Revenue Recognition

12 Months Ended

Dec. 31, 2023

Revenue Recognition and Deferred Revenue [Abstract]

Revenue from Contract with Customer

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.

	2023
	KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales	$	67	$	1,069	$	14	$	575	$	1,725
Franchise revenues	205		822		284		7		1,318
Property revenues	14		42		4		2		62
Franchise contributions for advertising and other services	36		645		318		2		1,001
China
Franchise revenues	250		—		66		—		316
Other
Company sales	417		—		—		—		417
Franchise revenues	1,178		54		266		—		1,498
Property revenues	51		—		2		—		53
Franchise contributions for advertising and other services	612		9		65		—		686
	$	2,830	$	2,641	$	1,019	$	586	$	7,076

	2022
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	67	$	1,002	$	21	$	558	$	1,648
Franchise revenues		202		745		280		6		1,233
Property revenues		14		44		5		1		64
Franchise contributions for advertising and other services		29		591		312		2		934
China
Franchise revenues		219		—		57		—		276
Other
Company sales		424		—		—		—		424
Franchise revenues		1,152		48		263		—		1,463
Property revenues		58		—		2		—		60
Franchise contributions for advertising and other services		669		7		64		—		740
		$	2,834	$	2,437	$	1,004	$	567	$	6,842

	2021
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	65	$	944	$	21	$	520	$	1,550
Franchise revenues		198		661		279		4		1,142
Property revenues		14		44		5		—		63
Franchise contributions for advertising and other services		28		545		317		1		891
China
Franchise revenues		235		—		62		—		297
Other
Company sales		531		—		25		—		556
Franchise revenues		1,049		37		249		—		1,335
Property revenues		61		—		2		—		63
Franchise contributions for advertising and other services		612		7		68		—		687
		$	2,793	$	2,238	$	1,028	$	525	$	6,584

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 on our Consolidated Balance Sheet. A summary of significant changes to the contract liability balance during 2023 and 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	(79)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	112
Deferred franchise fees related to KFC Russia reclassified to liabilities held for sale (see Note 9)	(15)
Other(a)	(5)
Balance at December 31, 2022	$	434
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(81)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	101
Other(a)	(10)
Balance at December 31, 2023	$	444

(a)    Includes impact of foreign currency translation, as well as, in 2023, the recognition of deferred franchise fees into Refranchising (gain) loss upon the termination of existing franchise agreements when entering into master franchise agreements.

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

Less than 1 year	$	72
1 - 2 years	65
2 - 3 years	60
3 - 4 years	53
4 - 5 years	45
Thereafter	149
Total	$	444

We have applied the optional exemption, as provided for under Topic 606, which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty.