CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended			6 Months Ended
	Jun. 16, 2012		Jun. 11, 2011	Jun. 16, 2012		Jun. 11, 2011
Revenues
Company sales	$ 2,762		$ 2,431	$ 5,106		$ 4,482
Franchise and license fees and income	406		385	805		759
Total revenues	3,168		2,816	5,911		5,241
Company restaurants
Food and paper	916		792	1,683		1,454
Payroll and employee benefits	623		548	1,136		1,009
Occupancy and other operating expenses	800		705	1,424		1,273
Company restaurant expenses	2,339		2,045	4,243		3,736
General and administrative expenses	346		308	618		563
Franchise and license expenses	26		33	52		63
Closures and impairment (income) expenses	4		19	5		88
Refranchising (gain) loss	(13)	[1],[2]	5	(39)	[1],[2]	3
Other (income) expense	(7)		(13)	(86)		(32)
Total costs and expenses, net	2,695		2,397	4,793		4,421
Operating Profit	473		419	1,118		820
Interest expense, net	38		35	75		78
Income Before Income Taxes	435		384	1,043		742
Income tax provision	102		62	249		153
Net Income – including noncontrolling interests	333		322	794		589
Net Income - noncontrolling interests	2		6	5		9
Net Income - YUM! Brands, Inc.	$ 331		$ 316	$ 789		$ 580
Basic Earnings Per Common Share	$ 0.71		$ 0.67	$ 1.70		$ 1.23
Diluted Earnings Per Common Share	$ 0.69		$ 0.65	$ 1.65		$ 1.20
Dividends Declared Per Common Share	$ 0.285		$ 0.50	$ 0.57		$ 0.50

[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 in the quarter ended March 24, 2012. While we continue to market the Pizza Hut dine-in restaurants in the UK for sale, the asset group continues not to meet all of the held for sale criteria as of June 16, 2012.These impairment charges decreased depreciation expense versus what would have otherwise been recorded by $3 million and $6 million for the quarter and year to date ended June 16, 2012, respectively. 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 and year to date ended June 16, 2012, U.S. Refranchising (gain) loss primarily relates to gains on the sales of Taco Bell restaurants.