Document and Entity Information - USD ($) |
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Mar. 19, 2016 |
Apr. 20, 2016 |
Jun. 13, 2015 |
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| Document And Entity Information [Abstract] | |||
| Entity Registrant Name | YUM BRANDS INC | ||
| 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 | $ 39,400,000,000 | ||
| Entity Common Stock, Shares Outstanding | 407,440,778 | ||
| Document Fiscal Year Focus | 2016 | ||
| Document Fiscal Period Focus | Q1 | ||
| Document Type | 10-Q | ||
| Amendment Flag | false | ||
| Document Period End Date | Mar. 19, 2016 |
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares shares in Millions |
Mar. 19, 2016 |
Dec. 26, 2015 |
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| Statement of Financial Position [Abstract] | ||
| Common Stock, No Par Value | $ 0 | $ 0 |
| Common Stock, Shares Authorized | 750 | 750 |
| Common Stock, Shares, Issued | 407 | 420 |
Financial Statement Presentation |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||
| Financial Statement Presentation | Financial Statement Presentation We have prepared our accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by Generally Accepted Accounting Principles in the United States (“GAAP”) for complete financial statements. Therefore, we suggest that the accompanying Financial Statements be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 26, 2015 (“2015 Form 10-K”). YUM! Brands, Inc. and Subsidiaries (collectively referred to herein as “YUM” or the “Company”) comprise primarily the worldwide operations of KFC, Pizza Hut and Taco Bell (collectively the “Concepts”). References to YUM throughout these Notes to our Financial Statements are made using the first person notations of “we,” “us” or “our.” YUM currently consists of four reporting segments:
Effective January, 2016 our India business 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 Total revenues for the KFC, Pizza Hut and Taco Bell Divisions by $20 million, $1 million and $1 million, respectively, and decreased Operating Profit by $3 million, less than $1 million and $1 million, respectively, for the quarter ended March 21, 2015. In October, 2015 we announced our intent to separate YUM’s China business from YUM into an independent, publicly-traded company by the end of 2016. This transaction, which is expected to be a tax-free spin-off of our China business, will create two powerful, independent, focused growth companies with distinct strategies, financial profiles and investment characteristics. Completion of the spin-off will be subject to certain conditions, including, among others, receiving final approval from the YUM Board of Directors, receipt of various regulatory approvals, receipt of an opinion of counsel with respect to certain tax matters, the effectiveness of filings related to public listing and applicable securities laws, and other terms and conditions as may be determined by the Board of Directors. YUM’s fiscal year ends on the last Saturday in December. The first three quarters of each fiscal year consist of 12 weeks and the fourth quarter consists of 16 weeks. Our subsidiaries operate on similar fiscal calendars except that China, India and certain other international subsidiaries operate on a monthly calendar with two months in the first quarter, three months in the second and third quarters and four months in the fourth quarter. The current fiscal year of 2016 will have a 53rd week for YUM and our subsidiaries that do not operate on a monthly calendar, which will be included in our fourth quarter results. Our international subsidiaries that operate on a monthly calendar, including China, are not impacted by the addition of a 53rd week. Our international subsidiaries within our KFC, Pizza Hut and Taco Bell divisions generally close approximately one month earlier to facilitate consolidated reporting. Our preparation of the accompanying Financial Statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the Financial Statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The accompanying Financial Statements include all normal and recurring adjustments considered necessary to present fairly, when read in conjunction with our 2015 Form 10-K, our financial position as of March 19, 2016, and the results of our operations, comprehensive income and cash flows for the quarters ended March 19, 2016 and March 21, 2015. Our results of operations, comprehensive income and cash flows for these interim periods are not necessarily indicative of the results to be expected for the full year. Our significant interim accounting policies include the recognition of certain advertising and marketing costs, generally in proportion to revenue, and the recognition of income taxes using an estimated annual effective tax rate. In April, 2015 the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 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. We have reclassified certain items in the Financial Statements for the prior periods to be comparable with the classification for the quarter ended March 19, 2016. These reclassifications had no effect on previously reported Net Income - YUM! Brands, Inc. |
Earnings Per Common Share ("EPS") |
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Common Share (EPS) | Earnings Per Common Share (“EPS”)
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Shareholders' Equity |
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| Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders' Equity | Shareholders’ Equity Under the authority of our Board of Directors, we repurchased shares of our Common Stock during the quarters ended March 19, 2016 and March 21, 2015 as indicated below. All amounts exclude applicable transaction fees.
On March 4, 2016 our Board of Directors authorized additional share repurchases through December 2016 of up to $500 million (excluding applicable transaction fees) of our outstanding Common Stock. Changes in accumulated other comprehensive income (loss) ("OCI") are presented below.
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Items Affecting Comparability of Net Income and Cash Flows |
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| Comparability of Prior Year Financial Data | 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.
KFC U.S. Acceleration Agreement During the first quarter of 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 approximately $125 million from 2015 through 2017 primarily to fund new back-of-house equipment for franchisees and to provide incentives to accelerate franchisee store remodels. We recorded pre-tax charges of $9 million and $2 million for the quarters ended March 19, 2016 and March 21, 2015, respectively, for these investments. We recorded pre-tax $72 million of such charges in the year ended December 26, 2015 and we currently expect a total pre-tax charge of approximately $30 million in 2016 for these investments. These charges are not being allocated to the KFC Division segment operating results. In addition to the investments above we have agreed to fund incremental system advertising dollars. We currently expect to fund approximately $20 million of such advertising in 2016 and $30 million in 2017. During the quarter ended March 19, 2016, we expensed $4 million in incremental system advertising expense. No incremental advertising expense was recorded in the quarter ended March 21, 2015. These amounts are being recorded in the KFC Division segment operating results. Costs Associated with the Planned Spin-off of the China Business and YUM Recapitalization In connection with our planned separation of the YUM China business into an independent, publicly-traded company and the related recapitalization of YUM, we incurred $9 million of costs in the quarter ended March 19, 2016, which were recorded in General and administrative ("G&A") expenses. Cumulative project costs since the announcement of the planned separation total $18 million and we currently expect to incur additional cash costs of approximately $30 million to complete the spin-off transaction. These costs are not being allocated to any of our segment operating results. |
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Other (Income) Expense |
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| Other (Income) Expense | Other (Income) Expense
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Supplemental Balance Sheet Information |
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| Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Accounts and Notes Receivable, net The Company’s receivables are primarily generated as a result of ongoing business relationships with our franchisees and licensees as a result of royalty and lease agreements. Trade receivables consisting of royalties from franchisees and licensees 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 Condensed Consolidated Balance Sheets.
Property, Plant and Equipment, net
Assets held for sale at March 19, 2016 and December 26, 2015 total $27 million and $28 million, respectively, and are included in Prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. Noncontrolling Interests Noncontrolling interests represent the ownership interests of minority shareholders of the entities that operate KFC restaurants in Beijing and Shanghai, China. The redeemable noncontrolling interest comprises the 7% ownership interest in Little Sheep that continues to be held by the Little Sheep founding shareholders, and is classified outside of permanent equity on our Condensed Consolidated Balance Sheets due to redemption rights held by the founding Little Sheep shareholders. A reconciliation of the beginning and ending carrying amount of the equity attributable to noncontrolling interests is as follows:
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Income Taxes |
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| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | Income Taxes
Our effective tax rate was lower than the U.S. federal statutory rate of 35% primarily due to the majority of our income being earned outside the U.S. where tax rates are generally lower than the U.S. rate. Our first quarter effective tax rate was higher than the prior year primarily due to the increased cost of repatriating current year foreign earnings. |
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Reportable Operating Segments |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reportable Operating Segments | Reportable Operating Segments We identify our operating segments based on management responsibility. As described in Note 1, effective January 1, 2016 our India business was segmented by brand and integrated into the global KFC, Pizza Hut and Taco Bell Divisions. Segment information for previous periods has been restated to reflect this reporting change. The following tables summarize Revenues and Operating Profit for each of our reportable operating segments:
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Pension Benefits |
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| Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pension Benefits | Pension Benefits We sponsor qualified and supplemental (non-qualified) noncontributory defined benefit pension plans covering certain full-time salaried and hourly U.S. employees. The most significant of these plans, the YUM Retirement Plan, is funded. We fund our other U.S. plans as benefits are paid. The YUM Retirement Plan and our most significant non-qualified plan in the U.S. are closed to new salaried participants. The components of net periodic benefit cost associated with our significant U.S. pension plans are as follows:
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Fair Value Measurements |
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| Fair Value Disclosures [Abstract] | |
| Fair Value Measurements | Fair Value Measurements As of March 19, 2016 the carrying values of cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximated their fair values because of the short-term nature of these instruments. The fair values of notes receivable net of allowances and lease guarantees less subsequent amortization approximates their carrying values. The Company’s debt obligations, excluding capital leases, were estimated to have a fair value of $4.6 billion (Level 2), compared to their carrying value of $4.7 billion. We estimated the fair value of debt using market quotes and calculations based on market rates. The Company has interest rate swaps accounted for as fair value hedges, 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. Interest rate swaps are used to reduce our exposure to interest rate risk for a portion of our fixed-rate debt, and foreign currency forwards and swaps are used to reduce our exposure to cash flow volatility arising from foreign currency fluctuations associated with certain foreign currency denominated intercompany receivables and payables. The fair values of these swaps, forwards and other investments were not material as of March 19, 2016. In addition, certain of the Company's assets such as property, plant and equipment, goodwill and intangible assets, are measured at fair value on a non-recurring basis if determined to be impaired. During the quarter ended March 19, 2016, there were no significant assets or liabilities subject to non-recurring fair value measurements. |
Guarantees, Commitments and Contingencies |
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| Commitments and Contingencies Disclosure [Abstract] | |
| Guarantees, Commitments and Contingencies | Guarantees, Commitments and 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 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 March 19, 2016, the potential amount of undiscounted payments we could be required to make in the event of non-payment by the primary lessees was approximately $575 million. The present value of these potential payments discounted at our pre-tax cost of debt at March 19, 2016 was approximately $475 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 agreements in the event of non-payment under the leases. 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 as of March 19, 2016 was not material. Other Franchise Guarantees We have provided guarantees of $21 million on behalf of franchisees for several financing programs related to specific initiatives. The total loans outstanding under these financing programs were $62 million as of March 19, 2016. 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 were 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 intends to file a post-trial motion to overturn the verdict. 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 Condensed Consolidated Financial Statements. On May 16, 2013, a putative class action styled Bernardina Rodriguez v. Taco Bell Corp. was filed in California Superior Court. The plaintiff sought to represent a class of current and former California hourly restaurant employees alleging various violations of California labor laws including failure to provide meal and rest periods, failure to pay hourly wages, failure to provide accurate written wage statements, failure to timely pay all final wages, and unfair or unlawful business practices in violation of California Business & Professions Code §17200. This case appears to be duplicative of the In Re Taco Bell Wage and Hour Actions case described above. Taco Bell removed the case to federal court and, on June 25, 2013, plaintiff filed a first amended complaint to include a claim seeking penalties for alleged violations of California’s Labor Code under California’s Private Attorneys General Act. Taco Bell’s motion to dismiss or stay the action in light of the In Re Taco Bell Wage and Hour Actions case was denied on October 30, 2013. In April 2014 the parties stipulated to address the sufficiency of plaintiff’s legal theory as to her discount meal break claim before conducting full discovery. A hearing on the parties’ cross-summary judgment motions was held on October 22, 2014, and on October 23, 2014, the court granted Taco Bell’s motion for summary judgment on the discount meal break claim and denied plaintiff’s motion. Trial was set for mid-April 2016. Plaintiff ceased to actively pursue this matter and failed to timely file the required pre-trial statement. Subsequently, plaintiff filed a request to dismiss with prejudice all of her remaining claims, which the court approved on March 2, 2016. Plaintiff then filed a notice of appeal concerning the court’s summary judgment ruling. The Ninth Circuit has not yet set a briefing schedule. Taco Bell denies liability and intends to vigorously defend against all claims in this lawsuit. A reasonable estimate of the amount of any possible loss or range of loss cannot be made at this time. 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 Condensed Consolidated Financial Statements. |
Earnings Per Common Share ("EPS") (Tables) |
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Common Share Table |
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Shareholders' Equity (Tables) |
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| Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) ("OCI") are presented below.
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| Repurchase Of Shares Of Common Stock [Table Text Block] | Under the authority of our Board of Directors, we repurchased shares of our Common Stock during the quarters ended March 19, 2016 and March 21, 2015 as indicated below. All amounts exclude applicable transaction fees.
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Items Affecting Comparability of Net Income and Cash Flows (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 19, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 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.
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Other (Income) Expense (Tables) |
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| Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (Income) Expense Table | Other (Income) Expense
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Supplemental Balance Sheet Information (Tables) |
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| Supplemental Balance Sheet Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts and Notes Receivable |
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| Property, Plant and Equipment |
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| Equity attributable to noncontrolling interests, rollforward | A reconciliation of the beginning and ending carrying amount of the equity attributable to noncontrolling interests is as follows:
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Income Taxes (Tables) |
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| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax And Effective Tax Rate |
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Reportable Operating Segments (Tables) |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Segment Reporting Information, by Segment | The following tables summarize Revenues and Operating Profit for each of our reportable operating segments:
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Pension Benefits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Net Periodic Benefit Cost | The components of net periodic benefit cost associated with our significant U.S. pension plans are as follows:
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Financial Statement Presentation (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 19, 2016 |
Mar. 21, 2015 |
|
| Total Revenues | $ 2,619 | $ 2,622 |
| Operating Profit | 564 | 506 |
| KFC Global Division [Member] | ||
| Total Revenues | 625 | 662 |
| Operating Profit | 160 | 166 |
| KFC Global Division [Member] | Impact of India Integration into Other Brand Divisions [Member] | ||
| Total Revenues | 20 | |
| Operating Profit | (3) | |
| Pizza Hut Global Division [Member] | ||
| Total Revenues | 265 | 272 |
| Operating Profit | 87 | 81 |
| Pizza Hut Global Division [Member] | Impact of India Integration into Other Brand Divisions [Member] | ||
| Total Revenues | 1 | |
| Operating Profit | (1) | |
| Taco Bell Global Division [Member] | ||
| Total Revenues | 426 | 432 |
| Operating Profit | $ 119 | 114 |
| Taco Bell Global Division [Member] | Impact of India Integration into Other Brand Divisions [Member] | ||
| Total Revenues | 1 | |
| Operating Profit | $ (1) | |
Financial Statement Presentation (Details 2) |
3 Months Ended |
|---|---|
|
Mar. 19, 2016
Months
operating_segments
weeks
| |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Fiscal Period Weeks Standard | weeks | 12 |
| Number of periods or months in advance that certain of our international businesses close their books | 1 |
| Fiscal Period Weeks Standard Fourth Quarter | weeks | 16 |
| Number of Reportable Segments | operating_segments | 4 |
| Fiscal period months standard first quarter | 2 |
| Fiscal period months standard second and third quarters | 3 |
| Fiscal period months standard fourth quarter | 4 |
Financial Statement Presentation (Details 3) - Accounting Standards Update 2015-03 [Member] $ in Millions |
Dec. 26, 2015
USD ($)
|
|---|---|
| Decrease to Other Assets and Long-Term Debt from Restatement due to ASU 2015-03 [Member] | |
| Debt Issuance Costs, Noncurrent, Net | $ 13 |
| Decrease to Prepaid Expense & Other Current Assets and Short-Term Borrowings from Restatement due to ASU 2015-03 [Member] | |
| Debt Issuance Costs, Current, Net | $ 1 |
Earnings Per Common Share ("EPS") (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 19, 2016 |
Mar. 21, 2015 |
|||
| Earnings Per Share [Abstract] | ||||
| Net Income - YUM! Brands, Inc. | $ 391 | $ 362 | ||
| Weighted-average common shares outstanding (for basic calculation) | 416.0 | 438.0 | ||
| Effect of dilutive share-based employee compensation | 6.0 | 8.0 | ||
| Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) | 422.0 | 446.0 | ||
| Basic EPS | $ 0.94 | $ 0.83 | ||
| Diluted EPS | $ 0.93 | $ 0.81 | ||
| Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation | [1] | 4.5 | 6.7 | |
| ||||
Shareholders' Equity (Details 2) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 19, 2016 |
Mar. 21, 2015 |
|
| Schedule of changes in accumulated comprehensive income [Line Items] | ||
| Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (239) | |
| Other comprehensive income (loss), net of tax | (61) | $ (82) |
| Ending Accumulated Other Comprehensive Income (Loss), Net of Tax | (300) | |
| Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature | ||
| Schedule of changes in accumulated comprehensive income [Line Items] | ||
| Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax | (109) | |
| Gains (losses) arising during the year classified into accumulated OCI, net of tax | (68) | |
| (Gains) losses reclassified from accumulated OCI, net of tax | 0 | |
| Other comprehensive income (loss), net of tax | (68) | |
| Ending Accumulated Other Comprehensive Income (Loss), Net of Tax | (177) | |
| Pension and Post-Retirement Benefits | ||
| Schedule of changes in accumulated comprehensive income [Line Items] | ||
| Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax | (113) | |
| Gains (losses) arising during the year classified into accumulated OCI, net of tax | 1 | |
| (Gains) losses reclassified from accumulated OCI, net of tax | 2 | |
| Other comprehensive income (loss), net of tax | 3 | |
| Ending Accumulated Other Comprehensive Income (Loss), Net of Tax | (110) | |
| Derivative Instruments | ||
| Schedule of changes in accumulated comprehensive income [Line Items] | ||
| Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax | (17) | |
| Gains (losses) arising during the year classified into accumulated OCI, net of tax | (6) | |
| (Gains) losses reclassified from accumulated OCI, net of tax | 10 | |
| Other comprehensive income (loss), net of tax | 4 | |
| Ending Accumulated Other Comprehensive Income (Loss), Net of Tax | (13) | |
| Total | ||
| Schedule of changes in accumulated comprehensive income [Line Items] | ||
| Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax | (239) | |
| Gains (losses) arising during the year classified into accumulated OCI, net of tax | (73) | |
| (Gains) losses reclassified from accumulated OCI, net of tax | 12 | |
| Other comprehensive income (loss), net of tax | (61) | |
| Ending Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (300) | |
Items Affecting Comparability of Net Income and Cash Flows (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 19, 2016 |
Mar. 21, 2015 |
|
| Refranchising (gain) loss | $ (7) | $ (10) |
| China Division [Member] | ||
| Refranchising (gain) loss | (3) | (2) |
| KFC Global Division [Member] | ||
| Refranchising (gain) loss | (1) | (3) |
| Pizza Hut Global Division [Member] | ||
| Refranchising (gain) loss | (2) | 1 |
| Taco Bell Global Division [Member] | ||
| Refranchising (gain) loss | $ (1) | $ (6) |
Items Affecting Comparability of Net Income and Cash Flows (Details 2) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
|---|---|---|---|
Mar. 19, 2016 |
Mar. 21, 2015 |
Dec. 26, 2015 |
|
| Incremental Advertising [Domain] | KFC Global Division [Member] | |||
| Costs associated with KFC U.S. Acceleration Agreement | $ 4 | $ 0 | |
| Property, Plant and Equipment [Domain] | Unallocated and General and administrative expenses [Domain] | |||
| Costs associated with KFC U.S. Acceleration Agreement | 9 | $ 2 | $ 72 |
| 2015 to 2017 [Domain] | Property, Plant and Equipment [Domain] | Unallocated and General and administrative expenses [Domain] | |||
| Costs associated with KFC U.S. Acceleration Agreement | 125 | ||
| 2016 [Domain] | Advertising [Domain] | KFC Global Division [Member] | |||
| Costs associated with KFC U.S. Acceleration Agreement | 20 | ||
| 2016 [Domain] | Property, Plant and Equipment [Domain] | Unallocated and General and administrative expenses [Domain] | |||
| Costs associated with KFC U.S. Acceleration Agreement | 30 | ||
| 2017 [Domain] | Advertising [Domain] | KFC Global Division [Member] | |||
| Costs associated with KFC U.S. Acceleration Agreement | $ 30 | ||
Items Affecting Comparability of Net Income and Cash Flows (Details 3) - China Division [Member] $ in Millions |
3 Months Ended | 6 Months Ended |
|---|---|---|
|
Mar. 19, 2016
USD ($)
|
Mar. 19, 2016
USD ($)
|
|
| Expected Costs Remaining Associated with Planned Spin-Off of China Business | $ 30 | $ 30 |
| General and Administrative Expense [Member] | ||
| Costs Associated with Planned Spin-Off of China Business | $ 9 | $ 18 |
Other (Income) Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 19, 2016 |
Mar. 21, 2015 |
|
| Other Income and Expenses [Line Items] | ||
| Equity income from investments in unconsolidated affiliates | $ (16) | $ (9) |
| Foreign exchange net (gain) loss and other | 9 | 6 |
| Other (income) expense | $ (7) | $ (3) |
Supplemental Balance Sheet Information (Details) $ in Millions |
3 Months Ended | ||
|---|---|---|---|
|
Mar. 19, 2016
USD ($)
days
|
Mar. 21, 2015
USD ($)
|
Dec. 26, 2015
USD ($)
|
|
| Accounts and Notes Receivable [Abstract] | |||
| Number of days from the period in which the corresponding sales occur that trade receivables are generally due | days | 30 | ||
| Accounts and notes receivable, gross | $ 438 | $ 393 | |
| Allowance for doubtful accounts | (20) | (16) | |
| Accounts and notes receivable, net | 418 | 377 | |
| Property, Plant and Equipment [Abstract] | |||
| Property, plant and equipment, gross | 7,793 | 7,832 | |
| Accumulated depreciation and amortization | (3,682) | (3,643) | |
| Property, plant and equipment, net | 4,111 | 4,189 | |
| Assets Held-for-sale, Current | 27 | $ 28 | |
| Noncontrolling Interest [Line Items] | |||
| Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance | 58 | ||
| Net Income (loss) - noncontrolling interests | 4 | $ (1) | |
| Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance | 54 | ||
| Noncontrolling Interest [Member] | |||
| Noncontrolling Interest [Line Items] | |||
| Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance | 58 | ||
| Net Income (loss) - noncontrolling interests | 4 | ||
| Dividends declared | (7) | ||
| Currency translation adjustments and other | (1) | ||
| Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance | $ 54 | ||
| Redeemable Noncontrolling Interest [Member] | |||
| Noncontrolling Interest [Line Items] | |||
| Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 7.00% | ||
| Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount, Beginning Balance | $ 6 | ||
| Net Income (loss) - noncontrolling interests | 0 | ||
| Dividends declared | 0 | ||
| Currency translation adjustments and other | 1 | ||
| Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount, Ending Balance | $ 7 | ||
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 19, 2016 |
Mar. 21, 2015 |
|
| Effective Income Tax Rate - Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% |
| Income Tax And Effective Tax Rate [Abstract] | ||
| Income tax provision | $ 132 | $ 111 |
| Effective tax rate | 25.00% | 23.40% |
Reportable Operating Segments (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 19, 2016 |
Mar. 21, 2015 |
Mar. 19, 2016 |
Dec. 26, 2015 |
||||||||
| Segment Reporting Information [Line Items] | |||||||||||
| Total Revenues | $ 2,619 | $ 2,622 | |||||||||
| Operating Profit | 564 | 506 | |||||||||
| Interest expense, net | (37) | (34) | |||||||||
| Income Before Income Taxes | 527 | 472 | |||||||||
| Equity income from investments in unconsolidated affiliates | 16 | 9 | |||||||||
| China Division [Member] | |||||||||||
| Segment Reporting Information [Line Items] | |||||||||||
| Total Revenues | 1,303 | 1,256 | |||||||||
| Operating Profit | [1] | 256 | 190 | ||||||||
| Equity income from investments in unconsolidated affiliates | 16 | 9 | |||||||||
| KFC Global Division [Member] | |||||||||||
| Segment Reporting Information [Line Items] | |||||||||||
| Total Revenues | 625 | 662 | |||||||||
| Operating Profit | 160 | 166 | |||||||||
| Pizza Hut Global Division [Member] | |||||||||||
| Segment Reporting Information [Line Items] | |||||||||||
| Total Revenues | 265 | 272 | |||||||||
| Operating Profit | 87 | 81 | |||||||||
| Taco Bell Global Division [Member] | |||||||||||
| Segment Reporting Information [Line Items] | |||||||||||
| Total Revenues | 426 | 432 | |||||||||
| Operating Profit | 119 | 114 | |||||||||
| Unallocated and Corporate General and administrative expenses [Domain] | |||||||||||
| Segment Reporting Information [Line Items] | |||||||||||
| Operating Profit | [2] | (57) | (46) | ||||||||
| Unallocated Other income (expense) | |||||||||||
| Segment Reporting Information [Line Items] | |||||||||||
| Operating Profit | (8) | (9) | |||||||||
| Unallocated Refranchising gain (loss) | |||||||||||
| Segment Reporting Information [Line Items] | |||||||||||
| Operating Profit | [3] | 7 | 10 | ||||||||
| Property, Plant and Equipment [Domain] | Unallocated and Corporate General and administrative expenses [Domain] | |||||||||||
| Segment Reporting Information [Line Items] | |||||||||||
| Costs associated with KFC U.S. Acceleration Agreement | 9 | $ 2 | $ 72 | ||||||||
| General and Administrative Expense [Member] | China Division [Member] | |||||||||||
| Segment Reporting Information [Line Items] | |||||||||||
| Costs Associated with Planned Spin-Off of China Business | $ 9 | $ 18 | |||||||||
| |||||||||||
Pension Benefits (Details) - U.S. Pension Plans - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 19, 2016 |
Mar. 21, 2015 |
|
| Defined Benefit Plan Disclosure [Line Items] | ||
| Service cost | $ 4 | $ 4 |
| Interest cost | 13 | 13 |
| Expected return on plan assets | (15) | (14) |
| Amortization of net loss | 1 | 10 |
| Amortization of prior service cost | 1 | 0 |
| Net periodic benefit cost | $ 4 | $ 13 |
Fair Value Measurements (Details) $ in Billions |
Mar. 19, 2016
USD ($)
|
|---|---|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
| Debt obligations, excluding capital leases, carrying amount | $ 4.7 |
| Fair Value, Inputs, Level 2 [Member] | |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
| Debt obligations, excluding capital leases, estimate of fair value | $ 4.6 |
Guarantees, Commitments and Contingencies (Details) $ in Millions |
3 Months Ended |
|---|---|
|
Mar. 19, 2016
USD ($)
| |
| Franchise lending program guarantee | |
| Guarantor Obligations [Line Items] | |
| Loss contingency, amount of guarantee | $ 21 |
| Total loans outstanding | $ 62 |
| 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 by the primary lessee | $ 575 |
| Present value of potential payments we could be required to make in the event of non-payment by the primary lessee | $ 475 |
Guarantees, Commitments and Contingencies (Details 2) $ in Millions |
3 Months Ended |
|---|---|
|
Mar. 19, 2016
USD ($)
claims
Classes
| |
| Loss Contingencies [Line Items] | |
| Taco Bell Wage and Hour Actions - Amount of prejudgement interest awarded to plaintiffs for the underpaid meal premium class | $ | $ 0.3 |
| 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 Hour Actions - Amount awarded to plaintiffs for the underpaid meal premium class | $ | $ 0.5 |