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Consolidated Statements of Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2016
Dec. 26, 2015
Dec. 27, 2014
Company restaurants      
Refranchising (gain) loss $ (141) $ 23 $ (16)
Operating Profit 1,625 1,402 1,517
Interest expense, net [1] 307 141 143
Income from Continuing Operations Before Income Taxes 1,318 1,261 1,374
Net Income $ 1,619 $ 1,293 $ 1,051
Basic Earnings Per Common Share (in dollars per share) $ 4.11 $ 2.97 $ 2.37
Diluted Earnings Per Common Share (in dollars per share) 4.04 2.92 2.32
Dividends Declared Per Common Share (in dollars per share) $ 1.73 $ 1.74 $ 1.56
Continuing Operations [Member]      
Revenues      
Company sales $ 4,200 $ 4,356 $ 4,503
Franchise and license fees and income 2,166 2,084 2,084
Total revenues 6,366 6,440 6,587
Company restaurants      
Food and paper 1,269 1,348 1,471
Payroll and employee benefits 1,109 1,131 1,172
Occupancy and other operating expenses 1,120 1,168 1,227
Company restaurant expenses 3,498 3,647 3,870
General and administrative expenses 1,161 1,099 1,028
Franchise and license expenses 202 237 159
Closures and impairment (income) expenses 14 15 18
Refranchising (gain) loss (141) 23 (16)
Other (income) expense 7 17 11
Total costs and expenses, net 4,741 5,038 5,070
Operating Profit 1,625 [2] 1,402 [3] 1,517
Interest expense, net 307 141 143
Income from Continuing Operations Before Income Taxes 1,318 1,261 1,374
Income tax provision 324 325 368
Income from continuing operations $ 994 $ 936 $ 1,006
Basic Earnings Per Common Share (in dollars per share) $ 2.52 $ 2.15 $ 2.27
Diluted Earnings Per Common Share (in dollars per share) $ 2.48 $ 2.11 $ 2.22
Discontinued Operations [Member]      
Revenues      
Company sales $ 5,667 [4] $ 6,789 $ 6,821
Franchise and license fees and income 109 [4] 120 113
Company restaurants      
Company restaurant expenses 4,766 [4] 5,913 6,011
General and administrative expenses 406 [4],[5] 405 [5] 391
Franchise and license expenses 45 [4] 48 44
Closures and impairment (income) expenses 57 [4] 64 517 [6]
Refranchising (gain) loss (12) [4] (13) (17)
Interest expense, net (8) [4] (7) (13)
Income tax provision 65 [4],[7] (164) (38)
Income from discontinued operations, net of tax $ 625 [4] $ 357 $ 45
Basic Earnings Per Common Share (in dollars per share) $ 1.59 $ 0.82 $ 0.10
Diluted Earnings Per Common Share (in dollars per share) $ 1.56 $ 0.81 $ 0.10
[1] Amounts have not been allocated to any segment for performance reporting purposes.
[2] Includes net gains from refranchising initiatives of $3 million, $53 million, $21 million and $64 million in the first, second, third and fourth quarters, respectively, costs associated with YUM’s Strategic Transformation Initiatives of $5 million, $27 million and $39 million in the second, third and fourth quarters, respectively, a non-cash charge associated with the modification of EID share-based compensation awards in connection with the Separation of $30 million in the fourth quarter, costs associated with KFC U.S. Acceleration Agreement of $9 million, $8 million and $9 million in the first, second and fourth quarters, respectively, and charges incurred as a result of settlement payments of deferred vested pension balances in the Plan of $1 million and $24 million in the third and fourth quarters, respectively. See Note 5.
[3] Includes net gains from refranchising initiatives of $7 million and $49 million in the first and fourth quarters, respectively, and net losses from refranchising initiatives of $72 million and $4 million in the second and third quarters, respectively. Also includes costs associated with KFC U.S. Acceleration Agreement of $2 million, $8 million, $21 million and $41 million in the first, second, third and fourth quarters, respectively. See Note 5.
[4] Includes Yum China financial results from January 1, 2016 to October 31, 2016.
[5] Includes costs incurred to execute the Separation of $68 million and $9 million for 2016 and 2015, respectively. Such costs primarily relate to transaction advisors, legal and other consulting fees.
[6] During 2014, we recorded a $463 million non-cash impairment charge related to the investment in China's Little Sheep restaurant business. The tax benefit associated with these losses of $76 million and the losses allocated to the noncontrolling founding shareholder of $26 million resulted in a net impact of $361 million on Income from discontinued operations - YUM! Brands, Inc.
[7] During 2016, we recorded a tax benefit of $233 million related to previously recorded losses associated with our Little Sheep business. The tax benefit associated with these losses was able to be recognized as a result of legal entity restructuring completed in anticipation of the Separation.