Reportable Operating Segments

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Reportable Operating Segments

Reportable Operating Segments

We identify our operating segments based on management responsibility. The following tables summarize Revenues and Operating Profit for each of our reportable operating segments:

	Quarter ended				Year to date
Revenues	2020		2019		2020		2019
KFC Division	$	586	$	609	$	1,561	$	1,759
Pizza Hut Division	243		241		713		730
Taco Bell Division	501		489		1,403		1,414
Habit Burger Grill Division	118		—		232		—
	$	1,448	$	1,339	$	3,909	$	3,903

	Quarter ended				Year to date
Operating Profit	2020		2019		2020		2019
KFC Division	$	278	$	270	$	655	$	767
Pizza Hut Division	89		86		252		279
Taco Bell Division	186		161		484		458
Habit Burger Grill Division	(7)		—		(15)		—
Corporate and unallocated G&A expenses(a)	(81)		(41)		(229)		(122)
Unallocated Company restaurant expenses	1		—		—		—
Unallocated Franchise and property expenses	—		(2)		(3)		(5)
Unallocated Refranchising gain (loss)	9		8		30		18
Unallocated Other income (expense) (See Note 5)	(4)		(2)		(153)		(11)
Operating Profit	$	471	$	480	$	1,021	$	1,384
Investment income (expense), net(b)	10		(59)		67		(50)
Other pension income (expense) (See Note 10)	(4)		(1)		(9)		(4)
Interest expense, net	(161)		(120)		(411)		(354)
Income before income taxes	$	316	$	300	$	668	$	976

Our chief operating decision maker (“CODM”) does not consider the impact of Corporate and unallocated amounts when assessing Divisional segment performance. As such, we do not allocate such amounts to our Divisional segments for performance reporting purposes.

(a)Includes $32 million associated with a voluntary early retirement program offered to our U.S. based employees and a worldwide severance program in the quarter and year to date ended September 30, 2020. Also included in the year to date ended September 30, 2020 are a $50 million contribution to Yum! Brands Foundation, Inc. (a stand-alone, not-for-profit organization that is not consolidated in the Company's results) in the second quarter of 2020 related to our "Unlocking Opportunity Initiative" and costs related to our acquisition of Habit Burger Grill of $9 million.

(b)Includes changes in the value of Grubhub, Inc. common stock and other investments (see Notes 6 and 13).