (293) (187)  
Net deferred tax assets (liabilities) 133 765  
Reported in Consolidated Balance Sheets as:      
Deferred Tax Assets, Net of Valuation Allowance, Current 139 772  
Other liabilities and deferred credits (6) (7)  
Net deferred tax assets (liabilities) 133 765  
Income (Loss) from Continuing Operations before Income Taxes, Domestic 662 366 480
Income (Loss) from Continuing Operations before Income Taxes, Foreign 1,612 979 773
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest $ 2,274 $ 1,345 $ 1,253
v3.8.0.1
Income Taxes (Details 3)
$ in Millions
Dec. 31, 2017
USD ($)
Operating and capital loss carryforwards [Line Items]  
Amount of operating and capital loss carryforwards due to expire in 2016 $ 9
Amount of operating and capital loss carryforwards due to expire between 2017 and 2020 174
Amount of operating and capital loss carryforwards due to expire between 2021 and 2035 1,335
Amount of operating and capital loss carryforwards which may be carried forward indefinitely 376
Total Operating and Capital Loss Carryforwards 1,894
Foreign [Member]  
Operating and capital loss carryforwards [Line Items]  
Amount of operating and capital loss carryforwards due to expire in 2016 9
Amount of operating and capital loss carryforwards due to expire between 2017 and 2020 46
Amount of operating and capital loss carryforwards due to expire between 2021 and 2035 85
Amount of operating and capital loss carryforwards which may be carried forward indefinitely 376
Total Operating and Capital Loss Carryforwards 516
U.S. state [Member]  
Operating and capital loss carryforwards [Line Items]  
Amount of operating and capital loss carryforwards due to expire in 2016 0
Amount of operating and capital loss carryforwards due to expire between 2017 and 2020 61
Amount of operating and capital loss carryforwards due to expire between 2021 and 2035 1,012
Amount of operating and capital loss carryforwards which may be carried forward indefinitely 0
Total Operating and Capital Loss Carryforwards 1,073
U.S. federal [Member]  
Operating and capital loss carryforwards [Line Items]  
Amount of operating and capital loss carryforwards due to expire in 2016 0
Amount of operating and capital loss carryforwards due to expire between 2017 and 2020 67
Amount of operating and capital loss carryforwards due to expire between 2021 and 2035 238
Amount of operating and capital loss carryforwards which may be carried forward indefinitely 0
Total Operating and Capital Loss Carryforwards $ 305
v3.8.0.1
Income Taxes (Details 4) - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]      
Unrecognized Tax Benefits That Would Not Impact Effective Tax Rate $ 10 $ 87  
Continuing Operations [Member]      
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]      
Unrecognized Tax Benefits $ 100 $ 91 $ 98
v3.8.0.1
Income Taxes (Details 5) - Continuing Operations [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax Examination [Line Items]      
Accrued interest and penalties $ 14 $ 9  
Total interest and penalties recorded during the period 5 4 $ 5
Unrecognized tax benefits reconciliation [Roll Forward]      
Beginning of Year 91 98  
Additions on tax positions related to the current year 3 0  
Additions for tax positions of prior years 8 1  
Reductions for tax positions of prior years 0 (5)  
Reductions for settlements (1) (1)  
Reductions due to statute expiration (1) (2)  
Foreign currency translation adjustment 0 0  
End of Year $ 100 $ 91 $ 98
v3.8.0.1
Income Taxes (Details 6) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Tax Act Enactment [Line Items]      
Undistributed Earnings of Foreign Subsidiaries $ 3,200    
Tax Credit Carryforward, Valuation Allowance $ 189    
U.S. Federal Tax Rate, prior to 2017 Tax Act [Domain]      
Tax Act Enactment [Line Items]      
U.S. federal statutory rate (in hundredths) 35.00%    
U.S. Federal Tax Rate, updated for 2017 Tax Act [Domain]      
Tax Act Enactment [Line Items]      
U.S. federal statutory rate (in hundredths) 21.00%    
Limit on deductibility of interest expense 30.00%    
Remeasurement of Deferreds [Domain]      
Tax Act Enactment [Line Items]      
Income tax provision $ 75    
Continuing Operations [Member]      
Tax Act Enactment [Line Items]      
U.S. federal statutory rate (in hundredths) 35.00% 35.00% 35.00%
Deferred Tax Liabilities Deemed Repatriation $ 170 $ 0  
Income tax provision 934 327 $ 327
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount $ 434 $ 0 $ 0
v3.8.0.1
Reportable Operating Segments (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Feb. 07, 2018
Segment Reporting Information [Line Items]                        
Total revenues                   $ 6,356 $ 6,418  
Operating Profit                 $ 2,761 1,682 1,434  
Other Pension (income) expense [1]                 (47) [2] (32) [2] (40)  
Interest expense, net [1]                 (440) (305) (141)  
Depreciation and amortization                 253 310 319  
Total Assets $ 5,311       $ 5,453       5,311 5,453    
Long-Lived Assets [3] 2,319       2,800       2,319 2,800    
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest                 2,274 1,345 1,253  
Investments in unconsolidated affiliates                       $ 200
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement                 (20) (33)    
KFC Global Division [Member]                        
Segment Reporting Information [Line Items]                        
Operating Profit                 981 871 835  
Depreciation and amortization                 138 172 180  
Capital Spending                 176 216 260  
Total Assets [4] 1,791       2,158       1,791 2,158    
Long-Lived Assets [3] 1,200       1,537       1,200 1,537    
Pizza Hut Global Division [Member]                        
Segment Reporting Information [Line Items]                        
Operating Profit                 341 367 351  
Depreciation and amortization                 26 36 40  
Capital Spending                 42 69 54  
Total Assets [4] 628       639       628 639    
Long-Lived Assets [3] 310       372       310 372    
Taco Bell Global Division [Member]                        
Segment Reporting Information [Line Items]                        
Operating Profit                 619 595 546  
Depreciation and amortization                 82 90 89  
Capital Spending                 95 132 116  
Total Assets [4] 1,086       1,178       1,086 1,178    
Long-Lived Assets [3] 778       859       778 859    
Unallocated amounts to segment [Member]                        
Segment Reporting Information [Line Items]                        
Franchise and license fees and income [1]                 (5) [5] (2) [5] 0  
Occupancy and other operating expenses [1]                 (10) [6] 0 0  
Franchise and license expenses [1],[5]                 (30) (24) (71)  
Corporate expenses [1]                 (230) [7] (280) [7] (180)  
Refranchising gain (loss) [1]                 1,083 163 (23)  
Other (income) expense [1]                 (8) [8] (8) [8] (24)  
Depreciation and amortization                 7 12 10  
Capital Spending                 5 10 12  
Total Assets [4],[9] 1,806       1,478       1,806 1,478    
Long-Lived Assets [3] 31       32       31 32    
U.S.                        
Segment Reporting Information [Line Items]                        
Total revenues                 2,800 3,100 3,100  
Total Assets 3,000       3,100       3,000 3,100    
Continuing Operations [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues 1,577 $ 1,436 $ 1,448 $ 1,417 1,886 $ 1,518 $ 1,509 $ 1,443 5,878 6,356 6,418  
Operating Profit 1,215 [10] 643 [10] 419 [10] 484 [10] 520 [11] 398 [11] 415 [11] 349 [11] 2,761 [10] 1,682 [11] 1,434  
Other Pension (income) expense                 (47) (32) (40)  
Franchise and license fees and income 687 $ 565 $ 539 $ 515 648 $ 526 $ 503 $ 490 2,306 2,167 2,082  
Occupancy and other operating expenses                 2,954 3,489 3,627  
Franchise and license expenses                 (237) (201) (240)  
Other (income) expense                 (7) (3) (20)  
Interest expense, net                 (440) (305) (141)  
Depreciation and amortization                 253 310 319  
Capital Spending                 318 427 442  
Total Assets $ 5,311       $ 5,453       5,311 5,453    
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest                 2,274 1,345 1,253  
General and administrative expenses                 999 1,129 1,058  
Loss associated with corporate aircraft                 2 [12] 9 [12] 0  
Continuing Operations [Member] | KFC Global Division [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [13]                 3,110 3,225 3,222  
Continuing Operations [Member] | Pizza Hut Global Division [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [13]                 893 1,108 1,205  
Continuing Operations [Member] | Taco Bell Global Division [Member]                        
Segment Reporting Information [Line Items]                        
Total revenues [13]                 1,880 2,025 1,991  
General and Administrative Expense [Member] | Unallocated amounts to segment [Member]                        
Segment Reporting Information [Line Items]                        
Restructuring and Related Cost, Incurred Cost                 21 61    
Costs associated with PH U.S. Acceleration Agreement                 13      
Other Nonoperating Income (Expense) [Member]                        
Segment Reporting Information [Line Items]                        
Loss associated with corporate aircraft                 2 9    
U.S. Pension Plans [Member]                        
Segment Reporting Information [Line Items]                        
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement [14]                 (19) 32 5  
U.S. Pension Plans [Member] | Other pension (income) expense [Member]                        
Segment Reporting Information [Line Items]                        
Pension data adjustment                 22 [15] 0 $ 0  
U.S. Pension Plans [Member] | Deferred Vested Project [Member]                        
Segment Reporting Information [Line Items]                        
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement [14]                 24      
U.S. Pension Plans [Member] | Deferred Vested Project [Member] | Other pension (income) expense [Member]                        
Segment Reporting Information [Line Items]                        
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement [14]                 24      
Executive Income Deferral Plan [Member] | Mark-to-Market of YUM China Funds [Member]                        
Segment Reporting Information [Line Items]                        
General and administrative expenses                 18 30    
Executive Income Deferral Plan [Member] | Mark-to-Market of YUM China Funds [Member] | Unallocated amounts to segment [Member]                        
Segment Reporting Information [Line Items]                        
General and administrative expenses                 $ 18 $ 30    
[1] Amounts have not been allocated to any segment for performance reporting purposes.
[2] Amounts in 2017 include a non-cash charge of $22 million related to the adjustment of certain historical deferred vested liability balances in our qualified U.S. plan. Amounts in 2016 include a settlement charge of $24 million related to the Company allowing certain former employees with deferred vested balances in the Yum Retirement Plan an opportunity to voluntarily elect early payout of their pension benefits. See Note 5.
[3] Includes PP&E, goodwill, and intangible assets, net.
[4] U.S. identifiable assets included in the combined Corporate and KFC, Pizza Hut and Taco Bell Divisions totaled $3.0 billion and $3.1 billion in 2017 and 2016, respectively.
[5] Represents costs associated with the KFC U.S. Acceleration Agreement and Pizza Hut U.S. Transformation Agreement. See Note 5.
[6] Represents depreciation reductions arising primarily from KFC restaurants that were held-for-sale. See Note 5.
[7] Amounts in 2017 include costs related to YUM’s Strategic Transformation Initiatives of $21 million, non-cash charges associated with modifications of share-based compensation awards of $18 million and costs associated with the Pizza Hut U.S. Transformation Agreement of $13 million. Amounts in 2016 included costs related to YUM's Strategic Transformation Initiatives of $61 million and non-cash charges associated with the modifications of share-based compensation awards of $30 million. See Note 5.
[8] Amounts include losses associated with the sale of corporate aircraft related to YUM’s Strategic Transformation Initiatives of $2 million and $9 million in 2017 and 2016, respectively. See Note 8.
[9] Primarily includes cash and deferred tax assets.
[10] Includes net gains from refranchising initiatives of $111 million, $19 million, $201 million and $752 million in the first, second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $7 million, $4 million, $4 million and $8 million in the first, second, third and fourth quarters, respectively, costs associated with the Pizza Hut U.S. Transformation Agreement of $12 million, $8 million and $11 million in the second, third and fourth quarters, respectively, costs associated with the KFC U.S. Acceleration Agreement of $3 million, $5 million, $4 million and $5 million in the first, second, third and fourth quarters, respectively and non-cash charges associated with the modification of share-based compensation awards in connection with the Separation of $2 million and $16 million in the first and second quarters, respectively.
[11] Includes net gains from refranchising initiatives of $54 million, $21 million and $88 million in the second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $4 million, $30 million and $33 million in the second, third and fourth quarters, respectively, a non-cash charge primarily associated with the modification of share-based compensation awards in connection with the Separation of $30 million in the fourth quarter and costs associated with KFC U.S. Acceleration Agreement of $9 million, $8 million and $9 million in the first, second and fourth quarters, respectively. See Note 5.
[12] During 2016, we made the decision to no longer operate a corporate aircraft fleet and offered our owned aircraft for sale, one of which was sold during 2016 and one that was sold in 2017. The losses associated with these sales reflect the shortfall of the proceeds, including estimated proceeds in held-for-sale impairment evaluations, less any selling costs, over the carrying value of the aircraft.
[13] U.S. revenues included in the combined KFC, Pizza Hut and Taco Bell Divisions totaled $2.8 billion in 2017, $3.1 billion in 2016 and $3.1 billion in 2015.
[14] 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.
[15] Reflects a non-cash, out-of-year charge related to the adjustment of certain historical deferred vested liability balances in the Plan during the first quarter of 2017 recorded in Other pension (income) expense. See Note 5.
v3.8.0.1
Contingencies (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
Guarantor Obligations [Line Items]  
Guarantor Exposure as percent of outstanding loans 20.00%
Property Lease Guarantee [Member]  
Guarantor Obligations [Line Items]  
Year longest lease expires 2065
Potential amount of undiscounted payments we could be required to make in the event of non-payment $ 600
Present value of potential payments we could be required to make in the event of non-payment $ 500
v3.8.0.1
Contingencies (Details 2)
$ in Millions
Dec. 31, 2017
USD ($)
Franchise Lending Program Guarantees  
Loss Contingencies [Line Items]  
Loss contingency, amount of guarantee $ 43
Total loans outstanding 31
Guarantee of Indebtedness of Others  
Loss Contingencies [Line Items]  
Loss contingency, amount of guarantee 10
Guarantee of Indebtedness of Others | Franchise Loan Pool Guarantees [Member]  
Loss Contingencies [Line Items]  
Loss contingency, amount of guarantee 3
Total loans outstanding $ 15
v3.8.0.1
Contingencies (Details 3) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Self Insured Property And Casualty Reserves [Member]    
Valuation and Qualifying Accounts Disclosure [Line Items]    
Beginning balance $ 98 $ 102
Liability for Unpaid Claims and Claims Adjustment Expense, Period Increase (Decrease) 27 42
Payments (41) (46)
Ending balance 84 $ 98
Guarantee of Indebtedness of Others    
Valuation and Qualifying Accounts Disclosure [Line Items]    
Loss contingency, amount of guarantee $ 10  
v3.8.0.1
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Fiscal Period Adjustment [Line Items]                      
Refranchising (gain) loss $ (752) $ (201) $ (19) $ (111) $ (88) $ (21) $ (54)   $ (1,083) $ (163) $ 23
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement                 (20) (33)  
Asset Impairment Charges                 4 17 17
Revenues                      
Total revenues                   6,356 6,418
Operating Profit                 2,761 1,682 1,434
Income from continuing operations                   1,018 926
Income from discontinued operations                   625 357
Net Income (loss) - YUM! Brands, Inc.         $ 303 $ 640 $ 336 $ 364 $ 1,340 $ 1,643 $ 1,283
Basic Earnings Per Common Share (in dollars per share)         $ 0.83 $ 1.65 $ 0.82 $ 0.88 $ 3.86 $ 4.17 $ 2.95
Diluted Earnings Per Common Share (in dollars per share)         0.82 1.62 0.81 0.87 3.77 4.10 2.90
Dividends Declared Per Common Share (in dollars per share) $ 0.30 $ 0 $ 0.30 $ 0.30 $ 0.30 $ 0.51 $ 0.46 $ 0.46 $ 0.90 $ 1.73 $ 1.74
Unallocated amounts to segment [Member]                      
Revenues                      
Franchise and license fees and income [1]                 $ (5) [2] $ (2) [2] $ 0
Discontinued Operations [Member]                      
Fiscal Period Adjustment [Line Items]                      
Refranchising (gain) loss                   (12) [3] (13)
Revenues                      
Company sales                   5,667 [3] 6,789
Franchise and license fees and income                   109 [3] 120
Income from discontinued operations         $ (5) $ 422 $ 70 $ 138 0 $ 625 [3] $ 357
Basic Earnings Per Common Share (in dollars per share)         $ (0.01) $ 1.09 $ 0.17 $ 0.33   $ 1.59 $ 0.82
Diluted Earnings Per Common Share (in dollars per share)         $ (0.01) $ 1.07 $ 0.17 $ 0.33   $ 1.56 $ 0.81
Continuing Operations [Member]                      
Fiscal Period Adjustment [Line Items]                      
Refranchising (gain) loss                 (1,083) $ (163) $ 23
Share-based Compensation Expense                 65 [4] 80 [5] 46
Revenues                      
Company sales $ 890 $ 871 $ 909 $ 902 $ 1,238 $ 992 $ 1,006 $ 953 3,572 4,189 4,336
Franchise and license fees and income 687 565 539 515 648 526 503 490 2,306 2,167 2,082
Total revenues 1,577 1,436 1,448 1,417 1,886 1,518 1,509 1,443 5,878 6,356 6,418
Restaurant Profit 159 154 161 144 224 161 167 148 618 700  
Operating Profit 1,215 [6] 643 [6] 419 [6] 484 [6] 520 [7] 398 [7] 415 [7] 349 [7] 2,761 [6] 1,682 [7] 1,434
Income from continuing operations $ 436 $ 418 $ 206 $ 280 $ 308 $ 218 $ 266 $ 226 $ 1,340 $ 1,018 $ 926
Basic Earnings Per Common Share (in dollars per share) $ 1.29 $ 1.21 $ 0.59 $ 0.78 $ 0.84 $ 0.56 $ 0.65 $ 0.55 $ 3.86 $ 2.58 $ 2.13
Diluted Earnings Per Common Share (in dollars per share) $ 1.26 $ 1.18 $ 0.58 $ 0.77 $ 0.83 $ 0.55 $ 0.64 $ 0.54 $ 3.77 $ 2.54 $ 2.09
Continuing Operations [Member] | Unallocated amounts to segment [Member]                      
Fiscal Period Adjustment [Line Items]                      
Share-based Compensation Expense [4]     $ 16 $ 2 $ 30            
Continuing Operations [Member] | Corporate and Other [Member]                      
Revenues                      
Total revenues [1]                 $ (5) [2] $ (2) [2] $ 0
General and Administrative Expense [Member] | Unallocated amounts to segment [Member]                      
Fiscal Period Adjustment [Line Items]                      
Restructuring and Related Cost, Incurred Cost                 21 61  
Costs associated with PH U.S. Acceleration Agreement                 13    
General and Administrative Expense [Member] | Corporate and Other [Member]                      
Fiscal Period Adjustment [Line Items]                      
Restructuring and Related Cost, Incurred Cost $ 8 $ 4 4 7 33 $ 30 $ 4   23 67  
Franchise and license expenses [Member] | Unallocated and General and administrative expenses [Domain]                      
Fiscal Period Adjustment [Line Items]                      
Costs associated with PH U.S. Acceleration Agreement 11 8 12           31    
Costs associated with KFC U.S. Acceleration Agreement $ 5 $ 4 $ 5 $ 3 $ 9   $ 8 $ 9 $ 17 $ 26 $ 72
[1] Amounts have not been allocated to any segment for performance reporting purposes.
[2] Represents costs associated with the KFC U.S. Acceleration Agreement and Pizza Hut U.S. Transformation Agreement. See Note 5.
[3] Includes Yum China financial results from January 1, 2016 to October 31, 2016.
[4] Includes $18 million due to appreciation in the market price of Yum China's stock. See Note 5.
[5] Includes $30 million due to modifications of awards in connection with the Separation that was not allocated to any of our operating segments for performance purposes. See Note 5.
[6] Includes net gains from refranchising initiatives of $111 million, $19 million, $201 million and $752 million in the first, second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $7 million, $4 million, $4 million and $8 million in the first, second, third and fourth quarters, respectively, costs associated with the Pizza Hut U.S. Transformation Agreement of $12 million, $8 million and $11 million in the second, third and fourth quarters, respectively, costs associated with the KFC U.S. Acceleration Agreement of $3 million, $5 million, $4 million and $5 million in the first, second, third and fourth quarters, respectively and non-cash charges associated with the modification of share-based compensation awards in connection with the Separation of $2 million and $16 million in the first and second quarters, respectively.
[7] Includes net gains from refranchising initiatives of $54 million, $21 million and $88 million in the second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $4 million, $30 million and $33 million in the second, third and fourth quarters, respectively, a non-cash charge primarily associated with the modification of share-based compensation awards in connection with the Separation of $30 million in the fourth quarter and costs associated with KFC U.S. Acceleration Agreement of $9 million, $8 million and $9 million in the first, second and fourth quarters, respectively. See Note 5.
v3.8.0.1
Note 22. Subsequent Events Subsequent Events (Details)
shares in Millions, $ in Millions
Feb. 07, 2018
USD ($)
shares
Subsequent Event [Line Items]  
Investments in unconsolidated affiliates | $ $ 200
Investment Owned, Balance, Shares | shares 2.8