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Discontinued Operations
 9 Months Ended
Sep. 30, 2017
Discontinued Operations [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] Discontinued Operations

As discussed in Note 1, on October 31, 2016, the Company completed the separation of our China business.

As a result of the Separation, all royalty revenues earned by us under the Master License Agreement with Yum China that were previously eliminated in consolidation are now reflected as Franchise and license fees and income in our Condensed Consolidated Statements of Income. For the quarter and year to date ended September 30, 2016, the combined KFC and Pizza Hut Divisions' Franchise and license fees and income, as a result of the Separation, increased by $64 million and $189 million, respectively. The value added tax associated with this royalty revenue increased Franchise and license expenses for the combined KFC and Pizza Hut Divisions by $4 million and $12 million for the quarter and year to date ended September 30, 2016, respectively. The net increases in the KFC and Pizza Hut Divisions' Operating Profit were offset with a corresponding reduction in Income from discontinued operations such that there was no impact from the Separation on total Net income.

The financial results of Yum China presented in discontinued operations reflect the results of the former China Division, which was an operating segment of the Company until the Separation, adjusted for the transactions discussed above and the inclusion of certain G&A expenses, non-cash impairment charges, refranchising gains, interest and taxes that were previously not allocated to but were related to the former China Division's historical results of operations. The following table presents the financial results of the Company’s discontinued operations:
 
 
Quarter ended
 
Year to date
 
 
 
2016(a)
 
2016(b)
 
Company sales
 
$
1,848

 
$
4,684

 
Franchise and license fees and income
 
35

 
90

 
Company restaurant expenses
 
(1,488
)
 
(3,896
)
 
G&A expenses
 
(111
)
 
(297
)
 
Franchise and license expenses
 
(15
)
 
(40
)
 
Closure and impairment expenses
 
(5
)
 
(36
)
 
Refranchising gain
 
3

 
8

 
Other income
 
18

 
44

 
Interest income, net
 
4

 
7

 
Income from discontinued operations before income taxes(c)
 
289

 
564

 
Income tax benefit (provision)(d)
 
143

 
76

 
Income from discontinued operations - including noncontrolling interests
 
432

 
640

 
(Income) loss from discontinued operations - noncontrolling interests
 
(10
)
 
(10
)
 
Income from discontinued operations - YUM! Brands, Inc.
 
$
422

 
$
630

 

(a)
Includes historical Yum China financial results from June 1, 2016 to August 31, 2016.

(b)
Includes historical Yum China financial results from January 1, 2016 to August 31, 2016, plus an additional month of expense associated with the license fee paid to YUM to conform to the new YUM reporting calendar.

(c)
Includes costs incurred to execute the Separation of $7 million and $25 million for the quarter and year to date ended September 30, 2016. Such costs primarily related to transaction advisors, legal and other consulting fees.

(d)
Includes a tax benefit of $233 million recognized in the third quarter of 2016 related to previously recorded losses associated with our former Little Sheep business. The tax benefit associated with these losses was able to be recognized as a result of legal entity restructuring in anticipation of the Separation.

Cash inflows from Yum China to the Company during the quarter and year to date ended September 30, 2017, related to the Master License Agreement were $63 million and $167 million, respectively, net of taxes paid, and primarily related to royalty revenues.