XML 30 R18.htm IDEA: XBRL DOCUMENT v3.20.2
Short-term Borrowings and Long-term Debt
 6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Short-term Borrowings and Long-term Debt Short-term Borrowings and Long-term Debt

Short-term Borrowings
 
6/30/2020
 
12/31/2019

Current maturities of long-term debt
 
$
444

 
$
437

Other
 
—

 
4

 
 
444

 
441

Less current portion of debt issuance costs and discounts
 
(10
)
 
(10
)
Short-term borrowings
 
$
434

 
$
431

 
 
 
 
 
Long-term Debt
 
 
 
 
Securitization Notes
 
$
2,883

 
$
2,898

Subsidiary Senior Unsecured Notes
 
2,850

 
2,850

Revolving Facility
 
575

 
—

Term Loan A Facility
 
450

 
463

Term Loan B Facility
 
1,926

 
1,935

YUM Senior Unsecured Notes
 
3,025

 
2,425

Finance lease obligations
 
71

 
77

 
 
$
11,780

 
$
10,648

Less debt issuance costs and discounts
 
(84
)
 
(80
)
Less current maturities of long-term debt
 
(444
)
 
(437
)
Long-term debt
 
$
11,252

 
$
10,131



Details of our short-term borrowings and long-term debt as of December 31, 2019 can be found within our 2019 Form 10-K. Cash paid for interest during the years to date ended June 30, 2020 and 2019 was $243 million and $253 million, respectively. On March 24, 2020 we borrowed $525 million under our Revolving Facility in order to increase our liquidity position in light of the impacts on our business from the COVID-19 pandemic. This borrowing, together with $425 million borrowed under the Revolving Facility on March 18, 2020 to fund amounts associated with the acquisition of The Habit Restaurants, Inc., resulted in an aggregate of $950 million outstanding under the Revolving Facility as of March 31, 2020. In the second quarter, we made repayments of $375 million under the Revolver Facility that resulted in an outstanding balance of $575 million as of June 30, 2020.

YUM Senior Unsecured Note Issuance

On April 1, 2020, YUM! Brands, Inc. issued $600 million aggregate principal amount of 7.75% YUM Senior Unsecured Notes due April 1, 2025 (the “2025 Notes”). The net proceeds from the issuance were used to pay the fees and expenses of the offering with remaining amounts to be used for general corporate purposes. Interest on the 2025 Notes is payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2020. The indenture governing the 2025 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 in a principal amount of $100 million or more or the failure to pay the principal of such indebtedness at its stated maturity will constitute an event of default under the 2025 Notes unless such indebtedness is discharged, or the acceleration of the maturity of that indebtedness is annulled, within 30 days after notice.