Note 5. Revenue Recognition (Notes)

12 Months Ended

Dec. 31, 2019

Deferred Revenue Disclosure [Text Block]

Revenue Recognition

Disaggregation of Total Revenues

The following table disaggregates revenue by Concept, for our two most significant markets based on Operating Profit and for all other markets. We believe this disaggregation best reflects the extent to which the nature, amount, timing and uncertainty of our revenues and cash flows are impacted by economic factors.

	2019
		KFC Division		Pizza Hut Division		Taco Bell Division		Total
U.S.
Company sales		$	74	$	21	$	919	$	1,014
Franchise revenues		175		282		602		1,059
Property revenues		20		6		44		70
Franchise contributions for advertising and other services		10		318		483		811
China
Franchise revenues		214		60		—		274
Other
Company sales		497		33		2		532
Franchise revenues		912		246		27		1,185
Property revenues		69		3		—		72
Franchise contributions for advertising and other services		520		58		2		580
		$	2,491	$	1,027	$	2,079	$	5,597

	2018
		KFC Division		Pizza Hut Division		Taco Bell Division		Total
U.S.
Company sales		$	72	$	37	$	1,034	$	1,143
Franchise revenues		171		284		539		994
Property revenues		23		4		27		54
Franchise contributions for advertising and other services		9		269		428		706
China
Franchise revenues		201		59		—		260
Other
Company sales		822		32		3		857
Franchise revenues		825		248		24		1,097
Property revenues		74		3		—		77
Franchise contributions for advertising and other services		447		52		1		500
		$	2,644	$	988	$	2,056	$	5,688

Property revenues for the year ended December 31, 2017 were $86 million.

Contract Liabilities

Our contract liabilities are comprised of unamortized upfront fees received from franchisees. A summary of significant changes to the contract liability balance during 2019 and 2018 is presented below.

	Deferred Franchise Fees
Balance at January 1, 2018	$	392
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(66		)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	102
Other(a)	(14		)
Balance at December 31, 2018	$	414
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(70		)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	93
Other(a)	4
Balance at December 31, 2019	$	441

(a) Includes impact of foreign currency translation as well as, in 2018, the recognition of deferred franchise fees into Refranchising (gain) loss upon the modification of existing franchise agreements when entering into master franchise agreements.

We expect to recognize contract liabilities as revenue over the remaining term of the associated franchise agreement as follows:

Less than 1 year	$	65
1 - 2 years	60
2 - 3 years	56
3 - 4 years	51
4 - 5 years	46
Thereafter	163
Total	$	441

We have applied the optional exemption, as provided for under Topic 606, which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty.