UNITED STATES | ||
SECURITIES AND EXCHANGE COMMISSION | ||
Washington, D. C. 20549 |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES | |||||||||||
EXCHANGE ACT OF 1934 for the quarterly period ended | |||||||||||
OR | |||||||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of | (I.R.S. Employer | |||||||||||||||||||
incorporation or organization) | Identification No.) | |||||||||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
Registrant’s telephone number, including area code: | |
Securities registered pursuant to Section 12(b) of the Act | |||||||||||
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | |||||||||
☒ | Accelerated Filer | ☐ | ||||||||||||
Non-accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||
Emerging Growth Company |
Page | ||||||||
No. | ||||||||
Part I. | Financial Information | |||||||
Item 1 - Financial Statements | ||||||||
Condensed Consolidated Statements of Income | ||||||||
Condensed Consolidated Statements of Comprehensive Income | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
Condensed Consolidated Statements of Shareholders' Deficit | ||||||||
Notes to Condensed Consolidated Financial Statements | ||||||||
Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||||||
Item 3 - Quantitative and Qualitative Disclosures About Market Risk | ||||||||
Item 4 - Controls and Procedures | ||||||||
Report of Independent Registered Public Accounting Firm | ||||||||
Part II. | Other Information and Signatures | |||||||
Item 1 - Legal Proceedings | ||||||||
Item 1A - Risk Factors | ||||||||
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds | ||||||||
Item 5 - Other Information | ||||||||
Item 6 - Exhibits | ||||||||
Signatures |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||||||||||
YUM! BRANDS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||
Quarter ended | Year to date | ||||||||||||||||||||||
Revenues | 6/30/2022 | 6/30/2021 | 6/30/2022 | 6/30/2021 | |||||||||||||||||||
Company sales | $ | $ | $ | $ | |||||||||||||||||||
Franchise and property revenues | |||||||||||||||||||||||
Franchise contributions for advertising and other services | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Costs and Expenses, Net | |||||||||||||||||||||||
Company restaurant expenses | |||||||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Franchise and property expenses | |||||||||||||||||||||||
Franchise advertising and other services expense | |||||||||||||||||||||||
Refranchising (gain) loss | ( | ( | ( | ( | |||||||||||||||||||
Other (income) expense | ( | ( | ( | ( | |||||||||||||||||||
Total costs and expenses, net | |||||||||||||||||||||||
Operating Profit | |||||||||||||||||||||||
Investment (income) expense, net | ( | ( | |||||||||||||||||||||
Other pension (income) expense | |||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Income Before Income Taxes | |||||||||||||||||||||||
Income tax provision | |||||||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
Basic Earnings Per Common Share | $ | $ | $ | $ | |||||||||||||||||||
Diluted Earnings Per Common Share | $ | $ | $ | $ | |||||||||||||||||||
Dividends Declared Per Common Share | $ | $ | $ | $ | |||||||||||||||||||
See accompanying Notes to Condensed Consolidated Financial Statements. |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | |||||||||||||||||||||||
YUM! BRANDS, INC. AND SUBSIDIARIES | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Quarter ended | Year to date | ||||||||||||||||||||||
6/30/2022 | 6/30/2021 | 6/30/2022 | 6/30/2021 | ||||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income, net of tax | |||||||||||||||||||||||
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature | |||||||||||||||||||||||
Adjustments and gains (losses) arising during the period | ( | ( | |||||||||||||||||||||
( | ( | ||||||||||||||||||||||
Tax (expense) benefit | |||||||||||||||||||||||
( | ( | ||||||||||||||||||||||
Changes in pension and post-retirement benefits | |||||||||||||||||||||||
Unrealized gains (losses) arising during the period | |||||||||||||||||||||||
Reclassification of (gains) losses into Net Income | |||||||||||||||||||||||
Tax (expense) benefit | ( | ( | ( | ( | |||||||||||||||||||
Changes in derivative instruments | |||||||||||||||||||||||
Unrealized gains (losses) arising during the period | ( | ||||||||||||||||||||||
Reclassification of (gains) losses into Net Income | |||||||||||||||||||||||
( | |||||||||||||||||||||||
Tax (expense) benefit | ( | ( | ( | ||||||||||||||||||||
( | |||||||||||||||||||||||
Other comprehensive income, net of tax | ( | ||||||||||||||||||||||
Comprehensive Income | $ | $ | $ | $ | |||||||||||||||||||
See accompanying Notes to Condensed Consolidated Financial Statements. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||||
YUM! BRANDS, INC. AND SUBSIDIARIES | |||||||||||
(in millions) | |||||||||||
Year to date | |||||||||||
6/30/2022 | 6/30/2021 | ||||||||||
Cash Flows – Operating Activities | |||||||||||
Net Income | $ | $ | |||||||||
Depreciation and amortization | |||||||||||
Refranchising (gain) loss | ( | ( | |||||||||
Investment (income) expense, net | ( | ||||||||||
Deferred income taxes | ( | ||||||||||
Share-based compensation expense | |||||||||||
Changes in accounts and notes receivable | ( | ||||||||||
Changes in prepaid expenses and other current assets | ( | ( | |||||||||
Changes in accounts payable and other current liabilities | ( | ( | |||||||||
Changes in income taxes payable | ( | ( | |||||||||
Other, net | |||||||||||
Net Cash Provided by Operating Activities | |||||||||||
Cash Flows – Investing Activities | |||||||||||
Capital spending | ( | ( | |||||||||
Proceeds from refranchising of restaurants | |||||||||||
Other, net | ( | ||||||||||
Net Cash Used In Investing Activities | ( | ( | |||||||||
Cash Flows – Financing Activities | |||||||||||
Proceeds from long-term debt | |||||||||||
Repayments of long-term debt | ( | ( | |||||||||
Repurchase shares of Common Stock | ( | ( | |||||||||
Dividends paid on Common Stock | ( | ( | |||||||||
Debt issuance costs | ( | ( | |||||||||
Other, net | ( | ( | |||||||||
Net Cash Used in Financing Activities | ( | ( | |||||||||
Effect of Exchange Rates on Cash and Cash Equivalents | ( | ||||||||||
Net Decrease in Cash and Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | ( | ( | |||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - Beginning of Period | |||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - End of Period | $ | $ | |||||||||
See accompanying Notes to Condensed Consolidated Financial Statements. |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
YUM! BRANDS, INC. AND SUBSIDIARIES | |||||||||||
(in millions) | |||||||||||
(Unaudited) 6/30/2022 | 12/31/2021 | ||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts and notes receivable, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total Current Assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Other assets | |||||||||||
Deferred income taxes | |||||||||||
Total Assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | |||||||||||
Current Liabilities | |||||||||||
Accounts payable and other current liabilities | $ | $ | |||||||||
Income taxes payable | |||||||||||
Short-term borrowings | |||||||||||
Total Current Liabilities | |||||||||||
Long-term debt | |||||||||||
Other liabilities and deferred credits | |||||||||||
Total Liabilities | |||||||||||
Shareholders’ Deficit | |||||||||||
Common Stock, | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Shareholders’ Deficit | ( | ( | |||||||||
Total Liabilities and Shareholders’ Deficit | $ | $ | |||||||||
See accompanying Notes to Condensed Consolidated Financial Statements. |
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT (Unaudited) | ||||||||||||||||||||||||||||||||
YUM! BRANDS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Quarters ended June 30, 2022 and 2021 | ||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Yum! Brands, Inc. | ||||||||||||||||||||||||||||||||
Issued Common Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Shareholders' Deficit | |||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||
Net Income | ||||||||||||||||||||||||||||||||
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature | ( | ( | ||||||||||||||||||||||||||||||
Pension and post-retirement benefit plans (net of tax impact of $ | ||||||||||||||||||||||||||||||||
Net gain on derivative instruments (net of tax impact of $ | ||||||||||||||||||||||||||||||||
Comprehensive Income | ||||||||||||||||||||||||||||||||
Dividends declared | ( | ( | ||||||||||||||||||||||||||||||
Repurchase of shares of Common Stock | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Employee share-based award exercises | ( | ( | ||||||||||||||||||||||||||||||
Share-based compensation events | ||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||
Net Income | ||||||||||||||||||||||||||||||||
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature | ( | ( | ||||||||||||||||||||||||||||||
Pension and post-retirement benefit plans (net of tax impact of $ | ||||||||||||||||||||||||||||||||
Net gain on derivative instruments (net of tax impact of $ | ||||||||||||||||||||||||||||||||
Comprehensive Income | ||||||||||||||||||||||||||||||||
Dividends declared | ( | ( | ||||||||||||||||||||||||||||||
Repurchase of shares of Common Stock | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Employee share-based award exercises | ( | ( | ||||||||||||||||||||||||||||||
Share-based compensation events | ||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||
Net Income | ||||||||||||||||||||||||||||||||
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature | ||||||||||||||||||||||||||||||||
Pension and post-retirement benefit plans (net of tax impact of $ | ||||||||||||||||||||||||||||||||
Net loss on derivative instruments (net of tax impact of $ | ( | ( | ||||||||||||||||||||||||||||||
Comprehensive Income | ||||||||||||||||||||||||||||||||
Dividends declared | ( | ( | ||||||||||||||||||||||||||||||
Repurchase of shares of Common Stock | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Employee share-based award exercises | ( | ( | ||||||||||||||||||||||||||||||
Share-based compensation events | ||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||
Net Income | ||||||||||||||||||||||||||||||||
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature | ||||||||||||||||||||||||||||||||
Pension and post-retirement benefit plans (net of tax impact of $ | ||||||||||||||||||||||||||||||||
Net gain on derivative instruments (net of tax impact of $ | ||||||||||||||||||||||||||||||||
Comprehensive Income | ||||||||||||||||||||||||||||||||
Dividends declared | ( | ( | ||||||||||||||||||||||||||||||
Repurchase of shares of Common Stock | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Employee share-based award exercises | ( | ( | ||||||||||||||||||||||||||||||
Share-based compensation events | ||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||
See accompanying Notes to Condensed Consolidated Financial Statements. |
Quarter ended | Year to date | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Net Income | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted-average common shares outstanding (for basic calculation) | ||||||||||||||||||||||||||
Effect of dilutive share-based employee compensation | ||||||||||||||||||||||||||
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) | ||||||||||||||||||||||||||
Basic EPS | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted EPS | $ | $ | $ | $ | ||||||||||||||||||||||
Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation(a) |
Shares Repurchased (thousands) | Dollar Value of Shares Repurchased | Remaining Dollar Value of Shares that may be Repurchased | ||||||||||||||||||||||||||||||||||||
Authorization Date | 2022 | 2021 | 2022 | 2021 | 2022 | |||||||||||||||||||||||||||||||||
November 2019 | $ | — | $ | $ | ||||||||||||||||||||||||||||||||||
May 2021 | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||||||||||||||||||||
Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature | Pension and Post-Retirement Benefits | Derivative Instruments | Total | |||||||||||||||||||||||
Balance at March 31, 2022, net of tax | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
OCI, net of tax | ||||||||||||||||||||||||||
Gains (losses) arising during the period classified into AOCI, net of tax | ( | ( | ||||||||||||||||||||||||
(Gains) losses reclassified from AOCI, net of tax | ||||||||||||||||||||||||||
( | ( | |||||||||||||||||||||||||
Balance at June 30, 2022, net of tax | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Balance at December 31, 2021, net of tax | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
OCI, net of tax | ||||||||||||||||||||||||||
Gains (losses) arising during the period classified into AOCI, net of tax | ( | |||||||||||||||||||||||||
(Gains) losses reclassified from AOCI, net of tax | ||||||||||||||||||||||||||
( | ||||||||||||||||||||||||||
Balance at June 30, 2022, net of tax | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Quarter ended | Year to date | |||||||||||||||||||||||||
6/30/2022 | 6/30/2021 | 6/30/2022 | 6/30/2021 | |||||||||||||||||||||||
Foreign exchange net (gain) loss | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Impairment and closure expense | ( | ( | ||||||||||||||||||||||||
Other | ( | ( | ||||||||||||||||||||||||
Other (income) expense | $ | ( | $ | ( | $ | ( | $ | ( |
6/30/2022 | 12/31/2021 | ||||||||||
Accounts and notes receivable, gross | $ | $ | |||||||||
Allowance for doubtful accounts | ( | ( | |||||||||
Accounts and notes receivable, net | $ | $ |
6/30/2022 | 12/31/2021 | ||||||||||
Property, plant and equipment, gross | $ | $ | |||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Property, plant and equipment, net | $ | $ |
Other Assets | 6/30/2022 | 12/31/2021 | |||||||||
Operating lease right-of-use assets(a) | $ | $ | |||||||||
Franchise incentives | |||||||||||
Investment in Devyani International Limited (See Note 12) | |||||||||||
Other | |||||||||||
Other assets | $ | $ |
6/30/2022 | 12/31/2021 | ||||||||||
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets | $ | $ | |||||||||
Restricted cash included in Prepaid expenses and other current assets(a) | |||||||||||
Restricted cash and restricted cash equivalents included in Other assets(b) | |||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents as presented in Condensed Consolidated Statements of Cash Flows | $ | $ |
Quarter ended | Year to date | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Income tax (benefit) provision | $ | $ | $ | $ | |||||||||||||||||||
Effective tax rate | % | % | % | % |
Quarter ended 6/30/2022 | ||||||||||||||||||||||||||||||||
KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger Grill Division | Total | ||||||||||||||||||||||||||||
U.S. | ||||||||||||||||||||||||||||||||
Company sales | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Franchise revenues | ||||||||||||||||||||||||||||||||
Property revenues | ||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | ||||||||||||||||||||||||||||||||
China | ||||||||||||||||||||||||||||||||
Franchise revenues | ||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Company sales | ||||||||||||||||||||||||||||||||
Franchise revenues | ||||||||||||||||||||||||||||||||
Property revenues | ||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ |
Quarter ended 6/30/2021 | ||||||||||||||||||||||||||||||||
KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger Grill Division | Total | ||||||||||||||||||||||||||||
U.S. | ||||||||||||||||||||||||||||||||
Company sales | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Franchise revenues | ||||||||||||||||||||||||||||||||
Property revenues | ||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | ||||||||||||||||||||||||||||||||
China | ||||||||||||||||||||||||||||||||
Franchise revenues | ||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Company sales | ||||||||||||||||||||||||||||||||
Franchise revenues | ||||||||||||||||||||||||||||||||
Property revenues | ||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ |
Year to date 6/30/2022 | ||||||||||||||||||||||||||||||||
KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger Grill Division | Total | ||||||||||||||||||||||||||||
U.S. | ||||||||||||||||||||||||||||||||
Company sales | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Franchise revenues | ||||||||||||||||||||||||||||||||
Property revenues | ||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | ||||||||||||||||||||||||||||||||
China | ||||||||||||||||||||||||||||||||
Franchise revenues | ||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Company sales | ||||||||||||||||||||||||||||||||
Franchise revenues | ||||||||||||||||||||||||||||||||
Property revenues | ||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Year to date 6/30/2021 | ||||||||||||||||||||||||||||||||
KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger Grill Division | Total | ||||||||||||||||||||||||||||
U.S. | ||||||||||||||||||||||||||||||||
Company sales | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Franchise revenues | ||||||||||||||||||||||||||||||||
Property revenues | ||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | ||||||||||||||||||||||||||||||||
China | ||||||||||||||||||||||||||||||||
Franchise revenues | ||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Company sales | ||||||||||||||||||||||||||||||||
Franchise revenues | ||||||||||||||||||||||||||||||||
Property revenues | ||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Deferred Franchise Fees | ||||||||
Balance at December 31, 2021 | $ | |||||||
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period | ( | |||||||
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period | ||||||||
Other(a) | ||||||||
Balance at June 30, 2022 | $ |
Less than 1 year | $ | |||||||
1 - 2 years | ||||||||
2 - 3 years | ||||||||
3 - 4 years | ||||||||
4 - 5 years | ||||||||
Thereafter | ||||||||
Total | $ |
Quarter ended | Year to date | ||||||||||||||||||||||
Revenues | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
KFC Division | $ | $ | $ | $ | |||||||||||||||||||
Taco Bell Division | |||||||||||||||||||||||
Pizza Hut Division | |||||||||||||||||||||||
Habit Burger Grill Division | |||||||||||||||||||||||
$ | $ | $ | $ |
Quarter ended | Year to date | ||||||||||||||||||||||
Operating Profit | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
KFC Division | $ | $ | $ | $ | |||||||||||||||||||
Taco Bell Division | |||||||||||||||||||||||
Pizza Hut Division | |||||||||||||||||||||||
Habit Burger Grill Division | ( | ( | |||||||||||||||||||||
Corporate and unallocated G&A expenses(a) | ( | ( | ( | ( | |||||||||||||||||||
Unallocated Franchise and property expenses(a) | ( | ( | |||||||||||||||||||||
Unallocated Refranchising gain (loss) | |||||||||||||||||||||||
Unallocated Other income (expense)(a) | ( | ( | |||||||||||||||||||||
Operating Profit | $ | $ | $ | $ | |||||||||||||||||||
Investment income (expense), net(b) | ( | ( | |||||||||||||||||||||
Other pension income (expense) | ( | ( | ( | ( | |||||||||||||||||||
Interest expense, net(c) | ( | ( | ( | ( | |||||||||||||||||||
Income before income taxes | $ | $ | $ | $ |
Quarter ended | Year to date | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of net loss | |||||||||||||||||||||||
Amortization of prior service cost | |||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ | |||||||||||||||||||
Short-term Borrowings | 6/30/2022 | 12/31/2021 | ||||||||||||
Current maturities of long-term debt | $ | $ | ||||||||||||
Less current portion of debt issuance costs and discounts | ( | ( | ||||||||||||
Short-term borrowings | $ | $ | ||||||||||||
Long-term Debt | ||||||||||||||
Securitization Notes | $ | $ | ||||||||||||
Subsidiary Senior Unsecured Notes | ||||||||||||||
Term Loan A Facility | ||||||||||||||
Term Loan B Facility | ||||||||||||||
YUM Senior Unsecured Notes | ||||||||||||||
Finance lease obligations | ||||||||||||||
$ | $ | |||||||||||||
Less debt issuance costs and discounts | ( | ( | ||||||||||||
Less current maturities of long-term debt | ( | ( | ||||||||||||
Long-term debt | $ | $ |
Quarter ended | Year to date | ||||||||||||||||||||||||||||||||||||||||||||||
Gains/(Losses) Recognized in OCI | (Gains)/Losses Reclassified from AOCI into Net Income | Gains/(Losses) Recognized in OCI | (Gains)/Losses Reclassified from AOCI into Net Income | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | $ | ( | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Income tax benefit/(expense) | ( | ( | ( | ( | ( | ( | ( |
6/30/2022 | 12/31/2021 | ||||||||||||||||||||||
Carrying Value | Fair Value (Level 2) | Carrying Value | Fair Value (Level 2) | ||||||||||||||||||||
Securitization Notes(a) | $ | $ | $ | $ | |||||||||||||||||||
Subsidiary Senior Unsecured Notes(b) | |||||||||||||||||||||||
Term Loan A Facility(b) | |||||||||||||||||||||||
Term Loan B Facility(b) | |||||||||||||||||||||||
YUM Senior Unsecured Notes(b) | |||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||
Condensed Consolidated Balance Sheet | Level | 6/30/2022 | 12/31/2021 | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Other Investments | Other assets | 1 | $ | $ | ||||||||||||||||||||||
Other Investments | Other assets | 3 | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Interest Rate Swaps | Accounts payable and other current liabilities | 2 | ||||||||||||||||||||||||
Interest Rate Swaps | Other liabilities and deferred credits | 2 |
% Change | |||||||||||||||||
System Sales, ex FX | Same-Store Sales | Units | GAAP Operating Profit | Core Operating Profit | |||||||||||||
KFC Division | +1 | (1) | +3 | (8) | (2) | ||||||||||||
Taco Bell Division | +10 | +8 | +4 | +9 | +9 | ||||||||||||
Pizza Hut Division | Even | (3) | +4 | (10) | (7) | ||||||||||||
Worldwide | +3 | +1 | +4 | (2) | (1) |
% Change | |||||||||||||||||
System Sales, ex FX | Same-Store Sales | Units | GAAP Operating Profit | Core Operating Profit | |||||||||||||
KFC Division | +5 | +1 | +3 | (6) | (1) | ||||||||||||
Taco Bell Division | +9 | +6 | +4 | +6 | +7 | ||||||||||||
Pizza Hut Division | +2 | (1) | +4 | (5) | (2) | ||||||||||||
Worldwide | +5 | +2 | +4 | (4) | (3) | ||||||||||||
Quarter ended | Year to date | ||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | % B/(W) | 2022 | 2021 | % B/(W) | ||||||||||||||||||||||||||||||||||||
Company sales | $ | 499 | $ | 520 | (4) | $ | 969 | $ | 996 | (3) | |||||||||||||||||||||||||||||||
Franchise and property revenues | 737 | 706 | 4 | 1,451 | 1,364 | 6 | |||||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | 400 | 376 | 6 | 763 | 728 | 5 | |||||||||||||||||||||||||||||||||||
Total revenues | 1,636 | 1,602 | 2 | 3,183 | 3,088 | 3 | |||||||||||||||||||||||||||||||||||
Company restaurant expenses | 415 | 417 | 1 | 817 | 809 | (1) | |||||||||||||||||||||||||||||||||||
G&A expenses | 254 | 230 | (11) | 507 | 436 | (17) | |||||||||||||||||||||||||||||||||||
Franchise and property expenses | 29 | 27 | (10) | 61 | 50 | (24) | |||||||||||||||||||||||||||||||||||
Franchise advertising and other services expense | 396 | 372 | (6) | 757 | 715 | (6) | |||||||||||||||||||||||||||||||||||
Refranchising (gain) loss | (8) | (7) | 34 | (12) | (22) | (43) | |||||||||||||||||||||||||||||||||||
Other (income) expense | (4) | (4) | NM | (10) | (10) | NM | |||||||||||||||||||||||||||||||||||
Total costs and expenses, net | 1,082 | 1,035 | (4) | 2,120 | 1,978 | (7) | |||||||||||||||||||||||||||||||||||
Operating Profit | 554 | 567 | (2) | 1,063 | 1,110 | (4) | |||||||||||||||||||||||||||||||||||
Investment (income) expense, net | 15 | (1) | NM | 8 | (1) | NM | |||||||||||||||||||||||||||||||||||
Other pension (income) expense | 1 | 2 | 86 | 1 | 5 | 84 | |||||||||||||||||||||||||||||||||||
Interest expense, net | 148 | 159 | 6 | 266 | 290 | 8 | |||||||||||||||||||||||||||||||||||
Income before income taxes | 390 | 407 | (4) | 788 | 816 | (3) | |||||||||||||||||||||||||||||||||||
Income tax provision | 166 | 16 | NM | 165 | 99 | (67) | |||||||||||||||||||||||||||||||||||
Net Income | $ | 224 | $ | 391 | (43) | $ | 623 | $ | 717 | (13) | |||||||||||||||||||||||||||||||
Diluted EPS(a) | $ | 0.77 | $ | 1.29 | (40) | $ | 2.13 | $ | 2.35 | (9) | |||||||||||||||||||||||||||||||
Effective tax rate | 42.6 | % | 4.0 | % | (38.6) | ppts. | 21.0 | % | 12.1 | % | (8.9) | ppts. | |||||||||||||||||||||||||||||
Unit Count | 6/30/2022 | 6/30/2021 | % Increase (Decrease) | ||||||||||||||||||||
Franchise | 52,363 | 50,317 | 4 | ||||||||||||||||||||
Company-owned | 987 | 1,074 | (8) | ||||||||||||||||||||
Total | 53,350 | 51,391 | 4 |
Quarter ended | Year to date | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Same-store Sales Growth (Decline) % | 1 | 23 | 2 | 16 | ||||||||||||||||||||||
System Sales Growth (Decline) %, reported | (1) | 32 | 2 | 23 | ||||||||||||||||||||||
System Sales Growth (Decline) %, excluding FX | 3 | 26 | 5 | 18 | ||||||||||||||||||||||
Quarter ended | Year to date | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Consolidated | ||||||||||||||||||||||||||
Company sales(a) | $ | 499 | $ | 520 | $ | 969 | $ | 996 | ||||||||||||||||||
Franchise sales | 13,457 | 13,604 | 27,133 | 26,513 | ||||||||||||||||||||||
System sales | 13,956 | 14,124 | 28,102 | 27,509 | ||||||||||||||||||||||
Foreign Currency Impact on System sales(b) | (553) | N/A | (829) | N/A | ||||||||||||||||||||||
System sales, excluding FX | $ | 14,509 | $ | 14,124 | $ | 28,931 | $ | 27,509 | ||||||||||||||||||
KFC Division | ||||||||||||||||||||||||||
Company sales(a) | $ | 115 | $ | 147 | $ | 241 | $ | 280 | ||||||||||||||||||
Franchise sales | 7,137 | 7,491 | 14,744 | 14,631 | ||||||||||||||||||||||
System sales | 7,252 | 7,638 | 14,985 | 14,911 | ||||||||||||||||||||||
Foreign Currency Impact on System sales(b) | (426) | N/A | (655) | N/A | ||||||||||||||||||||||
System sales, excluding FX | $ | 7,678 | $ | 7,638 | $ | 15,640 | $ | 14,911 | ||||||||||||||||||
Taco Bell Division | ||||||||||||||||||||||||||
Company sales(a) | $ | 243 | $ | 223 | $ | 457 | $ | 431 | ||||||||||||||||||
Franchise sales | 3,266 | 2,966 | 6,160 | 5,638 | ||||||||||||||||||||||
System sales | 3,509 | 3,189 | 6,617 | 6,069 | ||||||||||||||||||||||
Foreign Currency Impact on System sales(b) | (13) | N/A | (19) | N/A | ||||||||||||||||||||||
System sales, excluding FX | $ | 3,522 | $ | 3,189 | $ | 6,636 | $ | 6,069 | ||||||||||||||||||
Pizza Hut Division | ||||||||||||||||||||||||||
Company sales(a) | $ | 5 | $ | 12 | $ | 10 | $ | 26 | ||||||||||||||||||
Franchise sales | 3,034 | 3,131 | 6,189 | 6,213 | ||||||||||||||||||||||
System sales | 3,039 | 3,143 | 6,199 | 6,239 | ||||||||||||||||||||||
Foreign Currency Impact on System sales(b) | (114) | N/A | (155) | N/A | ||||||||||||||||||||||
System sales, excluding FX | $ | 3,153 | $ | 3,143 | $ | 6,354 | $ | 6,239 | ||||||||||||||||||
Habit Burger Grill Division | ||||||||||||||||||||||||||
Company sales(a) | $ | 136 | $ | 138 | $ | 261 | $ | 259 | ||||||||||||||||||
Franchise sales | 20 | 16 | 40 | 31 | ||||||||||||||||||||||
System sales | 156 | 154 | 301 | 290 | ||||||||||||||||||||||
Foreign Currency Impact on System sales(b) | — | N/A | — | N/A | ||||||||||||||||||||||
System sales, excluding FX | $ | 156 | $ | 154 | $ | 301 | $ | 290 | ||||||||||||||||||
Non-GAAP Items | ||||||||||||||||||||||||||
Non-GAAP Items, along with the reconciliation to the most comparable GAAP financial measure, as presented below. | ||||||||||||||||||||||||||
Quarter ended | Year to date | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Core Operating Profit Growth (Decline) % | (1) | 53 | (3) | 42 | ||||||||||||||||||||||
Diluted EPS Growth (Decline) %, excluding Special Items | (9) | 41 | (5) | 52 | ||||||||||||||||||||||
Effective Tax Rate excluding Special Items | 24.2 | % | 20.0 | % | 22.3 | % | 20.1 | % | ||||||||||||||||||
Quarter ended | Year to date | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Company restaurant profit | $ | 84 | $ | 103 | $ | 152 | $ | 187 | ||||||||||||||||||
Company restaurant margin % | 16.8 | % | 19.8 | % | 15.7 | % | 18.7 | % | ||||||||||||||||||
Quarter ended | Year to date | |||||||||||||||||||||||||
Detail of Special Items | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Refranchising gain (loss)(a) | $ | — | $ | 2 | $ | 4 | $ | 4 | ||||||||||||||||||
Operating profit impact from decision to exit Russia(b) | 14 | — | 21 | — | ||||||||||||||||||||||
Charges associated with resource optimization(c) | — | (2) | — | (3) | ||||||||||||||||||||||
Other Special Items Income (Expense) | — | — | (1) | 1 | ||||||||||||||||||||||
Special Items Income (Expense) - Operating Profit | 14 | — | 24 | 2 | ||||||||||||||||||||||
Charges associated with resource optimization - Other pension (expense) income(c) | — | 1 | — | 1 | ||||||||||||||||||||||
Interest expense, net(d) | (28) | (34) | (28) | (34) | ||||||||||||||||||||||
Special Items Expense before Income Taxes | (14) | (33) | (4) | (31) | ||||||||||||||||||||||
Tax (Expense) Benefit on Special Items(e) | 2 | 8 | — | 7 | ||||||||||||||||||||||
Tax Benefit - Intra-entity transfer of intellectual property(f) | — | 64 | — | 64 | ||||||||||||||||||||||
Tax Benefit - Newly issued U.S. foreign tax credit regulations(g) | — | — | 82 | — | ||||||||||||||||||||||
Tax (Expense) - Income tax impacts from decision to exit Russia(h) | (71) | — | (71) | — | ||||||||||||||||||||||
Special Items Income (Expense), net of tax | $ | (83) | $ | 39 | $ | 7 | $ | 40 | ||||||||||||||||||
Average diluted shares outstanding | 290 | 304 | 292 | 304 | ||||||||||||||||||||||
Special Items diluted EPS | $ | (0.28) | $ | 0.13 | $ | 0.03 | $ | 0.13 | ||||||||||||||||||
Reconciliation of GAAP Operating Profit to Core Operating Profit | Quarter ended | Year to date | ||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Consolidated | ||||||||||||||||||||||||||
GAAP Operating Profit | $ | 554 | $ | 567 | $ | 1,063 | $ | 1,110 | ||||||||||||||||||
Special Items Income (Expense) | 14 | — | 24 | 2 | ||||||||||||||||||||||
Foreign Currency Impact on Divisional Operating Profit(a) | (23) | N/A | (37) | N/A | ||||||||||||||||||||||
Core Operating Profit | $ | 563 | $ | 567 | $ | 1,076 | $ | 1,108 | ||||||||||||||||||
KFC Division | ||||||||||||||||||||||||||
GAAP Operating Profit | $ | 293 | $ | 318 | $ | 584 | $ | 618 | ||||||||||||||||||
Foreign Currency Impact on Divisional Operating Profit(a) | (19) | N/A | (31) | N/A | ||||||||||||||||||||||
Core Operating Profit | $ | 312 | $ | 318 | $ | 615 | $ | 618 | ||||||||||||||||||
Taco Bell Division | ||||||||||||||||||||||||||
GAAP Operating Profit | $ | 215 | $ | 198 | $ | 400 | $ | 376 | ||||||||||||||||||
Foreign Currency Impact on Divisional Operating Profit(a) | (1) | N/A | (1) | N/A | ||||||||||||||||||||||
Core Operating Profit | $ | 216 | $ | 198 | $ | 401 | $ | 376 | ||||||||||||||||||
Pizza Hut Division | ||||||||||||||||||||||||||
GAAP Operating Profit | $ | 93 | $ | 103 | $ | 195 | $ | 205 | ||||||||||||||||||
Foreign Currency Impact on Divisional Operating Profit(a) | (3) | N/A | (5) | N/A | ||||||||||||||||||||||
Core Operating Profit | $ | 96 | $ | 103 | $ | 200 | $ | 205 | ||||||||||||||||||
Habit Burger Grill Division | ||||||||||||||||||||||||||
GAAP Operating Profit (Loss) | $ | (2) | $ | 5 | $ | (10) | $ | 5 | ||||||||||||||||||
Foreign Currency Impact on Divisional Operating Profit(a) | — | N/A | — | N/A | ||||||||||||||||||||||
Core Operating Profit (Loss) | $ | (2) | $ | 5 | $ | (10) | $ | 5 | ||||||||||||||||||
Reconciliation of Diluted EPS to Diluted EPS excluding Special Items | ||||||||||||||||||||||||||
Diluted EPS | $ | 0.77 | $ | 1.29 | $ | 2.13 | $ | 2.35 | ||||||||||||||||||
Special Items Diluted EPS | (0.28) | 0.13 | 0.03 | 0.13 | ||||||||||||||||||||||
Diluted EPS excluding Special Items | $ | 1.05 | $ | 1.16 | $ | 2.10 | $ | 2.22 | ||||||||||||||||||
Reconciliation of GAAP Effective Tax Rate to Effective Tax Rate excluding Special Items | ||||||||||||||||||||||||||
GAAP Effective Tax Rate | 42.6 | % | 4.0 | % | 21.0 | % | 12.1 | % | ||||||||||||||||||
Impact on Tax Rate as a result of Special Items | 18.4 | % | (16.0) | % | (1.3) | % | (8.0) | % | ||||||||||||||||||
Effective Tax Rate excluding Special Items | 24.2 | % | 20.0 | % | 22.3 | % | 20.1 | % |
Reconciliation of GAAP Operating Profit to Company Restaurant Profit | ||||||||||||||||||||||||||||||||||||||
Quarter ended 6/30/2022 | ||||||||||||||||||||||||||||||||||||||
KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger Grill Division | Corporate and Unallocated | Consolidated | |||||||||||||||||||||||||||||||||
GAAP Operating Profit (Loss) | $ | 293 | $ | 215 | $ | 93 | $ | (2) | $ | (45) | $ | 554 | ||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||
Franchise and property revenues | 394 | 199 | 142 | 2 | — | 737 | ||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | 168 | 144 | 88 | — | — | 400 | ||||||||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 89 | 39 | 50 | 11 | 65 | 254 | ||||||||||||||||||||||||||||||||
Franchise and property expenses | 14 | 8 | 2 | 1 | 4 | 29 | ||||||||||||||||||||||||||||||||
Franchise advertising and other services expense | 163 | 144 | 88 | 1 | — | 396 | ||||||||||||||||||||||||||||||||
Refranchising (gain) loss | — | — | — | — | (8) | (8) | ||||||||||||||||||||||||||||||||
Other (income) expense | 16 | (1) | (3) | — | (16) | (4) | ||||||||||||||||||||||||||||||||
Company restaurant profit | $ | 13 | $ | 62 | $ | — | $ | 9 | $ | — | $ | 84 | ||||||||||||||||||||||||||
Company sales | $ | 115 | $ | 243 | $ | 5 | $ | 136 | $ | — | $ | 499 | ||||||||||||||||||||||||||
Company restaurant margin % | 11.6 | % | 25.7 | % | (8.0) | % | 6.0 | % | N/A | 16.8 | % |
Quarter ended 6/30/2021 | ||||||||||||||||||||||||||||||||||||||
KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger Grill Division | Corporate and Unallocated | Consolidated | |||||||||||||||||||||||||||||||||
GAAP Operating Profit (Loss) | $ | 318 | $ | 198 | $ | 103 | $ | 5 | $ | (57) | $ | 567 | ||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||
Franchise and property revenues | 379 | 179 | 147 | 1 | — | 706 | ||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | 156 | 130 | 90 | — | — | 376 | ||||||||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 80 | 33 | 43 | 11 | 63 | 230 | ||||||||||||||||||||||||||||||||
Franchise and property expenses | 15 | 7 | 5 | — | — | 27 | ||||||||||||||||||||||||||||||||
Franchise advertising and other services expense | 151 | 130 | 91 | — | — | 372 | ||||||||||||||||||||||||||||||||
Refranchising (gain) loss | — | — | — | — | (7) | (7) | ||||||||||||||||||||||||||||||||
Other (income) expense | — | (1) | (4) | — | 1 | (4) | ||||||||||||||||||||||||||||||||
Company restaurant profit | $ | 29 | $ | 58 | $ | 1 | $ | 15 | $ | — | $ | 103 | ||||||||||||||||||||||||||
Company sales | $ | 147 | $ | 223 | $ | 12 | $ | 138 | $ | — | $ | 520 | ||||||||||||||||||||||||||
Company restaurant margin % | 19.2 | % | 25.9 | % | 8.0 | % | 11.6 | % | N/A | 19.8 | % |
Year to date 6/30/2022 | ||||||||||||||||||||||||||||||||||||||
KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger Grill Division | Corporate and Unallocated | Consolidated | |||||||||||||||||||||||||||||||||
GAAP Operating Profit (Loss) | $ | 584 | $ | 400 | $ | 195 | $ | (10) | $ | (106) | $ | 1,063 | ||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||
Franchise and property revenues | 777 | 378 | 293 | 3 | — | 1,451 | ||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | 319 | 268 | 176 | — | — | 763 | ||||||||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 173 | 75 | 100 | 23 | 136 | 507 | ||||||||||||||||||||||||||||||||
Franchise and property expenses | 38 | 14 | 4 | 1 | 4 | 61 | ||||||||||||||||||||||||||||||||
Franchise advertising and other services expense | 314 | 267 | 175 | 1 | — | 757 | ||||||||||||||||||||||||||||||||
Refranchising (gain) loss | — | — | — | — | (12) | (12) | ||||||||||||||||||||||||||||||||
Other (income) expense | 18 | (1) | (5) | — | (22) | (10) | ||||||||||||||||||||||||||||||||
Company restaurant profit | $ | 31 | $ | 109 | $ | — | $ | 12 | $ | — | $ | 152 | ||||||||||||||||||||||||||
Company sales | $ | 241 | $ | 457 | $ | 10 | $ | 261 | $ | — | $ | 969 | ||||||||||||||||||||||||||
Company restaurant margin % | 12.9 | % | 23.9 | % | (4.4) | % | 4.5 | % | N/A | 15.7 | % | |||||||||||||||||||||||||||
Year to date 6/30/2021 | ||||||||||||||||||||||||||||||||||||||
KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger Grill Division | Corporate and Unallocated | Consolidated | |||||||||||||||||||||||||||||||||
GAAP Operating Profit (Loss) | $ | 618 | $ | 376 | $ | 205 | $ | 5 | $ | (94) | $ | 1,110 | ||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||
Franchise and property revenues | 733 | 341 | 288 | 2 | — | 1,364 | ||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | 294 | 248 | 186 | — | — | 728 | ||||||||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 153 | 64 | 83 | 23 | 113 | 436 | ||||||||||||||||||||||||||||||||
Franchise and property expenses | 29 | 14 | 7 | — | — | 50 | ||||||||||||||||||||||||||||||||
Franchise advertising and other services expense | 284 | 246 | 185 | — | — | 715 | ||||||||||||||||||||||||||||||||
Refranchising (gain) loss | — | — | — | — | (22) | (22) | ||||||||||||||||||||||||||||||||
Other (income) expense | (6) | (3) | (4) | — | 3 | (10) | ||||||||||||||||||||||||||||||||
Company restaurant profit | $ | 51 | $ | 108 | $ | 2 | $ | 26 | $ | — | $ | 187 | ||||||||||||||||||||||||||
Company sales | $ | 280 | $ | 431 | $ | 26 | $ | 259 | $ | — | $ | 996 | ||||||||||||||||||||||||||
Company restaurant margin % | 18.0 | % | 25.0 | % | 7.3 | % | 10.3 | % | N/A | 18.7 | % | |||||||||||||||||||||||||||
Quarter ended | Year to date | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
% B/(W) | % B/(W) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Reported | Ex FX | 2022 | 2021 | Reported | Ex FX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
System Sales | $ | 7,252 | $ | 7,638 | (5) | 1 | $ | 14,985 | $ | 14,911 | 1 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Same-Store Sales Growth (Decline) % | (1) | 30 | N/A | N/A | 1 | 18 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company sales | $ | 115 | $ | 147 | (22) | (16) | $ | 241 | $ | 280 | (14) | (9) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise and property revenues | 394 | 379 | 4 | 9 | 777 | 733 | 6 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | 168 | 156 | 8 | 13 | 319 | 294 | 9 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 677 | $ | 682 | (1) | 5 | $ | 1,337 | $ | 1,307 | 2 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Company restaurant profit | $ | 13 | $ | 29 | (53) | (48) | $ | 31 | $ | 51 | (38) | (34) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Company restaurant margin % | 11.6 | % | 19.2 | % | (7.6) | ppts. | (7.4) | ppts. | 12.9 | % | 18.0 | % | (5.1) | ppts. | (4.9) | ppts. | ||||||||||||||||||||||||||||||||||||||||||||||
G&A expenses | $ | 89 | $ | 80 | (12) | (15) | $ | 173 | $ | 153 | (14) | (16) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise and property expenses | 14 | 15 | 3 | (9) | 38 | 29 | (32) | (45) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise advertising and other services expense | 163 | 151 | (7) | (13) | 314 | 284 | (10) | (16) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Profit | $ | 293 | $ | 318 | (8) | (2) | $ | 584 | $ | 618 | (6) | (1) |
% Increase (Decrease) | |||||||||||||||||||||||||||||
Unit Count | 6/30/2022 | 6/30/2021 | |||||||||||||||||||||||||||
Franchise | 26,300 | 25,430 | 3 | ||||||||||||||||||||||||||
Company-owned | 221 | 290 | (24) | ||||||||||||||||||||||||||
Total | 26,521 | 25,720 | 3 |
Quarter ended | Year to date | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
% B/(W) | % B/(W) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Reported | Ex FX | 2022 | 2021 | Reported | Ex FX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
System Sales | $ | 3,509 | $ | 3,189 | 10 | 10 | $ | 6,617 | $ | 6,069 | 9 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Same-Store Sales Growth % | 8 | 21 | N/A | N/A | 6 | 15 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company sales | $ | 243 | $ | 223 | 9 | 9 | $ | 457 | $ | 431 | 6 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise and property revenues | 199 | 179 | 11 | 12 | 378 | 341 | 11 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | 144 | 130 | 10 | 10 | 268 | 248 | 8 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 586 | $ | 532 | 10 | 10 | $ | 1,103 | $ | 1,020 | 8 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Company restaurant profit | $ | 62 | $ | 58 | 8 | 8 | $ | 109 | $ | 108 | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Company restaurant margin % | 25.7 | % | 25.9 | % | (0.2) | ppts. | (0.2) | ppts. | 23.9 | % | 25.0 | % | (1.1) | ppts. | (1.1) | ppts. | ||||||||||||||||||||||||||||||||||||||||||||||
G&A expenses | $ | 39 | $ | 33 | (18) | (18) | $ | 75 | $ | 64 | (17) | (17) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise and property expenses | 8 | 7 | (15) | (15) | 14 | 14 | (2) | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise advertising and other services expense | 144 | 130 | (11) | (11) | 267 | 246 | (9) | (9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Profit | $ | 215 | $ | 198 | 9 | 9 | $ | 400 | $ | 376 | 6 | 7 |
% Increase (Decrease) | |||||||||||||||||||||||||||||
Unit Count | 6/30/2022 | 6/30/2021 | |||||||||||||||||||||||||||
Franchise | 7,435 | 7,090 | 5 | ||||||||||||||||||||||||||
Company-owned | 465 | 477 | (3) | ||||||||||||||||||||||||||
Total | 7,900 | 7,567 | 4 |
Quarter ended | Year to date | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
% B/(W) | % B/(W) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Reported | Ex FX | 2022 | 2021 | Reported | Ex FX | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
System Sales | $ | 3,039 | $ | 3,143 | (3) | Even | $ | 6,199 | $ | 6,239 | (1) | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Same-Store Sales Growth (Decline) % | (3) | 10 | N/A | N/A | (1) | 11 | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company sales | $ | 5 | $ | 12 | (62) | (62) | $ | 10 | $ | 26 | (64) | (64) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise and property revenues | 142 | 147 | (3) | 1 | 293 | 288 | 2 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise contributions for advertising and other services | 88 | 90 | (2) | (1) | 176 | 186 | (5) | (4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 235 | $ | 249 | (6) | (3) | $ | 479 | $ | 500 | (4) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Company restaurant profit | $ | — | $ | 1 | NM | NM | $ | — | $ | 2 | NM | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||
Company restaurant margin % | (8.0) | % | 8.0 | % | (16.0) | ppts. | (16.0) | ppts. | (4.4) | % | 7.3 | % | (11.7) | ppts. | (11.7) | ppts. | ||||||||||||||||||||||||||||||||||||||||||||||
G&A expenses | $ | 50 | $ | 43 | (18) | (20) | $ | 100 | $ | 83 | (20) | (21) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise and property expenses | 2 | 5 | 51 | 45 | 4 | 7 | 37 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise advertising and other services expense | 88 | 91 | 3 | 2 | 175 | 185 | 5 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Profit | $ | 93 | $ | 103 | (10) | (7) | $ | 195 | $ | 205 | (5) | (2) |
% Increase (Decrease) | |||||||||||||||||||||||||||||
Unit Count | 6/30/2022 | 6/30/2021 | |||||||||||||||||||||||||||
Franchise | 18,569 | 17,756 | 5 | ||||||||||||||||||||||||||
Company-owned | 22 | 53 | (58) | ||||||||||||||||||||||||||
Total | 18,591 | 17,809 | 4 |
Quarter ended | Year to date | |||||||||||||||||||||||||||||||||||||
% B/(W) | % B/(W) | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | Reported | 2022 | 2021 | Reported | |||||||||||||||||||||||||||||||||
System Sales(a) | $ | 156 | $ | 154 | 2 | $ | 301 | $ | 290 | 4 | ||||||||||||||||||||||||||||
Same-Store Sales Growth % | (4) | 31 | N/A | — | 22 | N/A | ||||||||||||||||||||||||||||||||
Total revenues | $ | 138 | $ | 139 | (1) | $ | 264 | $ | 261 | 1 | ||||||||||||||||||||||||||||
Operating Profit (Loss) | $ | (2) | $ | 5 | (146) | $ | (10) | $ | 5 | NM |
Unit Count | 6/30/2022 | 6/30/2021 | % Increase (Decrease) | ||||||||||||||||||||
Franchise | 59 | 41 | 44 | ||||||||||||||||||||
Company-owned | 279 | 254 | 10 | ||||||||||||||||||||
Total | 338 | 295 | 15 |
Quarter ended | Year to date | |||||||||||||||||||||||||||||||||||||||||||
(Expense) / Income | 2022 | 2021 | % B/(W) | 2022 | 2021 | % B/(W) | ||||||||||||||||||||||||||||||||||||||
Corporate and unallocated G&A | $ | ( | $ | ( | (3) | $ | ( | $ | ( | (21) | ||||||||||||||||||||||||||||||||||
Unallocated Franchise and license expenses (See Note 8) | ( | NM | ( | NM | ||||||||||||||||||||||||||||||||||||||||
Unallocated Refranchising gain (loss) | 34 | (43) | ||||||||||||||||||||||||||||||||||||||||||
Unallocated Other income (expense) (See Note 8) | ( | NM | ( | NM | ||||||||||||||||||||||||||||||||||||||||
Investment income (expense), net (See Note 8) | ( | NM | ( | NM | ||||||||||||||||||||||||||||||||||||||||
Other pension income (expense) (See Note 9) | ( | ( | 86 | ( | ( | 84 | ||||||||||||||||||||||||||||||||||||||
Interest expense, net | ( | ( | 6 | ( | ( | 8 | ||||||||||||||||||||||||||||||||||||||
Income tax benefit (provision) (See Note 6) | (166) | (16) | NM | (165) | (99) | (67) | ||||||||||||||||||||||||||||||||||||||
Effective tax rate (See Note 6) | % | % | (38.6) | ppts. | % | % | (8.9) | ppts. |
2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2037 | 2043 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securitization Notes | $ | 20 | $ | 39 | $ | 39 | $ | 39 | $ | 944 | $ | 875 | $ | 582 | $ | 565 | $ | 7 | $ | 682 | $ | 3,792 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Agreement | 17 | 34 | 48 | 53 | 662 | 15 | 1,398 | 2,227 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsidiary Senior Unsecured Notes | 750 | 750 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
YUM Senior Unsecured Notes | 325 | 800 | 1,050 | $ | 2,100 | $ | 325 | $ | 275 | 4,875 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 37 | $ | 398 | $ | 87 | $ | 92 | $ | 1,606 | $ | 1,640 | $ | 1,980 | $ | 565 | $ | 807 | $ | 1,732 | $ | 2,100 | $ | 325 | $ | 275 | $ | 11,644 |
Fiscal Periods | Total number of shares purchased (thousands) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs (thousands) | Approximate dollar value of shares that may yet be purchased under the plans or programs (millions) | ||||||||||||||||||||||
4/1/22-4/30/22 | 783 | $120.30 | 783 | $449 | ||||||||||||||||||||||
5/1/22-5/31/22 | 468 | $113.46 | 468 | $396 | ||||||||||||||||||||||
6/1/22-6/30/22 | 25 | $120.00 | 25 | $393 | ||||||||||||||||||||||
Total | 1,276 | $117.78 | 1,276 | $393 |
(a) | Exhibit Index | ||||||||||||||||
Exhibit No. | Exhibit Description | ||||||||||||||||
15 | |||||||||||||||||
31.1 | |||||||||||||||||
31.2 | |||||||||||||||||
32.1 | |||||||||||||||||
32.2 | |||||||||||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | ||||||||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||||||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||||||||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||||||||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||||||||||||||||
† | Indicates a management contract or compensatory plan. | ||||||||||||||||
YUM! BRANDS, INC. | |||||
(Registrant) |
Date: | August 8, 2022 | /s/ David E. Russell | ||||||
Senior Vice President, Finance and Corporate Controller | ||||||||
(Principal Accounting Officer) |
Date: | August 8, 2022 | /s/ David W. Gibbs | ||||||
Chief Executive Officer |
Date: | August 8, 2022 | /s/ Chris Turner | ||||||
Chief Financial Officer |
Date: | August 8, 2022 | /s/ David W. Gibbs | ||||||
Chief Executive Officer |
Date: | August 8, 2022 | /s/ Chris Turner | ||||||
Chief Financial Officer |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
||||||||
Revenues | |||||||||||
Total Revenues | $ 1,636 | $ 1,602 | $ 3,183 | $ 3,088 | |||||||
Costs and Expenses, Net | |||||||||||
Company restaurant expenses | 415 | 417 | 817 | 809 | |||||||
General and Administrative Expense | 254 | 230 | 507 | 436 | |||||||
Franchise and property expenses | 29 | 27 | 61 | 50 | |||||||
Franchise advertising and other services expense | 396 | 372 | 757 | 715 | |||||||
Refranchising (gain) loss | (8) | (7) | (12) | (22) | |||||||
Other (income) expense | (4) | (4) | (10) | (10) | |||||||
Total costs and expenses, net | 1,082 | 1,035 | 2,120 | 1,978 | |||||||
Operating Profit | 554 | 567 | 1,063 | 1,110 | |||||||
Investment (income) expense, net | [1] | 15 | (1) | 8 | (1) | ||||||
Other pension (income) expense | 1 | 2 | 1 | 5 | |||||||
Interest expense, net | 148 | [2] | 159 | [2] | 266 | 290 | [2] | ||||
Income Before Income Taxes | 390 | 407 | 788 | 816 | |||||||
Income tax provision | 166 | 16 | 165 | 99 | |||||||
Net Income | $ 224 | $ 391 | $ 623 | $ 717 | |||||||
Basic Earnings Per Common Share | $ 0.78 | $ 1.31 | $ 2.16 | $ 2.39 | |||||||
Diluted Earnings Per Common Share | 0.77 | 1.29 | 2.13 | 2.35 | |||||||
Dividends Declared Per Common Share | $ 0.57 | $ 0.50 | $ 1.14 | $ 1.00 | |||||||
Company Sales | |||||||||||
Revenues | |||||||||||
Revenues | $ 499 | $ 520 | $ 969 | $ 996 | |||||||
Franchise and property revenues | |||||||||||
Revenues | |||||||||||
Revenues | 737 | 706 | 1,451 | 1,364 | |||||||
Franchise contributions for advertising and other services | |||||||||||
Revenues | |||||||||||
Revenues | $ 400 | $ 376 | $ 763 | $ 728 | |||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Current Assets | ||
Cash and cash equivalents | $ 412 | $ 486 |
Accounts and notes receivable, net | 598 | 596 |
Prepaid expenses and other current assets | 419 | 450 |
Total Current Assets | 1,429 | 1,532 |
Property, plant and equipment, net | 1,192 | 1,207 |
Goodwill | 649 | 657 |
Intangible assets, net | 361 | 359 |
Other assets | 1,457 | 1,487 |
Deferred Income Taxes | 702 | 724 |
Total Assets | 5,790 | 5,966 |
Current Liabilities | ||
Accounts payable and other current liabilities | 1,090 | 1,334 |
Income taxes payable | 21 | 13 |
Short-term borrowings | 72 | 68 |
Total Current Liabilities | 1,183 | 1,415 |
Long-term debt | 11,540 | 11,178 |
Other liabilities and deferred credits | 1,635 | 1,746 |
Total Liabilities | 14,358 | 14,339 |
Shareholders' Equity | ||
Common Stock, no par value, 750 shares authorized; 285 shares issued in 2022 and 289 issued in 2021 | 0 | 0 |
Accumulated Deficit | (8,274) | (8,048) |
Accumulated other comprehensive loss | (294) | (325) |
Total Shareholders' Deficit | (8,568) | (8,373) |
Total Liabilities and Shareholders' Deficit | $ 5,790 | $ 5,966 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 750 | 750 |
Common Stock, Shares, Issued | 285 | 289 |
CONDENSED STATEMENT OF SHAREHOLDERS EQUITY STATEMENT - USD ($) $ in Millions |
Total |
Issued Common Stock |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
---|---|---|---|---|
Total Shareholders' Deficit | $ (7,891) | $ 0 | $ (7,480) | $ (411) |
Issued Common Stock, Shares | 300,000,000 | |||
Net Income | 717 | 717 | ||
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature | 17 | 17 | ||
Pension and post-retirement benefit plans, net of tax | 52 | 52 | ||
Pension and post-retirement benefit plans, tax | 17 | |||
Changes in derivatives, net of tax | 18 | 18 | ||
Changes in derivatives, Tax | 6 | |||
Comprehensive Income (Loss) | 804 | |||
Dividends declared | (300) | (300) | ||
Shares Repurchased | (4,746,000) | |||
Repurchase of shares of Common Stock, value | (530) | $ (24) | (506) | |
Employee Stock Option and SARs Exercises, Shares | 1,000,000 | |||
Employee Stock Option and SARs Exercises, Value | (17) | $ (17) | ||
Share-based compensation events | 41 | 41 | ||
Total Shareholders' Deficit | (7,912) | $ 0 | (7,566) | (346) |
Issued Common Stock, Shares | 298,000,000 | |||
Net Income | 391 | 391 | ||
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature | 14 | 14 | ||
Pension and post-retirement benefit plans, net of tax | 11 | 11 | ||
Pension and post-retirement benefit plans, tax | 4 | |||
Changes in derivatives, net of tax | (3) | (3) | ||
Changes in derivatives, Tax | (1) | |||
Comprehensive Income (Loss) | 413 | |||
Dividends declared | (149) | (149) | ||
Shares Repurchased | (2,000,000) | |||
Repurchase of shares of Common Stock, value | (255) | $ (10) | (245) | |
Employee Stock Option and SARs Exercises, Shares | 0 | |||
Employee Stock Option and SARs Exercises, Value | (7) | $ (7) | ||
Share-based compensation events | 17 | 17 | ||
Total Shareholders' Deficit | (7,893) | $ 0 | (7,569) | (324) |
Issued Common Stock, Shares | 296,000,000 | |||
Total Shareholders' Deficit | (8,373) | $ 0 | (8,048) | (325) |
Issued Common Stock, Shares | 289,000,000 | |||
Net Income | 623 | 623 | ||
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature | (44) | (44) | ||
Pension and post-retirement benefit plans, net of tax | 7 | 7 | ||
Pension and post-retirement benefit plans, tax | 2 | |||
Changes in derivatives, net of tax | 68 | 68 | ||
Changes in derivatives, Tax | 22 | |||
Comprehensive Income (Loss) | 654 | |||
Dividends declared | (329) | (329) | ||
Shares Repurchased | (4,635,000) | |||
Repurchase of shares of Common Stock, value | (557) | $ (37) | (520) | |
Employee Stock Option and SARs Exercises, Shares | 1,000,000 | |||
Employee Stock Option and SARs Exercises, Value | (21) | $ (21) | ||
Share-based compensation events | 58 | 58 | ||
Total Shareholders' Deficit | (8,491) | $ 0 | (8,199) | (292) |
Issued Common Stock, Shares | 286,000,000 | |||
Net Income | 224 | 224 | ||
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature | (21) | (21) | ||
Pension and post-retirement benefit plans, net of tax | 3 | 3 | ||
Pension and post-retirement benefit plans, tax | 1 | |||
Changes in derivatives, net of tax | 16 | 16 | ||
Changes in derivatives, Tax | 5 | |||
Comprehensive Income (Loss) | 222 | |||
Dividends declared | (164) | (164) | ||
Shares Repurchased | (2,000,000) | |||
Repurchase of shares of Common Stock, value | (150) | $ (15) | (135) | |
Employee Stock Option and SARs Exercises, Shares | 1,000,000 | |||
Employee Stock Option and SARs Exercises, Value | (5) | $ (5) | ||
Share-based compensation events | 20 | 20 | ||
Total Shareholders' Deficit | $ (8,568) | $ 0 | $ (8,274) | $ (294) |
Issued Common Stock, Shares | 285,000,000 |
Financial Statement Presentation |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statement Presentation | Financial Statement Presentation We have prepared our accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by Generally Accepted Accounting Principles in the United States (“GAAP”) for complete financial statements. Therefore, we suggest that the accompanying Financial Statements be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (“2021 Form 10-K”). Yum! Brands, Inc. and its Subsidiaries (collectively referred to herein as the “Company,” “YUM,” “we,” “us” or “our”) franchise or operate a system of over 53,000 restaurants in 155 countries and territories. As of June 30, 2022, 98% of these restaurants were owned and operated by franchisees. The Company’s KFC, Taco Bell and Pizza Hut brands are global leaders of the chicken, Mexican-style and pizza food categories, respectively. The Habit Burger Grill is a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. As of June 30, 2022, YUM consisted of four operating segments: •The KFC Division which includes our worldwide operations of the KFC concept •The Taco Bell Division which includes our worldwide operations of the Taco Bell concept •The Pizza Hut Division which includes our worldwide operations of the Pizza Hut concept •The Habit Burger Grill Division which includes our worldwide operations of the Habit Burger Grill concept YUM's fiscal year begins on January 1 and ends December 31 of each year, with each quarter comprised of three months. The majority of our U.S. subsidiaries, including, beginning in fiscal year 2022, our Habit Burger Grill Division, and certain international subsidiaries operate on a weekly periodic calendar where the first three quarters of each fiscal year consist of 12 weeks and the fourth quarter consists of 16 weeks in fiscal years with 52 weeks and 17 weeks in fiscal years with 53 weeks. Our remaining international subsidiaries operate on a monthly calendar similar to that on which YUM operates. For fiscal year 2021, our Habit Burger Grill Division operated on a weekly periodic calendar where each quarter consisted of 13 weeks. The impact of this change in reporting calendar was not significant and accordingly, prior year amounts presented in these Condensed Consolidated Financial Statements have not been restated. Our preparation of the accompanying Financial Statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The accompanying Financial Statements include all normal and recurring adjustments considered necessary to present fairly, when read in conjunction with our 2021 Form 10-K, the results of the interim periods presented. Our results of operations, comprehensive income, cash flows and changes in shareholders' deficit for these interim periods are not necessarily indicative of the results to be expected for the full year. Our significant interim accounting policies include the recognition of advertising and marketing costs, generally in proportion to revenue, and the recognition of income taxes using an estimated annual effective tax rate. We have reclassified certain other items in the Financial Statements for the prior periods to be comparable with the classification for the quarter ended June 30, 2022. These reclassifications had no effect on previously reported Net Income. Russia Invasion of Ukraine In the first quarter of 2022, as a result of the Russian invasion of Ukraine, we suspended all investment and restaurant development in Russia. We also suspended all operations of our 70 company-owned KFC restaurants in Russia and began finalizing an agreement to suspend all Pizza Hut operations in Russia, in partnership with our master franchisee. Further, we pledged to redirect any future net profits attributable to Russia subsequent to the date of invasion to humanitarian efforts. During the second quarter, we completed the transfer of ownership of the Pizza Hut Russia business to a local operator who has initiated the process of re-branding locations to a non-YUM concept. We are also in the process of transferring ownership of our KFC Russia restaurants, operating system and master franchise rights, including the network of franchised restaurants, to a local operator who will be responsible for re-branding locations to a non-YUM concept. Upon the completion of this process, we will have fully exited from Russia. Our long-lived asset base in Russia at June 30, 2022 primarily includes approximately $115 million in property, plant and equipment and lease right-of-use assets related primarily to our company-owned KFC restaurants. Additionally, we have approximately $10 million in goodwill and $13 million of cumulative foreign currency translation losses associated with Russian assets recorded within Shareholders’ Deficit at June 30, 2022. We review long-lived assets and goodwill for impairment on an annual basis as of the beginning of our fourth quarter or more often if an event occurs or circumstances change that indicates impairment might exist. As a result of our decisions regarding our Russian operations as described in the previous paragraphs, we conducted an impairment review of our long-lived asset base and goodwill during the quarter ended June 30, 2022. As a result of our review, there was no impairment recorded during the quarter ended June 30, 2022. We will continue to monitor developments in Russia, including the status of our ownership transfer process, and update our impairment reviews accordingly. Subsequent to the end of the second quarter we initiated the bidding process for the KFC Russia business and, as a result, those operations will qualify for held-for-sale accounting beginning in our quarter ended September 30, 2022. The transaction is expected to be completed by the end of 2022, subject to regulatory approvals and other customary closing conditions.
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Earnings Per Common Share ("EPS") |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share (EPS) | Earnings Per Common Share (“EPS”)
(a)These unexercised employee stock options and stock appreciation rights were not included in the computation of diluted EPS because to do so would have been antidilutive for the periods presented.
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Shareholders' Deficit |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders' Deficit Under the authority of our Board of Directors, we repurchased shares of our Common Stock during the years to date ended June 30, 2022 and 2021 as indicated below. All amounts exclude applicable transaction fees.
In May 2021, our Board of Directors authorized share repurchases from July 1, 2021 through December 31, 2022, of up to $2 billion (excluding applicable transaction fees) of our outstanding Common Stock. Changes in Accumulated other comprehensive loss (“AOCI”) are presented below.
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Other (Income) Expense |
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Other (Income) Expense | Other (Income) Expense
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Supplemental Balance Sheet Information |
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Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Accounts and Notes Receivable, net The Company’s receivables are primarily generated from ongoing business relationships with our franchisees as a result of franchise and lease agreements. Trade receivables consisting of royalties from franchisees are generally due within 30 days of the period in which the corresponding sales occur and are classified as Accounts and notes receivable, net in our Condensed Consolidated Balance Sheets. Accounts and notes receivable, net also includes receivables generated from advertising cooperatives that we consolidate.
Property, Plant and Equipment, net
Assets held-for-sale totaled $3 million and $12 million as of June 30, 2022 and December 31, 2021, respectively, and are included in Prepaid expenses and other current assets in our Condensed Consolidated Balance Sheets.
(a) Non-current operating lease liabilities of $759 million and $793 million as of June 30, 2022 and December 31, 2021, respectively, are included in Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets. Reconciliation of Cash and Cash Equivalents for Condensed Consolidated Statements of Cash Flows
(a) Restricted cash within Prepaid expenses and other current assets reflects the cash related to advertising cooperatives which we consolidate that can only be used to settle obligations of the respective cooperatives and cash held in reserve for Taco Bell Securitization interest payments. (b) Primarily trust accounts related to our self-insurance program.
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Income Taxes |
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Income Taxes | Income Taxes
Our second quarter effective tax rate was higher than the prior year primarily due to the following: •$71 million of net tax expense recorded in the quarter ended June 30, 2022, resulting from the Company’s decision to exit KFC Russia. We anticipate a reduction in the tax basis of intellectual property rights held in Switzerland due to the expected loss of the Russian royalty income associated with such rights going forward. As a result, we remeasured and reassessed the need for a valuation allowance on those deferred tax assets. In addition, we reassessed certain deferred tax liabilities associated with the Russia business given the expectation that the existing basis difference will now reverse by way of sale. •$64 million of tax benefit recorded in the quarter ended June 30, 2021, to remeasure deferred tax assets necessitated by the enactment of the United Kingdom (“UK”) Finance Act 2021. The UK Finance Act 2021 increased the UK corporate income tax rate from 19% to 25%, beginning April 1, 2023. Our year to date effective tax rate was also higher than the prior year primarily due to the items discussed above, offset by: •$82 million of tax benefit discretely recorded in the quarter ended March 31, 2022, from the release of a valuation allowance on foreign tax credit carryforwards. In January 2022, the U.S. Treasury published new regulations impacting foreign tax credit utilization beginning in the Company’s 2022 tax year. These regulations make foreign taxes paid to certain countries no longer creditable in the U.S. Accordingly, we reversed a valuation allowance associated with existing foreign tax credit carryforwards that we now believe will be used to offset these now non-creditable taxes in 2022 and future years.
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Revenue Recognition Accounting Policy |
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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.
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.
(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:
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Reportable Operating Segments |
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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:
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)Our operating results for the quarter and year to date ended June 30, 2022, continue to reflect royalty revenues and expenses to support the Russian operations for Pizza Hut prior to the date of transfer and for KFC for the entire quarter and year to date (see Note 1) within their historical financial statement line items and operating segments. However, given our decision to exit Russia and our pledge to direct any future net profits attributable to Russia subsequent to the date of invasion to humanitarian efforts, we have reclassed such net profits from the Division segment results in which they were earned to Corporate and unallocated. Additionally, we have incurred certain expenses related to the transfer of the businesses and other one-time costs related to our exit from Russia which we have recorded within Corporate and unallocated. As a result of these reclasses of net profits and the other costs and expenses we have incurred, we recorded charges of $2 million to Corporate and unallocated G&A expenses and $4 million to Unallocated Franchise and property expenses during both the quarter and year to date ended June 30, 2022, as well as income of $20 million and $27 million to Unallocated Other (income) expense during the quarter and year to date ended June 30, 2022, respectively. (b)Includes changes in the value of our investment in Devyani International Limited (see Note 12). (c)Includes a $23 million call premium and $5 million of unamortized debt issuance costs written off related to the redemption of the 2025 Notes (see Note 10) during the quarter ended June 30, 2022. Includes a $28 million call premium and $6 million of unamortized debt issuance costs written off related to the redemption of the $1,050 million aggregate principal amount of 5.25% Subsidiary Senior Unsecured Notes due in 2026 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 (as described within our 2021 Form 10-K) during the quarter ended March 31, 2021.
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Pension Benefits |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits | Pension Benefits We sponsor qualified and supplemental (non-qualified) noncontributory defined benefit pension plans covering certain full-time salaried and hourly U.S. employees. The most significant of these plans, the YUM Retirement Plan (the “Plan”), is funded. We fund our other U.S. plans as benefits are paid. The Plan and our non-qualified plans in the U.S. are closed to new salaried participants. The components of net periodic benefit cost associated with our U.S. pension plans are as follows:
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Short-term Borrowings and Long-term Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Borrowings and Long-term Debt | Short-term Borrowings and Long-term Debt
Details of our Short-term borrowings and Long-term debt as of December 31, 2021 can be found within our 2021 Form 10-K. On February 23, 2022, Yum! Brands, Inc. issued a notice of redemption for the $600 million aggregate principal amount of 7.75% YUM Senior Unsecured Notes due April 1, 2025 (the “2025 Notes”). The 2025 Notes were redeemed on April 1, 2022, at an amount equal to 103.875% of the aggregate principal amount of the 2025 Notes, reflecting a $23 million “call premium”, plus accrued and unpaid interest to the date of redemption. We recognized the call premium and the write-off of $5 million of unamortized debt issuance costs associated with the 2025 Notes within Interest expense, net in the quarter ended June 30, 2022. Also on April 1, 2022, Yum! Brands, Inc. issued $1 billion aggregate principal amount of 5.375% YUM Senior Unsecured Notes due April 1, 2032 (the “April 2032 Notes”). Interest on the April 2032 Notes is payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2022. The indenture governing the April 2032 Notes contains covenants and events of default that are customary for debt securities of this type, including cross-default provisions whereby the acceleration of the maturity of any of our indebtedness in a principal amount of $100 million or more or the failure to pay the principal of such indebtedness at its stated maturity will constitute an event of default under the April 2032 Notes unless such indebtedness is discharged, or the acceleration of the maturity of that indebtedness is annulled, within 30 days after notice. The Company paid debt issuance costs of $12 million in connection with the April 2032 Notes. The debt issuance costs will be amortized to Interest expense, net over the life of the April 2032 Notes using the effective interest method. We used the net proceeds from the April 2032 Notes to fund the redemption of the 2025 Notes discussed above and for general corporate purposes. Excluding the amounts associated with the extinguishment of the 2025 Notes discussed above, cash paid for interest during the year to date ended June 30, 2022, was $239 million. Excluding $12 million associated with the Credit Agreement refinancing and $34 million associated with the extinguishment of the 2026 Notes (as discussed in our 2021 Form 10-K), cash paid for interest during the year to date ended June 30, 2021, was $235 million.
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Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments We use derivative instruments to manage certain of our market risks related to fluctuations in interest rates and foreign currency exchange rates. Our use of foreign currency contracts to manage foreign currency exchange rates is currently not significant. Interest Rate Swaps We have entered into interest rate swaps, with the objective of reducing our exposure to interest rate risk for a portion of our variable-rate debt interest payments primarily under our Term Loan B Facility. At both June 30, 2022 and December 31, 2021, we had interest rate swaps expiring in March 2025 with notional amounts of $1.5 billion. These interest rate swaps have been designated cash flow hedges as the changes in the future cash flows of the swaps are expected to offset changes in expected future interest payments on the related variable-rate debt. There were no other interest rate swaps outstanding as of June 30, 2022 or December 31, 2021. Gains or losses on the interest rate swaps are reported as a component of AOCI and reclassified into Interest expense, net in our Condensed Consolidated Statements of Income in the same period or periods during which the related hedged interest payments affect earnings. Through June 30, 2022, the swaps were highly effective cash flow hedges. As a result of the use of interest rate swaps, the Company is exposed to risk that the counterparties will fail to meet their contractual obligations. To mitigate the counterparty credit risk, we only enter into contracts with major financial institutions carefully selected based upon their credit ratings and other factors, and continually assess the creditworthiness of counterparties. At June 30, 2022, all of the counterparties to our interest rate swaps had investment grade ratings according to the three major ratings agencies. To date, all counterparties have performed in accordance with their contractual obligations. Gains and losses on these interest rate swaps recognized in OCI and reclassifications from AOCI into Net Income were as follows:
As of June 30, 2022, the estimated net gain included in AOCI related to our cash flow hedges that will be reclassified into earnings in the next 12 months is less than $1 million, based on current LIBOR interest rates. Total Return Swaps We have entered into total return swap derivative contracts, with the objective of reducing our exposure to market-driven changes in certain of the liabilities associated with compensation deferrals into our Executive Income Deferral (“EID”) plan. While these total return swaps represent economic hedges, we have not designated them as hedges for accounting purposes. As a result, the changes in the fair value of these derivatives are recognized immediately in earnings within General and administrative expenses in our Condensed Consolidated Statements of Income largely offsetting the changes in the associated EID liabilities. The fair value associated with the total return swaps as of both June 30, 2022 and December 31, 2021, was not significant. See Note 12 for the fair value of our derivative assets and liabilities.
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Fair Value Disclosures |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value DisclosuresAs of June 30, 2022, the carrying values of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, short-term borrowings and accounts payable approximated their fair values because of the short-term nature of these instruments. The fair value of borrowings under our Revolving Facility, our notes receivable, net of allowances, and lease guarantees, less reserves for expected losses, approximates their carrying value. The following table presents the carrying value and estimated fair value of the Company’s debt obligations:
(a) We estimated the fair value of the Securitization Notes using market quotes and calculations. The markets in which the Securitization Notes trade are not considered active markets. (b) We estimated the fair value of the YUM and Subsidiary Senior Unsecured Notes, Term Loan A Facility and Term Loan B Facility using market quotes and calculations based on market rates. Recurring Fair Value Measurements The Company has interest rate swaps and other investments, all of which are required to be measured at fair value on a recurring basis (see Note 11 for discussion regarding derivative instruments). The following table presents fair values for those assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the measurements fall.
The fair value of the Company’s interest rate swaps were determined based on the present value of expected future cash flows considering the risks involved, including nonperformance risk, and using discount rates appropriate for the duration based on observable inputs. The other investments primarily include an approximate 5% minority interest in Devyani International Limited (“Devyani”), an entity that operates KFC and Pizza Hut franchised units in India, with a fair value of Indian Rupee 8.2 billion (or approximately $104 million) and Indian Rupee 8.8 billion (or approximately $118 million) at June 30, 2022 and December 31, 2021, respectively. For the quarter and year to date ended June 30, 2022, we recognized pre-tax investment losses of Indian Rupee 1.1 billion (or approximately $14 million) and Indian Rupee 0.5 billion (or approximately $7 million), respectively, related to changes in fair value of our investment in Devyani.
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Earnings Per Common Share ("EPS") Earnings Per Common Share ("EPS") (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] |
(a)These unexercised employee stock options and stock appreciation rights were not included in the computation of diluted EPS because to do so would have been antidilutive for the periods presented.
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Shareholders' Deficit (Tables) |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accelerated Share Repurchases |
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Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated other comprehensive loss (“AOCI”) are presented below.
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Other Income and Expenses (Tables) |
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Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Operating Cost and Expense, by Component |
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Supplemental Balance Sheet Information (Tables) |
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Supplemental Balance Sheet Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts and Notes Receivable |
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Property, Plant and Equipment |
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Schedule of Other Assets |
(a) Non-current operating lease liabilities of $759 million and $793 million as of June 30, 2022 and December 31, 2021, respectively, are included in Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets.
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Schedule of Cash and Cash Equivalents [Table Text Block] |
(a) Restricted cash within Prepaid expenses and other current assets reflects the cash related to advertising cooperatives which we consolidate that can only be used to settle obligations of the respective cooperatives and cash held in reserve for Taco Bell Securitization interest payments. (b) Primarily trust accounts related to our self-insurance program.
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax And Effective Tax Rate |
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Revenue Recognition Accounting Policy (Tables) |
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Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
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Revenue Recognition and Deferred Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] |
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Deferred Franchise Fees [Table Text Block] |
(a) Primarily includes impact of foreign currency translation.
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Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | We expect to recognize contract liabilities as revenue over the remaining term of the associated franchise agreement as follows:
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Reportable Operating Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following tables summarize Revenues and Operating Profit for each of our reportable operating segments:
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)Our operating results for the quarter and year to date ended June 30, 2022, continue to reflect royalty revenues and expenses to support the Russian operations for Pizza Hut prior to the date of transfer and for KFC for the entire quarter and year to date (see Note 1) within their historical financial statement line items and operating segments. However, given our decision to exit Russia and our pledge to direct any future net profits attributable to Russia subsequent to the date of invasion to humanitarian efforts, we have reclassed such net profits from the Division segment results in which they were earned to Corporate and unallocated. Additionally, we have incurred certain expenses related to the transfer of the businesses and other one-time costs related to our exit from Russia which we have recorded within Corporate and unallocated. As a result of these reclasses of net profits and the other costs and expenses we have incurred, we recorded charges of $2 million to Corporate and unallocated G&A expenses and $4 million to Unallocated Franchise and property expenses during both the quarter and year to date ended June 30, 2022, as well as income of $20 million and $27 million to Unallocated Other (income) expense during the quarter and year to date ended June 30, 2022, respectively. (b)Includes changes in the value of our investment in Devyani International Limited (see Note 12). (c)Includes a $23 million call premium and $5 million of unamortized debt issuance costs written off related to the redemption of the 2025 Notes (see Note 10) during the quarter ended June 30, 2022. Includes a $28 million call premium and $6 million of unamortized debt issuance costs written off related to the redemption of the $1,050 million aggregate principal amount of 5.25% Subsidiary Senior Unsecured Notes due in 2026 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 (as described within our 2021 Form 10-K) during the quarter ended March 31, 2021.
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Pension Benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost associated with our U.S. pension plans are as follows:
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Short-term Borrowings and Long-term Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Short-term Borrowings and Long-term Debt |
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Derivative Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains and losses on derivative instruments designated as cash flow hedges recognized in other comprehensive income and reclassifications from AOCI to earnings | Gains and losses on these interest rate swaps recognized in OCI and reclassifications from AOCI into Net Income were as follows:
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Fair Value Disclosures (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | The following table presents the carrying value and estimated fair value of the Company’s debt obligations:
(a) We estimated the fair value of the Securitization Notes using market quotes and calculations. The markets in which the Securitization Notes trade are not considered active markets. (b) We estimated the fair value of the YUM and Subsidiary Senior Unsecured Notes, Term Loan A Facility and Term Loan B Facility using market quotes and calculations based on market rates.
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
|
Financial Statement Presentation (Details) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2022
USD ($)
restaurants
countries_and_territiories
Rate
|
Jun. 30, 2022
USD ($)
Months
operating_segments
restaurants
countries_and_territiories
Rate
|
Dec. 31, 2021
USD ($)
|
|
Number of Stores | restaurants | 53,000 | 53,000 | |
Number of Countries in which Entity Operates | countries_and_territiories | 155 | 155 | |
Percent Of System Units Located Outside United States | Rate | 98.00% | 98.00% | |
Number of Reportable Segments | operating_segments | 4 | ||
Fiscal period months standard for each quarter | Months | 3 | ||
Prior Period Reclassification Adjustment | $ 0 | ||
Goodwill | $ 649 | 649 | $ 657 |
Cash and cash equivalents | 412 | 412 | $ 486 |
KFC Russia, Central and Eastern Europe Reporting Unit | |||
Goodwill | $ 10 | $ 10 | |
RUSSIAN FEDERATION | |||
Number of Stores with Suspended Operations | restaurants | 70 | 70 | |
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | $ 115 | $ 115 | |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 13 | $ 13 | |
Impairment expense | $ 0 |
Earnings Per Common Share ("EPS") (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|||
Net Income | $ 224 | $ 391 | $ 623 | $ 717 | ||
Weighted-average common shares outstanding (for basic calculation) | 286.0 | 298.0 | 288.0 | 299.0 | ||
Effect of dilutive share-based employee compensation | 4.0 | 6.0 | 4.0 | 5.0 | ||
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) | 290.0 | 304.0 | 292.0 | 304.0 | ||
Basic EPS | $ 0.78 | $ 1.31 | $ 2.16 | $ 2.39 | ||
Diluted EPS | $ 0.77 | $ 1.29 | $ 2.13 | $ 2.35 | ||
Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation | [1] | 2.4 | 1.5 | 1.8 | 2.1 | |
|
Shareholders' Deficit (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Repurchase Of Shares Of Common Stock [Line Items] | ||||
Repurchase of shares of Common Stock, value | $ 150 | $ 255 | $ 557 | $ 530 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 393 | 393 | ||
May 2021 | ||||
Repurchase Of Shares Of Common Stock [Line Items] | ||||
Repurchase of shares of Common Stock, value | 557 | 0 | ||
Stock Repurchase Program, Authorized Amount | 2,000 | 2,000 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 393 | 393 | ||
November 2019 | ||||
Repurchase Of Shares Of Common Stock [Line Items] | ||||
Repurchase of shares of Common Stock, value | $ 530 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 0 | $ 0 | ||
Issued Common Stock | ||||
Repurchase Of Shares Of Common Stock [Line Items] | ||||
Shares Repurchased | 2,000,000 | 2,000,000 | 4,635,000 | 4,746,000 |
Repurchase of shares of Common Stock, value | $ 15 | $ 10 | $ 37 | $ 24 |
Issued Common Stock | May 2021 | ||||
Repurchase Of Shares Of Common Stock [Line Items] | ||||
Shares Repurchased | 4,635,000 | 0 | ||
Issued Common Stock | November 2019 | ||||
Repurchase Of Shares Of Common Stock [Line Items] | ||||
Shares Repurchased | 0 | 4,746,000 |
Shareholders' Deficit (Details 2) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Schedule of changes in accumulated comprehensive income [Line Items] | ||||
Accumulated other comprehensive loss | $ (292) | $ (325) | ||
Gains (losses) arising during the year classified into AOCI, net of tax | (10) | 10 | ||
(Gains) losses reclassified from AOCI, net of tax | 8 | 21 | ||
Other comprehensive income (loss), net of tax | (2) | $ 22 | 31 | $ 87 |
Accumulated other comprehensive loss | (294) | (294) | ||
Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature | ||||
Schedule of changes in accumulated comprehensive income [Line Items] | ||||
Accumulated other comprehensive loss | (229) | (206) | ||
Gains (losses) arising during the year classified into AOCI, net of tax | (21) | (44) | ||
(Gains) losses reclassified from AOCI, net of tax | 0 | 0 | ||
Other comprehensive income (loss), net of tax | (21) | (44) | ||
Accumulated other comprehensive loss | (250) | (250) | ||
Pension and Post-Retirement Benefits | ||||
Schedule of changes in accumulated comprehensive income [Line Items] | ||||
Accumulated other comprehensive loss | (30) | (34) | ||
Gains (losses) arising during the year classified into AOCI, net of tax | 0 | 0 | ||
(Gains) losses reclassified from AOCI, net of tax | 3 | 7 | ||
Other comprehensive income (loss), net of tax | 3 | 7 | ||
Accumulated other comprehensive loss | (27) | (27) | ||
Derivative Instruments | ||||
Schedule of changes in accumulated comprehensive income [Line Items] | ||||
Accumulated other comprehensive loss | (33) | (85) | ||
Gains (losses) arising during the year classified into AOCI, net of tax | 11 | 54 | ||
(Gains) losses reclassified from AOCI, net of tax | 5 | 14 | ||
Other comprehensive income (loss), net of tax | 16 | 68 | ||
Accumulated other comprehensive loss | $ (17) | $ (17) |
Other (Income) Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Other Income and Expenses [Line Items] | |||||
Foreign Currency Transaction Gain (Loss), before Tax | $ (8) | $ 1 | |||
Impairment and closure expense | (1) | 0 | $ (1) | $ 1 | |
Other income (expense) excluding foreign exchange gain (loss) | 5 | $ (5) | 3 | (14) | |
Other (income) expense | (4) | (4) | (10) | (10) | |
Foreign exchange net (gain) loss and other | (12) | 3 | |||
Gain (Loss) on Disposition of Assets | (8) | (7) | (12) | (22) | |
Income tax provision | 166 | $ 16 | 165 | $ 99 | |
RUSSIAN FEDERATION | |||||
Other Income and Expenses [Line Items] | |||||
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | 115 | 115 | |||
Income tax provision | 71 | ||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ 13 | $ 13 |
Supplemental Balance Sheet Information (Details) $ in Millions |
Jun. 30, 2022
USD ($)
days
|
Dec. 31, 2021
USD ($)
|
---|---|---|
Accounts and Notes Receivable [Abstract] | ||
Number of days from the period in which the corresponding sales occur that trade receivables are generally due | days | 30 | |
Accounts and notes receivable, gross | $ 639 | $ 632 |
Allowance for doubtful accounts | (41) | (36) |
Accounts and notes receivable, net | $ 598 | $ 596 |
Supplemental Balance Sheet Information (Details 2) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
||||||
---|---|---|---|---|---|---|---|---|---|---|
Property, plant and equipment, gross | $ 2,491 | $ 2,477 | ||||||||
Accumulated depreciation and amortization | (1,299) | (1,270) | ||||||||
Property, plant and equipment, net | 1,192 | 1,207 | ||||||||
Operating lease, right-of-use assets | [1] | 776 | 809 | |||||||
Other assets | 1,457 | 1,487 | ||||||||
Other Assets, Miscellaneous, Noncurrent | 395 | 396 | ||||||||
Operating Lease, Liability, Noncurrent | 759 | 793 | ||||||||
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets | 412 | 486 | ||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 628 | 771 | $ 834 | $ 1,024 | ||||||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Devyani | ||||||||||
Equity Securities, FV-NI | 104 | 118 | ||||||||
Prepaid Expenses and Other Current Assets [Member] | ||||||||||
Assets held-for-sale | 3 | 12 | ||||||||
Restricted Cash and Cash Equivalents | [2] | 182 | 250 | |||||||
Other Current Assets [Member] | ||||||||||
Restricted Cash and Cash Equivalents | [3] | 34 | 35 | |||||||
Franchise Incentive [Member] | ||||||||||
Other assets | $ 182 | $ 164 | ||||||||
|
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Apr. 01, 2023 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Income tax provision | $ (166) | $ (16) | $ (165) | $ (99) | |
Effective tax rate | 42.60% | 4.00% | 21.00% | 12.10% | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 82 | ||||
RUSSIAN FEDERATION | |||||
Income tax provision | (71) | ||||
UNITED KINGDOM | |||||
Income tax provision | $ 64 | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 19.00% | ||||
UNITED KINGDOM | Forecast | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25.00% |
Revenue Recognition Accounting Policy (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Revenues | $ 1,636 | $ 1,602 | $ 3,183 | $ 3,088 |
Company Sales | ||||
Revenues | 499 | 520 | 969 | 996 |
Franchise and property revenues | ||||
Revenues | 737 | 706 | 1,451 | 1,364 |
Franchise contributions for advertising and other services | ||||
Revenues | 400 | 376 | 763 | 728 |
UNITED STATES | Company Sales | ||||
Revenues | 400 | 382 | 759 | 730 |
UNITED STATES | Franchise and property revenues | ||||
Revenues | 291 | 276 | 558 | 532 |
UNITED STATES | Property Revenues | ||||
Revenues | 14 | 15 | 29 | 29 |
UNITED STATES | Franchise contributions for advertising and other services | ||||
Revenues | 221 | 209 | 422 | 411 |
CHINA | Franchise and property revenues | ||||
Revenues | 61 | 74 | 138 | 152 |
Other, Outside the U.S. and China [Member] | Company Sales | ||||
Revenues | 99 | 138 | 210 | 266 |
Other, Outside the U.S. and China [Member] | Franchise and property revenues | ||||
Revenues | 357 | 326 | 698 | 621 |
Other, Outside the U.S. and China [Member] | Property Revenues | ||||
Revenues | 14 | 15 | 28 | 30 |
Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services | ||||
Revenues | 179 | 167 | 341 | 317 |
KFC Global Division [Member] | ||||
Revenues | 677 | 682 | 1,337 | 1,307 |
KFC Global Division [Member] | UNITED STATES | Company Sales | ||||
Revenues | 16 | 16 | 31 | 30 |
KFC Global Division [Member] | UNITED STATES | Franchise and property revenues | ||||
Revenues | 47 | 48 | 92 | 92 |
KFC Global Division [Member] | UNITED STATES | Property Revenues | ||||
Revenues | 3 | 3 | 6 | 7 |
KFC Global Division [Member] | UNITED STATES | Franchise contributions for advertising and other services | ||||
Revenues | 7 | 7 | 13 | 13 |
KFC Global Division [Member] | CHINA | Franchise and property revenues | ||||
Revenues | 48 | 58 | 109 | 120 |
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales | ||||
Revenues | 99 | 131 | 210 | 250 |
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise and property revenues | ||||
Revenues | 283 | 255 | 543 | 485 |
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Property Revenues | ||||
Revenues | 13 | 15 | 27 | 29 |
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services | ||||
Revenues | 161 | 149 | 306 | 281 |
Pizza Hut Global Division [Member] | ||||
Revenues | 235 | 249 | 479 | 500 |
Pizza Hut Global Division [Member] | UNITED STATES | Company Sales | ||||
Revenues | 5 | 5 | 10 | 10 |
Pizza Hut Global Division [Member] | UNITED STATES | Franchise and property revenues | ||||
Revenues | 64 | 67 | 128 | 134 |
Pizza Hut Global Division [Member] | UNITED STATES | Property Revenues | ||||
Revenues | 1 | 2 | 2 | 2 |
Pizza Hut Global Division [Member] | UNITED STATES | Franchise contributions for advertising and other services | ||||
Revenues | 72 | 74 | 144 | 153 |
Pizza Hut Global Division [Member] | CHINA | Franchise and property revenues | ||||
Revenues | 13 | 16 | 29 | 32 |
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales | ||||
Revenues | 0 | 7 | 0 | 16 |
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise and property revenues | ||||
Revenues | 63 | 62 | 133 | 119 |
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Property Revenues | ||||
Revenues | 1 | 0 | 1 | 1 |
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services | ||||
Revenues | 16 | 16 | 32 | 33 |
Taco Bell Global Division [Member] | ||||
Revenues | 586 | 532 | 1,103 | 1,020 |
Taco Bell Global Division [Member] | UNITED STATES | Company Sales | ||||
Revenues | 243 | 223 | 457 | 431 |
Taco Bell Global Division [Member] | UNITED STATES | Franchise and property revenues | ||||
Revenues | 178 | 160 | 335 | 304 |
Taco Bell Global Division [Member] | UNITED STATES | Property Revenues | ||||
Revenues | 10 | 10 | 21 | 20 |
Taco Bell Global Division [Member] | UNITED STATES | Franchise contributions for advertising and other services | ||||
Revenues | 142 | 128 | 265 | 245 |
Taco Bell Global Division [Member] | CHINA | Franchise and property revenues | ||||
Revenues | 0 | 0 | 0 | 0 |
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales | ||||
Revenues | 0 | 0 | 0 | 0 |
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise and property revenues | ||||
Revenues | 11 | 9 | 22 | 17 |
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Property Revenues | ||||
Revenues | 0 | 0 | 0 | 0 |
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services | ||||
Revenues | 2 | 2 | 3 | 3 |
Habit Division [Member] | ||||
Revenues | 138 | 139 | 264 | 261 |
Habit Division [Member] | UNITED STATES | Company Sales | ||||
Revenues | 136 | 138 | 261 | 259 |
Habit Division [Member] | UNITED STATES | Franchise and property revenues | ||||
Revenues | 2 | 1 | 3 | 2 |
Habit Division [Member] | UNITED STATES | Property Revenues | ||||
Revenues | 0 | 0 | 0 | 0 |
Habit Division [Member] | UNITED STATES | Franchise contributions for advertising and other services | ||||
Revenues | 0 | 0 | 0 | 0 |
Habit Division [Member] | CHINA | Franchise and property revenues | ||||
Revenues | 0 | 0 | 0 | 0 |
Habit Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales | ||||
Revenues | 0 | 0 | 0 | 0 |
Habit Division [Member] | Other, Outside the U.S. and China [Member] | Franchise and property revenues | ||||
Revenues | 0 | 0 | 0 | 0 |
Habit Division [Member] | Other, Outside the U.S. and China [Member] | Property Revenues | ||||
Revenues | 0 | 0 | 0 | 0 |
Habit Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue Recognition Accounting Policy (Details 2) - USD ($) $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Deferred Revenue | $ 426 | $ 421 | ||
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period | (38) | |||
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period | 42 | |||
Foreign Currency Gain (Loss) and Refranchising Gain (Loss) [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Other | [1] | $ 1 | ||
|
Revenue Recognition Accounting Policy (Details 3) - USD ($) $ in Millions |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred Revenue | $ 426 | $ 421 |
Less than 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred Revenue, Revenue Expected to be Recognized | 69 | |
1 - 2 years | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred Revenue, Revenue Expected to be Recognized | 63 | |
2 - 3 years | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred Revenue, Revenue Expected to be Recognized | 58 | |
3 - 4 years | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred Revenue, Revenue Expected to be Recognized | 51 | |
4 - 5 years | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred Revenue, Revenue Expected to be Recognized | 45 | |
Thereafter | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred Revenue, Revenue Expected to be Recognized | $ 140 |
Reportable Operating Segments (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 01, 2022 |
Jun. 01, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | $ 1,636 | $ 1,602 | $ 3,183 | $ 3,088 | |||||||||||
Operating Profit | 554 | 567 | 1,063 | 1,110 | |||||||||||
General and Administrative Expense | 254 | 230 | 507 | 436 | |||||||||||
Company restaurant expenses | 415 | 417 | 817 | 809 | |||||||||||
Franchise and property expenses | 29 | 27 | 61 | 50 | |||||||||||
Refranchising (gain) loss | (8) | (7) | (12) | (22) | |||||||||||
Other (income) expense | 4 | 4 | 10 | 10 | |||||||||||
Investment (income) expense, net | [1] | 15 | (1) | 8 | (1) | ||||||||||
Other pension income (expense) | (1) | (2) | (1) | (5) | |||||||||||
Interest Income (Expense), Net | (148) | [2] | (159) | [2] | (266) | (290) | [2] | ||||||||
Income Before Income Taxes | 390 | 407 | 788 | 816 | |||||||||||
Interest Expense, Debt | 12 | ||||||||||||||
Subsidiary Senior Unsecured Notes [Member] | Unsecured Debt [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 28 | 34 | |||||||||||||
Write off of Deferred Debt Issuance Cost | 6 | ||||||||||||||
Repayments of Debt, Maturing in More than Three Months | $ 1,050 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | ||||||||||||||
Senior Unsecured Notes Due April 2025 | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 23 | ||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | ||||||||||||||
Gain (Loss) on Extinguishment of Debt, before Write off of Debt Issuance Cost | $ 23 | ||||||||||||||
Senior Unsecured Notes Due April 2025 | Secured Debt [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Write off of Deferred Debt Issuance Cost | 5 | ||||||||||||||
KFC Global Division [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 677 | 682 | 1,337 | 1,307 | |||||||||||
Operating Profit | 293 | 318 | 584 | 618 | |||||||||||
Pizza Hut Global Division [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 235 | 249 | 479 | 500 | |||||||||||
Operating Profit | 93 | 103 | 195 | 205 | |||||||||||
Taco Bell Global Division [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 586 | 532 | 1,103 | 1,020 | |||||||||||
Operating Profit | 215 | 198 | 400 | 376 | |||||||||||
Habit Division [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 138 | 139 | 264 | 261 | |||||||||||
Operating Profit | (2) | 5 | (10) | 5 | |||||||||||
Unallocated [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
General and Administrative Expense | [3] | 65 | 63 | 136 | 113 | ||||||||||
Franchise and property expenses | [3] | 4 | 0 | 4 | 0 | ||||||||||
Refranchising (gain) loss | (8) | (7) | (12) | (22) | |||||||||||
Other (income) expense | [3] | 16 | $ (1) | 22 | $ (3) | ||||||||||
Unallocated [Member] | RUSSIAN FEDERATION | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
General and Administrative Expense | 2 | 2 | |||||||||||||
Franchise and property expenses | 4 | 4 | |||||||||||||
Other (income) expense | $ 20 | $ 27 | |||||||||||||
|
Pension Benefits (Details) - UNITED STATES - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | $ 2 | $ 5 | $ 4 | $ 11 |
General and Administrative Expense [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 2 | 3 | 4 |
Other pension (income) expense [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 8 | 8 | 16 | 16 |
Expected return on plan assets | (11) | (10) | (23) | (21) |
Amortization of net loss | 2 | 3 | 5 | 9 |
Amortization of prior service cost | $ 2 | $ 2 | $ 3 | $ 3 |
Short-term Borrowings and Long-term Debt (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Apr. 01, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
Jun. 01, 2021 |
|
Debt Instrument [Line Items] | |||||||
Finance Lease, Liability, Noncurrent | $ 62 | $ 62 | $ 64 | ||||
Long-term debt and capital less obligations, including current maturities and debt issuance costs | 11,706 | 11,706 | 11,339 | ||||
Less Debt Issuance Costs, Noncurrent, Net | (87) | (87) | (86) | ||||
Long-term debt | 11,540 | 11,540 | 11,178 | ||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 239 | $ 235 | |||||
Interest Expense, Debt | 12 | ||||||
Long-term Debt, Current Maturities | 79 | 79 | 75 | ||||
Less current portion of debt issuance costs and discounts | (7) | (7) | (7) | ||||
Debt Issuance Costs | 11 | 18 | |||||
Short-term borrowings | 72 | 72 | 68 | ||||
Subsidiary Senior Unsecured Notes [Member] | Unsecured Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior Notes | 750 | 750 | 750 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | ||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 28 | $ 34 | |||||
Write off of Deferred Debt Issuance Cost | $ 6 | ||||||
Term Loan A Facility [Member] | Secured Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 745 | 745 | 750 | ||||
Term Loan B Facility [Member] | Secured Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 1,482 | 1,482 | 1,489 | ||||
Senior Unsecured Notes Due April 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | 600 | 600 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.75% | ||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 103.875% | ||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 23 | ||||||
Debt Instrument, Maturity Date | Apr. 01, 2025 | ||||||
Senior Unsecured Notes Due April 2025 | Secured Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Write off of Deferred Debt Issuance Cost | 5 | ||||||
Unsecured Notes Due April 2032 | Unsecured Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Debt | $ 1,000 | ||||||
Senior Unsecured Notes Due April 2032 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Maturity Date | Apr. 01, 2032 | ||||||
Debt Issuance Costs | 12 | ||||||
Senior Unsecured Notes Due April 2032 | Unsecured Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | ||||||
YUM Senior Unsecured Notes [Member] [Domain] | Unsecured Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Senior Notes | $ 4,875 | $ 4,875 | $ 4,475 | ||||
Debt Instrument, Debt Default, Description of Notice of Default | The indenture governing the April 2032 Notes contains covenants and events of default that are customary for debt securities of this type, including cross-default provisions whereby the acceleration of the maturity of any of our indebtedness in a principal amount of $100 million or more or the failure to pay the principal of such indebtedness at its stated maturity will constitute an event of default under the April 2032 Notes unless such indebtedness is discharged, or the acceleration of the maturity of that indebtedness is annulled, within 30 days after notice. |
Derivative Instruments (Details) - Cash Flow Hedging [Member] - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (1) | |
Forward-starting interest rate swap [Member] | ||
Derivative, Maturity Date | Mar. 01, 2025 | |
Derivative, Notional Amount | $ 1,500 | $ 1,500 |
Derivative Instruments (Details 2) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gains (losses) arising during the period | $ 15 | $ (8) | $ 72 | $ 16 |
Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | (3) | 2 | (17) | (4) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | (2) | (1) | (5) | (2) |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gains (losses) arising during the period | 12 | (7) | 71 | 17 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 9 | $ 4 | $ 20 | $ 8 |
Fair Value Disclosures (Details) ₨ in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022
USD ($)
Rate
|
Jun. 30, 2022
INR (₨)
|
Jun. 30, 2022
USD ($)
Rate
|
Jun. 30, 2022
INR (₨)
|
Jun. 30, 2022
INR (₨)
Rate
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2021
INR (₨)
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Equity Method Investment, Ownership Percentage | Rate | 5.00% | 5.00% | 5.00% | ||||||||
Investment Owned, at Fair Value | $ 104 | $ 104 | ₨ 8,200 | $ 118 | ₨ 8,800 | ||||||
Unrealized Gain (Loss) on Investments | 14 | ₨ 1,100 | 7 | ₨ 500 | |||||||
Secured Debt [Member] | Securitization Notes [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Senior Notes, Noncurrent | 3,792 | 3,792 | 3,811 | ||||||||
Secured Debt [Member] | Securitization Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Long-term Debt, Fair Value | [1] | 3,453 | 3,453 | 3,872 | |||||||
Secured Debt [Member] | Term Loan A Facility [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Debt obligations, excluding capital leases, carrying amount | 745 | 745 | 750 | ||||||||
Secured Debt [Member] | Term Loan A Facility [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Long-term Debt, Fair Value | [2] | 732 | 732 | 748 | |||||||
Secured Debt [Member] | Term Loan B Facility [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Debt obligations, excluding capital leases, carrying amount | 1,482 | 1,482 | 1,489 | ||||||||
Secured Debt [Member] | Term Loan B Facility [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Long-term Debt, Fair Value | [2] | 1,470 | 1,470 | 1,490 | |||||||
Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Senior Notes, Noncurrent | 750 | 750 | 750 | ||||||||
Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Long-term Debt, Fair Value | [2] | 722 | 722 | 784 | |||||||
Unsecured Debt [Member] | YUM Senior Unsecured Notes [Member] [Domain] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Senior Notes, Noncurrent | 4,875 | 4,875 | 4,475 | ||||||||
Unsecured Debt [Member] | YUM Senior Unsecured Notes [Member] [Domain] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Long-term Debt, Fair Value | [2] | 4,465 | 4,465 | 4,845 | |||||||
Other Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Investments, Fair Value Disclosure | 106 | 106 | 119 | ||||||||
Other Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Investments, Fair Value Disclosure | 5 | 5 | 5 | ||||||||
Other Current Liabilities [Member] | Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | 38 | ||||||||
Other Noncurrent Liabilities [Member] | Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||
Derivative Liability, Fair Value, Gross Liability | $ 2 | $ 2 | $ 54 | ||||||||
|
Contingencies (Details) - Property Lease Guarantee [Member] $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Guarantor Obligations [Line Items] | |
Year longest lease expires | 2065 |
Guarantor Obligations, Maximum Exposure | $ 400 |
Guarantee Obligations Maximum Exposure At Present Value | $ 325 |
Contingencies (Details 2) |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Loss Contingencies [Line Items] | |
Deferred Tax Liability Not Recognized, Events that Would Cause Temporary Difference to be Taxable, Undistributed Earnings of Foreign Subsidiaries | As a result of an audit by the Internal Revenue Service (“IRS”) for fiscal years 2013 through 2015, in August 2022, we received a Revenue Agent’s Report (“RAR”) from the IRS asserting an underpayment of tax of $2.1 billion plus $418 million in penalties for the 2014 fiscal year. Additionally, interest on the underpayment is estimated to be approximately $700 million through the second quarter of 2022. The proposed underpayment relates primarily to a series of reorganizations we undertook during that year in connection with the business realignment of our corporate and management reporting structure along brand lines. The IRS asserts that these transactions resulted in taxable distributions of approximately $6.0 billion.We disagree with the IRS’s position as asserted in the RAR and intend to contest it vigorously by filing a protest disputing on multiple grounds the proposed taxes and penalties and proceeding to the IRS Office of Appeals.The Company does not expect resolution of this matter within twelve months and cannot predict with certainty the timing of such resolution. The Company believes that it is more likely than not the Company’s tax position will be sustained; therefore, no reserve is recorded with respect to this matter. An unfavorable resolution of this matter could have a material, adverse impact on our consolidated Financial Statements in future periods. |
INDIA | |
Loss Contingencies [Line Items] | |
Litigation, Nature | On January 29, 2020, the Special Director issued an order imposing a penalty on YRIPL and certain former directors of approximately Indian Rupee 11 billion, or approximately $140 million. Of this amount, $135 million relates to the alleged failure to invest a total of $80 million in India within an initial seven-year period. We have been advised by external counsel that the order is flawed and have filed a writ petition with the Delhi High Court, which granted an interim stay of the penalty order on March 5, 2020. The stay order remains in effect and the next hearing is now scheduled for August 31, 2022. We deny liability and intend to continue vigorously defending this matter. We do not consider the risk of any significant loss arising from this order to be probable. |
CHINA | |
Loss Contingencies [Line Items] | |
Litigation, Nature | Yum China Holdings, Inc. (“Yum China”) is disputing license fees due on certain amounts of its gross revenue under the terms of the Master License Agreement (“MLA”) between the Company and Yum China. The parties are proceeding under the dispute resolution process pursuant to the MLA to resolve the disagreement over these license fees, which total approximately $4 million for the year to date ended June 30, 2022. License fees related to such revenue have historically been paid by Yum China and we believe they continue to be due under the terms of the MLA. Yum China has paid the $4 million, under protest and without any prejudice to Yum China’s position that they are not obligated to pay under the MLA. |
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