CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended			9 Months Ended
	Sep. 08, 2012	Sep. 03, 2011		Sep. 08, 2012		Sep. 03, 2011
Revenues
Company sales	$ 3,142	$ 2,854		$ 8,248		$ 7,336
Franchise and license fees and income	427	420		1,232		1,179
Total revenues	3,569	3,274		9,480		8,515
Costs and Expenses, Net
Food and paper	1,029	970		2,712		2,424
Payroll and employee benefits	650	600		1,786		1,609
Occupancy and other operating expenses	864	790		2,288		2,063
Company restaurant expenses	2,543	2,360		6,786		6,096
General and administrative expenses	332	310		950		873
Franchise and license expenses	32	41		84		104
Closures and impairment (income) expenses	4	25		9		113
Refranchising (gain) loss	(2)	66	[1]	(41)	[1],[2]	69	[1]
Other (income) expense	(11)	(16)		(97)		(48)
Total costs and expenses, net	2,898	2,786		7,691		7,207
Operating Profit	671	488		1,789		1,308
Interest expense, net	32	32		107		110
Income Before Income Taxes	639	456		1,682		1,198
Income tax provision	161	67		410		220
Net Income – including noncontrolling interests	478	389		1,272		978
Net Income - noncontrolling interests	7	6		12		15
Net Income - YUM! Brands, Inc.	$ 471	$ 383		$ 1,260		$ 963
Basic Earnings Per Common Share	$ 1.02	$ 0.82		$ 2.72		$ 2.05
Diluted Earnings Per Common Share	$ 1.00	$ 0.80		$ 2.65		$ 1.99
Dividends Declared Per Common Share	$ 0.000	$ 0.00		$ 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 pre-tax 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 the quarter ended September 8, 2012.These impairment charges decreased depreciation expense versus what would have otherwise been recorded by $3 million and $9 million for the quarter and year to date ended September 8, 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] The year to date ended September 8, 2012, U.S. Refranchising (gain) loss primarily relates to gains on the sales of Taco Bell restaurants.