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CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Revenues        
Total Revenues $ 1,436 $ 1,518 $ 4,301 $ 4,470
Costs and Expenses, Net        
Closures and impairment (income) expenses     3 10
Refranchising (gain) loss (201) (21) (331) (75)
Operating Profit 643 398 1,546 1,162
Other pension (income) expense 10 (1) 42 (2)
Interest expense, net 109 98 322 191
Income Before Income Taxes 524 301 1,182 973
Income from continuing operations   218   710
Income from discontinued operations, net of tax   422   630
Net Income $ 418 $ 640 $ 904 $ 1,340
Basic Earnings Per Common Share $ 1.21 $ 1.65 $ 2.58 $ 3.32
Diluted Earnings Per Common Share 1.18 1.62 2.52 3.27
Dividends Declared Per Common Share $ 0 $ 0.51 $ 0.60 $ 1.43
Continuing Operations [Member]        
Revenues        
Company sales $ 871 $ 992 $ 2,682 $ 2,951
Franchise and license fees and income 565 526 1,619 1,519
Total Revenues 1,436 1,518 4,301 4,470
Costs and Expenses, Net        
Food and paper 275 303 831 897
Payroll and employee benefits 224 260 707 780
Occupancy and other operating expenses 218 268 685 798
Company restaurant expenses 717 831 2,223 2,475
General and Administrative Expense 215 270 699 767
Franchise and license expenses 61 40 161 145
Closures and impairment (income) expenses 1 1 3 10
Refranchising (gain) loss (201) (21) (331) (75)
Other (income) expense 0 (1) 0 (14)
Total costs and expenses, net 793 1,120 2,755 3,308
Operating Profit 643 398 1,546 1,162
Other pension (income) expense 10 (1) 42 (2)
Interest expense, net 109 98 322 191
Income Before Income Taxes 524 301 1,182 973
Income tax provision 106 83 278 263
Income from continuing operations $ 418 $ 218 $ 904 $ 710
Basic Earnings Per Common Share $ 1.21 $ 0.56 $ 2.58 $ 1.76
Diluted Earnings Per Common Share $ 1.18 $ 0.55 $ 2.52 $ 1.73
Discontinued Operations [Member]        
Revenues        
Company sales   $ 1,848 [1]   $ 4,684 [2]
Franchise and license fees and income   35 [1]   90 [2]
Costs and Expenses, Net        
Company restaurant expenses   1,488 [1]   3,896 [2]
General and Administrative Expense   111 [1]   297 [2]
Franchise and license expenses   15 [1]   40 [2]
Closures and impairment (income) expenses   5 [1]   36 [2]
Refranchising (gain) loss   (3) [1]   (8) [2]
Interest expense, net   (4) [1]   (7) [2]
Income tax provision [3]   (143) [1]   (76) [2]
Income from discontinued operations, net of tax $ 0 $ 422 [1] $ 0 $ 630 [2]
Basic Earnings Per Common Share   $ 1.09   $ 1.56
Diluted Earnings Per Common Share   $ 1.07   $ 1.54
[1] Includes historical Yum China financial results from June 1, 2016 to August 31, 2016.
[2] 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.
[3] 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.