Revenue Recognition Accounting Policy

6 Months Ended

Jun. 30, 2022

Revenue Recognition and Deferred Revenue [Abstract]

Revenue Recognition

Revenue Recognition

Disaggregation of Total Revenues

The following tables disaggregate revenue by Concept, for our two most significant markets based on Operating Profit and for all other markets. We believe this disaggregation best reflects the extent to which the nature, amount, timing and uncertainty of our revenues and cash flows are impacted by economic factors.

	Quarter ended 6/30/2022
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	16	$	243	$	5	$	136	$	400
Franchise revenues		47		178		64		2		291
Property revenues		3		10		1		—		14
Franchise contributions for advertising and other services		7		142		72		—		221
China
Franchise revenues		48		—		13		—		61
Other
Company sales		99		—		—		—		99
Franchise revenues		283		11		63		—		357
Property revenues		13		—		1		—		14
Franchise contributions for advertising and other services		161		2		16		—		179
		$	677	$	586	$	235	$	138	$	1,636

	Quarter ended 6/30/2021
	KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales	$	16	$	223	$	5	$	138	$	382
Franchise revenues	48		160		67		1		276
Property revenues	3		10		2		—		15
Franchise contributions for advertising and other services	7		128		74		—		209
China
Franchise revenues	58		—		16		—		74
Other
Company sales	131		—		7		—		138
Franchise revenues	255		9		62		—		326
Property revenues	15		—		—		—		15
Franchise contributions for advertising and other services	149		2		16		—		167
	$	682	$	532	$	249	$	139	$	1,602

	Year to date 6/30/2022
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	31	$	457	$	10	$	261	$	759
Franchise revenues		92		335		128		3		558
Property revenues		6		21		2		—		29
Franchise contributions for advertising and other services		13		265		144		—		422
China
Franchise revenues		109		—		29		—		138
Other
Company sales		210		—		—		—		210
Franchise revenues		543		22		133		—		698
Property revenues		27		—		1		—		28
Franchise contributions for advertising and other services		306		3		32		—		341
		$	1,337	$	1,103	$	479	$	264	$	3,183

	Year to date 6/30/2021
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	30	$	431	$	10	$	259	$	730
Franchise revenues		92		304		134		2		532
Property revenues		7		20		2		—		29
Franchise contributions for advertising and other services		13		245		153		—		411
China
Franchise revenues		120		—		32		—		152
Other
Company sales		250		—		16		—		266
Franchise revenues		485		17		119		—		621
Property revenues		29		—		1		—		30
Franchise contributions for advertising and other services		281		3		33		—		317
		$	1,307	$	1,020	$	500	$	261	$	3,088

Contract Liabilities

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

	Deferred Franchise Fees
Balance at December 31, 2021	$	421
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(38)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	42
Other(a)	1
Balance at June 30, 2022	$	426

(a)    Primarily includes impact of foreign currency translation.

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

Less than 1 year	$	69
1 - 2 years	63
2 - 3 years	58
3 - 4 years	51
4 - 5 years	45
Thereafter	140
Total	$	426