YUM BRANDS INC, 10-K filed on 2/22/2017
Annual Report
v3.6.0.2
Document and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2016
Feb. 14, 2017
Jun. 11, 2016
Document And Entity Information [Abstract]      
Entity Registrant Name YUM BRANDS INC    
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2016    
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     $ 31,100,000,000
Entity Common Stock, Shares Outstanding   353,844,095  
Document Fiscal Year Focus 2016    
Document Fiscal Period Focus FY    
v3.6.0.2
Consolidated Statements of Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Company restaurants      
Refranchising (gain) loss $ (141) $ 23 $ (16)
Operating Profit 1,625 1,402 1,517
Interest expense, net [1] 307 141 143
Income from Continuing Operations Before Income Taxes 1,318 1,261 1,374
Net Income $ 1,619 $ 1,293 $ 1,051
Basic Earnings Per Common Share (in dollars per share) $ 4.11 $ 2.97 $ 2.37
Diluted Earnings Per Common Share (in dollars per share) 4.04 2.92 2.32
Dividends Declared Per Common Share (in dollars per share) $ 1.73 $ 1.74 $ 1.56
Continuing Operations [Member]      
Revenues      
Company sales $ 4,200 $ 4,356 $ 4,503
Franchise and license fees and income 2,166 2,084 2,084
Total revenues 6,366 6,440 6,587
Company restaurants      
Food and paper 1,269 1,348 1,471
Payroll and employee benefits 1,109 1,131 1,172
Occupancy and other operating expenses 1,120 1,168 1,227
Company restaurant expenses 3,498 3,647 3,870
General and administrative expenses 1,161 1,099 1,028
Franchise and license expenses 202 237 159
Closures and impairment (income) expenses 14 15 18
Refranchising (gain) loss (141) 23 (16)
Other (income) expense 7 17 11
Total costs and expenses, net 4,741 5,038 5,070
Operating Profit 1,625 [2] 1,402 [3] 1,517
Interest expense, net 307 141 143
Income from Continuing Operations Before Income Taxes 1,318 1,261 1,374
Income tax provision 324 325 368
Income from continuing operations $ 994 $ 936 $ 1,006
Basic Earnings Per Common Share (in dollars per share) $ 2.52 $ 2.15 $ 2.27
Diluted Earnings Per Common Share (in dollars per share) $ 2.48 $ 2.11 $ 2.22
Discontinued Operations [Member]      
Revenues      
Company sales $ 5,667 [4] $ 6,789 $ 6,821
Franchise and license fees and income 109 [4] 120 113
Company restaurants      
Company restaurant expenses 4,766 [4] 5,913 6,011
General and administrative expenses 406 [4],[5] 405 [5] 391
Franchise and license expenses 45 [4] 48 44
Closures and impairment (income) expenses 57 [4] 64 517 [6]
Refranchising (gain) loss (12) [4] (13) (17)
Interest expense, net (8) [4] (7) (13)
Income tax provision 65 [4],[7] (164) (38)
Income from discontinued operations, net of tax $ 625 [4] $ 357 $ 45
Basic Earnings Per Common Share (in dollars per share) $ 1.59 $ 0.82 $ 0.10
Diluted Earnings Per Common Share (in dollars per share) $ 1.56 $ 0.81 $ 0.10
[1] Amounts have not been allocated to any segment for performance reporting purposes.
[2] Includes net gains from refranchising initiatives of $3 million, $53 million, $21 million and $64 million in the first, second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $5 million, $27 million and $39 million in the second, third and fourth quarters, respectively, a non-cash charge associated with the modification of EID share-based compensation awards in connection with the Separation of $30 million in the fourth quarter, costs associated with KFC U.S. Acceleration Agreement of $9 million, $8 million and $9 million in the first, second and fourth quarters, respectively, and charges incurred as a result of settlement payments of deferred vested pension balances in the Plan of $1 million and $24 million in the third and fourth quarters, respectively. See Note 5.
[3] Includes net gains from refranchising initiatives of $7 million and $49 million in the first and fourth quarters, respectively, and net losses from refranchising initiatives of $72 million and $4 million in the second and third quarters, respectively. Also includes costs associated with KFC U.S. Acceleration Agreement of $2 million, $8 million, $21 million and $41 million in the first, second, third and fourth quarters, respectively. See Note 5.
[4] Includes Yum China financial results from January 1, 2016 to October 31, 2016.
[5] 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.
[6] During 2014, we recorded a $463 million non-cash impairment charge related to the investment in China's Little Sheep restaurant business. The tax benefit associated with these losses of $76 million and the losses allocated to the noncontrolling founding shareholder of $26 million resulted in a net impact of $361 million on Income from discontinued operations - YUM! Brands, Inc.
[7] During 2016, we recorded a tax benefit of $233 million related to previously recorded losses associated with our Little Sheep business. The tax benefit associated with these losses was able to be recognized as a result of legal entity restructuring completed in anticipation of the Separation.
v3.6.0.2
Consolidated Statement of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Net Income (loss) - YUM! Brands, Inc. $ 1,619 $ 1,293 $ 1,051
Adjustments and gains (losses) arising during the year (166) (253) (147)
Reclassifications of adjustments and (gains) losses into Net Income (11) 115 2
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax (177) (138) (145)
Tax (expense) benefit 20 0 4
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax (157) (138) (141)
Unrealized gains (losses) arising during the year (63) 101 (209)
Reclassification of (gains) losses into Net Income 44 53 27
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Unrealized Gains (Losses), before Tax (19) 154 (182)
Tax (expense) benefit 5 (57) 69
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax (14) 97 (113)
Unrealized gains (losses) arising during the year 48 32 23
Reclassification of (gains) losses into Net Income (8) (41) (23)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax 40 (9) 0
Tax (expense) benefit (16) 1 0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax 24 (8) 0
Other comprehensive income (loss), net of tax (147) (49) (254)
Comprehensive Income - Yum! Brands, Inc. $ 1,472 $ 1,244 $ 797
v3.6.0.2
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Cash Flows - Operating Activities      
Net Income $ 1,619 $ 1,293 $ 1,051
Depreciation and amortization 309 322 328
Refranchising (gain) loss (141) 23 (16)
Continuing Operations [Member]      
Cash Flows - Operating Activities      
Depreciation and amortization 309 322 328
Closures and impairment (income) expenses 14 15 18
Refranchising (gain) loss (141) 23 (16)
Contributions to defined benefit pension plans (41) (98) (18)
Deferred income taxes 27 (102) (46)
Excess tax benefit from share-based compensation (83) (47) (40)
Share-based compensation expense 80 46 45
Changes in accounts and notes receivable (46) (35) (21)
Changes in inventories 0 (3) (2)
Changes in prepaid expenses and other current assets 6 (13) 2
Changes in accounts payable and other current liabilities 17 93 23
Changes in income taxes payable 16 15 (135)
Other, net 52 61 73
Net Cash Provided by Operating Activities 1,204 1,213 1,217
Cash Flows - Investing Activities      
Capital spending (422) (461) (508)
Proceeds from refranchising of restaurants 346 219 83
Other, net 52 53 1
Net Cash Used in Investing Activities (24) (189) (424)
Cash Flows - Financing Activities      
Proceeds from long-term debt 6,900 0 0
Repayments of long-term debt (324) (261) (65)
Revolving credit facilities, three months or less, net (701) 285 416
Short-term borrowings by original maturity      
More than three months - proceeds 1,400 609 0
More than three months - payments (2,000) 0 0
Three months or less, net 0 0 0
Repurchase shares of Common Stock (5,402) (1,200) (820)
Excess tax benefit from share-based compensation 83 47 40
Dividends paid on Common Stock (744) (730) (669)
Debt issuance costs (86) 0 0
Other, net (92) (43) (13)
Net Cash Used in Financing Activities (677) (1,058) (739)
Effect of Exchange Rate on Cash and Cash Equivalents (25) 11 12
Net Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - Continuing Operations 478 (23) 66
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - Beginning of Year 334 357 291
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - End of Year 812 334 357
Discontinued Operations [Member]      
Cash Flows - Operating Activities      
Income from discontinued operations, net of tax 625 [1] 357 45
Closures and impairment (income) expenses 57 [1] 64 517 [2]
Refranchising (gain) loss (12) [1] (13) (17)
Net Cash Provided by Operating Activities 829 931 832
Cash Flows - Investing Activities      
Net Cash Used in Investing Activities $ (287) $ (493) $ (512)
Short-term borrowings by original maturity      
Net transfers from discontinued operations 289 235 372
Net Cash Used in Financing Activities $ (292) $ (234) $ (375)
[1] Includes Yum China financial results from January 1, 2016 to October 31, 2016.
[2] During 2014, we recorded a $463 million non-cash impairment charge related to the investment in China's Little Sheep restaurant business. The tax benefit associated with these losses of $76 million and the losses allocated to the noncontrolling founding shareholder of $26 million resulted in a net impact of $361 million on Income from discontinued operations - YUM! Brands, Inc.
v3.6.0.2
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 26, 2015
Current Assets    
Total Current Assets $ 1,482 $ 1,687
Total Assets 5,478 8,061
Current Liabilities    
Short-term borrowings 66 921
Total Current Liabilities 1,369 3,087
Long-term debt 9,061 3,007
Total Liabilities 11,134 7,086
Shareholders' Equity    
Total Shareholders' Equity (5,656) 969
Total Liabilities, Redeemable Noncontrolling Interest and Shareholders' Equity 5,478 8,061
Continuing Operations [Member]    
Current Assets    
Cash and cash equivalents 704 313
Accounts and notes receivable, net 370 324
Inventories 36 40
Prepaid expenses and other current assets 238 133
Advertising cooperative assets, restricted 134 103
Property, Plant and equipment, net 2,160 2,347
Goodwill 541 571
Intangible assets, net 151 164
Other assets 370 330
Deferred income taxes 774 591
Total Assets 5,478 4,916
Current Liabilities    
Accounts payable and other current liabilities 1,132 1,074
Income taxes payable 37 55
Short-term borrowings 66 921
Advertising cooperative liabilities 134 103
Long-term debt 9,061 3,007
Other liabilities and deferred credits 704 745
Shareholders' Equity    
Common stock, no par value, 750 shares authorized; 355 shares and 420 shares issued in 2016 and 2015, respectively 0 0
Retained earnings (5,223) 1,150
Accumulated other comprehensive income (loss) (433) (239)
Total Shareholders' Equity - YUM! Brands, Inc. (5,656) 911
Discontinued Operations [Member]    
Current Assets    
Cash and cash equivalents   424
Accounts and notes receivable, net   53
Inventories   189
Prepaid expenses and other current assets   108
Total Current Assets 0 774
Property, Plant and equipment, net   1,841
Goodwill   85
Intangible assets, net   107
Other assets   192
Deferred income taxes   85
Noncurrent assets of discontinued operations 0 2,371
Total Assets   3,145
Current Liabilities    
Accounts payable and other current liabilities   912
Income taxes payable   22
Total Current Liabilities 0 934
Long-term debt   34
Other liabilities and deferred credits   213
Liabilities, Noncurrent 0 247
Total Liabilities   1,181
Redeemable noncontrolling interest 0 6
Shareholders' Equity    
Noncontrolling interests $ 0 $ 58
v3.6.0.2
Consolidated Balance Sheets (Parenthetical) - $ / shares
shares in Millions, $ / shares in Millions
Dec. 31, 2016
Dec. 26, 2015
Shareholders' Equity (Deficit)    
Common Stock, par value $ 0 $ 0
Common Stock, shares authorized 750 750
Common Stock, shares issued 355 420
v3.6.0.2
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. 28, 2013   $ 0 $ 2,102 $ 64 $ 63 $ 2,229 $ 39        
Balance (in shares) at Dec. 28, 2013 | shares   443,000                  
Net Income (loss) - YUM! Brands, Inc. $ 1,051   1,051                
Net Income (loss) - noncontrolling interests         (1)            
Net Income (loss) - including noncontrolling interest           1,050 (29)        
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature (net of tax impact)       (143)              
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature - noncontrolling interest (net of tax impact)         (1)            
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature - including noncontrolling interest (net of tax impact)           (144) (1)        
Reclassifications of adjustments and (gains) losses into Net Income 2     2   2          
Pension and post-retirement benefit plans (net of tax impact) (113)     (113)   (113)          
Comprehensive income - including noncontrolling interests           795 (30)        
Dividends declared     (691)   (4) (695)          
Repurchase of shares of Common Stock $ (820) $ (95) (725)     (820)          
Repurchase of shares of Common Stock (in shares) | shares (11,225) (11,000)                  
Employee stock option and SARs exercises (includes tax impact)   $ 33       33          
Employee stock option and SARs exercises (in shares) | shares   2,000                  
Compensation-related events (includes tax impact)   $ 62       62          
Balance at Dec. 27, 2014   $ 0 1,737 (190) 57 1,604 9        
Balance (in shares) at Dec. 27, 2014 | shares   434,000                  
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax $ 4                    
Other Comprehensive Income (Loss), Foreign Currency Translation Reclassification Adjustment from AOCI, Tax 0                    
Pension and post-retirement benefit plans (tax impact) 69                    
Employee Stock Option And SARs Exercises Value, Tax (37)                    
Stock Issued During Period, Value, Share Based Compensation, Tax (5)                    
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax 0                    
Net Income (loss) - YUM! Brands, Inc. 1,293   1,293                
Net Income (loss) - noncontrolling interests         6            
Net Income (loss) - including noncontrolling interest           1,299 (1)        
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature (net of tax impact)       (250)              
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)           (254) (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)       (8)   (8)          
Comprehensive income - including noncontrolling interests           1,246 (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)   $ 11       11          
Employee stock option and SARs exercises (in shares) | shares   2,000                  
Compensation-related events (includes tax impact)   $ 64       64          
Balance at Dec. 26, 2015 $ 969 $ 0 1,150 (239) 58 969 6        
Balance (in shares) at Dec. 26, 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 (43)                    
Stock Issued During Period, Value, Share Based Compensation, Tax (7)                    
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax 1                    
Net Income (loss) - YUM! Brands, Inc. 1,619   1,619                
Net Income (loss) - noncontrolling interests         18            
Net Income (loss) - including noncontrolling interest           1,637 (7)        
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature (net of tax impact)       (146)              
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)           (149) 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)       24   24          
Comprehensive income - including noncontrolling interests           1,487 (6)        
Dividends declared     (661)   (6) (667)          
Separation of China business               (1,932) (47) (67) (2,046)
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)   $ 1       1          
Employee stock option and SARs exercises (in shares) | shares   3,000                  
Compensation-related events (includes tax impact)   $ 48       48          
Balance at Dec. 31, 2016 $ (5,656) $ 0 $ (5,223) $ (433) $ 0 $ (5,656) $ 0        
Balance (in shares) at Dec. 31, 2016 | shares   355,000                  
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax 20                    
Other Comprehensive Income (Loss), Foreign Currency Translation Reclassification Adjustment from AOCI, Tax 0                    
Pension and post-retirement benefit plans (tax impact) 5                    
Employee Stock Option And SARs Exercises Value, Tax (75)                    
Stock Issued During Period, Value, Share Based Compensation, Tax (11)                    
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax $ (16)                    
[1] Includes the effect of $45 million in share repurchases (0.7 million shares) with trade dates prior to December 31, 2016 but settlement dates subsequent to December 31, 2016.
v3.6.0.2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Statement of Stockholders' Equity [Abstract]      
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax $ 20 $ 3 $ 4
Other Comprehensive Income (Loss), Foreign Currency Translation Reclassification Adjustment from AOCI, Tax 0 3 0
Pension and post-retirement benefit plans (tax impact) 5 (57) 69
Employee Stock Option And SARs Exercises Value, Tax (75) (43) (37)
Stock Issued During Period, Value, Share Based Compensation, Tax (11) (7) (5)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax $ (16) $ 1 $ 0
v3.6.0.2
Description of Business
 12 Months Ended
Dec. 31, 2016
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 43,500 units of which 58% 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, 2016, 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

Effective January 2016, the Company's India Division was segmented by brand, integrated into the global KFC, Pizza Hut and Taco Bell Divisions, and is no longer a separate operating segment. While our consolidated results were not impacted, we have restated our historical segment information for consistent presentation. Integrating India into our Brand Divisions increased 2015 Total revenues for the KFC, Pizza Hut and Taco Bell Divisions by $105 million, $8 million and $3 million, respectively. 2015 Operating Profit decreased by $16 million, and $3 million for the KFC and Taco Bell Divisions, respectively, and increased less than $1 million for the Pizza Hut Division. Integrating India into our Brand Divisions increased 2014 Total revenues for the KFC, Pizza Hut and Taco Bell Divisions by $128 million, $11 million and $2 million, respectively. 2014 Operating Profit decreased by $6 million, $1 million and $2 million for the KFC, Pizza Hut and Taco Bell Divisions, respectively.

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 United States. Yum China’s common stock now trades on the New York Stock Exchange ("NYSE") 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, assets and liabilities, and cash flows of the separated business are presented as discontinued operations in our Consolidated Statements of Income, Consolidated Balance Sheets and Consolidated Statements of Cash Flows for all periods presented. See additional information related to the impact of the Separation in Note 4.
v3.6.0.2
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2016
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 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 2016, YUM has future lease payments due from franchisees, on a nominal basis, of approximately $250 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 YUM, our U.S. businesses and for our international subsidiaries that report on a period calendar. The 53rd week added $76 million to Total revenues and $27 million to Operating Profit in our 2016 Consolidated Statement of Income.

On January 27, 2017, YUM’s Board of Directors approved a change in its 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 the new fiscal year, the Company will move 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 will continue to report on a period calendar as described above.

The change in the Company’s fiscal year was made primarily to accommodate the removal of aforementioned reporting lags from certain of our international subsidiary fiscal calendars, which will significantly improve the alignment of our global reporting
calendars. As a result of removing these reporting lags each international subsidiary will now operate either on a monthly calendar consistent with the Company’s new calendar or on a periodic calendar consistent with our U.S. subsidiaries.

The change to the Company’s fiscal year is effective in 2017 and does not impact the Company’s results for the fiscal year ended December 31, 2016. However, we will restate previously issued financial statements when presenting financial statements under our new calendar in 2017.

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 United States 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, 2016, net cumulative translation adjustment losses of $313 million are recorded in Accumulated other comprehensive income (loss) 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 Accumulated other comprehensive income (loss) 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. See Note 5 for information on the liquidation of our Mexico and Pizza Hut Australia foreign entities and related Income Statement recognition of 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, 2016. These reclassifications had no effect on previously reported Net Income.

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. 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 a reduced continuing fee.  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.

The internal costs we incur to provide support services to our franchisees are charged to General and Administrative (“G&A”) expenses 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.  We present initial fees collected upon the sale of a Company-owned restaurant to a franchisee in Refranchising (gain) loss.

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 $260 million, $255 million and $261 million in 2016, 2015 and 2014, respectively.  We report the vast 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.

Research and Development Expenses.  Research and development expenses, which we expense as incurred, are reported in G&A expenses.  Research and development expenses were $24 million, $24 million and $25 million in 2016, 2015 and 2014, 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 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 expenses. 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 the related initial franchise fees. 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 U.S. deferred tax liability for the excess of the book basis over the tax basis of our investments in foreign subsidiaries to the extent that the basis difference results from earnings that meet the indefinite reversal criteria. This criteria is met if the foreign subsidiary has invested, or will invest, the undistributed earnings indefinitely. The decision as to the amount of undistributed 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 United States.

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 on our Consolidated Balance Sheet.  Yum China is our largest franchisee and we recorded franchise fee revenues of approximately $240 million from Yum China in 2016. 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 and $3 million in net provisions within Franchise and license expenses in 2015 and 2014, respectively, related to uncollectible franchise and license trade receivables. Net provisions in 2016 related to uncollectible franchise and license trade receivables were less than $1 million. 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.
 
 
 
2016
 
2015
Accounts and notes receivable
 
$
383

 
$
338

Allowance for doubtful accounts
 
(13
)
 
(14
)
Accounts and notes receivable, net
 
$
370

 
$
324


 
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 while amounts due beyond one year are included in Other assets.  Amounts included in Other assets totaled $21 million (net of an allowance of $2 million) and $16 million (net of an allowance of $4 million) at December 31, 2016 and December 26, 2015, 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 expenses.

Goodwill and Intangible Assets.  From time-to-time, the Company acquires restaurants from one of our Concept’s franchisees or acquires another business.  Goodwill from these acquisitions represents the excess of the cost of a business acquired over the net of the amounts assigned to assets acquired, including identifiable intangible assets and liabilities assumed.  Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing.  Our reporting units are our business units (which are aligned based on geography) in our KFC, 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 other comprehensive income (loss) 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, 2016 and December 26, 2015, 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, 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 as a reduction in Retained earnings (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, $5,399 million, $1,124 million and $725 million in share repurchases were recorded as a reduction in Retained earnings (Accumulated Deficit) in 2016, 2015 and 2014, respectively. 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 Accumulated other comprehensive income (loss).

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. We have elected to use a market-related value of plan assets to calculate the expected return on 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 Accumulated other comprehensive income (loss), 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.

Recently Adopted Accounting Pronouncements. In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-03, “Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs” (ASU 2015-03). ASU 2015-03 amended the then current presentation guidance by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that
debt liability, consistent with debt discounts. ASU 2015-03 was effective for the Company beginning with the quarter ended March 19, 2016. The adoption of this standard required restatement of our Consolidated Balance Sheet as of December 26, 2015. As a result, Other assets and Long-term debt each decreased by $13 million and Prepaid expenses and other current assets and Short-term borrowings each decreased by $1 million versus amounts previously reported.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. ASU 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. We adopted ASU 2016-18 beginning with the quarter ended December 31, 2016 on a retrospective basis. As a result Net Cash Provided by Operating Activities from Continuing Operations increased by $5 million in 2015. End-of-period cash, cash equivalents and restricted cash increased by $21 million and $16 million as of December 26, 2015 and December 27, 2014, respectively. We classify restricted cash within our Consolidated Balance Sheets consistent with the nature of the restriction (e.g. cash restricted for future interest payments within the next 12 months is classified in Prepaid expenses and other current assets).

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40). ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern for a period of one year following the date its financial statements are issued. If such conditions or events exist, an entity should disclose that there is substantial doubt about the entity’s ability to continue as a going concern for a period of one year following the date its financial statements are issued. Disclosure should include the principal conditions or events that raise substantial doubt, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that are intended to mitigate those conditions or events. We adopted ASU 2014-15 effective December 31, 2016. The adoption had no impact on our Consolidated Financial Statements.
v3.6.0.2
Earnings Per Common Share ("EPS")
 12 Months Ended
Dec. 31, 2016
Earnings Per Share [Abstract]  
Earnings Per Common Share (EPS) Earnings Per Common Share (“EPS”)

 
 
2016
 
2015
 
2014
Income from continuing operations
 
$
994

 
$
936

 
$
1,006

Income from discontinued operations
 
625

 
357

 
45

Net Income
 
$
1,619


$
1,293


$
1,051

Weighted-average common shares outstanding (for basic calculation)
 
394

 
436

 
444

Effect of dilutive share-based employee compensation
 
6

 
7

 
9

Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)
 
400

 
443

 
453

Basic EPS from continuing operations
 
$
2.52

 
$
2.15

 
$
2.27

Basic EPS from discontinued operations
 
1.59

 
0.82

 
0.10

Basic EPS
 
$
4.11


$
2.97


$
2.37

Diluted EPS from continuing operations
 
$
2.48

 
$
2.11

 
$
2.22

Diluted EPS from discontinued operations
 
1.56

 
0.81

 
$
0.10

Diluted EPS
 
$
4.04


$
2.92


$
2.32

Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation(a)
 
5.0

 
4.5

 
5.5


(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.
v3.6.0.2
Discontinued Operations
 12 Months Ended
Dec. 31, 2016
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, Assets and Liabilities of discontinued operations in the Consolidated Balance Sheets and Cash flows from discontinued operations in our Consolidated Statements of Cash Flows.

Prior to the Separation, an intercompany franchise agreement existed between an entity of Yum China and a Company entity requiring Yum China to remit to the Company royalties on sales earned by KFC and Pizza Hut Company-owned stores in China. The royalties related to the franchise agreement were eliminated as intercompany transactions and were not separately reflected in our previously issued financial statements. Additionally, third-party franchisees of Yum China paid to a Company entity royalties as a percentage of their sales. We have restated the results of our KFC and Pizza Hut Divisions for periods prior to the Separation to reflect the royalties that were previously eliminated as intercompany transactions and related taxes that were previously included in our China Division results. We have also restated the results of our KFC and Pizza Hut Divisions to include the royalties paid by third-party franchisees previously included in China Division results that will be continued pursuant to the Master License Agreement following the Separation. For 2016, 2015, and 2014 the combined impact to our KFC and Pizza Hut Divisions' Franchise and license fees and income was $208 million, $244 million, and $242 million, respectively. The value added tax associated with this royalty revenue was recorded as an increase in Franchise and license expenses and the combined impact to our KFC and Pizza Hut Divisions' Franchise and license expense totaled $13 million, $16 million and $16 million in 2016, 2015 and 2014, respectively. The net increases in the KFC and Pizza Hut Divisions' Operating Profit were offset with a corresponding reduction in Income from discontinued operations such that there is no impact on total reported Net income. Subsequent to the Separation, all royalty revenues earned by us under the Master License Agreement with Yum China are reflected as Franchise and license fees and income in our Consolidated Statements of Income. Cash inflows from Yum China to the Company from the date of Separation through the end of 2016 related to the Master License Agreement were $16 million and primarily related to royalty revenues.

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 transactions discussed above and the inclusion of certain G&A expenses, non-cash impairment charges, refranchising gains, interest and taxes that were previously not allocated to but were related to the former China Division's historical results of operations. The following table presents the financial results of the Company’s discontinued operations:
 
 
2016(a)
 
2015
 
2014
Company sales
 
$
5,667

 
$
6,789

 
$
6,821

Franchise and license fees and income
 
109

 
120

 
113

Company restaurant expenses
 
(4,766
)
 
(5,913
)
 
(6,011
)
G&A expenses(b)
 
(406
)
 
(405
)
 
(391
)
Franchise and license expenses
 
(45
)
 
(48
)
 
(44
)
Closures and impairment expenses(c)
 
(57
)
 
(64
)
 
(517
)
Refranchising gain
 
12

 
13

 
17

Other income(d)
 
49

 
27

 
52

Interest income, net
 
8

 
7

 
13

Income from discontinued operations before income taxes
 
571

 
526

 
53

Income tax benefit (provision)(e)
 
65

 
(164
)
 
(38
)
Income from discontinued operations - including noncontrolling interests
 
636

 
362

 
15

(Income) loss from discontinued operations - noncontrolling interests
 
(11
)
 
(5
)
 
30

Income from discontinued operations - YUM! Brands, Inc.
 
$
625

 
$
357

 
$
45


(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)
During 2014, we recorded a $463 million non-cash impairment charge related to the investment in China's Little Sheep restaurant business. The tax benefit associated with these losses of $76 million and the losses allocated to the noncontrolling founding shareholder of $26 million resulted in a net impact of $361 million on Income from discontinued operations - YUM! Brands, Inc.

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

(e)
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.

The assets, liabilities and redeemable noncontrolling interest related to Yum China and presented as discontinued operations in our Consolidated Balance Sheets are as follows:
 
 
2015
Cash and cash equivalents
 
$
424

Accounts and notes receivable, net
 
53

Inventories
 
189

Prepaid expenses and other current assets
 
108

Current assets of discontinued operations
 
774

 
 
 
Property, plant and equipment, net
 
1,841

Goodwill
 
85

Intangible assets, net
 
107

Investments in unconsolidated affiliates
 
61

Other assets
 
192

Deferred income taxes
 
85

Noncurrent assets of discontinued operations
 
2,371

Total assets classified as discontinued operations
 
$
3,145

 
 
 
Accounts payable and other current liabilities
 
$
912

Income taxes payable
 
22

Current liabilities of discontinued operations
 
934

 
 
 
Long-term debt
 
34

Other liabilities and deferred credits
 
213

Non-current liabilities of discontinued operations
 
247

Total liabilities classified as discontinued operations
 
$
1,181

 
 
 
Redeemable noncontrolling interest
 
$
6



Assets and liabilities transferred to Yum China upon Separation at October 31, 2016 were $3,363 million and $1,310 million, respectively.
v3.6.0.2
Items Affecting Comparability of Net Income and Cash Flows
 12 Months Ended
Dec. 31, 2016
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

Refranchising (Gain) Loss

The Refranchising (gain) loss by reportable segment is presented below. We do not allocate such gains and losses to our segments for performance reporting purposes.

 
 
Refranchising (gain) loss
 
 
 
 
 
 
 
2016
 
2015
 
2014
 
 
 
 
 
KFC Division(a)
 
$
(20
)
 
$
33

 
$
(18
)
 
 
 
 
 
Pizza Hut Division(a)(b)
 
(50
)
 
55

 
6

 
 
 
 
 
Taco Bell Division
 
(71
)
 
(65
)
 
(4
)
 
 
 
 
 
Worldwide
 
$
(141
)
 
$
23

 
$
(16
)
 
 
 
 
 

(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.

(b)
In 2016, we recognized a net gain of $11 million related to the reclassification of accumulated translation adjustments associated with Pizza Hut Australia upon entering into a master franchising agreement for that business that was deemed a complete liquidation of the Pizza Hut Australia foreign entity.

YUM's Strategic Transformation Initiatives

In October 2016, we announced YUM's Strategic Transformation Initiatives following the Separation. 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 $71 million related to our Strategic Transformation Initiatives in 2016. These costs, primarily recorded in G&A expenses, included severance costs, charges associated with a voluntary retirement program offered to certain U.S. employees, consulting costs incurred to facilitate YUM's Strategic Transformation Initiatives and losses associated with the sale of Corporate aircraft upon our decision to no longer own our 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, costs associated with these initiatives are not being allocated to any segment for performance reporting.

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 each quarter in our income statement. Cumulative fair value in excess of previously recorded expense as of December 31, 2016, and related costs resulted in non-cash pre-tax charges of $30 million being recorded to G&A expense in 2016. These costs are not being allocated to any of our segment operating results given they were a direct result of the Separation. See Note 16 for further discussion of share-based and deferred compensation plans.

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 $120 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 2016 and 2015 of $26 million and $72 million, respectively. These amounts were recorded primarily as Franchise and license expenses and are not being allocated to the KFC Division segment operating results.

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

YUM Retirement Plan Settlement Charge

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 pre-tax settlement charge to G&A expenses in 2016 of $25 million that was not allocated to any of our segment operating results due to the size and non-recurring nature of the program. 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.
 
 
2016
 
 
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
Store closure (income) costs(a)
 
$
3

 
$
(4
)
 
$
—

 
$
(1
)
Store impairment charges
 
8

 
4

 
3

 
15

Closure and impairment (income) expenses
 
$
11

 
$
—

 
$
3

 
$
14


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

 
$
(2
)
 
$
(1
)
 
$
(2
)
Store impairment charges
 
8

 
5

 
4

 
17

Closure and impairment (income) expenses
 
$
9

 
$
3

 
$
3

 
$
15


 
 
2014
 
 
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
Store closure (income) costs(a)
 
$
2

 
$
1

 
$
—

 
$
3

Store impairment charges
 
8

 
4

 
3

 
15

Closure and impairment (income) expenses
 
$
10

 
$
5

 
$
3

 
$
18


(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, 2016 or December 26, 2015.
v3.6.0.2
Supplemental Cash Flow Data
 12 Months Ended
Dec. 31, 2016
Supplemental Cash Flow Elements [Abstract]  
Supplemental Cash Flow Data Supplemental Cash Flow Data
 
 
 
2016
 
2015
 
2014
Cash Paid For:
 
 
 
 
 
 
Interest
 
$
297

 
$
145

 
$
141

Income taxes(a)
 
317

 
390

 
495

Significant Non-Cash Investing and Financing Activities:
 
 
 
 
 
 
Capital lease obligations incurred
 
$
9

 
$
25

 
$
17

Reconciliation of Cash and cash equivalents to Consolidated Statements of Cash Flows:
 
 
 
 
 
 
Cash and cash equivalents as presented in Consolidated Balance Sheets
 
$
704

 
$
313

 
$
341

Restricted cash included in Prepaid expenses and other current assets(b)
 
55

 
—

 
—

Restricted cash included in Other assets(c)
 
53

 
21

 
16

Cash, Cash Equivalents and Restricted Cash as presented in Consolidated Statements of Cash Flows
 
$
812

 
$
334

 
$
357



(a)
2014 includes $200 million of cash paid related to the resolution of a valuation issue with the Internal Revenue Service ("IRS") related to years 2004 through 2008. See Note 18.

(b)
Restricted cash within Prepaid expenses and other current assets primarily relates to the Taco Bell Securitization. See Note 11.

(c)
Primarily cash balances required to meet statutory minimum net worth requirements for legal entities which enter into U.S. franchise agreements and trust accounts related to our self-insurance programs.
v3.6.0.2
Franchise and License Fees and Income
 12 Months Ended
Dec. 31, 2016
Franchise And License Fees And Income Disclosure [Abstract]  
Franchise and license fees and income Franchise and License Fees and Income

 
 
2016
 
2015
 
2014
Initial fees, including renewal fees
 
$
81

 
$
78

 
$
76

Initial franchise fees included in Refranchising (gain) loss
 
(9
)
 
(6
)
 
(2
)
 
 
72

 
72

 
74

Continuing fees and rental income
 
2,094

 
2,012

 
2,010

Franchise and license fees and income
 
$
2,166


$
2,084


$
2,084
v3.6.0.2
Other (Income) Expense
 12 Months Ended
Dec. 31, 2016
Other Income and Expenses [Abstract]  
Other (Income) Expense Other (Income) Expense

 
 
2016
 
2015
 
2014
Foreign exchange net (gain) loss and other
 
$
(2
)
 
$
17

 
$
11

Loss associated with corporate aircraft(a)
 
9

 
—

 
—

Other (income) expense
 
$
7


$
17


$
11



(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 is classified as held for sale at the end of 2016 within Prepaid expenses and other current assets. The losses associated with the sale and planned sale reflect the shortfall of the expected or actual proceeds, less any selling costs, over the carrying value of the aircraft. See Note 5.
v3.6.0.2
Supplemental Balance Sheet Information
 12 Months Ended
Dec. 31, 2016
Supplemental Balance Sheet Information Disclosure [Abstract]  
Supplemental Balance Sheet Information Supplemental Balance Sheet Information

Prepaid Expenses and Other Current Assets
 
2016
 
2015
Income tax receivable
 
$
61

 
$
39

Assets held for sale(a)
 
51

 
10

Other prepaid expenses and current assets
 
126

 
84

Prepaid expenses and other current assets
 
$
238


$
133



(a)
Reflects the carrying value of restaurants we have offered for sale to franchisees, excess properties that we do not intend to use for restaurant operations in the future and a corporate aircraft we expect to sell in 2017.

Property, Plant and Equipment
 
2016
 
2015
Land
 
$
441

 
$
480

Buildings and improvements
 
2,184

 
2,232

Capital leases, primarily buildings
 
154

 
168

Machinery and equipment
 
1,410

 
1,515

Property, plant and equipment, gross
 
4,189

 
4,395

Accumulated depreciation and amortization
 
(2,029
)
 
(2,048
)
Property, plant and equipment, net
 
$
2,160


$
2,347



Depreciation and amortization expense related to property, plant and equipment was $294 million, $304 million and $310 million in 2016, 2015 and 2014, respectively.

Accounts Payable and Other Current Liabilities
 
2016
 
2015
Accounts payable
 
$
200

 
$
181

Accrued capital expenditures
 
44

 
46

Accrued compensation and benefits
 
380

 
281

Dividends payable
 
106

 
197

Accrued taxes, other than income taxes
 
64

 
74

Other current liabilities
 
338

 
295

Accounts payable and other current liabilities
 
$
1,132


$
1,074
v3.6.0.2
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2016
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 27, 2014
 
 
 
 
 
 
 
 
Goodwill, gross
 
$
314

 
$
200

 
$
114

 
$
628

Accumulated impairment losses
 
—

 
(17
)
 
—

 
(17
)
Goodwill, net
 
314

 
183

 
114

 
611

Acquisitions
 
1

 
—

 
1

 
2

Disposals and other, net(a)
 
(33
)
 
(7
)
 
(2
)
 
(42
)
Balance as of December 26, 2015
 
 
 
 
 
 
 
 
Goodwill, gross
 
282

 
193

 
113

 
588

Accumulated impairment losses
 
—

 
(17
)
 
—

 
(17
)
Goodwill, net
 
282

 
176

 
113

 
571

Disposals and other, net(a)
 
(12
)
 
(16
)
 
(2
)
 
(30
)
Balance as of December 31, 2016
 
 
 
 
 
 
 
 
Goodwill, gross
 
270

 
177

 
111

 
558

Accumulated impairment losses
 
—

 
(17
)
 
—

 
(17
)
Goodwill, net
 
$
270

 
$
160

 
$
111

 
$
541



(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 2016 and 2015 are as follows:
 
 
 
2016
 
2015
 
 
Gross Carrying Amount
 
Accumulated Amortization
 
Gross Carrying Amount
 
Accumulated Amortization
Definite-lived intangible assets
 
 
 
 
 
 
 
 
Reacquired franchise rights
 
$
84

 
$
(49
)
 
$
92

 
$
(49
)
Franchise contract rights
 
99

 
(73
)
 
99

 
(70
)
Lease tenancy rights
 
56

 
(9
)
 
55

 
(9
)
Other
 
36

 
(24
)
 
37

 
(22
)
 
 
$
275

 
$
(155
)
 
$
283

 
$
(150
)
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets
 
 
 
 
 
 
 
 
KFC trademark
 
$
31

 
 
 
$
31

 
 
 
 
 
 
 
 
 
 
 


Amortization expense for all definite-lived intangible assets was $12 million in 2016, $13 million in 2015 and $13 million in 2014.  Amortization expense for definite-lived intangible assets is expected to approximate $10 million in 2017, $9 million in 2018, $7 million in 2019, $7 million in 2020 and $6 million in 2021.

v3.6.0.2
Short-term Borrowings and Long-term Debt
 12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Short-term Borrowings and Long-term Debt Short-term Borrowings and Long-term Debt

 
 
2016
 
2015
Short-term Borrowings
 
 
 
 
Current maturities of long-term debt
 
$
65

 
$
312

Unsecured Short-Term Loan Credit Facility (the "Bridge Facility")
 
—

 
600

Other
 
9

 
9

 
 
$
74

 
$
921

Less current portion of debt issuance costs and discounts
 
(8
)
 
—

Short-term borrowings
 
$
66

 
$
921

 
 
 
 
 
Long-term Debt
 
 
 
 
Securitization Notes
 
$
2,294

 
$
—

Subsidiary Senior Unsecured Notes
 
2,100

 
—

Term Loan A Facility
 
500

 
—

Term Loan B Facility
 
1,990

 
—

YUM Senior Unsecured Notes
 
2,200

 
2,500

Senior Unsecured Revolving Credit Facility
 
—

 
701

Capital lease obligations (See Note 12)
 
121

 
134

 
 
9,205

 
3,335

Less debt issuance costs and discounts
 
(79
)
 
(16
)
Less current maturities of long-term debt
 
(65
)
 
(312
)
Long-term debt
 
$
9,061


$
3,007



During the year ended December 31, 2016, a subsidiary of Taco Bell issued $2.3 billion in Securitization Notes. Additionally, in 2016 a group of our subsidiaries issued $2.1 billion in Senior Unsecured Notes and entered into a Credit Agreement providing for senior, secured credit facilities consisting of a $500 million Term Loan A Facility, a $2.0 billion Term Loan B Facility and a $1.0 billion revolving credit facility with $995 million in borrowings available as of December 31, 2016 (net of $5 million in outstanding letters of credit) During 2016, YUM repaid $300 million in YUM Senior Unsecured Notes and repaid and terminated the Bridge
Facility, which had $600 million of outstanding borrowings as of December 26, 2015. We also repaid and terminated the Senior Unsecured Revolving Credit Facility, which had $701 million of outstanding borrowings as of December 26, 2015.

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 allows 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.

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.

Interest on the Variable Funding Notes will be based on (i) the prime rate, (ii) the overnight federal funds rates, (iii) the London interbank offered rate (“LIBOR”) for U.S. Dollars or (iv) with respect to advances made by conduit investors, the weighted average cost of, or related to, the issuance of commercial paper allocated to fund or maintain such advances, plus any applicable margin, in each case as more fully set forth in the Variable Funding Note Purchase Agreement. It is anticipated that outstanding principal of and interest on the Variable Funding Notes, if any, will be repaid in full on or prior to May 2021, subject to two additional one-year extensions at the option of the Issuer and further extensions as agreed between the Issuer and the Administrative Agent.  Following the anticipated repayment date and any extensions thereof, additional interest will accrue on the Variable Funding Notes equal to 5.00% per year.  As of December 31, 2016, $15 million of letters of credit were outstanding against the Variable Funding Notes, which relate primarily to interest reserves required under the Indenture. The Variable Funding Notes were undrawn at December  31, 2016.

The Company paid debt issuance costs of $31 million in connection with the 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. 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. As of December 31, 2016, 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.

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, 2016, 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, 2016, the Company had restricted cash of $55 million primarily related to required interest reserves. Such restricted cash is included in Prepaid expenses and other current assets on the Consolidated Balance Sheet as of December 31, 2016. 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, 2016, 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". Through December 31, 2016, there have been no outstanding borrowings under the Revolving Facility.

The Term Loan A Facility is 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. 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.

The interest rate for the Term Loan A Facility and for borrowings under the Revolving Facility ranges from 2.00% to 2.50% plus LIBOR or from 1.00% to 1.50% plus the Base Rate (as defined in the Credit Agreement), at the Borrowers’ election, based upon the total net leverage ratio of the Borrowers and the Specified Guarantors. The Specified Guarantors are the following subisidiaries of the Company: YUM Restaurant Services Group, LLC, Restaurant Concepts LLC and TBC and their subsidiaries, excluding Taco Bell Funding LLC, and its special purpose, wholly-owned subsidiaries (see above). The interest rate for the Term Loan B Facility is either LIBOR plus 2.75% or the Base Rate plus 1.75%, at the Borrowers’ election. Interest on any outstanding borrowings under the Credit Agreement is payable at least quarterly. The Term Loan A Facility and the Revolving Facility mature in June 2021 and the Term Loan B Facility matures in June 2023.

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, 2016.

Additionally, 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. 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, 2016.

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. 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. As of December 31, 2016, 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%, 3.01%, and 3.91% for the Subsidiary Senior Unsecured Notes due 2024, the Subsidiary Senior Unsecured Notes due 2026, 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 2018 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.

During the second quarter of 2016, we repaid $300 million of YUM Senior Unsecured Notes upon their maturity.

The following table summarizes all YUM Senior Unsecured Notes issued that remain outstanding at December 31, 2016:
 
 
 
 
 
 
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, 2016, excluding capital lease obligations of $121 million are as follows:
 
Year ended:
 
2017
$
64

2018
393

2019
324

2020
1,215

2021
760

Thereafter
6,337

Total
$
9,093



Interest expense on short-term borrowings and long-term debt was $333 million, $153 million and $151 million in 2016, 2015 and 2014, respectively.
v3.6.0.2
Leases
 12 Months Ended
Dec. 31, 2016
Leases [Abstract]  
Leases Leases

At December 31, 2016, we operated approximately 2,800 restaurants, leasing the underlying land and/or building in approximately 2,000 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 700 units to franchisees, principally in the U.S., United Kingdom, Germany 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
2017
 
$
16

 
$
171

 
$
3

 
$
40

2018
 
16

 
148

 
2

 
36

2019
 
15

 
128

 
2

 
30

2020
 
15

 
101

 
2

 
23

2021
 
14

 
85

 
1

 
20

Thereafter
 
105

 
571

 
5

 
86

 
 
$
181

 
$
1,204

 
$
15

 
$
235



At December 31, 2016 and December 26, 2015, the present value of minimum payments under capital leases was $121 million and $134 million, respectively.  At December 31, 2016, unearned income associated with direct financing lease receivables was $2 million.

The details of rental expense and income are set forth below:
 
 
2016
 
2015
 
2014
Rental expense
 
 
 
 
 
 
Minimum
 
$
213

 
$
221

 
$
243

Contingent
 
29

 
34

 
37

 
 
$
242

 
$
255

 
$
280

Rental income
 
$
79

 
$
73

 
$
83
v3.6.0.2
Derivative Instruments (Notes)
 12 Months Ended
Dec. 31, 2016
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 enter into interest rate swaps with the objective of reducing our exposure to interest rate risk for a portion of our variable-rate debt interest payments. On July 25, 2016, we agreed with multiple counterparties to swap the variable LIBOR-based component of the interest payments related to $1.55 billion of our $2.0 billion 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, 2016.

The effective portion of gains or losses on the interest rate swaps is reported as a component of Accumulated other comprehensive income ("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, 2016, the swaps were highly effective cash flow hedges and no ineffectiveness has been recorded.

Foreign Currency Contracts

We enter 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, 2016, all foreign currency contracts were highly effective cash flow hedges and no ineffectiveness has been recorded.

As of December 31, 2016 and December 26, 2015, foreign currency forward and swap contracts outstanding had total notional amounts of $437 million and $470 million, respectively. As of December 31, 2016 we have foreign currency forward and swap contracts with durations expiring as early as January 2017 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, 2016, all of the counterparties to our interest rate swaps and foreign currency contracts had investment grade ratings according to the three major ratings agencies. To date, all counterparties have performed in accordance with their contractual obligations.

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

 
Gains/(Losses) Recognized in OCI
 
(Gains)/Losses Reclassified from AOCI into Net Income
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
Interest rate swaps
$
47

 
$
—

 
$
(4
)
 
$
—

Foreign currency contracts
1

 
32

 
(4
)
 
(41
)
Income tax benefit/(expense)
(19
)
 
(4
)
 
3

 
5



As of December 31, 2016, 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 $3 million, based on current LIBOR interest rates.

See Note 14 for the fair value of our derivative assets and liabilities.
v3.6.0.2
Fair Value Disclosures
 12 Months Ended
Dec. 31, 2016
Fair Value Disclosures [Abstract]  
Fair Value Disclosures Fair Value Disclosures

As of December 31, 2016 the carrying values of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, short -term borrowings and accounts payable approximated their fair values because of the short-term nature of these instruments. The fair value of notes receivable net of allowances and lease guarantees less subsequent amortization approximates their carrying value. The following table presents the carrying value and estimated fair value of the Company’s debt obligations:

 
12/31/2016
 
12/26/2015
 
Carrying Value
 
Fair Value (Level 2)
 
Carrying Value
 
Fair Value (Level 2)
Debt obligations
 
 
 
 
 
 
 
Securitization Notes(a)
$
2,294

 
$
2,315

 
$
—

 
$
—

Subsidiary Senior Unsecured Notes(b)
2,100

 
2,175

 
—

 
—

Term Loan A Facility(b)
500

 
501

 
—

 
—

Term Loan B Facility(b)
1,990

 
2,016

 
—

 
—

YUM Senior Unsecured Notes(b)
2,200

 
2,216

 
2,500

 
2,393

 
(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, 2016 or December 26, 2015.
 
 
 
 
Fair Value
 
 
 
Level
 
2016
 
2015
 
Consolidated Balance Sheet
Interest Rate Swaps - Liability
 
2

 
$
3

 
$
—

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

 
—

 
2

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

 
47

 
—

 
Other assets
Foreign Currency Contracts - Asset
 
2

 
7

 
—

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

 
8

 
19

 
Other assets
Other Investments
 
1

 
24

 
21

 
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, 2016 and December 26, 2015.

Non-Recurring Fair Value Measurements

The following table presents expense recognized from all non-recurring fair value measurements during the years ended December 31, 2016 and December 26, 2015. These amounts exclude fair value measurements made for assets that were subsequently disposed of prior to those respective year-end dates. The remaining net book value of restaurant assets measured at fair value during the years ended December 31, 2016 and December 26, 2015 is insignificant.

 
 
2016
 
2015
 
Aircraft impairment(a)
 
$
3

 
$
—

 
Restaurant-level impairment(b)
 
8

 
10

 
Total
 
$
11

 
$
10

 

(a)
During 2016, we made the decision to dispose of a corporate aircraft. The loss associated with this planned sale reflects the shortfall of the expected proceeds, less any selling costs, over the carrying value of the aircraft. The expected proceeds are 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).
v3.6.0.2
Pension, Retiree Medical and Retiree Savings Plans
 12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [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 2017. 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 2017 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.

 
 
2016
 
2015
Change in benefit obligation
 
 
 
 
Benefit obligation at beginning of year
 
$
1,134

 
$
1,301

Service cost
 
17

 
18

Interest cost
 
54

 
55

Plan amendments
 
4

 
28

Curtailments
 
(4
)
 
(2
)
Special termination benefits
 
3

 
1

Benefits paid
 
(26
)
 
(50
)
Settlement payments(a)
 
(260
)
 
(16
)
Actuarial (gain) loss
 
77

 
(196
)
Administrative expense
 
(6
)
 
(5
)
Benefit obligation at end of year
 
$
993

 
$
1,134

 
 
 
 
 
Change in plan assets
 
 
 
 
Fair value of plan assets at beginning of year
 
$
1,004

 
$
991

Actual return on plan assets
 
87

 
(10
)
Employer contributions
 
38

 
94

Settlement payments(a)
 
(260
)
 
(16
)
Benefits paid
 
(26
)
 
(50
)
Administrative expenses
 
(6
)
 
(5
)
Fair value of plan assets at end of year
 
$
837

 
$
1,004

 Funded status at end of year
 
$
(156
)
 
$
(130
)


(a)
For discussion of the settlement payments and settlement losses, see Note 5.

Amounts recognized in the Consolidated Balance Sheet:
 
 
2016
 
2015
Accrued benefit liability - current
 
$
(16
)
 
$
(13
)
Accrued benefit liability - non-current
 
(140
)
 
(117
)
 
 
$
(156
)
 
$
(130
)


The accumulated benefit obligation was $960 million and $1,088 million at December 31, 2016 and December 26, 2015, respectively.

Information for pension plans with an accumulated benefit obligation in excess of plan assets:
 
 
2016
 
2015
Projected benefit obligation
 
$
993

 
$
101

Accumulated benefit obligation
 
960

 
88

Fair value of plan assets
 
837

 
—



Information for pension plans with a projected benefit obligation in excess of plan assets:
 
 
2016
 
2015
Projected benefit obligation
 
$
993

 
$
1,134

Accumulated benefit obligation
 
960

 
1,088

Fair value of plan assets
 
837

 
1,004



Components of net periodic benefit cost:
Net periodic benefit cost
 
2016
 
2015
 
2014
Service cost
 
$
17

 
$
18

 
$
17

Interest cost
 
54

 
55

 
54

Amortization of prior service cost(a)
 
6


1


1

Expected return on plan assets
 
(65
)
 
(62
)
 
(56
)
Amortization of net loss
 
6

 
45

 
17

Net periodic benefit cost
 
$
18

 
$
57

 
$
33


Additional (gain) loss recognized due to:

Settlements(b)
 
$
32

 
$
5

 
$
6

Special termination benefits
 
$
3

 
$
1

 
$
3


(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.

Pension gains (losses) in AOCI:
 
 
2016
 
2015
Beginning of year
 
$
(170
)
 
$
(319
)
Net actuarial gain (loss)
 
(54
)
 
124

Curtailments
 
4

 
2

Amortization of net loss
 
6

 
45

Amortization of prior service cost
 
6

 
1

Prior service cost
 
(4
)
 
(28
)
Settlement charges
 
32

 
5

End of year
 
$
(180
)
 
$
(170
)


Accumulated pre-tax losses recognized within AOCI:
 
 
2016
 
2015
Actuarial net loss
 
$
(150
)
 
$
(138
)
Prior service cost
 
(30
)
 
(32
)
 
 
$
(180
)
 
$
(170
)


The estimated net loss that will be amortized from AOCI into net periodic pension cost in 2017 is $7 million.  The estimated prior service cost that will be amortized from AOCI into net periodic pension cost in 2017 is $5 million.

Weighted-average assumptions used to determine benefit obligations at the measurement dates:
 
 
2016
 
2015
Discount rate
 
4.60
%
 
4.90
%
Rate of compensation increase
 
3.75
%
 
3.75
%

Weighted-average assumptions used to determine the net periodic benefit cost for fiscal years:
 
 
2016
 
2015
 
2014
Discount rate
 
4.90
%
 
4.30
%
 
5.40
%
Long-term rate of return on plan assets
 
6.75
%
 
6.75
%
 
6.90
%
Rate of compensation increase
 
3.75
%
 
3.75
%
 
3.75
%


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.

Plan Assets

The fair values of our pension plan assets at December 31, 2016 and December 26, 2015 by asset category and level within the fair value hierarchy are as follows:

 
 
2016
 
2015
Level 1:
 
 
 
 
Cash
 
$
2

 
$
3

Cash Equivalents(a)
 
12

 
9

Fixed Income Securities - U.S. Corporate(b)
 
172

 
221

Equity Securities – U.S. Large cap(b)
 
244

 
310

Equity Securities – U.S. Mid cap(b)
 
41

 
50

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

 
51

Equity Securities – Non-U.S.(b)
 
83

 
100

Level 2:
 
 
 
 
 
 
 
 
 
Fixed Income Securities – U.S. Corporate(c)
 
76

 
68

Fixed Income Securities – U.S. Government and Government Agencies(d)
 
152

 
195

Fixed Income Securities – Other(d)
 
31

 
17

Total fair value of plan assets(e)
 
$
856

 
$
1,024



(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)
2016 and 2015 exclude net unsettled trade payables of $19 million and $20 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 YUM Common Stock valued at $0.3 million and $0.5 million at December 31, 2016 and December 26, 2015, respectively, (less than 1% of total plan assets in each instance).

Benefit Payments

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

Year ended:
 
 
2017
 
$
128

2018
 
45

2019
 
42

2020
 
43

2021
 
46

2022 - 2026
 
259


Expected benefits 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 existing participants can no longer earn future service credits.

At the end of 2016 and 2015, the projected benefit obligations of these UK plans totaled $261 million and $233 million, respectively and plan assets totaled $305 million and $291 million, respectively. These plans were both in a net overfunded position at the end of 2016 and 2015 and related expense amounts recorded in each of 2016, 2015 and 2014 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 2017.

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 2016 and 2015, the accumulated post-retirement benefit obligation was $55 million and $59 million, respectively.  Actuarial gains of $10 million and $8 million were recognized in AOCI at the end of 2016 and 2015, respectively. The net periodic benefit cost recorded was $3 million in both 2016 and 2015 and $5 million in 2014, 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 2016 and 2015 are 6.6% and 6.8%, 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 less than a $4 million impact on total service and
interest cost and 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 $19 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 $14 million in 2016, $13 million in 2015 and $12 million in 2014.
v3.6.0.2
Share-based and Deferred Compensation Plans
 12 Months Ended
Dec. 31, 2016
Compensation Related Costs [Abstract]  
Share-based and Deferred Compensation Plans Share-based and Deferred Compensation Plans

Overview

At year end 2015, we had four stock award plans in effect: the YUM! Brands, Inc. Long-Term Incentive Plan (the “LTIP”), the 1997 Long-Term Incentive Plan, the YUM! Brands, Inc. Restaurant General Manager Stock Option Plan and the YUM! Brands, Inc. SharePower Plan. In May 2016, concurrent with Shareholder approval to increase the authorized shares available for issuance under the LTIP, we cancelled authorized but unissued awards under the other three plans and will only issue new awards under the LTIP. Outstanding awards under the other plans will continue to be governed by their original award terms and will be issued under the LTIP. Under all our award terms, 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 includes 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 2016, approximately 27 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 2017.

In connection with the Separation of our China business, 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 will be satisfied by YUM. Share-based compensation for YUM employees is based on both YUM and Yum China awards held by those 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.

As a result of the modifications made to outstanding awards under our shared-based and deferred compensation plans as described above, the total number of YUM stock option and SAR awards decreased by approximately 1.3 million shares. The total number of YUM RSU and PSU awards did not change significantly. The modifications to the outstanding equity awards resulted in an insignificant amount of additional compensation expense.

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 will now be 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 paid in cash at a date as elected by the employee and therefore are classified as a liability on our Consolidated Balance Sheets. At the Separation date and subsequent to the spinoff through December 31, 2016, we recorded G&A expense related to the cumulative mark-to-market value of these awards in excess of previously recorded fair value charges totaling $28 million. Awards that are remaining in the Yum China investment option when they are due for distribution will be paid out in shares of Yum China stock.

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:

 
 
2016
 
2015
 
2014
Risk-free interest rate
 
1.4
%
 
1.3
%
 
1.6
%
Expected term (years)
 
6.4 years

 
6.4 years

 
6.2 years

Expected volatility
 
27.0
%
 
26.9
%
 
29.7
%
Expected dividend yield
 
2.6
%
 
2.2
%
 
2.1
%


The above table does not reflect valuations performed in connection with modifications to awards made in connection with the Separation. All option and SAR awards granted during 2016 occurred prior to the Separation.

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 4.75 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(a)
 
Weighted- Average Remaining Contractual Term (years)(a)
 
Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of the year
 
25,933

 
 
 
$
51.79

 
 
 
 
Granted
 
4,329

 
 
 
70.64

 
 
 
 
Exercised
 
(5,886
)
 
 
 
40.84

 
 
 
 
Forfeited or expired
 
(1,101
)
 
 
 
70.66

 
 
 
 
Outstanding at October 31, 2016
 
23,275

 
 
 
57.20

 
 
 
 
Equitable adjustment
 
(1,283
)
(b) 
 
 
 
 
 
 
 
Exercised
 
(631
)
 
 
 
24.66

 
 
 
 
Forfeited or expired
 
(119
)
 
 
 
52.13

 
 
 
 
Outstanding at the end of the year
 
21,242

(c) 
 
 
$
40.78

 
5.63

 
$
479

Exercisable at the end of the year
 
13,710

 
 
 
$
35.37

 
4.21

 
$
383


(a)
Activity and amounts that occurred after October 31, 2016 reflect modifications related to the Separation.

(b)
Adjustment to maintain intrinsic value upon Separation.

(c)
Outstanding awards include 1,341 options and 19,901 SARs with weighted average exercise prices of $33.33 and $41.28, 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 2016, 2015 and 2014 was $14.40, $15.95 and $17.28, respectively.  The total intrinsic value of stock options and SARs exercised during the years ended December 31, 2016, December 26, 2015 and December 27, 2014, was $263 million, $153 million and $141 million, respectively.

As of December 31, 2016, $61 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 that vested during 2016, 2015 and 2014 was $41 million, $42 million and $34 million, respectively.

RSUs and PSUs

As of December 31, 2016, there was $21 million of unrecognized compensation cost related to 0.9 million unvested RSUs and PSUs.

Impact on Net Income

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

 
 
2016
 
2015
 
2014
Options and SARs
 
$
38

 
$
41

 
$
39

Restricted Stock Units
 
38

 
3

 
5

Performance Share Units
 
4

 
2

 
1

Total Share-based Compensation Expense
 
$
80

(a) 
$
46

 
$
45

Deferred Tax Benefit recognized
 
$
26

 
$
15

 
$
14

 
 
 
 
 
 
 
EID compensation expense not share-based
 
$
5

 
$
1

 
$
8



(a)    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.

Cash received from stock option exercises for 2016, 2015 and 2014, was $5 million, $12 million and $29 million, respectively.  Tax benefits realized on our tax returns from tax deductions associated with share-based compensation for 2016, 2015 and 2014 totaled $109 million, $62 million and $58 million, respectively.
v3.6.0.2
Shareholders' Equity
 12 Months Ended
Dec. 31, 2016
Stockholders' Equity Note [Abstract]  
Shareholders' Equity Shareholders’ Equity

Under the authority of our Board of Directors, we repurchased shares of our Common Stock during 2016, 2015 and 2014.  All amounts exclude applicable transaction fees.  
 
 
 
Shares Repurchased
(thousands)
 
 
Dollar Value of Shares
Repurchased
 
Authorization Date
 
2016

 
 
2015

 
 
2014

 
 
2016

 
 
2015

 
 
2014

 
November 2016
 
1,337

 
 
—

 
 
—

 
 
$
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

 
 
8,488

 
 
—

 
 
133

 
 
617

 
November 2012
 
—

 
 
—

 
 
2,737

 
 
—

 
 
—

 
 
203

 
Total
 
67,963

(a) 
 
15,942

 
 
11,225

 
 
$
5,447

(a) 
 
$
1,200

 
 
$
820

 

(a)
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 17, 2016, our Board of Directors authorized share repurchases through December 2017 of up to $2.0 billion (excluding applicable transaction fees). On December 31, 2016 we have remaining capacity to repurchase up to $1.9 billion of our Common Stock under this authorization.

Changes in accumulated other comprehensive income (loss) ("OCI") 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 27, 2014, net of tax
$
29

 
$
(210
)
 
$
(9
)
 
$
(190
)
 
 
 
 
 
 
 
 
 
Gains (losses) arising during the year classified into accumulated OCI, net of tax
 
(250
)
 
63

 
28

 
(159
)
 
 
 
 
 
 
 
 
 
(Gains) losses reclassified from accumulated OCI, net of tax
 
112

 
34

 
(36
)
 
110

 
 
 
 
 
 
 
 
 
OCI, net of tax
 
(138
)
 
97

 
(8
)
 
(49
)
 
 
 
 
 
 
 
 
 
Balance at December 26, 2015, net of tax
$
(109
)
 
$
(113
)
 
$
(17
)
 
$
(239
)
 
 
 
 
 
 
 
 
 
Gains (losses) arising during the year classified into accumulated OCI, net of tax
 
(146
)
 
(42
)
 
29

 
(159
)
 
 
 
 
 
 
 
 
 
(Gains) losses reclassified from accumulated OCI, net of tax
 
(11
)
 
28

 
(5
)
 
12

 
 
 
 
 
 
 
 
 
OCI, net of tax
 
(157
)
 
(14
)
 
24

 
(147
)
 
 
 
 
 
 
 
 
 
Separation of China business
 
(47
)
 
—

 
—

 
(47
)
 
 
 
 
 
 
 
 
 
Balance at December 31,2016, net of tax
$
(313
)
 
$
(127
)
 
$
7

 
$
(433
)
 
 
 
 
 
 
 
 
 

(a)
Amounts reclassified from accumulated OCI during 2016 and 2015 are due to substantial liquidations of foreign entities related to Pizza Hut Australia and Mexico refranchising transactions, respectively.

(b)
Amounts reclassified from accumulated OCI for pension and post-retirement benefit plan losses during 2016 include amortization of net losses of $7 million, settlement charges of $32 million, amortization of prior service cost of $5 million and related income tax benefit of $16 million. Amounts reclassified from accumulated OCI for pension and post-retirement benefit plan losses during 2015 include amortization of net losses of $46 million, settlement charges of $5 million, amortization of prior service cost of $2 million and related income tax benefit of $19 million. See Note 15.

(c)    See Note 13 for details on amounts reclassified from accumulated OCI.
v3.6.0.2
Income Taxes
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes

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

 
 
2016
 
2015
 
2014
U.S.
 
$
366

 
$
479

 
$
506

Foreign
 
952

 
782

 
868

 
 
$
1,318

 
$
1,261

 
$
1,374



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

 
 
 
 
2016
 
2015
 
2014
Current:
 
Federal
 
$
123

 
$
268

 
$
239

 
 
Foreign
 
161

 
131

 
173

 
 
State
 
13

 
28

 
2

 
 
 
 
$
297

 
$
427

 
414

 
 
 
 
 
 
 
 
 
Deferred:
 
Federal
 
$
18

 
$
(117
)
 
(34
)
 
 
Foreign
 
3

 
15

 
(13
)
 
 
State
 
6

 
—

 
1

 
 
 
 
$
27

 
$
(102
)
 
$
(46
)
 
 
 
 
$
324


$
325


$
368



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

 
 
2016
 
2015
 
2014
U.S. federal statutory rate
 
$
461

 
35.0
 %
 
$
441

 
35.0
 %
 
$
481

 
35.0
 %
State income tax, net of federal tax benefit
 
15

 
1.1

 
12

 
0.9

 
8

 
0.6

Statutory rate differential attributable to foreign operations
 
(136
)
 
(10.3
)
 
(180
)
 
(14.3
)
 
(147
)
 
(10.7
)
Adjustments to reserves and prior years
 
(11
)
 
(0.9
)
 
13

 
1.0

 
2

 
0.1

Change in valuation allowances
 
(3
)
 
(0.2
)
 
41

 
3.3

 
22

 
1.6

Other, net
 
(2
)
 
(0.1
)
 
(2
)
 
(0.1
)
 
2

 
0.1

Effective income tax rate
 
$
324

 
24.6
 %
 
$
325

 
25.8
 %
 
$
368

 
26.7
 %


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.

In 2014, this item was favorably impacted by the resolution of uncertain tax positions in certain foreign jurisdictions.

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 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.

In 2014, $22 million of net tax expense was driven by $28 million for valuation allowances recorded against deferred tax assets generated during the current year, partially offset by $6 million in net tax benefit 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.

The details of 2016 and 2015 deferred tax assets (liabilities) are set forth below:

 
 
2016
 
2015
Operating losses
 
$
172

 
$
157

Capital losses
 
184

 
41

Tax credit carryforwards
 
284

 
282

Employee benefits
 
185

 
152

Share-based compensation
 
100

 
121

Self-insured casualty claims
 
32

 
35

Lease-related liabilities
 
65

 
69

Various liabilities
 
56

 
64

Property, plant and equipment
 
37

 
33

Deferred income and other
 
32

 
51

Gross deferred tax assets
 
1,147

 
1,005

Deferred tax asset valuation allowances
 
(195
)
 
(205
)
Net deferred tax assets
 
$
952

 
$
800

Intangible assets, including goodwill
 
$
(107
)
 
$
(111
)
Property, plant and equipment
 
(46
)
 
(46
)
Other
 
(31
)
 
(60
)
Gross deferred tax liabilities
 
$
(184
)
 
$
(217
)
Net deferred tax assets (liabilities)
 
$
768


$
583


Reported in Consolidated Balance Sheets as:
 
 
 
 
Deferred income taxes
 
$
774


$
591

Other liabilities and deferred credits
 
(6
)
 
(8
)
 
 
$
768


$
583


We have investments in foreign subsidiaries where the carrying values for financial reporting exceed the tax basis.  We have not provided deferred tax on the portion of the excess that we believe is indefinitely reinvested, as we have the ability and intent to indefinitely postpone these basis differences from reversing with a tax consequence.   We estimate that our total temporary difference upon which we have not provided deferred tax is approximately $2.1 billion at December 31, 2016.  A determination of the deferred tax liability on this amount is not practicable.

At December 31, 2016, the Company has foreign operating and capital loss carryforwards of $0.5 billion and U.S. state operating loss, capital loss and tax credit carryforwards of $1.0 billion and U.S. federal capital loss and tax credit carryforwards of $0.7 billion.  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
 
 
 
 
2017
 
2018-2021
 
2022-2035
 
Indefinitely
 
Total
Foreign
 
$
20

 
$
53

 
$
93

 
$
321

 
$
487

U.S. state
 
7

 
97

 
908

 
—

 
1,012

U.S. federal
 
—

 
524

 
220

 
—

 
744

 
 
$
27

 
$
674

 
$
1,221

 
$
321

 
$
2,243



We recognize the benefit of positions taken or expected to be taken in tax returns in the 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 $91 million and $98 million of unrecognized tax benefits at December 31, 2016 and December 26, 2015, respectively, $87 million and $89 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:
 
 
2016
 
2015
Beginning of Year
 
$
98

 
$
115

     Additions on tax positions - current year
 
—

 
—

     Additions for tax positions - prior years
 
1

 
5

     Reductions for tax positions - prior years
 
(5
)
 
(13
)
     Reductions for settlements
 
(1
)
 
(7
)
     Reductions due to statute expiration
 
(2
)
 
(2
)
     Foreign currency translation adjustment
 
—

 
—

End of Year
 
$
91

 
$
98



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, 2016 and December 26, 2015 are set forth below:
 
 
2016
 
2015
Accrued interest and penalties
 
$
9

 
$
15



During 2016, 2015 and 2014, a net benefit of $4 million, and net expense of $5 million and $11 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.
v3.6.0.2
Reportable Operating Segments
 12 Months Ended
Dec. 31, 2016
Reportable Operating Segments [Abstract]  
Reportable Operating Segments Reportable Operating Segments

See Note 1 for a description of our operating segments.
 
 
Revenues
 
 
2016
 
2015
 
2014
KFC Division(a)
 
$
3,232


$
3,235


$
3,507

Pizza Hut Division(a)
 
1,111


1,214


1,215

Taco Bell Division(a)
 
2,025

 
1,991

 
1,865

Unallocated(b)(f)
 
(2
)
 
—

 
—

 
 
$
6,366


$
6,440


$
6,587



 
 
Operating Profit; Interest Expense, Net; and
Income Before Income Taxes
 
 
2016
 
2015
 
2014
KFC Division
 
$
874


$
832


$
876

Pizza Hut Division
 
370


347


347

Taco Bell Division
 
593

 
536

 
478

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

 
—

Unallocated restaurant costs(b)
 
—


—


(1
)
Unallocated Franchise and license expenses(b)(f)
 
(24
)
 
(71
)
 
—

Unallocated and corporate expenses(b)(g)
 
(316
)

(196
)

(189
)
Unallocated Refranchising gain (loss)(b)
 
141


(23
)

16

Unallocated Other income (expense)(b)(h)
 
(11
)

(23
)

(10
)
Operating Profit
 
1,625


1,402


1,517

Interest expense, net(b)
 
(307
)

(141
)

(143
)
Income Before Income Taxes
 
$
1,318


$
1,261


$
1,374


 
 
Depreciation and Amortization
 
 
2016
 
2015
 
2014
KFC Division
 
$
173

 
$
186

 
197

Pizza Hut Division
 
36

 
40

 
39

Taco Bell Division
 
91

 
88

 
83

Corporate
 
9

 
8

 
9

 
 
$
309

 
$
322

 
$
328


 
 
Capital Spending
 
 
2016
 
2015
 
2014
KFC Division
 
$
211

 
$
280

 
$
294

Pizza Hut Division
 
70

 
54

 
62

Taco Bell Division
 
132

 
116

 
143

Corporate
 
9

 
11

 
9

 
 
$
422

 
$
461

 
$
508


 
 
Identifiable Assets
 
 
2016
 
2015
KFC Division(e)
 
$
2,176

 
$
2,263

Pizza Hut Division(e)
 
639

 
709

Taco Bell Division(e)
 
1,178

 
1,128

Corporate(c)(e)
 
1,485

 
816

 
 
$
5,478

 
$
4,916


 
 
Long-Lived Assets(d)
 
 
2016
 
2015
KFC Division
 
$
1,583

 
$
1,697

Pizza Hut Division
 
375

 
419

Taco Bell Division
 
859

 
911

Corporate
 
35

 
55

 
 
$
2,852

 
$
3,082



(a)
U.S. revenues included in the combined KFC, Pizza Hut and Taco Bell Divisions totaled $3.1 billion in 2016, $3.1 billion in 2015 and $3.0 billion in 2014.

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

(c)    Primarily includes cash and deferred tax assets.

(d)    Includes property, plant and equipment, net, goodwill, and intangible assets, net.

(e)
U.S. identifiable assets included in the combined Corporate and KFC, Pizza Hut and Taco Bell Divisions totaled $3.1 billion and $2.3 billion in 2016 and 2015, respectively.

(f)    Represents 2016 and 2015 costs associated with the KFC U.S. Acceleration Agreement. See Note 5.

(g)
Amounts in 2016 include costs related to YUM’s Strategic Transformation Initiatives of $62 million, non-cash charges associated with share-based compensation of $30 million and settlement charges associated with the pension deferred vested project of $25 million. See Note 5.
(h)
Amounts in 2016 include losses associated with the sale of corporate aircraft related to YUM’s Strategic Transformation Initiatives of $9 million. See Note 5.
v3.6.0.2
Contingencies
 12 Months Ended
Dec. 31, 2016
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, 2016, the potential amount of undiscounted payments we could be required to make in the event of non-payment by the primary lessee was approximately $550 million.  The present value of these potential payments discounted at our pre-tax cost of debt at December 31, 2016 was approximately $465 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, 2016 and December 26, 2015 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, 2016 our guarantee exposure under this program is approximately $4 million based on total loans outstanding of $21 million.

In addition to the guarantees described above, YUM has agreed to provide guarantees of up to approximately $110 million on behalf of franchisees for several financing programs related to specific initiatives, primarily equipment purchases. At December 31, 2016, our guarantee exposure under these financing programs is approximately $6 million based on total loans outstanding of $10 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 2016 and 2015 activity related to our net self-insured property and casualty reserves as of December 31, 2016.

 
 
Beginning Balance
 
Expense
 
Payments
 
Ending Balance
2016 Activity
 
$
102

 
42

 
(46
)
 
$
98

2015 Activity
 
$
116

 
39

 
(53
)
 
$
102



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.

The Company and Taco Bell were named as defendants in a number of putative class action suits filed in 2007, 2008, 2009 and 2010 alleging violations of California labor laws including unpaid overtime, failure to timely pay wages on termination, failure to pay accrued vacation wages, failure to pay minimum wage, denial of meal and rest breaks, improper wage statements, unpaid business expenses, wrongful termination, discrimination, conversion and unfair or unlawful business practices in violation of California Business & Professions Code §17200. Some plaintiffs also sought penalties for alleged violations of California’s Labor Code under California’s Private Attorneys General Act (“PAGA”) as well as statutory “waiting time” penalties and alleged violations of California’s Unfair Business Practices Act. Plaintiffs sought to represent a California state-wide class of hourly employees.

These matters were consolidated, and the consolidated case is styled In Re Taco Bell Wage and Hour Actions. The In Re Taco Bell Wage and Hour Actions plaintiffs filed a consolidated complaint in June 2009, and in March 2010 the court approved the
parties’ stipulation to dismiss the Company from the action, leaving Taco Bell as the sole defendant. Plaintiffs filed their motion for class certification on the vacation and final pay claims in December 2010, and on September 26, 2011, the court issued its order denying the certification of the vacation and final pay claims. Plaintiffs then sought to certify four separate meal and rest break classes. On January 2, 2013, the court rejected three of the proposed classes but granted certification with respect to the late meal break class. The parties thereafter agreed on a list of putative class members, and the class notice and opt out forms were mailed on January 21, 2014.

Per order of the court, plaintiffs filed a second amended complaint to clarify the class claims. Plaintiffs also filed a motion for partial summary judgment. Taco Bell filed motions to strike and to dismiss, as well as a motion to alter or amend the second amended complaint. On August 29, 2014, the court denied plaintiffs’ motion for partial summary judgment. On that same date, the court granted Taco Bell’s motion to dismiss all but one of the PAGA claims. On October 29, 2014, plaintiffs filed a motion to amend the operative complaint and a motion to amend the class certification order. On December 16, 2014, the court partially granted both motions, rejecting plaintiffs’ proposed on-duty meal period class but certifying a limited rest break class and certifying an underpaid meal premium class, and allowing the plaintiffs to amend the complaint to reflect those certifications. On December 30, 2014, plaintiffs filed the third amended complaint. On February 26, 2015, the court denied a motion by Taco Bell to dismiss or strike the underpaid meal premium class.

Beginning on February 22, 2016, the late meal period class claim, the limited rest break class claim, the underpaid meal premium class claim, and the associated statutory “waiting time” penalty claim was tried to a jury. On March 9, 2016, the jury returned verdicts in favor of Taco Bell on the late meal period claim, the limited rest break claim, and the statutory “waiting time” penalty claim. The jury found for the plaintiffs on the underpaid meal premium class claim, awarding approximately $0.5 million. A bench trial was subsequently conducted with respect to the PAGA claims and plaintiffs’ Business & Professions Code §17200 claim. On April 8, 2016, the court returned a verdict in favor of Taco Bell on the PAGA claims and the §17200 claim. In a separate ruling issued the same day, the court also ruled that plaintiffs were entitled to prejudgment interest on the underpaid meal premium class claim, awarding approximately $0.3 million. Taco Bell denies liability as to the underpaid meal premium class claim and filed a post-trial motion to overturn the verdict. Plaintiffs’ also filed various post-trial motions. On July 15, 2016, the court denied Taco Bell’s motion to overturn the verdict. The court denied Plaintiffs’ motions: (1) for a new trial, (2) for judgment as a matter of law to overturn the verdicts in favor of Taco Bell, (3) challenging the jury instructions and special verdict forms, and (4) to overturn the court’s rejection of the §17200 claims for meal and rest break violations. The court also denied Plaintiffs’ motions for additional costs and for enhanced awards to two of the named Plaintiffs. The court granted Plaintiffs’ motion for judgment on the §17200 claim regarding the underpaid meal premium claim, but rejected awarding any additional damages, finding that the jury verdict sufficiently compensated the class. The court granted Plaintiffs’ motion for attorneys’ fees, but awarded only approximately $1.1 million of the $7.3 million requested. The court also granted Plaintiffs’ bill of costs, but only awarded approximately $0.1 million of Plaintiffs’ $0.2 million. Thereafter, both Plaintiffs and Taco Bell timely filed notices of appeal and the matter is now before the Ninth Circuit. We have provided for a reasonable estimate of the possible loss relating to this lawsuit. However, in view of the inherent uncertainties of litigation, there can be no assurance that this lawsuit will not result in losses in excess of those currently provided for in our Consolidated Financial Statements.

We are engaged in various other legal proceedings and have certain unresolved claims pending, the ultimate liability for which, if any, cannot be determined at this time. However, based upon consultation with legal counsel, we are of the opinion that such proceedings and claims are not expected to have a material adverse effect, individually or in the aggregate, on our Consolidated Financial Statements.
v3.6.0.2
Selected Quarterly Financial Data (Unaudited)
 12 Months Ended
Dec. 31, 2016
Selected Quarterly Financial Data (Unaudited) [Abstract]  
Selected Quarterly Financial Data (Unaudited) Selected Quarterly Financial Data (Unaudited)

 
 
2016
 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
 
Total
Revenues:
 
 
 
 
 
 
 
 
 
 
Company sales
 
$
887

 
$
996

 
$
993

 
$
1,324

 
$
4,200

Franchise and license fees and income
 
477

 
481

 
508

 
700

 
2,166

Total revenues
 
1,364

 
1,477

 
1,501

 
2,024

 
6,366

Restaurant profit
 
147

 
165

 
159

 
231

 
702

Operating Profit(a)
 
356

 
408

 
372

 
489

 
1,625

Income from continuing operations, net of tax
 
240

 
265

 
204

 
285

 
994

Income (loss) from discontinued operations, net of tax
 
151

 
74

 
418

 
(18
)
 
625

Net Income
 
391

 
339

 
622

 
267

 
1,619

Basic earnings per common share from continuing operations
 
0.58

 
0.65

 
0.52

 
0.77

 
2.52

Basic earnings(loss) per common share from discontinued operations
 
0.36

 
0.17

 
1.07

 
(0.05
)
 
1.59

Basic earnings per common share
 
0.94

 
0.82

 
1.59

 
0.72

 
4.11

Diluted earnings per common share from continuing operations
 
0.57

 
0.64

 
0.51

 
0.76

 
2.48

Diluted earnings (loss) per common share from discontinued operations
 
0.36

 
0.17

 
1.05

 
(0.05
)
 
1.56

Diluted earnings per common share
 
0.93

 
0.81

 
1.56

 
0.71

 
4.04

Dividends declared per common share
 
0.46

 
0.46

 
—

 
0.81

 
1.73

 
 
2015
 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
 
Total
Revenues:
 
 
 
 
 
 
 
 
 
 
Company sales
 
$
944

 
$
1,051

 
$
1,033

 
$
1,328

 
$
4,356

Franchise and license fees and income
 
467

 
475

 
494

 
648

 
2,084

Total revenues
 
1,411

 
1,526

 
1,527

 
1,976

 
6,440

Restaurant profit
 
149

 
177

 
160

 
223

 
709

Operating Profit(b)
 
355

 
279

 
339

 
429

 
1,402

Income from continuing operations, net of tax
 
246

 
169

 
231

 
290

 
936

Income (loss) from discontinued operations, net of tax
 
116

 
66

 
190

 
(15
)
 
357

Net Income
 
362

 
235

 
421

 
275

 
1,293

Basic earnings per common share from continuing operations
 
0.56

 
0.39

 
0.53

 
0.67

 
2.15

Basic earnings (loss) per common share from discontinued operations
 
0.27

 
0.15

 
0.44

 
(0.03
)
 
0.82

Basic earnings per common share
 
0.83

 
0.54

 
0.97

 
0.64

 
2.97

Diluted earnings per common share from continuing operations
 
0.55

 
0.38

 
0.52

 
0.66

 
2.11

Diluted earnings (loss) per common share from discontinued operations
 
0.26

 
0.15

 
0.43

 
(0.03
)
 
0.81

Diluted earnings per common share
 
0.81

 
0.53

 
0.95

 
0.63

 
2.92

Dividends declared per common share
 
—

 
0.82

 
—

 
0.92

 
1.74


(a)
Includes net gains from refranchising initiatives of $3 million, $53 million, $21 million and $64 million in the first, second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $5 million, $27 million and $39 million in the second, third and fourth quarters, respectively, a non-cash charge associated with the modification of EID share-based compensation awards in connection with the Separation of $30 million in the fourth quarter, costs associated with KFC U.S. Acceleration Agreement of $9 million, $8 million and $9 million in the first, second and fourth quarters, respectively, and charges incurred as a result of settlement payments of deferred vested pension balances in the Plan of $1 million and $24 million in the third and fourth quarters, respectively. See Note 5.

(b)
Includes net gains from refranchising initiatives of $7 million and $49 million in the first and fourth quarters, respectively, and net losses from refranchising initiatives of $72 million and $4 million in the second and third quarters, respectively. Also includes costs associated with KFC U.S. Acceleration Agreement of $2 million, $8 million, $21 million and $41 million in the first, second, third and fourth quarters, respectively. See Note 5.
v3.6.0.2
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2016
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 2016, YUM has future lease payments due from franchisees, on a nominal basis, of approximately $250 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 YUM, our U.S. businesses and for our international subsidiaries that report on a period calendar. The 53rd week added $76 million to Total revenues and $27 million to Operating Profit in our 2016 Consolidated Statement of Income.
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 United States 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, 2016, net cumulative translation adjustment losses of $313 million are recorded in Accumulated other comprehensive income (loss) 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 Accumulated other comprehensive income (loss) 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. See Note 5 for information on the liquidation of our Mexico and Pizza Hut Australia foreign entities and related Income Statement recognition of 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, 2016. These reclassifications had no effect on previously reported Net Income.
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. 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 a reduced continuing fee.  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.

The internal costs we incur to provide support services to our franchisees are charged to General and Administrative (“G&A”) expenses 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.  We present initial fees collected upon the sale of a Company-owned restaurant to a franchisee in Refranchising (gain) loss.

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 $260 million, $255 million and $261 million in 2016, 2015 and 2014, respectively.  We report the vast 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.
Research and Development Expenses Research and Development Expenses.  Research and development expenses, which we expense as incurred, are reported in G&A expenses.  Research and development expenses were $24 million, $24 million and $25 million in 2016, 2015 and 2014, 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 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 expenses. 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 the related initial franchise fees. 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 U.S. deferred tax liability for the excess of the book basis over the tax basis of our investments in foreign subsidiaries to the extent that the basis difference results from earnings that meet the indefinite reversal criteria. This criteria is met if the foreign subsidiary has invested, or will invest, the undistributed earnings indefinitely. The decision as to the amount of undistributed 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 United States.

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 on our Consolidated Balance Sheet.  Yum China is our largest franchisee and we recorded franchise fee revenues of approximately $240 million from Yum China in 2016. 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 and $3 million in net provisions within Franchise and license expenses in 2015 and 2014, respectively, related to uncollectible franchise and license trade receivables. Net provisions in 2016 related to uncollectible franchise and license trade receivables were less than $1 million. 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.
 
 
 
2016
 
2015
Accounts and notes receivable
 
$
383

 
$
338

Allowance for doubtful accounts
 
(13
)
 
(14
)
Accounts and notes receivable, net
 
$
370

 
$
324


 
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 while amounts due beyond one year are included in Other assets.  Amounts included in Other assets totaled $21 million (net of an allowance of $2 million) and $16 million (net of an allowance of $4 million) at December 31, 2016 and December 26, 2015, 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 expenses.
Goodwill and Intangible Assets Goodwill and Intangible Assets.  From time-to-time, the Company acquires restaurants from one of our Concept’s franchisees or acquires another business.  Goodwill from these acquisitions represents the excess of the cost of a business acquired over the net of the amounts assigned to assets acquired, including identifiable intangible assets and liabilities assumed.  Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing.  Our reporting units are our business units (which are aligned based on geography) in our KFC, 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 other comprehensive income (loss) 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, 2016 and December 26, 2015, 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, 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 as a reduction in Retained earnings (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, $5,399 million, $1,124 million and $725 million in share repurchases were recorded as a reduction in Retained earnings (Accumulated Deficit) in 2016, 2015 and 2014, respectively. 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 Accumulated other comprehensive income (loss).

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. We have elected to use a market-related value of plan assets to calculate the expected return on 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 Accumulated other comprehensive income (loss), 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.
v3.6.0.2
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2016
Accounting Policies [Abstract]  
Accounts and notes receivable, net
 
 
2016
 
2015
Accounts and notes receivable
 
$
383

 
$
338

Allowance for doubtful accounts
 
(13
)
 
(14
)
Accounts and notes receivable, net
 
$
370

 
$
324
v3.6.0.2
Earnings Per Common Share ("EPS") (Tables)
 12 Months Ended
Dec. 31, 2016
Earnings Per Share [Abstract]  
Earnings Per Common Share
 
 
2016
 
2015
 
2014
Income from continuing operations
 
$
994

 
$
936

 
$
1,006

Income from discontinued operations
 
625

 
357

 
45

Net Income
 
$
1,619


$
1,293


$
1,051

Weighted-average common shares outstanding (for basic calculation)
 
394

 
436

 
444

Effect of dilutive share-based employee compensation
 
6

 
7

 
9

Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)
 
400

 
443

 
453

Basic EPS from continuing operations
 
$
2.52

 
$
2.15

 
$
2.27

Basic EPS from discontinued operations
 
1.59

 
0.82

 
0.10

Basic EPS
 
$
4.11


$
2.97


$
2.37

Diluted EPS from continuing operations
 
$
2.48

 
$
2.11

 
$
2.22

Diluted EPS from discontinued operations
 
1.56

 
0.81

 
$
0.10

Diluted EPS
 
$
4.04


$
2.92


$
2.32

Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation(a)
 
5.0

 
4.5

 
5.5


(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.
v3.6.0.2
Discontinued Operations (Tables) - Discontinued Operations [Member]
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
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
 
2014
Company sales
 
$
5,667

 
$
6,789

 
$
6,821

Franchise and license fees and income
 
109

 
120

 
113

Company restaurant expenses
 
(4,766
)
 
(5,913
)
 
(6,011
)
G&A expenses(b)
 
(406
)
 
(405
)
 
(391
)
Franchise and license expenses
 
(45
)
 
(48
)
 
(44
)
Closures and impairment expenses(c)
 
(57
)
 
(64
)
 
(517
)
Refranchising gain
 
12

 
13

 
17

Other income(d)
 
49

 
27

 
52

Interest income, net
 
8

 
7

 
13

Income from discontinued operations before income taxes
 
571

 
526

 
53

Income tax benefit (provision)(e)
 
65

 
(164
)
 
(38
)
Income from discontinued operations - including noncontrolling interests
 
636

 
362

 
15

(Income) loss from discontinued operations - noncontrolling interests
 
(11
)
 
(5
)
 
30

Income from discontinued operations - YUM! Brands, Inc.
 
$
625

 
$
357

 
$
45


(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)
During 2014, we recorded a $463 million non-cash impairment charge related to the investment in China's Little Sheep restaurant business. The tax benefit associated with these losses of $76 million and the losses allocated to the noncontrolling founding shareholder of $26 million resulted in a net impact of $361 million on Income from discontinued operations - YUM! Brands, Inc.

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

(e)
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. 		 
Condensed Balance Sheet [Table Text Block]   The assets, liabilities and redeemable noncontrolling interest related to Yum China and presented as discontinued operations in our Consolidated Balance Sheets are as follows:
 
 
2015
Cash and cash equivalents
 
$
424

Accounts and notes receivable, net
 
53

Inventories
 
189

Prepaid expenses and other current assets
 
108

Current assets of discontinued operations
 
774

 
 
 
Property, plant and equipment, net
 
1,841

Goodwill
 
85

Intangible assets, net
 
107

Investments in unconsolidated affiliates
 
61

Other assets
 
192

Deferred income taxes
 
85

Noncurrent assets of discontinued operations
 
2,371

Total assets classified as discontinued operations
 
$
3,145

 
 
 
Accounts payable and other current liabilities
 
$
912

Income taxes payable
 
22

Current liabilities of discontinued operations
 
934

 
 
 
Long-term debt
 
34

Other liabilities and deferred credits
 
213

Non-current liabilities of discontinued operations
 
247

Total liabilities classified as discontinued operations
 
$
1,181

 
 
 
Redeemable noncontrolling interest
 
$
6
v3.6.0.2
Items Affecting Comparability of Net Income and Cash Flows (Tables)
 12 Months Ended
Dec. 31, 2016
Refranchising (gain) loss [Member]  
Facility Actions [Line Items]  
Facility Actions Refranchising (Gain) Loss

The Refranchising (gain) loss by reportable segment is presented below. We do not allocate such gains and losses to our segments for performance reporting purposes.

 
 
Refranchising (gain) loss
 
 
 
 
 
 
 
2016
 
2015
 
2014
 
 
 
 
 
KFC Division(a)
 
$
(20
)
 
$
33

 
$
(18
)
 
 
 
 
 
Pizza Hut Division(a)(b)
 
(50
)
 
55

 
6

 
 
 
 
 
Taco Bell Division
 
(71
)
 
(65
)
 
(4
)
 
 
 
 
 
Worldwide
 
$
(141
)
 
$
23

 
$
(16
)
 
 
 
 
 

(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.

(b)
In 2016, we recognized a net gain of $11 million related to the reclassification of accumulated translation adjustments associated with Pizza Hut Australia upon entering into a master franchising agreement for that business that was deemed a complete liquidation of the Pizza Hut Australia foreign entity.
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.
 
 
2016
 
 
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
Store closure (income) costs(a)
 
$
3

 
$
(4
)
 
$
—

 
$
(1
)
Store impairment charges
 
8

 
4

 
3

 
15

Closure and impairment (income) expenses
 
$
11

 
$
—

 
$
3

 
$
14


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

 
$
(2
)
 
$
(1
)
 
$
(2
)
Store impairment charges
 
8

 
5

 
4

 
17

Closure and impairment (income) expenses
 
$
9

 
$
3

 
$
3

 
$
15


 
 
2014
 
 
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
Store closure (income) costs(a)
 
$
2

 
$
1

 
$
—

 
$
3

Store impairment charges
 
8

 
4

 
3

 
15

Closure and impairment (income) expenses
 
$
10

 
$
5

 
$
3

 
$
18


(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, 2016 or December 26, 2015.
v3.6.0.2
Supplemental Cash Flow Data (Tables)
 12 Months Ended
Dec. 31, 2016
Supplemental Cash Flow Elements [Abstract]  
Cash paid for interest and income taxes, and significant non-cash investing and financing activities
 
 
2016
 
2015
 
2014
Cash Paid For:
 
 
 
 
 
 
Interest
 
$
297

 
$
145

 
$
141

Income taxes(a)
 
317

 
390

 
495

Significant Non-Cash Investing and Financing Activities:
 
 
 
 
 
 
Capital lease obligations incurred
 
$
9

 
$
25

 
$
17

Reconciliation of Cash and cash equivalents to Consolidated Statements of Cash Flows:
 
 
 
 
 
 
Cash and cash equivalents as presented in Consolidated Balance Sheets
 
$
704

 
$
313

 
$
341

Restricted cash included in Prepaid expenses and other current assets(b)
 
55

 
—

 
—

Restricted cash included in Other assets(c)
 
53

 
21

 
16

Cash, Cash Equivalents and Restricted Cash as presented in Consolidated Statements of Cash Flows
 
$
812

 
$
334

 
$
357



(a)
2014 includes $200 million of cash paid related to the resolution of a valuation issue with the Internal Revenue Service ("IRS") related to years 2004 through 2008. See Note 18.

(b)
Restricted cash within Prepaid expenses and other current assets primarily relates to the Taco Bell Securitization. See Note 11.

(c)
Primarily cash balances required to meet statutory minimum net worth requirements for legal entities which enter into U.S. franchise agreements and trust accounts related to our self-insurance programs.
v3.6.0.2
Franchise and License Fees and Income (Tables)
 12 Months Ended
Dec. 31, 2016
Franchise And License Fees And Income Disclosure [Abstract]  
Franchise and License Fees and Income
 
 
2016
 
2015
 
2014
Initial fees, including renewal fees
 
$
81

 
$
78

 
$
76

Initial franchise fees included in Refranchising (gain) loss
 
(9
)
 
(6
)
 
(2
)
 
 
72

 
72

 
74

Continuing fees and rental income
 
2,094

 
2,012

 
2,010

Franchise and license fees and income
 
$
2,166


$
2,084


$
2,084
v3.6.0.2
Other (Income) Expense (Tables)
 12 Months Ended
Dec. 31, 2016
Other Income and Expenses [Abstract]  
Other (Income) Expense Table
 
 
2016
 
2015
 
2014
Foreign exchange net (gain) loss and other
 
$
(2
)
 
$
17

 
$
11

Loss associated with corporate aircraft(a)
 
9

 
—

 
—

Other (income) expense
 
$
7


$
17


$
11



(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 is classified as held for sale at the end of 2016 within Prepaid expenses and other current assets. The losses associated with the sale and planned sale reflect the shortfall of the expected or actual proceeds, less any selling costs, over the carrying value of the aircraft. See Note 5.

v3.6.0.2
Supplemental Balance Sheet Information (Tables)
 12 Months Ended
Dec. 31, 2016
Supplemental Balance Sheet Information Disclosure [Abstract]  
Prepaid Expenses and Other Current Assets
Prepaid Expenses and Other Current Assets
 
2016
 
2015
Income tax receivable
 
$
61

 
$
39

Assets held for sale(a)
 
51

 
10

Other prepaid expenses and current assets
 
126

 
84

Prepaid expenses and other current assets
 
$
238


$
133



(a)
Reflects the carrying value of restaurants we have offered for sale to franchisees, excess properties that we do not intend to use for restaurant operations in the future and a corporate aircraft we expect to sell in 2017.
Property, Plant and Equipment
Property, Plant and Equipment
 
2016
 
2015
Land
 
$
441

 
$
480

Buildings and improvements
 
2,184

 
2,232

Capital leases, primarily buildings
 
154

 
168

Machinery and equipment
 
1,410

 
1,515

Property, plant and equipment, gross
 
4,189

 
4,395

Accumulated depreciation and amortization
 
(2,029
)
 
(2,048
)
Property, plant and equipment, net
 
$
2,160


$
2,347



Depreciation and amortization expense related to property, plant and equipment was $294 million, $304 million and $310 million in 2016, 2015 and 2014, respectively.
Accounts Payable and Other Current Liabilities
Accounts Payable and Other Current Liabilities
 
2016
 
2015
Accounts payable
 
$
200

 
$
181

Accrued capital expenditures
 
44

 
46

Accrued compensation and benefits
 
380

 
281

Dividends payable
 
106

 
197

Accrued taxes, other than income taxes
 
64

 
74

Other current liabilities
 
338

 
295

Accounts payable and other current liabilities
 
$
1,132


$
1,074
v3.6.0.2
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2016
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 27, 2014
 
 
 
 
 
 
 
 
Goodwill, gross
 
$
314

 
$
200

 
$
114

 
$
628

Accumulated impairment losses
 
—

 
(17
)
 
—

 
(17
)
Goodwill, net
 
314

 
183

 
114

 
611

Acquisitions
 
1

 
—

 
1

 
2

Disposals and other, net(a)
 
(33
)
 
(7
)
 
(2
)
 
(42
)
Balance as of December 26, 2015
 
 
 
 
 
 
 
 
Goodwill, gross
 
282

 
193

 
113

 
588

Accumulated impairment losses
 
—

 
(17
)
 
—

 
(17
)
Goodwill, net
 
282

 
176

 
113

 
571

Disposals and other, net(a)
 
(12
)
 
(16
)
 
(2
)
 
(30
)
Balance as of December 31, 2016
 
 
 
 
 
 
 
 
Goodwill, gross
 
270

 
177

 
111

 
558

Accumulated impairment losses
 
—

 
(17
)
 
—

 
(17
)
Goodwill, net
 
$
270

 
$
160

 
$
111

 
$
541



(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 2016 and 2015 are as follows:
 
 
 
2016
 
2015
 
 
Gross Carrying Amount
 
Accumulated Amortization
 
Gross Carrying Amount
 
Accumulated Amortization
Definite-lived intangible assets
 
 
 
 
 
 
 
 
Reacquired franchise rights
 
$
84

 
$
(49
)
 
$
92

 
$
(49
)
Franchise contract rights
 
99

 
(73
)
 
99

 
(70
)
Lease tenancy rights
 
56

 
(9
)
 
55

 
(9
)
Other
 
36

 
(24
)
 
37

 
(22
)
 
 
$
275

 
$
(155
)
 
$
283

 
$
(150
)
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets
 
 
 
 
 
 
 
 
KFC trademark
 
$
31

 
 
 
$
31

 
 
 
 
 
 
 
 
 
 
 


Amortization expense for all definite-lived intangible assets was $12 million in 2016, $13 million in 2015 and $13 million in 2014.  Amortization expense for definite-lived intangible assets is expected to approximate $10 million in 2017, $9 million in 2018, $7 million in 2019, $7 million in 2020 and $6 million in 2021.
v3.6.0.2
Short-term Borrowings and Long-term Debt (Tables)
 12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Schedule of Debt [Table Text Block]
 
 
2016
 
2015
Short-term Borrowings
 
 
 
 
Current maturities of long-term debt
 
$
65

 
$
312

Unsecured Short-Term Loan Credit Facility (the "Bridge Facility")
 
—

 
600

Other
 
9

 
9

 
 
$
74

 
$
921

Less current portion of debt issuance costs and discounts
 
(8
)
 
—

Short-term borrowings
 
$
66

 
$
921

 
 
 
 
 
Long-term Debt
 
 
 
 
Securitization Notes
 
$
2,294

 
$
—

Subsidiary Senior Unsecured Notes
 
2,100

 
—

Term Loan A Facility
 
500

 
—

Term Loan B Facility
 
1,990

 
—

YUM Senior Unsecured Notes
 
2,200

 
2,500

Senior Unsecured Revolving Credit Facility
 
—

 
701

Capital lease obligations (See Note 12)
 
121

 
134

 
 
9,205

 
3,335

Less debt issuance costs and discounts
 
(79
)
 
(16
)
Less current maturities of long-term debt
 
(65
)
 
(312
)
Long-term debt
 
$
9,061


$
3,007

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

 
12/31/2016
 
12/26/2015
 
Carrying Value
 
Fair Value (Level 2)
 
Carrying Value
 
Fair Value (Level 2)
Debt obligations
 
 
 
 
 
 
 
Securitization Notes(a)
$
2,294

 
$
2,315

 
$
—

 
$
—

Subsidiary Senior Unsecured Notes(b)
2,100

 
2,175

 
—

 
—

Term Loan A Facility(b)
500

 
501

 
—

 
—

Term Loan B Facility(b)
1,990

 
2,016

 
—

 
—

YUM Senior Unsecured Notes(b)
2,200

 
2,216

 
2,500

 
2,393

 
(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, 2016, excluding capital lease obligations of $121 million are as follows: 
Year ended:
 
2017
$
64

2018
393

2019
324

2020
1,215

2021
760

Thereafter
6,337

Total
$
9,093
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, 2016:
 
 
 
 
 
 
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.
v3.6.0.2
Leases (Tables)
 12 Months Ended
Dec. 31, 2016
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
2017
 
$
16

 
$
171

 
$
3

 
$
40

2018
 
16

 
148

 
2

 
36

2019
 
15

 
128

 
2

 
30

2020
 
15

 
101

 
2

 
23

2021
 
14

 
85

 
1

 
20

Thereafter
 
105

 
571

 
5

 
86

 
 
$
181

 
$
1,204

 
$
15

 
$
235
Details of rental expense and income The details of rental expense and income are set forth below:
 
 
2016
 
2015
 
2014
Rental expense
 
 
 
 
 
 
Minimum
 
$
213

 
$
221

 
$
243

Contingent
 
29

 
34

 
37

 
 
$
242

 
$
255

 
$
280

Rental income
 
$
79

 
$
73

 
$
83
v3.6.0.2
Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments, Gain (Loss) [Table Text Block]
 
Gains/(Losses) Recognized in OCI
 
(Gains)/Losses Reclassified from AOCI into Net Income
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
Interest rate swaps
$
47

 
$
—

 
$
(4
)
 
$
—

Foreign currency contracts
1

 
32

 
(4
)
 
(41
)
Income tax benefit/(expense)
(19
)
 
(4
)
 
3

 
5
v3.6.0.2
Fair Value Disclosures (Tables)
 12 Months Ended
Dec. 31, 2016
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, 2016 or December 26, 2015.
 
 
 
 
Fair Value
 
 
 
Level
 
2016
 
2015
 
Consolidated Balance Sheet
Interest Rate Swaps - Liability
 
2

 
$
3

 
$
—

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

 
—

 
2

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

 
47

 
—

 
Other assets
Foreign Currency Contracts - Asset
 
2

 
7

 
—

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

 
8

 
19

 
Other assets
Other Investments
 
1

 
24

 
21

 
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, 2016 and December 26, 2015. These amounts exclude fair value measurements made for assets that were subsequently disposed of prior to those respective year-end dates. The remaining net book value of restaurant assets measured at fair value during the years ended December 31, 2016 and December 26, 2015 is insignificant.

 
 
2016
 
2015
 
Aircraft impairment(a)
 
$
3

 
$
—

 
Restaurant-level impairment(b)
 
8

 
10

 
Total
 
$
11

 
$
10

 

(a)
During 2016, we made the decision to dispose of a corporate aircraft. The loss associated with this planned sale reflects the shortfall of the expected proceeds, less any selling costs, over the carrying value of the aircraft. The expected proceeds are 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).
v3.6.0.2
Pension, Retiree Medical and Retiree Savings Plans (Tables)
 12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [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.

 
 
2016
 
2015
Change in benefit obligation
 
 
 
 
Benefit obligation at beginning of year
 
$
1,134

 
$
1,301

Service cost
 
17

 
18

Interest cost
 
54

 
55

Plan amendments
 
4

 
28

Curtailments
 
(4
)
 
(2
)
Special termination benefits
 
3

 
1

Benefits paid
 
(26
)
 
(50
)
Settlement payments(a)
 
(260
)
 
(16
)
Actuarial (gain) loss
 
77

 
(196
)
Administrative expense
 
(6
)
 
(5
)
Benefit obligation at end of year
 
$
993

 
$
1,134

 
 
 
 
 
Change in plan assets
 
 
 
 
Fair value of plan assets at beginning of year
 
$
1,004

 
$
991

Actual return on plan assets
 
87

 
(10
)
Employer contributions
 
38

 
94

Settlement payments(a)
 
(260
)
 
(16
)
Benefits paid
 
(26
)
 
(50
)
Administrative expenses
 
(6
)
 
(5
)
Fair value of plan assets at end of year
 
$
837

 
$
1,004

 Funded status at end of year
 
$
(156
)
 
$
(130
)


(a)
For discussion of the settlement payments and settlement losses, see Note 5.
Amounts recognized in the Consolidated Balance Sheet
Amounts recognized in the Consolidated Balance Sheet:
 
 
2016
 
2015
Accrued benefit liability - current
 
$
(16
)
 
$
(13
)
Accrued benefit liability - non-current
 
(140
)
 
(117
)
 
 
$
(156
)
 
$
(130
)
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:
 
 
2016
 
2015
Projected benefit obligation
 
$
993

 
$
101

Accumulated benefit obligation
 
960

 
88

Fair value of plan assets
 
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:
 
 
2016
 
2015
Projected benefit obligation
 
$
993

 
$
1,134

Accumulated benefit obligation
 
960

 
1,088

Fair value of plan assets
 
837

 
1,004
Components of net periodic benefit cost Components of net periodic benefit cost:
Net periodic benefit cost
 
2016
 
2015
 
2014
Service cost
 
$
17

 
$
18

 
$
17

Interest cost
 
54

 
55

 
54

Amortization of prior service cost(a)
 
6


1


1

Expected return on plan assets
 
(65
)
 
(62
)
 
(56
)
Amortization of net loss
 
6

 
45

 
17

Net periodic benefit cost
 
$
18

 
$
57

 
$
33


Additional (gain) loss recognized due to:

Settlements(b)
 
$
32

 
$
5

 
$
6

Special termination benefits
 
$
3

 
$
1

 
$
3


(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.

Pension losses in accumulated other comprehensive income (loss)
Pension gains (losses) in AOCI:
 
 
2016
 
2015
Beginning of year
 
$
(170
)
 
$
(319
)
Net actuarial gain (loss)
 
(54
)
 
124

Curtailments
 
4

 
2

Amortization of net loss
 
6

 
45

Amortization of prior service cost
 
6

 
1

Prior service cost
 
(4
)
 
(28
)
Settlement charges
 
32

 
5

End of year
 
$
(180
)
 
$
(170
)
Schedule of Accumulated pre-tax losses recognized in Accumulated Other Comprehensive Income
Accumulated pre-tax losses recognized within AOCI:
 
 
2016
 
2015
Actuarial net loss
 
$
(150
)
 
$
(138
)
Prior service cost
 
(30
)
 
(32
)
 
 
$
(180
)
 
$
(170
)
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:
 
 
2016
 
2015
Discount rate
 
4.60
%
 
4.90
%
Rate of compensation increase
 
3.75
%
 
3.75
%

Weighted-average assumptions used to determine the net periodic benefit cost for fiscal years:
 
 
2016
 
2015
 
2014
Discount rate
 
4.90
%
 
4.30
%
 
5.40
%
Long-term rate of return on plan assets
 
6.75
%
 
6.75
%
 
6.90
%
Rate of compensation increase
 
3.75
%
 
3.75
%
 
3.75
%
Fair values of pension plan assets The fair values of our pension plan assets at December 31, 2016 and December 26, 2015 by asset category and level within the fair value hierarchy are as follows:

 
 
2016
 
2015
Level 1:
 
 
 
 
Cash
 
$
2

 
$
3

Cash Equivalents(a)
 
12

 
9

Fixed Income Securities - U.S. Corporate(b)
 
172

 
221

Equity Securities – U.S. Large cap(b)
 
244

 
310

Equity Securities – U.S. Mid cap(b)
 
41

 
50

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

 
51

Equity Securities – Non-U.S.(b)
 
83

 
100

Level 2:
 
 
 
 
 
 
 
 
 
Fixed Income Securities – U.S. Corporate(c)
 
76

 
68

Fixed Income Securities – U.S. Government and Government Agencies(d)
 
152

 
195

Fixed Income Securities – Other(d)
 
31

 
17

Total fair value of plan assets(e)
 
$
856

 
$
1,024



(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)
2016 and 2015 exclude net unsettled trade payables of $19 million and $20 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:
 
 
2017
 
$
128

2018
 
45

2019
 
42

2020
 
43

2021
 
46

2022 - 2026
 
259
v3.6.0.2
Share-based and Deferred Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2016
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:

 
 
2016
 
2015
 
2014
Risk-free interest rate
 
1.4
%
 
1.3
%
 
1.6
%
Expected term (years)
 
6.4 years

 
6.4 years

 
6.2 years

Expected volatility
 
27.0
%
 
26.9
%
 
29.7
%
Expected dividend yield
 
2.6
%
 
2.2
%
 
2.1
%
Summary of award activity Stock Options and SARs

 
 
Shares
(in thousands)
 
Weighted-Average Exercise
Price(a)
 
Weighted- Average Remaining Contractual Term (years)(a)
 
Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of the year
 
25,933

 
 
 
$
51.79

 
 
 
 
Granted
 
4,329

 
 
 
70.64

 
 
 
 
Exercised
 
(5,886
)
 
 
 
40.84

 
 
 
 
Forfeited or expired
 
(1,101
)
 
 
 
70.66

 
 
 
 
Outstanding at October 31, 2016
 
23,275

 
 
 
57.20

 
 
 
 
Equitable adjustment
 
(1,283
)
(b) 
 
 
 
 
 
 
 
Exercised
 
(631
)
 
 
 
24.66

 
 
 
 
Forfeited or expired
 
(119
)
 
 
 
52.13

 
 
 
 
Outstanding at the end of the year
 
21,242

(c) 
 
 
$
40.78

 
5.63

 
$
479

Exercisable at the end of the year
 
13,710

 
 
 
$
35.37

 
4.21

 
$
383


(a)
Activity and amounts that occurred after October 31, 2016 reflect modifications related to the Separation.

(b)
Adjustment to maintain intrinsic value upon Separation.

(c)
Outstanding awards include 1,341 options and 19,901 SARs with weighted average exercise prices of $33.33 and $41.28, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.
Impact on net income The components of share-based compensation expense and the related income tax benefits are shown in the following table:

 
 
2016
 
2015
 
2014
Options and SARs
 
$
38

 
$
41

 
$
39

Restricted Stock Units
 
38

 
3

 
5

Performance Share Units
 
4

 
2

 
1

Total Share-based Compensation Expense
 
$
80

(a) 
$
46

 
$
45

Deferred Tax Benefit recognized
 
$
26

 
$
15

 
$
14

 
 
 
 
 
 
 
EID compensation expense not share-based
 
$
5

 
$
1

 
$
8



(a)    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.
v3.6.0.2
Shareholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2016
Stockholders' Equity Note [Abstract]  
Repurchase Of Shares Of Common Stock
 
 
Shares Repurchased
(thousands)
 
 
Dollar Value of Shares
Repurchased
 
Authorization Date
 
2016

 
 
2015

 
 
2014

 
 
2016

 
 
2015

 
 
2014

 
November 2016
 
1,337

 
 
—

 
 
—

 
 
$
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

 
 
8,488

 
 
—

 
 
133

 
 
617

 
November 2012
 
—

 
 
—

 
 
2,737

 
 
—

 
 
—

 
 
203

 
Total
 
67,963

(a) 
 
15,942

 
 
11,225

 
 
$
5,447

(a) 
 
$
1,200

 
 
$
820

 

(a)
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 accumulated other comprehensive income (loss) ("OCI") 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 27, 2014, net of tax
$
29

 
$
(210
)
 
$
(9
)
 
$
(190
)
 
 
 
 
 
 
 
 
 
Gains (losses) arising during the year classified into accumulated OCI, net of tax
 
(250
)
 
63

 
28

 
(159
)
 
 
 
 
 
 
 
 
 
(Gains) losses reclassified from accumulated OCI, net of tax
 
112

 
34

 
(36
)
 
110

 
 
 
 
 
 
 
 
 
OCI, net of tax
 
(138
)
 
97

 
(8
)
 
(49
)
 
 
 
 
 
 
 
 
 
Balance at December 26, 2015, net of tax
$
(109
)
 
$
(113
)
 
$
(17
)
 
$
(239
)
 
 
 
 
 
 
 
 
 
Gains (losses) arising during the year classified into accumulated OCI, net of tax
 
(146
)
 
(42
)
 
29

 
(159
)
 
 
 
 
 
 
 
 
 
(Gains) losses reclassified from accumulated OCI, net of tax
 
(11
)
 
28

 
(5
)
 
12

 
 
 
 
 
 
 
 
 
OCI, net of tax
 
(157
)
 
(14
)
 
24

 
(147
)
 
 
 
 
 
 
 
 
 
Separation of China business
 
(47
)
 
—

 
—

 
(47
)
 
 
 
 
 
 
 
 
 
Balance at December 31,2016, net of tax
$
(313
)
 
$
(127
)
 
$
7

 
$
(433
)
 
 
 
 
 
 
 
 
 

(a)
Amounts reclassified from accumulated OCI during 2016 and 2015 are due to substantial liquidations of foreign entities related to Pizza Hut Australia and Mexico refranchising transactions, respectively.

(b)
Amounts reclassified from accumulated OCI for pension and post-retirement benefit plan losses during 2016 include amortization of net losses of $7 million, settlement charges of $32 million, amortization of prior service cost of $5 million and related income tax benefit of $16 million. Amounts reclassified from accumulated OCI for pension and post-retirement benefit plan losses during 2015 include amortization of net losses of $46 million, settlement charges of $5 million, amortization of prior service cost of $2 million and related income tax benefit of $19 million. See Note 15.
v3.6.0.2
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Income before income taxes U.S. and foreign income before taxes are set forth below:

 
 
2016
 
2015
 
2014
U.S.
 
$
366

 
$
479

 
$
506

Foreign
 
952

 
782

 
868

 
 
$
1,318

 
$
1,261

 
$
1,374
Details of income tax provision (benefit) The details of our income tax provision (benefit) are set forth below:

 
 
 
 
2016
 
2015
 
2014
Current:
 
Federal
 
$
123

 
$
268

 
$
239

 
 
Foreign
 
161

 
131

 
173

 
 
State
 
13

 
28

 
2

 
 
 
 
$
297

 
$
427

 
414

 
 
 
 
 
 
 
 
 
Deferred:
 
Federal
 
$
18

 
$
(117
)
 
(34
)
 
 
Foreign
 
3

 
15

 
(13
)
 
 
State
 
6

 
—

 
1

 
 
 
 
$
27

 
$
(102
)
 
$
(46
)
 
 
 
 
$
324


$
325


$
368
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:

 
 
2016
 
2015
 
2014
U.S. federal statutory rate
 
$
461

 
35.0
 %
 
$
441

 
35.0
 %
 
$
481

 
35.0
 %
State income tax, net of federal tax benefit
 
15

 
1.1

 
12

 
0.9

 
8

 
0.6

Statutory rate differential attributable to foreign operations
 
(136
)
 
(10.3
)
 
(180
)
 
(14.3
)
 
(147
)
 
(10.7
)
Adjustments to reserves and prior years
 
(11
)
 
(0.9
)
 
13

 
1.0

 
2

 
0.1

Change in valuation allowances
 
(3
)
 
(0.2
)
 
41

 
3.3

 
22

 
1.6

Other, net
 
(2
)
 
(0.1
)
 
(2
)
 
(0.1
)
 
2

 
0.1

Effective income tax rate
 
$
324

 
24.6
 %
 
$
325

 
25.8
 %
 
$
368

 
26.7
 %
Details of deferred tax assets (liabilities) The details of 2016 and 2015 deferred tax assets (liabilities) are set forth below:

 
 
2016
 
2015
Operating losses
 
$
172

 
$
157

Capital losses
 
184

 
41

Tax credit carryforwards
 
284

 
282

Employee benefits
 
185

 
152

Share-based compensation
 
100

 
121

Self-insured casualty claims
 
32

 
35

Lease-related liabilities
 
65

 
69

Various liabilities
 
56

 
64

Property, plant and equipment
 
37

 
33

Deferred income and other
 
32

 
51

Gross deferred tax assets
 
1,147

 
1,005

Deferred tax asset valuation allowances
 
(195
)
 
(205
)
Net deferred tax assets
 
$
952

 
$
800

Intangible assets, including goodwill
 
$
(107
)
 
$
(111
)
Property, plant and equipment
 
(46
)
 
(46
)
Other
 
(31
)
 
(60
)
Gross deferred tax liabilities
 
$
(184
)
 
$
(217
)
Net deferred tax assets (liabilities)
 
$
768


$
583


Reported in Consolidated Balance Sheets as:
 
 
 
 
Deferred income taxes
 
$
774


$
591

Other liabilities and deferred credits
 
(6
)
 
(8
)
 
 
$
768


$
583
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
 
 
 
 
2017
 
2018-2021
 
2022-2035
 
Indefinitely
 
Total
Foreign
 
$
20

 
$
53

 
$
93

 
$
321

 
$
487

U.S. state
 
7

 
97

 
908

 
—

 
1,012

U.S. federal
 
—

 
524

 
220

 
—

 
744

 
 
$
27

 
$
674

 
$
1,221

 
$
321

 
$
2,243
Unrecognized tax benefits reconciliation A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
 
 
2016
 
2015
Beginning of Year
 
$
98

 
$
115

     Additions on tax positions - current year
 
—

 
—

     Additions for tax positions - prior years
 
1

 
5

     Reductions for tax positions - prior years
 
(5
)
 
(13
)
     Reductions for settlements
 
(1
)
 
(7
)
     Reductions due to statute expiration
 
(2
)
 
(2
)
     Foreign currency translation adjustment
 
—

 
—

End of Year
 
$
91

 
$
98
Summary of income tax examinations The accrued interest and penalties related to income taxes at December 31, 2016 and December 26, 2015 are set forth below:
 
 
2016
 
2015
Accrued interest and penalties
 
$
9

 
$
15
v3.6.0.2
Reportable Operating Segments (Tables)
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
 
 
Revenues
 
 
2016
 
2015
 
2014
KFC Division(a)
 
$
3,232


$
3,235


$
3,507

Pizza Hut Division(a)
 
1,111


1,214


1,215

Taco Bell Division(a)
 
2,025

 
1,991

 
1,865

Unallocated(b)(f)
 
(2
)
 
—

 
—

 
 
$
6,366


$
6,440


$
6,587



 
 
Operating Profit; Interest Expense, Net; and
Income Before Income Taxes
 
 
2016
 
2015
 
2014
KFC Division
 
$
874


$
832


$
876

Pizza Hut Division
 
370


347


347

Taco Bell Division
 
593

 
536

 
478

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

 
—

Unallocated restaurant costs(b)
 
—


—


(1
)
Unallocated Franchise and license expenses(b)(f)
 
(24
)
 
(71
)
 
—

Unallocated and corporate expenses(b)(g)
 
(316
)

(196
)

(189
)
Unallocated Refranchising gain (loss)(b)
 
141


(23
)

16

Unallocated Other income (expense)(b)(h)
 
(11
)

(23
)

(10
)
Operating Profit
 
1,625


1,402


1,517

Interest expense, net(b)
 
(307
)

(141
)

(143
)
Income Before Income Taxes
 
$
1,318


$
1,261


$
1,374


 
 
Depreciation and Amortization
 
 
2016
 
2015
 
2014
KFC Division
 
$
173

 
$
186

 
197

Pizza Hut Division
 
36

 
40

 
39

Taco Bell Division
 
91

 
88

 
83

Corporate
 
9

 
8

 
9

 
 
$
309

 
$
322

 
$
328


 
 
Capital Spending
 
 
2016
 
2015
 
2014
KFC Division
 
$
211

 
$
280

 
$
294

Pizza Hut Division
 
70

 
54

 
62

Taco Bell Division
 
132

 
116

 
143

Corporate
 
9

 
11

 
9

 
 
$
422

 
$
461

 
$
508


 
 
Identifiable Assets
 
 
2016
 
2015
KFC Division(e)
 
$
2,176

 
$
2,263

Pizza Hut Division(e)
 
639

 
709

Taco Bell Division(e)
 
1,178

 
1,128

Corporate(c)(e)
 
1,485

 
816

 
 
$
5,478

 
$
4,916


 
 
Long-Lived Assets(d)
 
 
2016
 
2015
KFC Division
 
$
1,583

 
$
1,697

Pizza Hut Division
 
375

 
419

Taco Bell Division
 
859

 
911

Corporate
 
35

 
55

 
 
$
2,852

 
$
3,082



(a)
U.S. revenues included in the combined KFC, Pizza Hut and Taco Bell Divisions totaled $3.1 billion in 2016, $3.1 billion in 2015 and $3.0 billion in 2014.

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

(c)    Primarily includes cash and deferred tax assets.

(d)    Includes property, plant and equipment, net, goodwill, and intangible assets, net.

(e)
U.S. identifiable assets included in the combined Corporate and KFC, Pizza Hut and Taco Bell Divisions totaled $3.1 billion and $2.3 billion in 2016 and 2015, respectively.

(f)    Represents 2016 and 2015 costs associated with the KFC U.S. Acceleration Agreement. See Note 5.

(g)
Amounts in 2016 include costs related to YUM’s Strategic Transformation Initiatives of $62 million, non-cash charges associated with share-based compensation of $30 million and settlement charges associated with the pension deferred vested project of $25 million. See Note 5.
(h)
Amounts in 2016 include losses associated with the sale of corporate aircraft related to YUM’s Strategic Transformation Initiatives of $9 million. See Note 5.
Reconciliation of Revenue from Segments to Consolidated
 
 
Revenues
 
 
2016
 
2015
 
2014
KFC Division(a)
 
$
3,232


$
3,235


$
3,507

Pizza Hut Division(a)
 
1,111


1,214


1,215

Taco Bell Division(a)
 
2,025

 
1,991

 
1,865

Unallocated(b)(f)
 
(2
)
 
—

 
—

 
 
$
6,366


$
6,440


$
6,587
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
 
 
Operating Profit; Interest Expense, Net; and
Income Before Income Taxes
 
 
2016
 
2015
 
2014
KFC Division
 
$
874


$
832


$
876

Pizza Hut Division
 
370


347


347

Taco Bell Division
 
593

 
536

 
478

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

 
—

Unallocated restaurant costs(b)
 
—


—


(1
)
Unallocated Franchise and license expenses(b)(f)
 
(24
)
 
(71
)
 
—

Unallocated and corporate expenses(b)(g)
 
(316
)

(196
)

(189
)
Unallocated Refranchising gain (loss)(b)
 
141


(23
)

16

Unallocated Other income (expense)(b)(h)
 
(11
)

(23
)

(10
)
Operating Profit
 
1,625


1,402


1,517

Interest expense, net(b)
 
(307
)

(141
)

(143
)
Income Before Income Taxes
 
$
1,318


$
1,261


$
1,374
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated
 
 
Depreciation and Amortization
 
 
2016
 
2015
 
2014
KFC Division
 
$
173

 
$
186

 
197

Pizza Hut Division
 
36

 
40

 
39

Taco Bell Division
 
91

 
88

 
83

Corporate
 
9

 
8

 
9

 
 
$
309

 
$
322

 
$
328


 
 
Capital Spending
 
 
2016
 
2015
 
2014
KFC Division
 
$
211

 
$
280

 
$
294

Pizza Hut Division
 
70

 
54

 
62

Taco Bell Division
 
132

 
116

 
143

Corporate
 
9

 
11

 
9

 
 
$
422

 
$
461

 
$
508


 
 
Identifiable Assets
 
 
2016
 
2015
KFC Division(e)
 
$
2,176

 
$
2,263

Pizza Hut Division(e)
 
639

 
709

Taco Bell Division(e)
 
1,178

 
1,128

Corporate(c)(e)
 
1,485

 
816

 
 
$
5,478

 
$
4,916


 
 
Long-Lived Assets(d)
 
 
2016
 
2015
KFC Division
 
$
1,583

 
$
1,697

Pizza Hut Division
 
375

 
419

Taco Bell Division
 
859

 
911

Corporate
 
35

 
55

 
 
$
2,852

 
$
3,082
v3.6.0.2
Contingencies (Tables)
 12 Months Ended
Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]  
Activity related to self-insured property and casualty reserves The following table summarizes the 2016 and 2015 activity related to our net self-insured property and casualty reserves as of December 31, 2016.

 
 
Beginning Balance
 
Expense
 
Payments
 
Ending Balance
2016 Activity
 
$
102

 
42

 
(46
)
 
$
98

2015 Activity
 
$
116

 
39

 
(53
)
 
$
102
v3.6.0.2
Selected Quarterly Financial Data (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2016
Schedule of Quarterly Financial Information [Abstract]  
Schedule of Quarterly Financial Information
 
 
2016
 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
 
Total
Revenues:
 
 
 
 
 
 
 
 
 
 
Company sales
 
$
887

 
$
996

 
$
993

 
$
1,324

 
$
4,200

Franchise and license fees and income
 
477

 
481

 
508

 
700

 
2,166

Total revenues
 
1,364

 
1,477

 
1,501

 
2,024

 
6,366

Restaurant profit
 
147

 
165

 
159

 
231

 
702

Operating Profit(a)
 
356

 
408

 
372

 
489

 
1,625

Income from continuing operations, net of tax
 
240

 
265

 
204

 
285

 
994

Income (loss) from discontinued operations, net of tax
 
151

 
74

 
418

 
(18
)
 
625

Net Income
 
391

 
339

 
622

 
267

 
1,619

Basic earnings per common share from continuing operations
 
0.58

 
0.65

 
0.52

 
0.77

 
2.52

Basic earnings(loss) per common share from discontinued operations
 
0.36

 
0.17

 
1.07

 
(0.05
)
 
1.59

Basic earnings per common share
 
0.94

 
0.82

 
1.59

 
0.72

 
4.11

Diluted earnings per common share from continuing operations
 
0.57

 
0.64

 
0.51

 
0.76

 
2.48

Diluted earnings (loss) per common share from discontinued operations
 
0.36

 
0.17

 
1.05

 
(0.05
)
 
1.56

Diluted earnings per common share
 
0.93

 
0.81

 
1.56

 
0.71

 
4.04

Dividends declared per common share
 
0.46

 
0.46

 
—

 
0.81

 
1.73

 
 
2015
 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
 
Total
Revenues:
 
 
 
 
 
 
 
 
 
 
Company sales
 
$
944

 
$
1,051

 
$
1,033

 
$
1,328

 
$
4,356

Franchise and license fees and income
 
467

 
475

 
494

 
648

 
2,084

Total revenues
 
1,411

 
1,526

 
1,527

 
1,976

 
6,440

Restaurant profit
 
149

 
177

 
160

 
223

 
709

Operating Profit(b)
 
355

 
279

 
339

 
429

 
1,402

Income from continuing operations, net of tax
 
246

 
169

 
231

 
290

 
936

Income (loss) from discontinued operations, net of tax
 
116

 
66

 
190

 
(15
)
 
357

Net Income
 
362

 
235

 
421

 
275

 
1,293

Basic earnings per common share from continuing operations
 
0.56

 
0.39

 
0.53

 
0.67

 
2.15

Basic earnings (loss) per common share from discontinued operations
 
0.27

 
0.15

 
0.44

 
(0.03
)
 
0.82

Basic earnings per common share
 
0.83

 
0.54

 
0.97

 
0.64

 
2.97

Diluted earnings per common share from continuing operations
 
0.55

 
0.38

 
0.52

 
0.66

 
2.11

Diluted earnings (loss) per common share from discontinued operations
 
0.26

 
0.15

 
0.43

 
(0.03
)
 
0.81

Diluted earnings per common share
 
0.81

 
0.53

 
0.95

 
0.63

 
2.92

Dividends declared per common share
 
—

 
0.82

 
—

 
0.92

 
1.74


(a)
Includes net gains from refranchising initiatives of $3 million, $53 million, $21 million and $64 million in the first, second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $5 million, $27 million and $39 million in the second, third and fourth quarters, respectively, a non-cash charge associated with the modification of EID share-based compensation awards in connection with the Separation of $30 million in the fourth quarter, costs associated with KFC U.S. Acceleration Agreement of $9 million, $8 million and $9 million in the first, second and fourth quarters, respectively, and charges incurred as a result of settlement payments of deferred vested pension balances in the Plan of $1 million and $24 million in the third and fourth quarters, respectively. See Note 5.

(b)
Includes net gains from refranchising initiatives of $7 million and $49 million in the first and fourth quarters, respectively, and net losses from refranchising initiatives of $72 million and $4 million in the second and third quarters, respectively. Also includes costs associated with KFC U.S. Acceleration Agreement of $2 million, $8 million, $21 million and $41 million in the first, second, third and fourth quarters, respectively. See Note 5.
v3.6.0.2
Description of Business (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2016
USD ($)
operating_segments
restaurants
countries_and_territiories
Dec. 26, 2015
USD ($)
Dec. 27, 2014
USD ($)
Segment Reporting Information [Line Items]      
Approximate Number Of System Units | restaurants 43,500    
Percent Of System Units Located Outside United States 58.00%    
Approximate Number Of Countries And Territories Where System Units Are Located | countries_and_territiories 135    
Number of Operating Segments | operating_segments 3    
Operating Profit $ 1,625 $ 1,402 $ 1,517
Stock Repurchased During Period, Value 5,447 [1] 1,200 820
KFC Global Division [Member]      
Segment Reporting Information [Line Items]      
Operating Profit 874 832 876
Pizza Hut Global Division [Member]      
Segment Reporting Information [Line Items]      
Operating Profit 370 347 347
Taco Bell Global Division [Member]      
Segment Reporting Information [Line Items]      
Operating Profit $ 593 536 478
Impact of India Integration into Other Brand Divisions [Member] | KFC Global Division [Member]      
Segment Reporting Information [Line Items]      
Revenues   105 128
Operating Profit   (16) (6)
Impact of India Integration into Other Brand Divisions [Member] | Pizza Hut Global Division [Member]      
Segment Reporting Information [Line Items]      
Revenues   8 11
Operating Profit   1 (1)
Impact of India Integration into Other Brand Divisions [Member] | Taco Bell Global Division [Member]      
Segment Reporting Information [Line Items]      
Revenues   3 2
Operating Profit   $ (3) $ (2)
[1] Includes the effect of $45 million in share repurchases (0.7 million shares) with trade dates prior to December 31, 2016 but settlement dates subsequent to December 31, 2016.
v3.6.0.2
Summary of Significant Accounting Policies (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Schedule of Equity Method Investments [Line Items]      
Future lease payments due from franchisees on a nominal basis $ 250    
Reclassification of Retained Earnings to Common Stock for Share Repurchase $ 5,399 $ 1,124 $ 725
v3.6.0.2
Summary of Significant Accounting Policies (Details 2)
$ in Millions
 4 Months Ended 8 Months Ended 12 Months Ended
Dec. 31, 2016
weeks
Sep. 03, 2016
weeks
Dec. 31, 2016
USD ($)
Months
Years
Dec. 26, 2015
USD ($)
Dec. 27, 2014
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    
Number of periods or months in advance that all international businesses except China and India close their books     1    
Operating Profit | $     $ 1,625 $ 1,402 $ 1,517
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 | $     $ 27    
v3.6.0.2
Summary of Significant Accounting Policies (Details 3)
$ in Millions
 12 Months Ended
Dec. 31, 2016
USD ($)
Years
Rate
Dec. 26, 2015
USD ($)
Dec. 27, 2014
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    
Income Taxes [Abstract]      
Percentage threshold that the positions taken or expected to be taken is more likely than not sustained upon examination by tax authorities (in hundredths) | Rate 50.00%    
Leases and Leasehold Improvements [Abstract]      
Approximate number of restaurants operated on leased land and/or buildings 2,000    
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 $ 774 $ 591  
Foreign Currency [Abstract]      
Foreign currency translation adjustment 313    
Direct Marketing Costs [Abstract]      
Advertising Expense 260 255 $ 261
Research and Development Expenses [Abstract]      
Research and development expenses $ 24 $ 24 $ 25
v3.6.0.2
Summary of Significant Accounting Policies (Details 4) - USD ($)
$ in Millions
 3 Months Ended 4 Months Ended 12 Months Ended
Sep. 03, 2016
Jun. 11, 2016
Mar. 19, 2016
Sep. 05, 2015
Jun. 13, 2015
Mar. 21, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
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             $ 66 $ 921 $ 66 $ 921    
Repurchase Of Shares Of Common Stock [Abstract]                        
Stock Repurchased During Period, Value                 (5,447) [1] (1,200) $ (820)  
Reduction to Retained earnings                        
Repurchase Of Shares Of Common Stock [Abstract]                        
Stock Repurchased During Period, Value                 (5,399) (1,124) (725)  
Continuing Operations [Member]                        
Receivables [Abstract]                        
Net amounts included in Other Assets             21 16 21 16    
Allowance for doubtful accounts related to notes and direct financing lease receivables             2 4 2 4    
Accounts and notes receivable [Abstract]                        
Accounts and notes receivable             383 338 383 338    
Allowance for doubtful accounts             (13) (14) (13) (14)    
Accounts and notes receivable, net             370 324 370 324    
Other Assets             66 921 66 921    
Deferred income taxes             774 591 774 591    
Other current liabilities             338 295 338 295    
Repurchase Of Shares Of Common Stock [Abstract]                        
Franchise and license fees and income $ 508 $ 481 $ 477 $ 494 $ 475 $ 467 700 648 2,166 2,084 2,084  
Net Cash Provided by (Used in) Operating Activities                 1,204 1,213 1,217  
Cash, Cash Equivalents and Restricted Cash as presented in the Consolidated Statement of Cash Flows             812 334 812 334 357 $ 291
Continuing Operations [Member] | Adjustments for New Accounting Pronouncement [Member]                        
Accounts and notes receivable [Abstract]                        
Other Assets             13   13      
Long-term Debt             13   13      
Other Assets             1   1      
Repurchase Of Shares Of Common Stock [Abstract]                        
Prepaid Expense             $ 1   1      
Net Cash Provided by (Used in) Operating Activities                   5    
Cash, Cash Equivalents and Restricted Cash as presented in the Consolidated Statement of Cash Flows               $ 21   21 16  
CHINA | Continuing Operations [Member]                        
Repurchase Of Shares Of Common Stock [Abstract]                        
Franchise and license fees and income [2]                 240      
Franchise and license expenses [Member]                        
Repurchase Of Shares Of Common Stock [Abstract]                        
Sales Allowances, Services                 $ 1 $ 5 $ 3  
[1] 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.
v3.6.0.2
Earnings Per Common Share ("EPS") (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 4 Months Ended 12 Months Ended
Sep. 03, 2016
Jun. 11, 2016
Mar. 19, 2016
Sep. 05, 2015
Jun. 13, 2015
Mar. 21, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Net Income $ 622 $ 339 $ 391 $ 421 $ 235 $ 362 $ 267 $ 275 $ 1,619 $ 1,293 $ 1,051
Weighted-average common shares outstanding (for basic calculation) (in shares)                 394.0 436.0 444.0
Effect of dilutive share-based employee compensation (in shares)                 6.0 7.0 9.0
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) (in shares)                 400.0 443.0 453.0
Basic EPS (in dollars per share) $ 1.59 $ 0.82 $ 0.94 $ 0.97 $ 0.54 $ 0.83 $ 0.72 $ 0.64 $ 4.11 $ 2.97 $ 2.37
Diluted EPS (in dollars per share) $ 1.56 $ 0.81 $ 0.93 $ 0.95 $ 0.53 $ 0.81 $ 0.71 $ 0.63 $ 4.04 $ 2.92 $ 2.32
Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation (in shares) [1]                 5.0 4.5 5.5
Continuing Operations [Member]                      
Income from continuing operations $ 204 $ 265 $ 240 $ 231 $ 169 $ 246 $ 285 $ 290 $ 994 $ 936 $ 1,006
Basic EPS (in dollars per share) $ 0.52 $ 0.65 $ 0.58 $ 0.53 $ 0.39 $ 0.56 $ 0.77 $ 0.67 $ 2.52 $ 2.15 $ 2.27
Diluted EPS (in dollars per share) $ 0.51 $ 0.64 $ 0.57 $ 0.52 $ 0.38 $ 0.55 $ 0.76 $ 0.66 $ 2.48 $ 2.11 $ 2.22
Discontinued Operations [Member]                      
Income from discontinued operations $ 418 $ 74 $ 151 $ 190 $ 66 $ 116 $ (18) $ (15) $ 625 [2] $ 357 $ 45
Basic EPS (in dollars per share) $ 1.07 $ 0.17 $ 0.36 $ 0.44 $ 0.15 $ 0.27 $ (0.05) $ (0.03) $ 1.59 $ 0.82 $ 0.10
Diluted EPS (in dollars per share) $ 1.05 $ 0.17 $ 0.36 $ 0.43 $ 0.15 $ 0.26 $ (0.05) $ (0.03) $ 1.56 $ 0.81 $ 0.10
[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.
v3.6.0.2
Discontinued Operations (Details)
$ in Millions
 2 Months Ended 3 Months Ended 4 Months Ended 12 Months Ended
Dec. 31, 2016
USD ($)
restaurants
Sep. 03, 2016
USD ($)
Jun. 11, 2016
USD ($)
Mar. 19, 2016
USD ($)
Sep. 05, 2015
USD ($)
Jun. 13, 2015
USD ($)
Mar. 21, 2015
USD ($)
Dec. 31, 2016
USD ($)
restaurants
Dec. 26, 2015
USD ($)
Dec. 31, 2016
USD ($)
restaurants
Dec. 26, 2015
USD ($)
Dec. 27, 2014
USD ($)
Oct. 31, 2016
USD ($)
restaurants
Income Statement [Abstract]                          
Refranchising (gain) loss   $ 21 $ 53 $ 3 $ 4 $ 72 $ 7 $ 64 $ 49 $ 141 $ (23) $ 16  
Interest income [1]                   (307) (141) (143)  
Asset Impairment Charges                   15 17 15  
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]                          
Total Current Assets $ 1,482             1,482 1,687 1,482 1,687    
Total assets classified as discontinued operations 5,478             5,478 8,061 5,478 8,061    
Current liablilities of discontinued operations 1,369             1,369 3,087 1,369 3,087    
Long-term debt 9,061             9,061 3,007 9,061 3,007    
Total liabilities of discontinued operations $ 11,134             $ 11,134 7,086 $ 11,134 7,086    
Number of Stores | restaurants 43,500             43,500   43,500      
Continuing Operations [Member]                          
Income Statement [Abstract]                          
Company sales   993 996 887 1,033 1,051 944 $ 1,324 1,328 $ 4,200 4,356 4,503  
Franchise and license fees and income   508 481 477 494 475 467 700 648 2,166 2,084 2,084  
Company restaurant expenses                   (3,498) (3,647) (3,870)  
G&A expenses                   (1,161) (1,099) (1,028)  
Franchise and license expenses                   (202) (237) (159)  
Closures and impairment expenses                   (14) (15) (18)  
Refranchising (gain) loss                   141 (23) 16  
Interest income                   (307) (141) (143)  
Income tax provision (benefit)                   324 325 368  
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]                          
Cash and cash equivalents $ 704             704 313 704 313 341  
Accounts and notes receivable, net 370             370 324 370 324    
Inventories 36             36 40 36 40    
Prepaid expenses and other current assets 238             238 133 238 133    
Property, Plant and equipment, net 2,160             2,160 2,347 2,160 2,347    
Goodwill 541             541 571 541 571 611  
Intangible assets, net 151             151 164 151 164    
Other assets 370             370 330 370 330    
Deferred income taxes 774             774 591 774 591    
Total assets classified as discontinued operations 5,478             5,478 4,916 5,478 4,916    
Accounts payable and other current liabilities 1,132             1,132 1,074 1,132 1,074    
Income taxes payable 37             37 55 37 55    
Long-term debt 9,061             9,061 3,007 9,061 3,007    
Other liabilities and deferred credits 704             704 745 704 745    
Discontinued Operations [Member]                          
Income Statement [Abstract]                          
Company sales                   5,667 [2] 6,789 6,821  
Franchise and license fees and income                   109 [2] 120 113  
Company restaurant expenses                   (4,766) [2] (5,913) (6,011)  
G&A expenses                   (406) [2],[3] (405) [3] (391)  
Franchise and license expenses                   (45) [2] (48) (44)  
Closures and impairment expenses                   (57) [2] (64) (517) [4]  
Refranchising (gain) loss                   12 [2] 13 17  
Other income [5]                   49 [2] 27 52  
Interest income                   8 [2] 7 13  
Income from discontinued operations before income taxes                   571 [2] 526 53  
Income tax provision (benefit)                   65 [2],[6] (164) (38)  
Income from discontinued operations - including noncontrolling interests                   636 [2] 362 15  
Income (loss) from discontinued operations - noncontrolling interests                   (11) [2] (5) 30  
Income from discontinued operations - YUM! Brands, Inc.   $ 418 $ 74 $ 151 $ 190 $ 66 $ 116 (18) (15) 625 [2] 357 45  
Costs associated with the planned spin-off of the China business                   68 9    
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]                          
Cash and cash equivalents                 424   424    
Accounts and notes receivable, net                 53   53    
Inventories                 189   189    
Prepaid expenses and other current assets                 108   108    
Total Current Assets 0             0 774 0 774    
Property, Plant and equipment, net                 1,841   1,841    
Goodwill                 85   85    
Intangible assets, net                 107   107    
Investments in unconsolidated affiliates                 61   61    
Other assets                 192   192    
Deferred income taxes                 85   85    
Noncurrent assets of discontinued operations 0             0 2,371 0 2,371    
Total assets classified as discontinued operations                 3,145   3,145   $ 3,363
Accounts payable and other current liabilities                 912   912    
Income taxes payable                 22   22    
Current liablilities of discontinued operations 0             0 934 0 934    
Long-term debt                 34   34    
Other liabilities and deferred credits                 213   213    
Liabilities, Noncurrent 0             0 247 0 247    
Total liabilities of discontinued operations                 1,181   1,181   $ 1,310
Redeemable noncontrolling interest 0             $ 0 $ 6 0 6    
Closures and impairment (income) expenses                          
Income Statement [Abstract]                          
Closures and impairment expenses                   (14) (15) (18)  
Little Sheep [Member] | Discontinued Operations [Member]                          
Income Statement [Abstract]                          
Income tax provision (benefit)                   (233)      
Impairment effect on tax expense (benefit)                       76  
Loss attributable to non-controlling interest resulting from Little Sheep Acquisition and Subsequent Impairment                       26  
Gain (Loss) from Little Sheep Acquistion and Subsequent Impairment                       361  
Little Sheep [Member] | Fair Value, Inputs, Level 3 [Member] | Non-recurring basis | Closures and impairment (income) expenses | Discontinued Operations [Member]                          
Income Statement [Abstract]                          
Asset Impairment Charges                       463  
CHINA | Continuing Operations [Member]                          
Income Statement [Abstract]                          
Franchise and license fees and income [7]                   240      
Discontinued Operation, Amount of Continuing Cash Flows after Disposal $ 16                        
CHINA | Restatement Adjustment [Member] | Continuing Operations [Member]                          
Income Statement [Abstract]                          
Franchise and license fees and income                   208 244 242  
Value Added Tax                   $ 13 $ 16 $ 16  
Entity Operated Units [Member] | CHINA | Discontinued Operations [Member]                          
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]                          
Number of Stores | restaurants                         5,898
Entity Operated Units [Member] | CHINA | Little Sheep [Member] | Discontinued Operations [Member]                          
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]                          
Number of Stores | restaurants                         39
Franchised Units [Member] | CHINA | Continuing Operations [Member]                          
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]                          
Number of Stores | restaurants                         5,859
Franchised Units [Member] | CHINA | Little Sheep [Member] | Discontinued Operations [Member]                          
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]                          
Number of Stores | restaurants                         211
[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] During 2014, we recorded a $463 million non-cash impairment charge related to the investment in China's Little Sheep restaurant business. The tax benefit associated with these losses of $76 million and the losses allocated to the noncontrolling founding shareholder of $26 million resulted in a net impact of $361 million on Income from discontinued operations - YUM! Brands, Inc.
[5] Primarily relates to equity income from KFC franchisees in which Yum China owns a minority interest.
[6] 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.
[7] 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.
v3.6.0.2
Items Affecting Comparability of Net Income and Cash Flows (Details) - USD ($)
$ in Millions
 3 Months Ended 4 Months Ended 12 Months Ended
Sep. 03, 2016
Jun. 11, 2016
Mar. 19, 2016
Sep. 05, 2015
Jun. 13, 2015
Mar. 21, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Facility Actions [Line Items]                      
Refranchising (gain) loss $ (21) $ (53) $ (3) $ (4) $ (72) $ (7) $ (64) $ (49) $ (141) $ 23 $ (16)
Costs associated with KFC U.S. Acceleration Agreement   8 $ 9 $ 21 $ 8 $ 2 9 41      
Store closure (income) costs(a) [1]                 (1) (2) 3
Business Combination                      
Pension settlement charges                 (32) (5)  
Facility Actions [Abstract]                      
Asset Impairment Charges                 15 17 15
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                 11 (115) (2)
General and Administrative Expense [Member]                      
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost                 30    
Closures and impairment (income) expenses                      
Facility Actions [Abstract]                      
Closure and impairment (income) expenses                 14 15 18
MEXICO                      
Facility Actions [Line Items]                      
Transfer of Financial Assets Accounted for as Sales, Cash Proceeds Received for Assets Derecognized, Amount               $ 58   58  
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                      
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal                   80  
Taco Bell Global Division [Member]                      
Facility Actions [Line Items]                      
Store closure (income) costs(a) [1]                 0 (1) 0
Facility Actions [Abstract]                      
Asset Impairment Charges                 3 4 3
Closure and impairment (income) expenses                 3 3 3
Pizza Hut Global Division [Member]                      
Facility Actions [Line Items]                      
Store closure (income) costs(a) [1]                 (4) (2) 1
Facility Actions [Abstract]                      
Asset Impairment Charges                 4 5 4
Closure and impairment (income) expenses                 0 3 5
KFC Global Division [Member]                      
Facility Actions [Line Items]                      
Store closure (income) costs(a) [1]                 3 1 2
Facility Actions [Abstract]                      
Asset Impairment Charges                 8 8 8
Closure and impairment (income) expenses                 11 9 10
Pizza Hut | AUSTRALIA                      
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                 (11)    
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 27 $ 5         39   71    
KFC Global Division [Member]                      
Facility Actions [Line Items]                      
Refranchising (gain) loss [2]                 (20) 33 (18)
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  
Unallocated and General and administrative expenses [Domain] | Franchise and license expenses [Member]                      
Facility Actions [Line Items]                      
Costs associated with KFC U.S. Acceleration Agreement                 26 72  
Pizza Hut Global Division [Member]                      
Facility Actions [Line Items]                      
Refranchising (gain) loss [2],[3]                 (50) 55 6
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  
Taco Bell Global Division [Member]                      
Facility Actions [Line Items]                      
Refranchising (gain) loss                 (71) (65) (4)
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                 120    
Advertising [Domain] | KFC Global Division [Member]                      
Facility Actions [Line Items]                      
Costs associated with KFC U.S. Acceleration Agreement                 60    
Incremental Advertising [Domain] | KFC Global Division [Member]                      
Facility Actions [Line Items]                      
Costs associated with KFC U.S. Acceleration Agreement                 20 10  
U.S. Pension Plans [Member]                      
Facility Actions [Line Items]                      
Deferred vested pension payout [4]                 260 16  
Business Combination                      
Pension settlement charges [5]                 (32) $ 5 $ 6
U.S. Pension Plans [Member] | Deferred Vested Project [Member]                      
Facility Actions [Line Items]                      
Deferred vested pension payout [4]                 205    
Business Combination                      
Pension settlement charges [5] $ 1           $ 24   $ 25    
[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, 2016 or December 26, 2015.
[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] In 2016, we recognized a net gain of $11 million related to the reclassification of accumulated translation adjustments associated with Pizza Hut Australia upon entering into a master franchising agreement for that business that was deemed a complete liquidation of the Pizza Hut Australia foreign entity.
[4] For discussion of the settlement payments and settlement losses, see Note 5.
[5] Settlement losses result when benefit payments exceed the sum of the service cost and interest cost within a plan during the year.
v3.6.0.2
Supplemental Cash Flow Data (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Dec. 28, 2013
Continuing Operations [Member]        
Cash Paid For:        
Interest $ 297 $ 145 $ 141  
Income taxes 317 390 495 [1]  
Significant Non-Cash Investing and Financing Activities:        
Capital lease obligations incurred 9 25 17  
Cash and Cash Equivalents, at Carrying Value 704 313 341  
Cash, Cash Equivalents and Restricted Cash as presented in the Consolidated Statement of Cash Flows 812 334 357 $ 291
Prepaid Expenses and Other Current Assets [Member]        
Significant Non-Cash Investing and Financing Activities:        
Restricted Cash and Cash Equivalents, Current 55      
Prepaid Expenses and Other Current Assets [Member] | Continuing Operations [Member]        
Significant Non-Cash Investing and Financing Activities:        
Restricted Cash and Cash Equivalents, Current 55 [2] 0 0  
Other Assets [Member] | Continuing Operations [Member]        
Significant Non-Cash Investing and Financing Activities:        
Restricted Cash and Cash Equivalents, Noncurrent [3] $ 53 $ 21 16  
2004 to 2008 [Member]        
Significant Non-Cash Investing and Financing Activities:        
Income Tax Examination Payment     $ 200  
[1] 2014 includes $200 million of cash paid related to the resolution of a valuation issue with the Internal Revenue Service ("IRS") related to years 2004 through 2008. See Note 18.
[2] Restricted cash within Prepaid expenses and other current assets primarily relates to the Taco Bell Securitization. See Note 11.
[3] Primarily cash balances required to meet statutory minimum net worth requirements for legal entities which enter into U.S. franchise agreements and trust accounts related to our self-insurance programs.
v3.6.0.2
Franchise and License Fees and Income (Details) - Continuing Operations [Member] - USD ($)
$ in Millions
 3 Months Ended 4 Months Ended 12 Months Ended
Sep. 03, 2016
Jun. 11, 2016
Mar. 19, 2016
Sep. 05, 2015
Jun. 13, 2015
Mar. 21, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Franchise And License Fees And Income [Abstract]                      
Initial fees, including renewal fees                 $ 81 $ 78 $ 76
Initial franchise fees included in refranchising (gain) loss                 (9) (6) (2)
Initial fees, net                 72 72 74
Continuing fees and rental income                 2,094 2,012 2,010
Franchise and license fees and income $ 508 $ 481 $ 477 $ 494 $ 475 $ 467 $ 700 $ 648 $ 2,166 $ 2,084 $ 2,084
v3.6.0.2
Other (Income) Expense (Details) - Continuing Operations [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Other Income and Expenses [Line Items]      
Foreign currency transaction (gain) loss and other (income) expense, before tax $ (2) $ 17 $ 11
Loss associated with corporate aircraft 9 [1] 0 0
Other (income) expense $ 7 $ 17 $ 11
[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 is classified as held for sale at the end of 2016 within Prepaid expenses and other current assets. The losses associated with the sale and planned sale reflect the shortfall of the expected or actual proceeds, less any selling costs, over the carrying value of the aircraft. See Note 5.
v3.6.0.2
Supplemental Balance Sheet Information (Details) - Continuing Operations [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Prepaid Expenses and Other Current Assets      
Income tax receivable $ 61 $ 39  
Assets held for sale [1] 51 10  
Other prepaid expenses and current assets 126 84  
Prepaid expenses and other current assets 238 133  
Property, Plant and equipment, gross 4,189 4,395  
Accumulated depreciation and amortization (2,029) (2,048)  
Property, Plant and equipment, net 2,160 2,347  
Depreciation and amortization 294 304 $ 310
Accounts Payable and Other Current Liabilities      
Accounts payable 200 181  
Accrued capital expenditures 44 46  
Accrued compensation and benefits 380 281  
Dividends payable 106 197  
Accrued taxes, other than income taxes 64 74  
Other current liabilities 338 295  
Accounts payable and other current liabilities 1,132 1,074  
Land      
Prepaid Expenses and Other Current Assets      
Property, Plant and equipment, gross 441 480  
Buildings and improvements      
Prepaid Expenses and Other Current Assets      
Property, Plant and equipment, gross 2,184 2,232  
Capital leases, primarily buildings      
Prepaid Expenses and Other Current Assets      
Property, Plant and equipment, gross 154 168  
Machinery and equipment      
Prepaid Expenses and Other Current Assets      
Property, Plant and equipment, gross $ 1,410 $ 1,515  
[1] Reflects the carrying value of restaurants we have offered for sale to franchisees, excess properties that we do not intend to use for restaurant operations in the future and a corporate aircraft we expect to sell in 2017.
v3.6.0.2
Goodwill and Intangible Assets (Details) - Continuing Operations [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Changes in the carrying amount of goodwill [Roll Forward]      
Goodwill, gross $ 558 $ 588 $ 628
Accumulated impairment losses (beginning balance) (17) (17)  
Goodwill, net 541 571 611
Acquisitions   2  
Disposals and other, net [1] (30) (42)  
Accumulated impairment losses (ending balance) (17) (17)  
KFC      
Changes in the carrying amount of goodwill [Roll Forward]      
Goodwill, gross 270 282 314
Accumulated impairment losses (beginning balance) 0 0  
Goodwill, net 270 282 314
Acquisitions   1  
Disposals and other, net [1] (12) (33)  
Accumulated impairment losses (ending balance) 0 0  
Pizza Hut      
Changes in the carrying amount of goodwill [Roll Forward]      
Goodwill, gross 177 193 200
Accumulated impairment losses (beginning balance) (17) (17)  
Goodwill, net 160 176 183
Acquisitions   0  
Disposals and other, net [1] (16) (7)  
Accumulated impairment losses (ending balance) (17) (17)  
Taco Bell      
Changes in the carrying amount of goodwill [Roll Forward]      
Goodwill, gross 111 113 114
Accumulated impairment losses (beginning balance) 0 0  
Goodwill, net 111 113 $ 114
Acquisitions   1  
Disposals and other, net [1] (2) (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.
v3.6.0.2
Goodwill and Intangible Assets (Details 2) - Continuing Operations [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Definite-lived intangible assets      
Gross Carrying Amount $ 275 $ 283  
Accumulated Amortization (155) (150)  
Definite-lived intangible assets, amortization expense 12 13 $ 13
Approximate amortization expense for definite-lived intangible assets - 2016 10    
Approximate amortization expense for definite-lived intangible assets - 2017 9    
Approximate amortization expense for definite-lived intangible assets - 2018 7    
Approximate amortization expense for definite-lived intangible assets - 2019 7    
Approximate amortization expense for definite-lived intangible assets - 2020 6    
Franchise contract rights [Member]      
Definite-lived intangible assets      
Gross Carrying Amount 99 99  
Accumulated Amortization (73) (70)  
Lease tenancy rights [Member]      
Definite-lived intangible assets      
Gross Carrying Amount 56 55  
Accumulated Amortization (9) (9)  
Reacquired franchise rights [Member]      
Definite-lived intangible assets      
Gross Carrying Amount 84 92  
Accumulated Amortization (49) (49)  
Other [Member]      
Definite-lived intangible assets      
Gross Carrying Amount 36 37  
Accumulated Amortization (24) (22)  
KFC | Trademarks/brands [Member]      
Indefinite-lived intangible assets      
Gross Carrying Amount $ 31 $ 31  
v3.6.0.2
Short-term Borrowings and Long-term Debt (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Sep. 03, 2016
Jun. 11, 2016
USD ($)
Dec. 31, 2016
USD ($)
Months
Years
Rate
Dec. 26, 2015
USD ($)
Dec. 27, 2014
USD ($)
Debt Instrument [Line Items]          
Other Short-term Borrowings     $ 9 $ 9  
Short-term Debt, including debt issuance costs     74 921  
Debt Issuance Costs, Current, Net     (8) 0  
Short-term Borrowings          
Total Short-term Borrowings     66 921  
Long-term Debt          
Long-term debt including hedge accounting adjustment     9,061 3,007  
Capital Lease Obligations Excluded from Annual Maturities     121    
Line of Credit Facility [Abstract]          
Capital Lease Obligations, Noncurrent     121 134  
Long-term debt and capital less obligations, including current maturities and debt issuance costs     9,205 3,335  
Debt Issuance Costs, Noncurrent, Net     (79) (16)  
Senior Unsecured Notes [Abstract]          
Long-term Debt, Current Maturities     65 312  
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
2016     64    
2017     393    
2018     324    
2019     1,215    
2020     760    
Thereafter     6,337    
Total     9,093    
Interest expense on short-term borrowings and long-term debt     $ 333 153 $ 151
Senior Unsecured Notes Due March 2018 [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date     Oct. 19, 2007    
Maturity date     Mar. 15, 2018    
Principal amount     $ 325    
Interest rate, stated (in hundredths)     6.25%    
Interest rate, effective (in hundredths) [1]     6.36%    
Senior Unsecured Notes Due November 2037 [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date     Oct. 19, 2007    
Maturity date     Nov. 15, 2037    
Principal amount     $ 325    
Interest rate, stated (in hundredths)     6.88%    
Interest rate, effective (in hundredths) [1]     7.45%    
Senior Unsecured Notes Due September 2019 [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date     Aug. 25, 2009    
Maturity date     Sep. 15, 2019    
Principal amount     $ 250    
Interest rate, stated (in hundredths)     5.30%    
Interest rate, effective (in hundredths) [1]     5.59%    
Senior Unsecured Notes Due November 2020 [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date     Aug. 31, 2010    
Maturity date     Nov. 01, 2020    
Principal amount     $ 350    
Interest rate, stated (in hundredths)     3.88%    
Interest rate, effective (in hundredths) [1]     4.01%    
Senior Unsecured Notes Due November 2021 [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date     Aug. 29, 2011    
Maturity date     Nov. 01, 2021    
Principal amount     $ 350    
Interest rate, stated (in hundredths)     3.75%    
Interest rate, effective (in hundredths) [1]     3.88%    
Senior Unsecured Notes Due October 2023 [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date     Oct. 31, 2013    
Maturity date     Nov. 01, 2023    
Principal amount     $ 325    
Interest rate, stated (in hundredths)     3.88%    
Interest rate, effective (in hundredths) [1]     4.01%    
Senior Unsecured Notes Due October 2043 [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date     Oct. 31, 2013    
Maturity date     Nov. 01, 2043    
Principal amount     $ 275    
Interest rate, stated (in hundredths)     5.35%    
Interest rate, effective (in hundredths) [1]     5.42%    
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 Facility [Member]          
Debt Instrument [Line Items]          
Proceeds from Issuance of Debt     500    
Long-term Debt     $ 500 0  
Senior Unsecured Notes [Abstract]          
Maturity date     Jun. 16, 2021    
Interest rate, effective (in hundredths) | Rate     3.01%    
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%    
Secured Debt [Member] | Term Loan B Facility [Member]          
Debt Instrument [Line Items]          
Proceeds from Issuance of Debt     $ 2,000    
Long-term Debt     $ 1,990 0  
Senior Unsecured Notes [Abstract]          
Maturity date     Jun. 16, 2023    
Interest rate, effective (in hundredths) | Rate     3.91%    
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%    
Secured Debt [Member] | Class A-2 Notes [Member]          
Debt Instrument [Line Items]          
Proceeds from Issuance of Debt     $ 2,300    
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    
Unused Credit Facility     995    
Outstanding borrowings     $ 0    
Secured Debt [Member] | the Credit Agreement [Member]          
Senior Unsecured Notes [Abstract]          
Issuance date Jun. 16, 2016        
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     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, 2016    
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     $ 2,294 0  
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, 2016, 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] | Unsecured Revolving Credit Facility [Member]          
Line of Credit Facility [Abstract]          
Outstanding borrowings     $ 0 701  
Senior Unsecured Notes [Member] | Subsidiary Senior Unsecured Notes [Member]          
Debt Instrument [Line Items]          
Proceeds from Issuance of Debt     2,100    
Short-term Borrowings          
Senior Notes, Noncurrent     $ 2,100 0  
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, 2016    
Senior Unsecured Notes [Member] | Existing [Member]          
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Repayments of Lines of Credit     $ 701    
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] | YUM Senior Unsecured Notes [Member] [Domain]          
Debt Instrument [Line Items]          
Repayments of Debt   $ 300      
Short-term Borrowings          
Senior Notes, Noncurrent     $ 2,200 2,500  
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     2.75%    
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     1.75%    
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     2.00%    
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     1.00%    
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     2.50%    
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     1.50%    
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, 2016, the Securitization Entities maintained a debt service coverage ratio significantly in excess of the 1.75:1 requirement    
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     $ 55    
Line of Credit [Member] | Bridge Facility [Member]          
Debt Instrument [Line Items]          
Short-term Bank Loans and Notes Payable     0 $ 600  
Line of Credit [Member] | Variable Funding Notes [Member]          
Line of Credit Facility [Abstract]          
Line of credit facility, maximum borrowing capacity     100    
Outstanding borrowings     $ 0    
Senior Unsecured Notes [Abstract]          
Line of Credit Facility, Expiration Date     May 01, 2021    
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments [Abstract]          
Long-term Debt, Contingent Payment of Principal or Interest     Following the anticipated repayment date and any extensions thereof, additional interest will accrue on the Variable Funding Notes equal to 5.00% per year    
Long-term Debt, Maturities, Repayment Terms     subject to two additional one-year extensions at the option of the Issuer and further extensions as agreed between the Issuer and the Administrative Agent    
Letter of Credit [Member] | Revolving Facility [Member]          
Line of Credit Facility [Abstract]          
Outstanding letters of credit     $ 5    
Letter of Credit [Member] | Variable Funding Notes [Member]          
Line of Credit Facility [Abstract]          
Line of credit facility, maximum borrowing capacity     50    
Outstanding letters of credit     $ 15    
[1] 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.
v3.6.0.2
Leases (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2016
USD ($)
Years
Dec. 26, 2015
USD ($)
Dec. 27, 2014
USD ($)
Leases [Abstract]      
Approximate number of restaurants operated 2,800    
Approximate number of restaurants operated on leased land and/or buildings 2,000    
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 $ 16    
2017 16    
2018 15    
2019 15    
2020 14    
Thereafter 105    
Capital leases, total future minimum commitments 181    
Operating leases, future minimum commitments [Abstract]      
2016 171    
2017 148    
2018 128    
2019 101    
2020 85    
Thereafter 571    
Operating leases, total future minimum commitments 1,204    
Direct financing leases, lease receivables [Abstract]      
2016 3    
2017 2    
2018 2    
2019 2    
2020 1    
Thereafter 5    
Direct financing leases, total lease receivables 15    
Operating leases, lease receivables [Abstract]      
2016 40    
2017 36    
2018 30    
2019 23    
2020 20    
Thereafter 86    
Operating leases, total lease receivables 235    
Present value of minimum payments under capital leases 121 $ 134  
Unearned income associated with direct financing lease receivables 2    
Rental expense      
Minimum 213 221 $ 243
Contingent 29 34 37
Total rental expense 242 255 280
Rental income $ 79 $ 73 $ 83
Approximate number of units leased or subleased to franchisees 700    
v3.6.0.2
Derivative Instruments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Derivative, Notional Amount $ 1,550  
Secured Debt [Member] | Term Loan B Facility [Member]    
Long-term Debt 1,990 $ 0
Cash Flow Hedging [Member]    
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months 3  
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member]    
Derivative, Notional Amount $ 437 $ 470
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 Jan. 23, 2017  
v3.6.0.2
Derivative Instruments (Details 2) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Derivative Instruments, Gain (Loss) [Line Items]      
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax $ (16) $ 1 $ 0
Cash Flow Hedging [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax (19) (4)  
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax 3 5  
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 47 0  
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net (4) 0  
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 1 32  
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net $ (4) $ (41)  
v3.6.0.2
Fair Value Disclosures (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
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 $ 11 $ 10
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] 8 10
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 3 [2] 0
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 3 0
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 8 19
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 47 0
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 24 21
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 7 0
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 0 2
Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Senior Notes, Noncurrent 2,100 0
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] 2,175 0
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 2,500
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] 2,216 2,393
Secured Debt [Member] | Securitization Notes [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Senior Notes, Noncurrent 2,294 0
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] 2,315 0
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 0
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] 501 0
Secured Debt [Member] | Term Loan B Facility [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term Debt 1,990 0
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] $ 2,016 $ 0
[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 planned sale reflects the shortfall of the expected proceeds, less any selling costs, over the carrying value of the aircraft. The expected proceeds are 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.
v3.6.0.2
Pension, Retiree Medical and Retiree Savings Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Dec. 31, 2016
Dec. 26, 2015
Change in benefit obligation          
Defined Benefit Plan, Administration Expenses $ (6.0) $ (5.0)      
Amounts recognized as a loss in Accumulated Other Comprehensive Income:          
Accumulated benefit obligation       $ 960.0 $ 1,088.0
Components of net periodic benefit cost:          
Amortization of prior service cost 5.0 2.0      
Amortization of net loss (7.0) 46.0      
Pension losses in accumulated other comprehensive income (loss):          
Unrealized gains (losses) arising during the year $ (63.0) 101.0 $ (209.0)    
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 Recognized $ 14.0 13.0 12.0    
Pension settlement charges $ (32.0) (5.0)      
U.S. Pension Plans [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Defined Benefit Plan, Amount and Timing of Assets Expected to be Returned to Employer During Following 12 Month Period We do not anticipate any plan assets being returned to the Company during 2017 for any U.S. plans.        
Change in benefit obligation          
Benefit obligation at beginning of year $ 1,134.0 1,301.0      
Service cost 17.0 18.0 17.0    
Interest cost 54.0 55.0 54.0    
Plan amendments 4.0 28.0      
Curtailment (4.0) (2.0)      
Special termination benefits 3.0 1.0 3.0    
Benefits paid (26.0) (50.0)      
Settlement payments [1] (260.0) (16.0)      
Actuarial (gain) loss 77.0 (196.0)      
Benefit obligation at end of year 993.0 1,134.0 1,301.0    
Change in plan assets          
Fair value of plan assets at beginning of year 1,004.0 991.0      
Actual return on plan assets 87.0 (10.0)      
Employer contributions 38.0 94.0      
Settlement payments [1] (260.0) (16.0)      
Benefits paid (26.0) (50.0)      
Defined Benefit Plan, Administrative expenses (6.0) (5.0)      
Fair value of plan assets at end of year 837.0 1,004.0 991.0    
Funded status at end of year       $ (156.0) (130.0)
Benefit Payments [Abstract]          
2016       128.0  
2017       45.0  
2018       42.0  
2019       43.0  
2020       46.0  
2021 - 2025       259.0  
Amounts recognized in the Consolidated Balance Sheet:          
Accrued benefit liability - current       (16.0) (13.0)
Accrued benefit liability - non-current       (140.0) (117.0)
Accrued benefit amounts recognized       (156.0) (130.0)
Amounts recognized as a loss in Accumulated Other Comprehensive Income:          
Actuarial net gain       (150.0) (138.0)
Prior service cost       (30.0) (32.0)
Amounts recognized as a loss in Accumulated Other Comprehensive Income (170.0) (319.0) (319.0) (180.0) (170.0)
Information for pension plans with an accumulated benefit obligation in excess of plan assets:          
Projected benefit obligation       993.0 101.0
Accumulated benefit obligation       960.0 88.0
Fair value of plan assets       837.0 0.0
Information for pension plans with a projected benefit obligation in excess of plan assets:          
Projected benefit obligation       993.0 1,134.0
Accumulated benefit obligation       960.0 1,088.0
Fair value of plan assets       $ 837.0 $ 1,004.0
Components of net periodic benefit cost:          
Service cost 17.0 18.0 17.0    
Interest cost 54.0 55.0 54.0    
Amortization of prior service cost [2] 6.0 1.0 1.0    
Expected return on plan assets (65.0) (62.0) (56.0)    
Amortization of net loss 6.0 45.0 17.0    
Net periodic benefit cost 18.0 57.0 33.0    
Additional loss recognized due to:          
Special termination benefits 3.0 1.0 3.0    
Pension losses in accumulated other comprehensive income (loss):          
Beginning of year (170.0) (319.0)      
Unrealized gains (losses) arising during the year (54.0) 124.0      
Curtailment gain 4.0 2.0      
Amortization of net loss 6.0 45.0      
Amortization of prior service cost 6.0 1.0      
Prior service cost (4.0) (28.0)      
End of year (180.0) $ (170.0) $ (319.0)    
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 7.0        
Estimated prior service cost that will be amortized from accumulated other comprehensive loss into net periodic pension cost next year $ 5.0        
Weighted-average assumptions used to determine benefit obligations at the measurement dates:          
Discount rate (in hundredths)       4.60% 4.90%
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) 4.90% 4.30% 5.40%    
Long-term rate return on plan assets (in hundredths) 6.75% 6.75% 6.90%    
Rate of compensation increase (in hundredths) 3.75% 3.75% 3.75%    
Plan Assets [Abstract]          
Fair value of plan assets by asset category $ 1,004.0 $ 1,004.0 $ 991.0 $ 837.0 $ 1,004.0
Value of mutual fund held as an investment that includes YUM stock       0.3 0.5
Approximate percentage of total plan assets in investment that includes YUM stock (in hundredths) 1.00%        
Net (payable) receivable for unsettled transactions [3]       19.0 20.0
Effect of one-percentage point change in assumed health care cost trend rates [Abstract]          
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year $ 0.0        
Pension settlement charges [4] (32.0) 5.0 6.0    
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] 3.0        
Fair value of plan assets at end of year 2.0 3.0 [5]      
Plan Assets [Abstract]          
Fair value of plan assets by asset category 2.0 3.0 [5]   2.0 3.0 [5]
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 [5],[6] 221.0        
Fair value of plan assets at end of year [6] 172.0 221.0 [5]      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [6] 172.0 221.0 [5]   172.0 221.0 [5]
U.S. Pension Plans [Member] | Fair Value, Inputs, Level 2 [Member] | Cash Equivalents [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year [5],[7] 9.0        
Fair value of plan assets at end of year [7] 12.0 9.0 [5]      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [7] 12.0 9.0 [5]   12.0 9.0 [5]
U.S. Pension Plans [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities - U.S. Large cap [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year [5],[6] 310.0        
Fair value of plan assets at end of year [6] 244.0 310.0 [5]      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [6] 244.0 310.0 [5]   244.0 310.0 [5]
U.S. Pension Plans [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities - U.S. Mid cap [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year [5],[6] 50.0        
Fair value of plan assets at end of year [6] 41.0 50.0 [5]      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [6] 41.0 50.0 [5]   41.0 50.0 [5]
U.S. Pension Plans [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities - U.S. Small cap [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year [5],[6] 51.0        
Fair value of plan assets at end of year [6] 43.0 51.0 [5]      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [6] 43.0 51.0 [5]   43.0 51.0 [5]
U.S. Pension Plans [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities - Non-U.S. [Member]          
Change in plan assets          
Fair value of plan assets at beginning of year [5],[6] 100.0        
Fair value of plan assets at end of year [6] 83.0 100.0 [5]      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [6] 83.0 100.0 [5]   83.0 100.0 [5]
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 [5],[8] 68.0        
Fair value of plan assets at end of year [8] 76.0 68.0 [5]      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [8] 76.0 68.0 [5]   76.0 68.0 [5]
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 [5],[9] 195.0        
Fair value of plan assets at end of year [9] 152.0 195.0 [5]      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [9] 152.0 195.0 [5]   152.0 195.0 [5]
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 [5],[9] 17.0        
Fair value of plan assets at end of year [9] 31.0 17.0 [5]      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [9] 31.0 17.0 [5]   31.0 17.0 [5]
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 [3],[5] 1,024.0        
Fair value of plan assets at end of year [3] 856.0 1,024.0 [5]      
Plan Assets [Abstract]          
Fair value of plan assets by asset category [3] 856.0 1,024.0 [5]   856.0 1,024.0 [5]
Foreign Pension Plan [Member]          
Change in benefit obligation          
Benefit obligation at beginning of year 233.0        
Benefit obligation at end of year 261.0 233.0      
Change in plan assets          
Fair value of plan assets at beginning of year 291.0        
Fair value of plan assets at end of year 305.0 291.0      
Plan Assets [Abstract]          
Fair value of plan assets by asset category 305.0 291.0   305.0 291.0
Post-retirement Plan [Member]          
Benefit Payments [Abstract]          
2016       5.0  
2017       5.0  
2018       5.0  
2019       5.0  
2020       5.0  
2021 - 2025       19.0  
Amounts recognized as a loss in Accumulated Other Comprehensive Income:          
Actuarial net gain       (10.0) (8.0)
Accumulated benefit obligation       $ 55.0 $ 59.0
Components of net periodic benefit cost:          
Net periodic benefit cost $ 3.0 $ 3.0 $ 5.0    
Assumed health care cost trend rates [Abstract]          
Assumed health care cost trend rate (in hundredths) 6.60% 6.80%      
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 $ 4.0        
One percentage-point decrease in assumed health care cost trend rates, maximum impact to service and interest cost 4.0        
One percentage-point increase in assumed health care cost trend rates, maximum impact to post-retirement benefit obligation 4.0        
One percentage-point decrease in assumed health care cost trend rates, maximum impact to post-retirement benefit obligation $ 4.0        
Equity Securities [Member] | U.S. Pension Plans [Member]          
Plan Assets [Abstract]          
Equity securities, target allocation (in hundredths) 50.00%        
Fixed Income Funds [Member] | U.S. Pension Plans [Member]          
Plan Assets [Abstract]          
Equity securities, target allocation (in hundredths) 50.00%        
[1] For discussion of the settlement payments and settlement losses, 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] 2016 and 2015 exclude net unsettled trade payables of $19 million and $20 million, respectively.
[4] Settlement losses result when benefit payments exceed the sum of the service cost and interest cost within a plan during the year.
[5]

[6] Securities held in common trusts
[7] Short-term investments in money market funds
[8] Investments held directly by the Plan.
[9] Includes securities held in common trusts and investments held directly by the Plan
v3.6.0.2
Share-based and Deferred Compensation Plans (Details)
$ / shares in Units, shares in Thousands, $ in Millions
 2 Months Ended 4 Months Ended 10 Months Ended 12 Months Ended
Dec. 31, 2016
USD ($)
groups
$ / shares
shares
Dec. 31, 2016
USD ($)
groups
$ / shares
shares
Oct. 31, 2016
$ / shares
shares
Dec. 31, 2016
USD ($)
$ / shares
groups
shares
Dec. 26, 2015
USD ($)
$ / shares
shares
Dec. 27, 2014
USD ($)
$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of stock award plans in effect         4  
Award Valuation            
Risk-free interest rate (in hundredths)       1.40% 1.30% 1.60%
Expected term (years)       6 years 5 months 6 years 5 months 6 years 2 months
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate       27.00% 26.90% 29.70%
Expected dividend yield (in hundredths)       2.60% 2.20% 2.10%
Number of homogeneous groups appropriate to group awards into when estimating expected term | groups 2,000,000 2,000,000   2,000,000    
Summary of award activity - Stock options and SARs, additional disclosures [Abstract]            
Options outstanding at the end of the year (in shares) | shares 1,341 1,341   1,341    
SARs outstanding at the end of the year (in shares) | shares 19,901 19,901   19,901    
Options outstanding at the end of the year, Weighted-average exercise price (in dollars per share) | $ / shares $ 33.33 $ 33.33   $ 33.33    
SARs outstanding at the end of the year, Weighted-average exercise price (in dollars per share) | $ / shares $ 41.28 $ 41.28   $ 41.28    
Impact on net income [Abstract]            
Cash received from stock options exercises       $ 5 $ 12 $ 29
Tax benefit realized on tax returns from tax deductions associated with stock options and SARs exercised       $ 109    
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     4,329      
Exercised (in shares) | shares (631)   (5,886)      
Forfeited or expired (in shares) | shares (119)   (1,101)      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ / shares [1] $ 52.13   $ 70.66      
Summary of award activity - Stock options and SARs, additional disclosures [Abstract]            
Granted, Weighted-average exercise price (in dollars per share) | $ / shares [1]     70.64      
Exercised, Weighted-average exercise price (in dollars per share) | $ / shares [1] $ 24.66   $ 40.84      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value $ 479 $ 479   $ 479    
Exercisable at the end of the year (in shares) | shares 13,710 13,710   13,710    
Exercisable at the end of the year, Weighted-average exercise price (in dollars per share) | $ / shares [1] $ 35.37 $ 35.37   $ 35.37    
Share Based Compensation Arrangement By Share Based Payment Award, Options, Exercisable Weighted Average Remaining Contractual Term | $ / shares [1]       4.21    
Exercisable at the end of the year, Weighted-average remaining contractual term (in years) | $ / shares [1]       5.63    
Exercisable at the end of the year, Aggregate intrinsic value (in dollars) $ 383 $ 383   $ 383    
Options outstanding at the end of the year (in shares) | shares 21,242 [2] 21,242 [2] 23,275 21,242 [2] 25,933  
Options outstanding at the end of the year, Weighted-average exercise price (in dollars per share) | $ / shares [1] $ 40.78 $ 40.78 $ 57.20 $ 40.78 $ 51.79  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares       $ 14.40 $ 15.95 $ 17.28
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value       $ 263 $ 153 $ 141
Unrecognized compensation cost $ 61 $ 61   61    
Restricted Stock Units And Performance Share Units [Member]            
Summary of award activity - Stock options and SARs, additional disclosures [Abstract]            
Unrecognized compensation cost $ 21 $ 21   $ 21    
Unvested RSUs and PSUs | shares 900 900   900    
Long Term Incentive Plans [Member]            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of stock award plans in effect 1 1   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 27,000 27,000   27,000    
Restaurant General Manager Stock Option Plan [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       4 years 9 months    
Vesting period (in years)       4 years    
Executive stock 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%    
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    
Stock Options and Stock Appreciation Rights [Member]            
Impact on net income [Abstract]            
Award Decrease due to Spin | shares [3]     (1,283)      
Restricted Stock Units And Performance Share Units [Member]            
Impact on net income [Abstract]            
Award Decrease due to Spin | shares     0      
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       $ 28    
Continuing Operations [Member]            
Impact on net income [Abstract]            
Share-based Compensation Expense       80 [4] 46 45
Deferred Tax Benefit recognized       26 15 14
EID compensation expense not share-based       5 1 8
Tax benefit realized on tax returns from tax deductions associated with stock options and SARs exercised         62 58
General and administrative expenses       1,161 1,099 1,028
Continuing Operations [Member] | Stock Options and Stock Appreciation Rights [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       41 42 34
Impact on net income [Abstract]            
Share-based Compensation Expense       38 41 39
Continuing Operations [Member] | Performance Share Units [Member]            
Impact on net income [Abstract]            
Share-based Compensation Expense       4 2 1
Continuing Operations [Member] | Restricted Stock Units (RSUs) [Member]            
Impact on net income [Abstract]            
Share-based Compensation Expense       38 $ 3 $ 5
Unallocated amounts to segment [Member] | Continuing Operations [Member]            
Impact on net income [Abstract]            
Share-based Compensation Expense [4]   $ 30   $ 30    
[1] Activity and amounts that occurred after October 31, 2016 reflect modifications related to the Separation.
[2] Outstanding awards include 1,341 options and 19,901 SARs with weighted average exercise prices of $33.33 and $41.28, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.
[3] (b)Adjustment to maintain intrinsic value upon Separation.
[4] Includes $30 million due to modifications of awards in connection with the Separation that was not allocated to any of our operating segments for performance purposes. See Note 5.
v3.6.0.2
Shareholders' Equity (Details) - USD ($)
shares in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
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 67,963 [1] 15,942 11,225
Stock Repurchased During Period, Value $ 5,447 [1] $ 1,200 $ 820
Stock Repurchase Program, Remaining Authorized Repurchase Amount $ 1,900    
November 2016 [Member]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 1,337 0 0
Stock Repurchased During Period, Value $ 85 $ 0 $ 0
December 2015 [Member]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 13,368 932 0
Stock Repurchased During Period, Value $ 933 $ 67 $ 0
May 2016 [Member]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 50,435 0 0
Stock Repurchased During Period, Value $ 4,200 $ 0 $ 0
March 2016 [Member]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 2,823 0 0
Stock Repurchased During Period, Value $ 229 $ 0 $ 0
November 2014 [Member]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 0 13,231 0
Stock Repurchased During Period, Value $ 0 $ 1,000 $ 0
November 2013 [Member]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 0 1,779 8,488
Stock Repurchased During Period, Value $ 0 $ 133 $ 617
November 2012 [Member]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 0 0 2,737
Stock Repurchased During Period, Value $ 0 $ 0 $ 203
November 2016 [Member]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchase Program, Authorized Amount $ 2,000    
[1] Includes the effect of $45 million in share repurchases (0.7 million shares) with trade dates prior to December 31, 2016 but settlement dates subsequent to December 31, 2016.
v3.6.0.2
Shareholders' Equity (Details 2) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Defined Benefit Plan, Amortization of Gains (Losses) $ (7) $ 46
Pension settlement charges (32) (5)
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) 5 2
Tax (expense) benefit on reclassification of pension and post-retirement losses to net income 16 19
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 (109) 29
Amounts classified into OCI, net of tax (146) (250)
Amounts reclassified from accumulated OCI, net of tax [1] (11) 112
OCI, net of tax (157) (138)
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance (313) (109)
Pension and Post-Retirement Benefit Plan Losses    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance [2] (113) (210)
Amounts classified into OCI, net of tax [2] (42) 63
Amounts reclassified from accumulated OCI, net of tax [2] 28 34
OCI, net of tax [2] (14) 97
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance [2] (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 [3] (17) (9)
Amounts classified into OCI, net of tax [3] 29 28
Amounts reclassified from accumulated OCI, net of tax [3] (5) (36)
OCI, net of tax [3] 24 (8)
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance [3] 7 (17)
Total    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance (239) (190)
Amounts classified into OCI, net of tax (159) (159)
Amounts reclassified from accumulated OCI, net of tax 12 110
OCI, net of tax (147) (49)
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance (433) $ (239)
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 [2] 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 [3] 0  
Discontinued Operations [Member] | Total    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Amounts reclassified from accumulated OCI, net of tax $ (47)  
[1] Amounts reclassified from accumulated OCI during 2016 and 2015 are due to substantial liquidations of foreign entities related to Pizza Hut Australia and Mexico refranchising transactions, respectively.
[2] Amounts reclassified from accumulated OCI for pension and post-retirement benefit plan losses during 2016 include amortization of net losses of $7 million, settlement charges of $32 million, amortization of prior service cost of $5 million and related income tax benefit of $16 million. Amounts reclassified from accumulated OCI for pension and post-retirement benefit plan losses during 2015 include amortization of net losses of $46 million, settlement charges of $5 million, amortization of prior service cost of $2 million and related income tax benefit of $19 million. See Note 15.
[3] See Note 13 for details on amounts reclassified from accumulated OCI.
v3.6.0.2
Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
U.S. and foreign income before income taxes [Abstract]      
Income from Continuing Operations Before Income Taxes $ 1,318 $ 1,261 $ 1,374
Current Year Operations      
Changes in valuation allowance [Roll Forward]      
Valuation Allowance, Change in Amount (14) (17) (28)
Changes in Judgement      
Changes in valuation allowance [Roll Forward]      
Valuation Allowance, Change in Amount (17) (24) $ (6)
Continuing Operations [Member]      
Valuation Allowance [Line Items]      
Deferred Tax Assets, Net of Valuation Allowance, Current $ 774 $ 591  
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) 1.10% 0.90% 0.60%
Statutory rate differential attributable to foreign operations (in hundredths) (10.30%) (14.30%) (10.70%)
Adjustments to reserves and prior years (in hundredths) (0.90%) 1.00% 0.10%
Change in valuation allowance (in hundredths) (0.20%) 3.30% 1.60%
Other, net (in hundredths) (0.10%) (0.10%) 0.10%
Effective income tax rate (in hundredths) 24.60% 25.80% 26.70%
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]      
U.S. federal statutory rate $ 461 $ 441 $ 481
State income tax, net of federal tax benefit 15 12 8
Statutory rate differential attributable to foreign operations (136) (180) (147)
Adjustments to reserves and prior years (11) 13 2
Change in valuation allowance 3 (41) (22)
Other, net (2) (2) 2
Effective income tax rate 324 325 368
Details of income tax provision (benefit) [Abstract]      
Current: Federal 123 268 239
Current: Foreign 161 131 173
Current: State 13 28 2
Total current income tax provision (benefit) 297 427 414
Deferred: Federal 18 (117) (34)
Deferred: Foreign 3 15 (13)
Deferred: State 6 0 1
Total deferred income tax provision (benefit) 27 (102) (46)
Effective income tax rate 324 325 368
U.S. and foreign income before income taxes [Abstract]      
U.S. 366 479 506
Foreign 952 782 868
Income from Continuing Operations Before Income Taxes $ 1,318 $ 1,261 $ 1,374
v3.6.0.2
Income Taxes (Details 2) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Operating Loss Carryforwards [Line Items]      
Deferred Tax Liability Not Recognized, Cumulative Amount of Temporary Differences $ 2,100    
Reported in Consolidated Balance Sheets as:      
Total Operating and Capital Loss Carryforwards 2,243    
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest 1,318 $ 1,261 $ 1,374
Foreign [Member]      
Reported in Consolidated Balance Sheets as:      
Total Operating and Capital Loss Carryforwards 487    
State and Local Jurisdiction [Member]      
Reported in Consolidated Balance Sheets as:      
Total Operating and Capital Loss Carryforwards 1,012    
Internal Revenue Service (IRS) [Member]      
Reported in Consolidated Balance Sheets as:      
Total Operating and Capital Loss Carryforwards 744    
Continuing Operations [Member]      
Operating Loss Carryforwards [Line Items]      
Operating Loss Carryforwards 172 157  
Deferred Tax Assets, Capital Loss Carryforwards 184 41  
Net deferred tax assets (liabilities) [Abstract]      
Deferred Tax Assets, Tax Credit Carryforwards, Foreign 284 282  
Employee benefits 185 152  
Share-based compensation 100 121  
Self-insured casualty claims 32 35  
Lease related liabilities 65 69  
Various liabilities 56 64  
Deferred Tax Assets, Property, Plant and Equipment 37 33  
Deferred income and other 32 51  
Gross deferred tax assets 1,147 1,005  
Deferred tax asset valuation allowances (195) (205)  
Net deferred tax assets 952 800  
Intangible assets, including goodwill (107) (111)  
Property, plant and equipment (46) (46)  
Other (31) (60)  
Gross deferred tax liabilities (184) (217)  
Net deferred tax assets (liabilities) 768 583  
Reported in Consolidated Balance Sheets as:      
Deferred Tax Assets, Net of Valuation Allowance, Current 774 591  
Other liabilities and deferred credits (6) (8)  
Net deferred tax assets (liabilities) 768 583  
Income (Loss) from Continuing Operations before Income Taxes, Domestic 366 479 506
Income (Loss) from Continuing Operations before Income Taxes, Foreign 952 782 868
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest $ 1,318 $ 1,261 $ 1,374
v3.6.0.2
Income Taxes (Details 3)
$ in Millions
Dec. 31, 2016
USD ($)
Operating and capital loss carryforwards [Line Items]  
Amount of operating and capital loss carryforwards due to expire in 2016 $ 27
Amount of operating and capital loss carryforwards due to expire between 2017 and 2020 674
Amount of operating and capital loss carryforwards due to expire between 2021 and 2035 1,221
Amount of operating and capital loss carryforwards which may be carried forward indefinitely 321
Total Operating and Capital Loss Carryforwards 2,243
Foreign [Member]  
Operating and capital loss carryforwards [Line Items]  
Amount of operating and capital loss carryforwards due to expire in 2016 20
Amount of operating and capital loss carryforwards due to expire between 2017 and 2020 53
Amount of operating and capital loss carryforwards due to expire between 2021 and 2035 93
Amount of operating and capital loss carryforwards which may be carried forward indefinitely 321
Total Operating and Capital Loss Carryforwards 487
U.S. state [Member]  
Operating and capital loss carryforwards [Line Items]  
Amount of operating and capital loss carryforwards due to expire in 2016 7
Amount of operating and capital loss carryforwards due to expire between 2017 and 2020 97
Amount of operating and capital loss carryforwards due to expire between 2021 and 2035 908
Amount of operating and capital loss carryforwards which may be carried forward indefinitely 0
Total Operating and Capital Loss Carryforwards 1,012
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 524
Amount of operating and capital loss carryforwards due to expire between 2021 and 2035 220
Amount of operating and capital loss carryforwards which may be carried forward indefinitely 0
Total Operating and Capital Loss Carryforwards $ 744
v3.6.0.2
Income Taxes (Details 4) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]      
Percentage threshold that the positions taken or expected to be taken is more likely than not sustained upon examination by tax authorities (in hundredths) 50.00%    
Amount of unrecognized tax benefits that may decrease in the next 12 months $ 0    
Unrecognized Tax Benefits That Would Not Impact Effective Tax Rate 87 $ 89  
Continuing Operations [Member]      
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]      
Unrecognized Tax Benefits $ 91 $ 98 $ 115
v3.6.0.2
Income Taxes (Details 5) - Continuing Operations [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Income Tax Examination [Line Items]      
Accrued interest and penalties $ 9 $ 15  
Total interest and penalties recorded during the period 4 5 $ 11
Unrecognized tax benefits reconciliation [Roll Forward]      
Beginning of Year 98 115  
Additions on tax positions related to the current year 0 0  
Additions for tax positions of prior years 1 5  
Reductions for tax positions of prior years (5) (13)  
Reductions for settlements (1) (7)  
Reductions due to statute expiration (2) (2)  
Foreign currency translation adjustment 0 0  
End of Year $ 91 $ 98 $ 115
v3.6.0.2
Reportable Operating Segments (Details) - USD ($)
$ in Millions
 3 Months Ended 4 Months Ended 12 Months Ended
Sep. 03, 2016
Jun. 11, 2016
Mar. 19, 2016
Sep. 05, 2015
Jun. 13, 2015
Mar. 21, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Segment Reporting Information [Line Items]                      
Operating Profit                 $ 1,625 $ 1,402 $ 1,517
Interest expense, net [1]                 (307) (141) (143)
Depreciation and amortization                 309 322 328
Total Assets             $ 5,478 $ 8,061 5,478 8,061  
Long-Lived Assets             2,852 3,082 [2] 2,852 3,082 [2]  
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest                 1,318 1,261 1,374
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements                 (32) (5)  
KFC Global Division [Member]                      
Segment Reporting Information [Line Items]                      
Operating Profit                 874 832 876
Depreciation and amortization                 173 186 197
Capital Spending                 211 280 294
Total Assets [3]             2,176 2,263 2,176 2,263  
Long-Lived Assets             1,583 1,697 [2] 1,583 1,697 [2]  
Pizza Hut Global Division [Member]                      
Segment Reporting Information [Line Items]                      
Operating Profit                 370 347 347
Depreciation and amortization                 36 40 39
Capital Spending                 70 54 62
Total Assets [3]             639 709 639 709  
Long-Lived Assets             375 419 [2] 375 419 [2]  
Taco Bell Global Division [Member]                      
Segment Reporting Information [Line Items]                      
Operating Profit                 593 536 478
Depreciation and amortization                 91 88 83
Capital Spending                 132 116 143
Total Assets [3]             1,178 1,128 1,178 1,128  
Long-Lived Assets             859 911 [2] 859 911 [2]  
Unallocated amounts to segment [Member]                      
Segment Reporting Information [Line Items]                      
Franchise and license fees and income [1]                 (2) [4] 0 [4] 0
Occupancy and other operating expenses [1]                 0 0 1
Franchise and license expenses [1]                 (24) [4] (71) [4] 0
Corporate expenses [1]                 (316) [5] (196) (189)
Refranchising gain (loss) [1]                 141 (23) 16
Other (income) expense [1]                 (11) [6] (23) (10)
Depreciation and amortization                 9 8 9
Capital Spending                 9 11 9
Total Assets [3],[7]             1,485 816 1,485 816  
Long-Lived Assets             35 55 [2] 35 55 [2]  
U.S.                      
Segment Reporting Information [Line Items]                      
Total revenues                 3,100 3,100 3,000
Total Assets             3,100 2,300 3,100 2,300  
Continuing Operations [Member]                      
Segment Reporting Information [Line Items]                      
Total revenues $ 1,501 $ 1,477 $ 1,364 $ 1,527 $ 1,526 $ 1,411 2,024 1,976 6,366 6,440 6,587
Operating Profit 372 [8] 408 [8] 356 [8] 339 [9] 279 [9] 355 [9] 489 [8] 429 [9] 1,625 [8] 1,402 [9] 1,517
Franchise and license fees and income 508 481 $ 477 $ 494 $ 475 $ 467 700 648 2,166 2,084 2,084
Occupancy and other operating expenses                 1,120 1,168 1,227
Franchise and license expenses                 (202) (237) (159)
Other (income) expense                 (7) (17) (11)
Interest expense, net                 (307) (141) (143)
Depreciation and amortization                 309 322 328
Capital Spending                 422 461 508
Total Assets             5,478 $ 4,916 5,478 4,916  
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest                 1,318 1,261 1,374
Loss associated with corporate aircraft                 9 [10] 0 0
Continuing Operations [Member] | KFC Global Division [Member]                      
Segment Reporting Information [Line Items]                      
Total revenues [11]                 3,232 3,235 3,507
Continuing Operations [Member] | Pizza Hut Global Division [Member]                      
Segment Reporting Information [Line Items]                      
Total revenues [11]                 1,111 1,214 1,215
Continuing Operations [Member] | Taco Bell Global Division [Member]                      
Segment Reporting Information [Line Items]                      
Total revenues [11]                 2,025 1,991 1,865
Continuing Operations [Member] | Corporate and Other [Member]                      
Segment Reporting Information [Line Items]                      
Total revenues [1]                 (2) [4] 0 [4] 0
General and Administrative Expense [Member]                      
Segment Reporting Information [Line Items]                      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost                 30    
General and Administrative Expense [Member] | Unallocated amounts to segment [Member]                      
Segment Reporting Information [Line Items]                      
Restructuring and Related Cost, Incurred Cost                 62    
General and Administrative Expense [Member] | Corporate and Other [Member]                      
Segment Reporting Information [Line Items]                      
Restructuring and Related Cost, Incurred Cost 27 $ 5         39   71    
Other Nonoperating Income (Expense) [Member]                      
Segment Reporting Information [Line Items]                      
Loss associated with corporate aircraft                 9    
U.S. Pension Plans [Member]                      
Segment Reporting Information [Line Items]                      
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements [12]                 (32) $ 5 $ 6
U.S. Pension Plans [Member] | Deferred Vested Project [Member]                      
Segment Reporting Information [Line Items]                      
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements [12] $ 1           $ 24   25    
U.S. Pension Plans [Member] | Deferred Vested Project [Member] | General and Administrative Expense [Member] | Unallocated amounts to segment [Member]                      
Segment Reporting Information [Line Items]                      
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements [12]                 $ 25    
[1] Amounts have not been allocated to any segment for performance reporting purposes.
[2] Includes property, plant and equipment, net, goodwill, and intangible assets, net.
[3] U.S. identifiable assets included in the combined Corporate and KFC, Pizza Hut and Taco Bell Divisions totaled $3.1 billion and $2.3 billion in 2016 and 2015, respectively.
[4] Represents 2016 and 2015 costs associated with the KFC U.S. Acceleration Agreement. See Note 5.
[5] Amounts in 2016 include costs related to YUM’s Strategic Transformation Initiatives of $62 million, non-cash charges associated with share-based compensation of $30 million and settlement charges associated with the pension deferred vested project of $25 million. See Note 5.
[6] Amounts in 2016 include losses associated with the sale of corporate aircraft related to YUM’s Strategic Transformation Initiatives of $9 million. See Note 5.
[7] Primarily includes cash and deferred tax assets.
[8] Includes net gains from refranchising initiatives of $3 million, $53 million, $21 million and $64 million in the first, second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $5 million, $27 million and $39 million in the second, third and fourth quarters, respectively, a non-cash charge associated with the modification of EID share-based compensation awards in connection with the Separation of $30 million in the fourth quarter, costs associated with KFC U.S. Acceleration Agreement of $9 million, $8 million and $9 million in the first, second and fourth quarters, respectively, and charges incurred as a result of settlement payments of deferred vested pension balances in the Plan of $1 million and $24 million in the third and fourth quarters, respectively. See Note 5.
[9] Includes net gains from refranchising initiatives of $7 million and $49 million in the first and fourth quarters, respectively, and net losses from refranchising initiatives of $72 million and $4 million in the second and third quarters, respectively. Also includes costs associated with KFC U.S. Acceleration Agreement of $2 million, $8 million, $21 million and $41 million in the first, second, third and fourth quarters, respectively. See Note 5.
[10] 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 is classified as held for sale at the end of 2016 within Prepaid expenses and other current assets. The losses associated with the sale and planned sale reflect the shortfall of the expected or actual proceeds, less any selling costs, over the carrying value of the aircraft. See Note 5.
[11] U.S. revenues included in the combined KFC, Pizza Hut and Taco Bell Divisions totaled $3.1 billion in 2016, $3.1 billion in 2015 and $3.0 billion in 2014.
[12] Settlement losses result when benefit payments exceed the sum of the service cost and interest cost within a plan during the year.
v3.6.0.2
Contingencies (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2016
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 $ 550
Present value of potential payments we could be required to make in the event of non-payment $ 465
v3.6.0.2
Contingencies (Details 2)
 12 Months Ended
Dec. 31, 2016
USD ($)
claims
Classes
Loss Contingencies [Line Items]  
Taco Bell Wage and Hour Actions - Amount awarded to plaintiffs for the underpaid meal premium class $ 500,000
Taco Bell Wage and Hour Actions - Number of proposed classes concerning meals and rest breaks at Taco Bell for which plaintiffs sought certification | Classes 4
Taco Bell Wage and Hour Actions - Number of proposed classes concerning meals and rest breaks at Taco Bell which were rejected by the District Court | Classes 3
Taco Bell Wage and Hour Actions - Number of California Private Attorney General Act claims not dismissed | claims 1
Taco Bell Wage and Action - Number of Plaintiffs the court denied enhanced awards | Classes 2
Taco Bell Wage and Hour Actions - Amount of prejudgement interest awarded to plaintiffs for the underpaid meal premium class $ 300,000
Taco Bell Wage and Hour Actions - Amount of attorneys' fees awarded by the court 1,100,000
Taco Bell Wage and Actions - Amount of attorneys' fees requested by the Plaintiffs 7,300,000
Taco Bell Wage and Hour Action - Amount of bill of costs awarded by the court 100,000
Taco Bell Wage and Hour Action - Amount of bill of costs requested by the Plaintiffs 200,000
Franchise Lending Program Guarantees  
Loss Contingencies [Line Items]  
Loss contingency, amount of guarantee 110,000,000
Total loans outstanding 10,000,000
Guarantee of Indebtedness of Others  
Loss Contingencies [Line Items]  
Loss contingency, amount of guarantee 6,000,000
Guarantee of Indebtedness of Others | Franchise Loan Pool Guarantees [Member]  
Loss Contingencies [Line Items]  
Loss contingency, amount of guarantee 4,000,000
Total loans outstanding $ 21,000,000
v3.6.0.2
Contingencies (Details 3) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Self Insured Property And Casualty Reserves [Member]    
Valuation and Qualifying Accounts Disclosure [Line Items]    
Beginning balance $ 102 $ 116
Liability for Unpaid Claims and Claims Adjustment Expense, Period Increase (Decrease) 42 39
Payments (46) (53)
Ending balance 98 $ 102
Guarantee of Indebtedness of Others    
Valuation and Qualifying Accounts Disclosure [Line Items]    
Loss contingency, amount of guarantee $ 6  
v3.6.0.2
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 4 Months Ended 12 Months Ended
Sep. 03, 2016
Jun. 11, 2016
Mar. 19, 2016
Sep. 05, 2015
Jun. 13, 2015
Mar. 21, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Fiscal Period Adjustment [Line Items]                      
Refranchising (gain) loss $ (21) $ (53) $ (3) $ (4) $ (72) $ (7) $ (64) $ (49) $ (141) $ 23 $ (16)
Costs associated with KFC U.S. Acceleration Agreement   8 9 21 8 2 9 41      
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements                 (32) (5)  
Asset Impairment Charges                 15 17 15
Revenues                      
Operating Profit                 1,625 1,402 1,517
Net Income (loss) - YUM! Brands, Inc. $ 622 $ 339 $ 391 $ 421 $ 235 $ 362 $ 267 $ 275 $ 1,619 $ 1,293 $ 1,051
Basic Earnings Per Common Share (in dollars per share) $ 1.59 $ 0.82 $ 0.94 $ 0.97 $ 0.54 $ 0.83 $ 0.72 $ 0.64 $ 4.11 $ 2.97 $ 2.37
Diluted Earnings Per Common Share (in dollars per share) 1.56 0.81 0.93 0.95 0.53 0.81 0.71 0.63 4.04 2.92 2.32
Dividends Declared Per Common Share (in dollars per share) $ 0 $ 0.46 $ 0.46 $ 0 $ 0.82 $ 0 $ 0.81 $ 0.92 $ 1.73 $ 1.74 $ 1.56
Unallocated amounts to segment [Member]                      
Revenues                      
Franchise and license fees and income [1]                 $ (2) [2] $ 0 [2] $ 0
U.S. Pension Plans [Member]                      
Fiscal Period Adjustment [Line Items]                      
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements [3]                 (32) 5 6
Discontinued Operations [Member]                      
Fiscal Period Adjustment [Line Items]                      
Refranchising (gain) loss                 (12) [4] (13) (17)
Revenues                      
Company sales                 5,667 [4] 6,789 6,821
Franchise and license fees and income                 109 [4] 120 113
Income from discontinued operations $ 418 $ 74 $ 151 $ 190 $ 66 $ 116 $ (18) $ (15) $ 625 [4] $ 357 $ 45
Basic Earnings Per Common Share (in dollars per share) $ 1.07 $ 0.17 $ 0.36 $ 0.44 $ 0.15 $ 0.27 $ (0.05) $ (0.03) $ 1.59 $ 0.82 $ 0.10
Diluted Earnings Per Common Share (in dollars per share) $ 1.05 $ 0.17 $ 0.36 $ 0.43 $ 0.15 $ 0.26 $ (0.05) $ (0.03) $ 1.56 $ 0.81 $ 0.10
Continuing Operations [Member]                      
Fiscal Period Adjustment [Line Items]                      
Refranchising (gain) loss                 $ (141) $ 23 $ (16)
Share-based Compensation Expense                 80 [5] 46 45
Revenues                      
Company sales $ 993 $ 996 $ 887 $ 1,033 $ 1,051 $ 944 $ 1,324 $ 1,328 4,200 4,356 4,503
Franchise and license fees and income 508 481 477 494 475 467 700 648 2,166 2,084 2,084
Total revenues 1,501 1,477 1,364 1,527 1,526 1,411 2,024 1,976 6,366 6,440 6,587
Restaurant Profit 159 165 147 160 177 149 231 223 702 709  
Operating Profit 372 [6] 408 [6] 356 [6] 339 [7] 279 [7] 355 [7] 489 [6] 429 [7] 1,625 [6] 1,402 [7] 1,517
Income from continuing operations $ 204 $ 265 $ 240 $ 231 $ 169 $ 246 $ 285 $ 290 $ 994 $ 936 $ 1,006
Basic Earnings Per Common Share (in dollars per share) $ 0.52 $ 0.65 $ 0.58 $ 0.53 $ 0.39 $ 0.56 $ 0.77 $ 0.67 $ 2.52 $ 2.15 $ 2.27
Diluted Earnings Per Common Share (in dollars per share) $ 0.51 $ 0.64 $ 0.57 $ 0.52 $ 0.38 $ 0.55 $ 0.76 $ 0.66 $ 2.48 $ 2.11 $ 2.22
Continuing Operations [Member] | Unallocated amounts to segment [Member]                      
Fiscal Period Adjustment [Line Items]                      
Share-based Compensation Expense [5]             $ 30   $ 30    
Continuing Operations [Member] | Corporate and Other [Member]                      
Revenues                      
Total revenues [1]                 (2) [2] $ 0 [2] $ 0
General and Administrative Expense [Member] | Unallocated amounts to segment [Member]                      
Fiscal Period Adjustment [Line Items]                      
Restructuring and Related Cost, Incurred Cost                 62    
General and Administrative Expense [Member] | Corporate and Other [Member]                      
Fiscal Period Adjustment [Line Items]                      
Restructuring and Related Cost, Incurred Cost $ 27 $ 5         39   71    
Deferred Vested Project [Member] | U.S. Pension Plans [Member]                      
Fiscal Period Adjustment [Line Items]                      
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements [3] $ 1           $ 24   25    
Deferred Vested Project [Member] | General and Administrative Expense [Member] | U.S. Pension Plans [Member] | Unallocated amounts to segment [Member]                      
Fiscal Period Adjustment [Line Items]                      
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements [3]                 $ 25    
[1] Amounts have not been allocated to any segment for performance reporting purposes.
[2] Represents 2016 and 2015 costs associated with the KFC U.S. Acceleration Agreement. See Note 5.
[3] Settlement losses result when benefit payments exceed the sum of the service cost and interest cost within a plan during the year.
[4] Includes Yum China financial results from January 1, 2016 to October 31, 2016.
[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 $3 million, $53 million, $21 million and $64 million in the first, second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $5 million, $27 million and $39 million in the second, third and fourth quarters, respectively, a non-cash charge associated with the modification of EID share-based compensation awards in connection with the Separation of $30 million in the fourth quarter, costs associated with KFC U.S. Acceleration Agreement of $9 million, $8 million and $9 million in the first, second and fourth quarters, respectively, and charges incurred as a result of settlement payments of deferred vested pension balances in the Plan of $1 million and $24 million in the third and fourth quarters, respectively. See Note 5.
[7] Includes net gains from refranchising initiatives of $7 million and $49 million in the first and fourth quarters, respectively, and net losses from refranchising initiatives of $72 million and $4 million in the second and third quarters, respectively. Also includes costs associated with KFC U.S. Acceleration Agreement of $2 million, $8 million, $21 million and $41 million in the first, second, third and fourth quarters, respectively. See Note 5.