Revenue Recognition Accounting Policy

3 Months Ended

Mar. 31, 2021

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 3/31/2021
		KFC Division		Pizza Hut Division		Taco Bell Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	14	$	5	$	208	$	121	$	348
Franchise revenues		44		67		144		1		256
Property revenues		4		—		10		—		14
Franchise contributions for advertising and other services		6		79		117		—		202
China
Franchise revenues		62		16		—		—		78
Other
Company sales		119		9		—		—		128
Franchise revenues		230		57		8		—		295
Property revenues		14		1		—		—		15
Franchise contributions for advertising and other services		132		17		1		—		150
		$	625	$	251	$	488	$	122	$	1,486

	Quarter ended 3/31/2020
	KFC Division		Pizza Hut Division		Taco Bell Division		Habit Burger Grill Division		Total
U.S.
Company sales	$	16	$	5	$	198	$	9	$	228
Franchise revenues	38		62		131		—		231
Property revenues	4		1		10		—		15
Franchise contributions for advertising and other services	4		70		107		—		181
China
Franchise revenues	47		10		—		—		57
Other
Company sales	114		13		—		—		127
Franchise revenues	212		59		7		—		278
Property revenues	14		1		—		—		15
Franchise contributions for advertising and other services	117		14		—		—		131
	$	566	$	235	$	453	$	9	$	1,263

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 2021 is presented below.

	Deferred Franchise Fees
Balance at December 31, 2020	$	415
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(17)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	12
Other(a)	(3)
Balance at March 31, 2021	$	407

(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	49
4 - 5 years	43
Thereafter	138
Total	$	407

^[1]

[1] (a)    Primarily includes impact of foreign currency translation.