Reportable Operating Segments

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Reportable Operating Segments

Reportable Operating Segments

See Note 1 for a description of our operating segments.

	Revenues
	2020		2019		2018
KFC Division(a)	$	2,272	$	2,491	$	2,644
Pizza Hut Division(a)	1,002		1,027		988
Taco Bell Division(a)	2,031		2,079		2,056
Habit Burger Grill Division(a)	347		—		—
	$	5,652	$	5,597	$	5,688

	Operating Profit
	2020		2019		2018
KFC Division	$	922	$	1,052	$	959
Pizza Hut Division	335		369		348
Taco Bell Division	696		683		633
Habit Burger Grill Division	(22)		—		—
Corporate and unallocated G&A expenses(b)(c)	(312)		(188)		(171)
Unallocated Company restaurant expenses(b)(d)	—		—		3
Unallocated Franchise and property expenses(b)(e)	(4)		(14)		(8)
Unallocated Refranchising gain (loss)(b)	34		37		540
Unallocated Other income (expense)(b)(f)	(146)		(9)		(8)
Operating Profit	1,503		1,930		2,296
Investment income (expense), net(b)	74		(67)		9
Other pension income (expense)(b)	(14)		(4)		(14)
Interest expense, net(b)	(543)		(486)		(452)
Income before income taxes	$	1,020	$	1,373	$	1,839

	Depreciation and Amortization
	2020		2019		2018
KFC Division	$	29	$	30	$	58
Pizza Hut Division	24		15		10
Taco Bell Division	56		59		61
Habit Burger Grill Division	25		—		—
Corporate	12		8		8
	$	146	$	112	$	137

	Capital Spending
	2020		2019		2018
KFC Division	$	59	$	81	$	105
Pizza Hut Division	28		33		38
Taco Bell Division	42		76		85
Habit Burger Grill Division	16		—		—
Corporate	15		6		6
	$	160	$	196	$	234

	Identifiable Assets(h)
	2020		2019
KFC Division	$	2,011	$	2,042
Pizza Hut Division	804		801
Taco Bell Division	1,387		1,330
Habit Burger Grill Division	537		—
Corporate(g)	1,113		1,058
	$	5,852	$	5,231

	Long-Lived Assets(i)
	2020		2019
KFC Division	$	1,160	$	1,179
Pizza Hut Division	415		427
Taco Bell Division	925		938
Habit Burger Grill Division	458		—
Corporate	68		42
	$	3,026	$	2,586

(a)U.S. revenues included in the combined KFC, Pizza Hut, Taco Bell and Habit Burger Grill Divisions totaled $3.2 billion in 2020, $3.0 billion in 2019 and $2.9 billion in 2018.

(b)    Amounts have not been allocated to any segment for performance reporting purposes.

(c)    Amounts in 2020 include charitable contributions to Yum! Brands Foundation, Inc. of $50 million and $25 million related to our Unlocking Opportunity Initiative and COVID-19 employee relief, respectively. Additionally, 2020 includes $36 million for charges associated with resource optimization (See Note 5) and $9 million in costs associated with our acquisition and integration of Habit Burger Grill (See Note 3).

(d)    Represents depreciation reductions arising primarily from KFC restaurants that were held for sale.

(e)    Represents costs related to an agreement executed in 2015 with our KFC U.S. franchisees that gave us control of brand marketing execution as well as an accelerated path to expanded menu offerings, improved assets and enhanced customer experience (the “KFC U.S. Acceleration Agreement”). Also represents costs related to an agreement executed in May 2017 with our Pizza Hut U.S. franchisees to improve brand marketing alignment, accelerate enhancements in operations and technology and that included a permanent commitment to incremental advertising as well as digital and technology contributions by franchisees (the “Pizza Hut U.S. Transformation Agreement”).

(f)    Unallocated Other income (expense) in 2020 includes a charge of $144 million related to the impairment of Habit Burger Grill goodwill. See Note 5.

(g)    Primarily includes cash, deferred tax assets and, in 2019, our Grubhub investment.

(h)    U.S. identifiable assets included in the combined Corporate and KFC, Pizza Hut, Taco Bell and Habit Burger Grill Divisions totaled $3.0 billion and $2.7 billion in 2020 and 2019, respectively.

(i)    Includes PP&E, goodwill, intangible assets, net and Operating lease right-of-use assets.