Revenue Recognition Accounting Policy

3 Months Ended

Mar. 31, 2023

Revenue Recognition and Deferred Revenue [Abstract]

Revenue Recognition

Revenue Recognition

Disaggregation of Total Revenues

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

	Quarter ended 3/31/2023
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	16	$	229	$	5	$	130	$	380
Franchise revenues		46		178		70		1		295
Property revenues		3		10		1		1		15
Franchise contributions for advertising and other services		8		140		78		—		226
China
Franchise revenues		66		—		18		—		84
Other
Company sales		94		—		—		—		94
Franchise revenues		284		13		66		—		363
Property revenues		13		—		—		—		13
Franchise contributions for advertising and other services		157		2		16		—		175
		$	687	$	572	$	254	$	132	$	1,645

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

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 2023 is presented below.

	Deferred Franchise Fees
Balance at December 31, 2022	$	434
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(24)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	24
Balance at March 31, 2023	$	434

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

Less than 1 year	$	71
1 - 2 years	64
2 - 3 years	58
3 - 4 years	52
4 - 5 years	45
Thereafter	144
Total	$	434