Reportable Operating Segments

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Reportable Operating Segments

Reportable Operating Segments

See Note 1 for a description of our operating segments.

	Revenues
	2022		2021		2020
KFC Division(a)	$	2,834	$	2,793	$	2,272
Taco Bell Division(a)	2,437		2,238		2,031
Pizza Hut Division(a)	1,004		1,028		1,002
Habit Burger Grill Division(a)	567		525		347
	$	6,842	$	6,584	$	5,652

	Operating Profit
	2022		2021		2020
KFC Division	$	1,198	$	1,230	$	922
Taco Bell Division	850		758		696
Pizza Hut Division	387		387		335
Habit Burger Grill Division	(24)		2		(22)
Corporate and unallocated G&A expenses(b)(c)(d)	(297)		(260)		(312)
Unallocated Franchise and property expenses(b)(c)	(6)		1		(4)
Unallocated Refranchising gain (loss)(b)	27		35		34
Unallocated Other income (expense)(b)(c)(e)	52		(14)		(146)
Operating Profit	2,187		2,139		1,503
Investment income (expense), net(b)	11		86		74
Other pension income (expense)(b)	(9)		(7)		(14)
Interest expense, net(b)	(527)		(544)		(543)
Income before income taxes	$	1,662	$	1,674	$	1,020

	Depreciation and Amortization
	2022		2021		2020
KFC Division	$	23	$	28	$	29
Taco Bell Division	48		53		56
Pizza Hut Division	19		32		24
Habit Burger Grill Division	29		28		25
Corporate	27		23		12
	$	146	$	164	$	146

	Capital Spending
	2022		2021		2020
KFC Division	$	71	$	60	$	59
Taco Bell Division	101		62		42
Pizza Hut Division	22		18		28
Habit Burger Grill Division	56		56		16
Corporate	29		34		15
	$	279	$	230	$	160

	Identifiable Assets(g)
	2022		2021
KFC Division	$	2,227	$	2,313
Taco Bell Division	1,483		1,397
Pizza Hut Division	788		850
Habit Burger Grill Division	591		586
Corporate(f)	757		820
	$	5,846	$	5,966

	Long-Lived Assets(h)
	2022		2021
KFC Division	$	893	$	1,069
Taco Bell Division	950		904
Pizza Hut Division	400		423
Habit Burger Grill Division	534		516
Corporate	128		120
	$	2,905	$	3,032

(a)U.S. revenues included in the combined KFC, Taco Bell, Pizza Hut and Habit Burger Grill Divisions totaled $3.9 billion in 2022, $3.6 billion in 2021 and $3.2 billion in 2020.

(b)Amounts have not been allocated to any segment for performance reporting purposes.

(c)Our operating results reflect revenues from and expenses to support the Russian operations for Pizza Hut, prior to the date of transfer, and KFC, for the entirety of the year ended December 31, 2022 (see Note 3) 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 operating profits from the Division segment results in which they were earned to Unallocated Other income (expense). As a result, we reclassed net operating profits of $44 million from KFC and Pizza Hut Division Other income (expense) to Unallocated Other income (expense) during the year ended December 31, 2022. Also, included in Unallocated Other income (expense) were $13 million in foreign exchange gains attributable to fluctuations in the value of the Russian ruble.

Additionally, we recorded charges of $7 million to Corporate and unallocated G&A expenses and $6 million to Unallocated Franchise and property expenses during the year ended December 31, 2022 for certain expenses related to the transfer of the businesses and other one-time costs related to our exit from Russia.

(d)Amounts in 2020 include charitable contributions to Yum! Brands Foundation, Inc. of $50 million and $25 million related to our Unlocking Opportunity Initiative and COVID-19 employee relief, respectively. Additionally, 2020 includes $36 million for charges associated with resource optimization (see Note 5).

(e)Unallocated Other income (expense) in 2020 includes a charge of $144 million related to the impairment of Habit Burger Grill goodwill (see Note 5).

(f)Primarily includes cash and deferred tax assets.

(g)U.S. identifiable assets included in the combined Corporate and KFC, Taco Bell, Pizza Hut, and Habit Burger Grill Divisions totaled $2.8 billion at both 2022 and 2021.

(h)Includes PP&E, net, goodwill, intangible assets, net and Operating lease right-of-use assets. Excludes KFC Russia long-lived assets of $108 million as of December 31, 2022 which are classified as held for sale and are included in Prepaid expenses and other current assets in our Consolidated Balance Sheet (see Note3).