Items Affecting Comparability of Net Income and/or Cash Flows (Tables)

6 Months Ended

Jun. 16, 2012

Items Affecting Comparability Of Net Income And Cash Flows Disclosure [Abstract]

Schedule of Purchase Price Allocation [Table Text Block]

We recorded the following assets acquired and liabilities assumed upon acquisition of Little Sheep as a result of our preliminary purchase price allocation:

Current assets, including cash of $44	$	113
Property, plant and equipment		68
Goodwill		332
Intangible assets, including indefinite-lived trademark of $428		452
Other assets		33
Total assets acquired		998
Deferred taxes		118
Other liabilities		54
Total liabilities assumed		172
Redeemable noncontrolling interest		45
Other noncontrolling interests		16
Net assets acquired	$	765

As part of

Schedule of 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.

	Quarter ended						Year to date
	6/16/2012			6/11/2011			6/16/2012			6/11/2011
China	$	(2	)	$	(2	)	$	(4	)	$	(3	)
YRI(a)	(2		)	(1		)	19			(1		)
U.S.(b)	(9		)	8			(54		)	7
India	—			—			—			—
Worldwide	$	(13	)	$	5		$	(39	)	$	3

(a) 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.

(b) 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.

Schedule of closures and impairment (income) expense activity

Store closure (income) costs and Store impairment charges by reportable segment are presented below. This table excludes $66 million of net losses recorded in the year to date ended June 11, 2011 related to the decision to divest the LJS and A&W businesses. This amount was not allocated to segments for performance reporting purposes.

	Quarter ended June 16, 2012
	China			YRI			U.S.			India		Worldwide
Store closure (income) costs (a)	$	(2	)	$	(2	)	$	(1	)	$	—	$	(5	)
Store impairment charges	4			1			4			—		9
Closure and impairment (income) expenses	$	2		$	(1	)	$	3		$	—	$	4

	Quarter ended June 11, 2011
	China		YRI		U.S.		India		Worldwide
Store closure (income) costs (a)	$	—	$	—	$	2	$	—	$	2
Store impairment charges	3		7		7		—		17
Closure and impairment (income) expenses	$	3	$	7	$	9	$	—	$	19

	Year to date ended June 16, 2012
	China			YRI			U.S.			India		Worldwide
Store closure (income) costs(a)	$	(2	)	$	(2	)	$	(2	)	$	—	$	(6	)
Store impairment charges	5			2			4			—		11
Closure and impairment (income) expenses	$	3		$	—		$	2		$	—	$	5

	Year to date ended June 11, 2011
	China			YRI		U.S.		India		Worldwide
Store closure (income) costs(a)	$	(1	)	$	1	$	3	$	—	$	3
Store impairment charges	4			8		7		—		19
Closure and impairment (income) expenses	$	3		$	9	$	10	$	—	$	22

(a) Store closure (income) costs include the net gain or loss on sales of real estate on which we formerly operated a Company restaurant that was closed, lease reserves established when we cease using a property under an operating lease and subsequent adjustments to those reserves and other facility-related expenses from previously closed stores.