Revenue Recognition Accounting Policy

3 Months Ended

Mar. 31, 2022

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 3/31/2022
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	15	$	214	$	5	$	125	$	359
Franchise revenues		45		157		64		1		267
Property revenues		3		11		1		—		15
Franchise contributions for advertising and other services		6		123		72		—		201
China
Franchise revenues		61		—		16		—		77
Other
Company sales		111		—		—		—		111
Franchise revenues		260		11		70		—		341
Property revenues		14		—		—		—		14
Franchise contributions for advertising and other services		145		1		16		—		162
		$	660	$	517	$	244	$	126	$	1,547

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

Contract Liabilities

Our contract liabilities are comprised of unamortized upfront fees received from franchisees and are presented within Accounts payable and other current liabilities and Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets. A summary of significant changes to the contract liability balance during 2022 is presented below.

	Deferred Franchise Fees
Balance at December 31, 2021	$	421
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(19)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	16
Balance at March 31, 2022	$	418

We expect to recognize contract liabilities as revenue over the remaining term of the associated franchise agreement as follows:

Less than 1 year	$	67
1 - 2 years	62
2 - 3 years	57
3 - 4 years	50
4 - 5 years	44
Thereafter	138
Total	$	418