Reportable Operating Segments

12 Months Ended

Dec. 29, 2012

Segment Reporting [Abstract]

Reportable Operating Segments

Reportable Operating Segments

We are principally engaged in developing, operating, franchising and licensing the worldwide KFC, Pizza Hut and Taco Bell concepts. KFC, Pizza Hut and Taco Bell operate in 118, 91, and 21 countries and territories, respectively.  Our five largest international markets based on Operating Profit in 2013 are China, Asia Franchise, United Kingdom, Australia and Latin America Franchise.

We identify our operating segments based on management responsibility.  The China Division includes mainland China and the India Division includes India, Bangladesh, Mauritius, Nepal and Sri Lanka. YRI includes the remainder of our international operations.  We consider our KFC, Pizza Hut and Taco Bell operating segments in the U.S. to be similar and therefore have aggregated them into a single reportable operating segment. Our U.S. and YRI segment results also include the operating results of our LJS and A&W businesses prior to our disposal of those businesses in December 2011.

	Revenues
	2013		2012		2011
China	$	6,905	$	6,898	$	5,566
YRI	3,099		3,281		3,192
U.S.	2,953		3,352		3,786
India	127		102		82
	$	13,084	$	13,633	$	12,626

	Operating Profit; Interest Expense, Net; and Income Before Income Taxes
	2013			2012			2011
China (b)	$	777		$	1,015		$	908
YRI	760			715			673
U.S.	684			666			589
India	(15		)	(1		)	—
Unallocated Occupancy and other(a)(c)	—			16			14
Unallocated and corporate expenses(a)(d)	(207		)	(271		)	(223		)
Unallocated Closures and impairment expense(a)(e)	(295		)	—			(80		)
Unallocated Other income (expense)(a)(f)	(6		)	76			6
Unallocated Refranchising gain (loss)(a)(g)	100			78			(72		)
Operating Profit	1,798			2,294			1,815
Interest expense, net(h)	(247		)	(149		)	(156		)
Income Before Income Taxes	$	1,551		$	2,145		$	1,659

	Depreciation and Amortization
	2013		2012		2011
China	$	394	$	337	$	258
YRI	175		167		183
U.S.	135		147		179
India	9		6		5
Corporate(c)	8		8		12
	$	721	$	665	$	637

	Capital Spending
	2013		2012		2011
China	$	568	$	655	$	405
YRI	289		251		240
U.S.	157		173		256
India	31		18		16
Corporate	4		2		23
	$	1,049	$	1,099	$	940

	Identifiable Assets
	2013		2012		2011
China (i)	$	3,720	$	3,752	$	2,527
YRI	2,618		2,663		2,847
U.S.	1,705		1,844		2,070
India	99		68		52
Corporate(j)	553		686		1,338
	$	8,695	$	9,013	$	8,834

	Long-Lived Assets(k)
	2013		2012		2011
China	$	2,667	$	2,779	$	1,546
YRI	1,732		1,561		1,600
U.S.	1,489		1,555		1,805
India	66		47		35
Corporate	32		32		36
	$	5,986	$	5,974	$	5,022

(a) Amounts have not been allocated to any segment for performance reporting purposes.

(b) Includes equity income from investments in unconsolidated affiliates of $26 million, $47 million and $47 million in 2013, 2012 and 2011, respectively, for China.

(c) 2012 and 2011 include depreciation reductions arising from the impairments of Pizza Hut UK restaurants we sold in 2012 of $13 million and $3 million, respectively.  2012 and 2011 include depreciation reductions arising from the impairment of KFC restaurants we offered to sell of $3 million and $10 million, respectively. See Note 4.

(d) 2013 and 2012 include pension settlement charges of $22 million and $87 million, respectively. 2013, 2012 and 2011 include approximately $5 million, $5 million and $21 million, respectively, of charges relating to U.S. G&A productivity initiatives and realignment of resources.  See Note 4.

(e) 2013 represents impairment loss related to Little Sheep. 2011 represents net losses resulting from the LJS and A&W divestitures. See Note 4.

(f) 2012 includes gain upon acquisition of Little Sheep of $74 million. See Note 4.

(g) See Note 4 for further discussion of Refranchising gain (loss).

(h) Includes $118 million of premiums and other costs related to the extinguishment of debt. See Losses Related to the Extinguishment of Debt section of Note 4.

(i) China includes investments in 4 unconsolidated affiliates totaling $53 million, $72 million and $167 million for 2013, 2012 and 2011, respectively.  

(j) Primarily includes cash, deferred tax assets and property, plant and equipment, net, related to our office facilities. 2011 includes $300 million of restricted cash related to the 2012 Little Sheep acquisition.

(k) Includes property, plant and equipment, net, goodwill, and intangible assets, net.

See Note 4 for additional operating segment disclosures related to impairment and store closure (income) costs.