CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 24, 2012		Mar. 19, 2011
Cash Flows - Operating Activities
Net Income - including noncontrolling interests	$ 461		$ 267
Depreciation and amortization	138		123
Closures and impairment (income) expenses	1		69
Refranchising (gain) loss	(26)	[1],[2]	(2)
Contributions to defined benefit pension plans	(8)		(3)
Gain upon acquisition of Little Sheep	(74)		0
Deferred income taxes	(4)		(60)
Equity income from investments in unconsolidated affiliates	(13)		(16)
Excess tax benefits from share-based compensation	(28)		(8)
Share-based compensation expense	11		13
Changes in accounts and notes receivable	29		11
Changes in inventories	27		34
Changes in prepaid expenses and other current assets	(15)		(25)
Changes in accounts payable and other current liabilities	(124)		(14)
Changes in income taxes payable	70		85
Other, net	39		34
Net Cash Provided by Operating Activities	484		508
Cash Flows - Investing Activities
Capital spending	(184)		(173)
Proceeds from refranchising of restaurants	102		14
Acquisitions	(540)		(1)
Proceeds from sales of property, plant and equipment	4		0
Decrease in restricted cash	300		0
Increase in short-term investments	(79)		0
Other, net	(5)		4
Net Cash Used in Investing Activities	(402)		(156)
Cash Flows - Financing Activities
Repayments of long-term debt	(3)		(4)
Repurchase shares of Common Stock	(78)		(152)
Excess tax benefits from share-based compensation	28		8
Employee stock option proceeds	16		9
Dividends paid on Common Stock	(131)		(118)
Other, net	(20)		(4)
Net Cash Used in Financing Activities	(188)		(261)
Effect of Exchange Rates on Cash and Cash Equivalents	7		12
Net Increase (Decrease) in Cash and Cash Equivalents	(99)		103
Cash and Cash Equivalents - Beginning of Period	1,198		1,426
Cash and Cash Equivalents - End of Period	$ 1,099		$ 1,529

[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.