CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 24, 2012		Mar. 19, 2011
Revenues
Company sales	$ 2,344		$ 2,051
Franchise and license fees and income	399		374
Total revenues	2,743		2,425
Company restaurants
Food and paper	767		662
Payroll and employee benefits	513		461
Occupancy and other operating expenses	624		568
Company restaurant expenses	1,904		1,691
General and administrative expenses	272		255
Franchise and license expenses	26		30
Closures and impairment (income) expenses	1		69
Refranchising (gain) loss	(26)	[1],[2]	(2)
Other (income) expense	(79)		(19)
Total costs and expenses, net	2,098		2,024
Operating Profit	645	[3],[4],[5]	401	[3],[6]
Interest expense, net	37		43
Income Before Income Taxes	608	[3],[4],[5]	358	[3],[6]
Income tax provision	147		91
Net Income – including noncontrolling interests	461		267
Net Income - noncontrolling interests	3		3
Net Income - YUM! Brands, Inc.	$ 458		$ 264
Basic Earnings Per Common Share	$ 0.99		$ 0.56
Diluted Earnings Per Common Share	$ 0.96		$ 0.54
Dividends Declared Per Common Share	$ 0.285		$ 0.000

[1] During the quarter ended September 3, 2011, we decided to refranchise or close all of our remaining company operated Pizza Hut dine-in restaurants in the UK market. While the asset group comprising approximately 350 stores we anticipate selling did not meet the criteria for held for sale classification as of September 3, 2011, our decision to sell was considered an impairment indicator. As such we reviewed the asset group for potential impairment and determined that its carrying value was not fully recoverable based upon our estimate of expected refranchising proceeds and holding period cash flows anticipated while we continue to operate the restaurants as company units. Accordingly, we wrote the asset group down to our estimate of its fair value, which was based on the sales price we would expect to receive from a buyer. This fair value determination considered current market conditions, trends in the Pizza Hut UK business, and prices for similar transactions in the restaurant industry and resulted in a non-cash write down of $74 million which was recorded to Refranchising (gain) loss. The decision to refranchise or close all remaining Pizza Hut dine-in restaurants in the UK was considered to be a goodwill impairment indicator. We determined that the fair value of our Pizza Hut UK reporting unit exceeded its carrying value and as such there was no goodwill impairment. Based on bids received in 2012, we recorded an additional non-cash pre-tax impairment charge of $20 million to Refranchising (gain) loss for the quarter ended March 24, 2012. The asset group continues not to meet all of the held for sale criteria as of March 24, 2012.These impairment charges decreased depreciation expense versus what would have otherwise been recorded by $3 million for the quarter ended March 24, 2012. Neither the impairment charges nor the depreciation reduction were allocated to the YRI segment, resulting in depreciation expense in the YRI segment results continuing to be recorded at the rate at which it was prior to these impairment charges being recorded for these restaurants.

[2] In the quarter ended March 24, 2012, U.S. Refranchising (gain) loss primarily relates to gains on the sales of Taco Bell restaurants.

[3] Includes equity income from investments in unconsolidated affiliates of $13 million and $16 million for the quarters ended March 24, 2012 and March 19, 2011, respectively.

[4] Includes gain on acquisition of additional interest in Little Sheep for the quarter ended March 24, 2012. See Note 4.

[5] Includes U.S. refranchising gains of $45 million partially offset by an impairment charge of $20 million related to our Pizza Hut UK dine-in business for the quarter ended March 24, 2012. See Note 4.

[6] Amount represents impairment charges resulting from our decision to divest the LJS and A&W businesses in 2011. See Note 4.