CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Millions	9 Months Ended
	Sep. 03, 2011		Sep. 04, 2010
Cash Flows - Operating Activities
Net Income - including noncontrolling interests	$ 978		$ 901
Depreciation and amortization	426		383
Closures and impairment (income) expenses	113		21
Refranchising (gain) loss	69	[1],[2]	51	[2],[3],[4]
Contributions to defined benefit pension plans	(12)		(22)
Deferred income taxes	(72)		(130)
Equity income from investments in unconsolidated affiliates	(40)		(34)
Distributions of income received from unconsolidated affiliates	37		34
Excess tax benefits from share-based compensation	(33)		(46)
Share-based compensation expense	40		37
Changes in accounts and notes receivable	(19)		(6)
Changes in inventories	9		(30)
Changes in prepaid expenses and other current assets	(29)		15
Changes in accounts payable and other current liabilities	142		94
Changes in income taxes payable	55		118
Other, net	39		111
Net Cash Provided by Operating Activities	1,703		1,497
Cash Flows - Investing Activities
Capital spending	(553)		(490)
Proceeds from refranchising of restaurants	119		106
Acquisitions	(1)		(62)
Sales of property, plant and equipment	15		21
Increase in restricted cash	(300)		0
Other, net	(20)		(10)
Net Cash Used in Investing Activities	(740)		(435)
Cash Flows - Financing Activities
Proceeds from long-term debt	349		350
Repayments of long-term debt	(662)		(20)
Revolving credit facilities, three months or less, net	0		12
Short-term borrowings by original maturity
More than three months - proceeds	0		0
More than three months - payments	0		0
Three months or less, net	0		5
Repurchase shares of Common Stock	(562)		(283)
Excess tax benefits from share-based compensation	33		46
Employee stock option proceeds	30		64
Dividends paid on Common Stock	(350)		(295)
Other, net	(33)		(30)
Net Cash Used in Financing Activities	(1,195)		(151)
Effect of Exchange Rates on Cash and Cash Equivalents	42		10
Net Increase (Decrease) in Cash and Cash Equivalents	(190)		921
Cash and Cash Equivalents - Beginning of Period	1,426		353
Cash and Cash Equivalents - End of Period	$ 1,236		$ 1,274

[1] Includes the $76 million refranchising loss as a result of our decision to offer to refranchise all our remaining company-owned Pizza Hut dine-in restaurants in the UK.

[2] Refranchising (gain) loss is not allocated to segments for performance reporting purposes.

[3] During the quarter ended March 20, 2010 we refranchised all of our remaining company restaurants in Taiwan, which consisted of 124 KFCs. We included in our March 20, 2010 financial statements a non-cash write-off of $7 million of goodwill in determining the loss on refranchising of Taiwan. This loss did not result in a related income tax benefit, and was not allocated to any segment for performance reporting purposes. The amount of goodwill write-off was based on the relative fair values of the Taiwan business disposed of and the portion of the business that was retained. The fair value of the business disposed of was determined by reference to the discounted value of the future cash flows expected to be generated by the restaurants and retained by the franchisee, which included a deduction for the anticipated royalties the franchisee will pay the Company associated with the franchise agreement entered into in connection with this refranchising transaction. The fair value of the Taiwan business retained consisted of expected net cash flows to be derived from royalties from franchisees, including the royalties associated with the franchise agreement entered into in connection with this refranchising transaction. We believed the terms of the franchise agreement entered into in connection with the Taiwan refranchising were substantially consistent with market. The remaining carrying value of goodwill related to our Taiwan business of $30 million, after the aforementioned write-off, was determined not to be impaired subsequent to the refranchising as the fair value of the Taiwan reporting unit exceeded its carrying amount.

[4] U.S. refranchising loss for the year to date ended September 4, 2010 included $73 million in non-cash impairment charges related to our offer to refranchise a substantial portion of our Company operated KFCs in the U.S. in the first quarter of 2010. The majority of these restaurants offered for sale in 2010 continue to be Company operated at September 3, 2011. We believed in 2010 and continue to believe at September 3, 2011 that the restaurant groups for which we have not yet entered into agreements to sell do not meet the criteria to be classified as held for sale. Consistent with our historical policy, we are reviewing these restaurant groups for impairment on a held for use basis each quarter as a result of our intent to refranchise. To the extent the carrying value of these restaurant groups is not recoverable based upon our estimate of expected refranchising proceeds and holding period cash flows while we continue to operate the restaurants, we have further written them down to our current estimates of their fair value. These fair value estimates, which are based on the sales price we would expect to receive for each restaurant group, consider current market conditions, real-estate values, trends in the KFC-U.S. business, prices for similar transactions in the restaurant industry and preliminary offers for any restaurant groups to date. We continue to depreciate the carrying values of the restaurant assets, net of the aforementioned impairment charges, and will continue to do so through the date we believe the held for sale criteria for any restaurant groups are met. The impairment charges recorded do not include any allocation of the KFC reporting unit goodwill in the restaurant groups’ carrying values. This additional non-cash write down is being recorded, consistent with our historical policy, when a restaurant group ultimately meets the criteria to be classified as held for sale. We will also be required to record a charge for the fair value of our guarantee of future lease payments for leases we assign to the franchisee upon any sale.