Reportable Operating Segments (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of Segment Reporting Information, by Segment

The following tables summarize Revenues and Operating Profit for each of our reportable operating segments:


	Quarter ended				Year to date
Revenues	2021		2020		2021		2020
KFC Division	$	682	$	409	$	1,307	$	975
Pizza Hut Division	249		235		500		470
Taco Bell Division	532		449		1,020		902
Habit Burger Grill Division	139		105		261		114
	$	1,602	$	1,198	$	3,088	$	2,461


	Quarter ended				Year to date
Operating Profit	2021		2020		2021		2020
KFC Division	$	318	$	153	$	618	$	377
Pizza Hut Division	103		87		205		163
Taco Bell Division	198		154		376		298
Habit Burger Grill Division	5		(6)		5		(8)
Corporate and unallocated G&A expenses(a)	(63)		(98)		(113)		(148)
Unallocated Company restaurant expenses	—		—		—		(1)
Unallocated Franchise and property expenses	—		(1)		—		(3)
Unallocated Refranchising gain (loss)	7		8		22		21
Unallocated Other income (expense)(b)	(1)		3		(3)		(149)
Operating Profit	$	567	$	300	$	1,110	$	550
Investment income (expense), net(c)	1		91		1		57
Other pension income (expense) (See Note 10)	(2)		(2)		(5)		(5)
Interest expense, net(d)	(159)		(132)		(290)		(250)
Income before income taxes	$	407	$	257	$	816	$	352

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 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". Also included are costs related to our acquisition of Habit Burger Grill in the quarter and year to date ended June 30, 2020 of $3 million and $9 million, respectively.

(b)Includes a charge of $139 million related to the impairment of Habit Burger Grill goodwill in the year to date ended June 30, 2020. See Note 2.

(c)Includes changes in the value of Grubhub, Inc. ("Grubhub") common stock and other investments. For the quarter and year to date ended June 30, 2020, we recognized investment income of $84 million and $62 million, respectively, related to changes in fair value of our investment in Grubhub common stock. In the quarter ended September 30, 2020, we sold our investment in Grubhub.

(d)Includes a $28 million call premium and $6 million of unamortized debt issuance costs written off related to the redemption of the 2026 Notes during the quarter ended June 30, 2021. Includes fees expensed and unamortized debt issuance costs written off totaling $12 million related to the refinancing of the Credit Agreement during the year to date ended June 30, 2021. See Note 11.