XML 61 R19.htm IDEA: XBRL DOCUMENT v3.19.3
Short-term Borrowings and Long-term Debt
 9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Short-term Borrowings and Long-term Debt Short-term Borrowings and Long-term Debt

Short-term Borrowings
 
9/30/2019
 
12/31/2018

Current maturities of long-term debt
 
$
84

 
$
331

Other
 
10

 
—

 
 
94

 
331

Less current portion of debt issuance costs and discounts
 
(10
)
 
(10
)
Short-term borrowings
 
$
84

 
$
321

 
 
 
 
 
Long-term Debt
 
 
 
 
Securitization Notes
 
$
2,906

 
$
2,928

Subsidiary Senior Unsecured Notes
 
2,850

 
2,850

Term Loan A Facility
 
469

 
488

Term Loan B Facility
 
1,940

 
1,955

YUM Senior Unsecured Notes
 
2,425

 
1,875

Finance lease obligations
 
69

 
71

 
 
$
10,659

 
$
10,167

Less debt issuance costs and discounts
 
(84
)
 
(85
)
Less current maturities of long-term debt
 
(84
)
 
(331
)
Long-term debt
 
$
10,491

 
$
9,751



YUM Senior Unsecured Note Issuance

On September 11, 2019, YUM! Brands, Inc. issued $800 million aggregate principal amount of 4.75% YUM Senior Unsecured Notes due January 15, 2030 (the “2030 Notes”). The net proceeds from the issuance were used to repay in full $250 million aggregate principal amount of YUM Senior Unsecured Notes that matured in September 2019, to repay the then outstanding borrowings under our $1 billion revolving facility and for general corporate purposes. Interest on the 2030 Notes is payable semi-annually in arrears on January 15 and July 15 of each year.  The indenture governing the 2030 Notes contains covenants and events of default that are customary for debt securities of this type, including cross-default provisions whereby the acceleration of the maturity of any of our indebtedness or the failure to pay principal of such indebtedness will constitute an event of default under the YUM Senior Unsecured Notes unless such indebtedness is discharged, or the acceleration of the maturity of that indebtedness is annulled, within 30 days after notice. During the quarter ended September 30, 2019 the Company incurred debt issuance costs of $10 million in connection with the issuance of the 2030 Notes. These issuance costs are recorded as a reduction in Long-term debt on our Condensed Consolidated Balance Sheet.

Details of our short-term borrowings and long-term debt as of December 31, 2018 can be found within our 2018 Form 10-K. Cash paid for interest during the years to date ended September 30, 2019 and 2018 was $324 million and $300 million, respectively.