Revenue Recognition Accounting Policy

6 Months Ended

Jun. 30, 2020

Revenue Recognition and Deferred Revenue [Abstract]

Revenue Recognition

Revenue Recognition

Disaggregation of Total Revenues

The following tables disaggregate 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.

	Quarter ended 6/30/2020
		KFC Division		Pizza Hut Division		Taco Bell Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	13	$	5	$	194	$	104	$	316
Franchise revenues		44		66		132		1		243
Property revenues		3		2		11		—		16
Franchise contributions for advertising and other services		5		78		107		—		190
China
Franchise revenues		47		12		—		—		59
Other
Company sales		73		14		—		—		87
Franchise revenues		146		46		4		—		196
Property revenues		11		—		—		—		11
Franchise contributions for advertising and other services		67		12		1		—		80
		$	409	$	235	$	449	$	105	$	1,198

	Quarter ended 6/30/2019
		KFC Division		Pizza Hut Division		Taco Bell Division		Total
U.S.
Company sales		$	18	$	5	$	212	$	235
Franchise revenues		41		67		140		248
Property revenues		5		1		11		17
Franchise contributions for advertising and other services		3		78		109		190
China
Franchise revenues		52		15		—		67
Other
Company sales		117		6		1		124
Franchise revenues		218		60		7		285
Property revenues		16		—		—		16
Franchise contributions for advertising and other services		114		14		—		128
		$	584	$	246	$	480	$	1,310

	Year to date ended 6/30/2020
		KFC Division		Pizza Hut Division		Taco Bell Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	29	$	10	$	392	$	113	$	544
Franchise revenues		82		128		263		1		474
Property revenues		7		3		21		—		31
Franchise contributions for advertising and other services		9		148		214		—		371
China
Franchise revenues		94		22		—		—		116
Other
Company sales		187		27		—		—		214
Franchise revenues		358		105		11		—		474
Property revenues		25		1		—		—		26
Franchise contributions for advertising and other services		184		26		1		—		211
		$	975	$	470	$	902	$	114	$	2,461

	Year to date ended 6/30/2019
		KFC Division		Pizza Hut Division		Taco Bell Division		Total
U.S.
Company sales		$	34	$	10	$	408	$	452
Franchise revenues		79		134		268		481
Property revenues		11		3		21		35
Franchise contributions for advertising and other services		5		152		213		370
China
Franchise revenues		108		30		—		138
Other
Company sales		226		12		2		240
Franchise revenues		423		120		13		556
Property revenues		34		1		—		35
Franchise contributions for advertising and other services		230		27		—		257
		$	1,150	$	489	$	925	$	2,564

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 2020 is presented below.

	Deferred Franchise Fees
Balance at December 31, 2019	$	441
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(37		)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	24
Other(a)	(8		)
Balance at June 30, 2020	$	420

(a) Primarily includes impact of foreign currency translation.

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

Less than 1 year	$	64
1 - 2 years	59
2 - 3 years	54
3 - 4 years	50
4 - 5 years	44
Thereafter	149
Total	$	420