Reportable Operating Segments

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Reportable Operating Segments

Reportable Operating Segments

See Note 1 for a description of our operating segments.

	Revenues
	2023		2022		2021
KFC Division(a)	$	2,830	$	2,834	$	2,793
Taco Bell Division(a)	2,641		2,437		2,238
Pizza Hut Division(a)	1,019		1,004		1,028
Habit Burger Grill Division(a)	586		567		525
	$	7,076	$	6,842	$	6,584

	Operating Profit
	2023		2022		2021
KFC Division	$	1,304	$	1,198	$	1,230
Taco Bell Division	944		850		758
Pizza Hut Division	391		387		387
Habit Burger Grill Division	(14)		(24)		2
Corporate and unallocated G&A expenses(b)(c)	(326)		(297)		(260)
Unallocated Franchise and property expenses(b)(c)	(1)		(6)		1
Unallocated Refranchising gain (loss)(b)	29		27		35
Unallocated Other income (expense)(b)(c)	(9)		52		(14)
Operating Profit	2,318		2,187		2,139
Investment income (expense), net(b)	7		11		86
Other pension income (expense)(b)	6		(9)		(7)
Interest expense, net(b)	(513)		(527)		(544)
Income before income taxes	$	1,818	$	1,662	$	1,674

	Depreciation and Amortization
	2023		2022		2021
KFC Division	$	22	$	23	$	28
Taco Bell Division	61		48		53
Pizza Hut Division	20		19		32
Habit Burger Grill Division	30		29		28
Corporate	20		27		23
	$	153	$	146	$	164

	Capital Spending
	2023		2022		2021
KFC Division	$	73	$	71	$	60
Taco Bell Division	101		101		62
Pizza Hut Division	12		22		18
Habit Burger Grill Division	64		56		56
Corporate	35		29		34
	$	285	$	279	$	230

	Identifiable Assets(e)
	2023		2022
KFC Division	$	2,281	$	2,227
Taco Bell Division	1,544		1,483
Pizza Hut Division	814		788
Habit Burger Grill Division	630		591
Corporate(d)	962		757
	$	6,231	$	5,846

	Long-Lived Assets(f)
	2023		2022
KFC Division	$	891	$	893
Taco Bell Division	975		950
Pizza Hut Division	378		400
Habit Burger Grill Division	580		534
Corporate	156		128
	$	2,980	$	2,905

(a)U.S. revenues included in the combined KFC, Taco Bell, Pizza Hut and Habit Burger Grill Divisions totaled $4.1 billion in 2023, $3.9 billion in 2022 and $3.6 billion in 2021.

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

(c)Our operating results presented herein reflect revenues from and expenses to support the Russian operations for KFC and Pizza Hut prior to the dates of sale or transfer (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 reclassed such net profits and losses subsequent to that date from the Division segment results in which they were earned to Unallocated Other income (expense). As a result, we reclassed net operating losses of $1 million from KFC Division Other income (expense) to Unallocated Other income (expense) during the year ended December 31, 2023, and net operating profit of $44 million from Divisional Other income (expense) to Unallocated Other income (expense) during the year ended December 31, 2022, respectively. Additionally, we recorded a charge of $3 million to Unallocated Other income (expense) during the year ended December 31, 2023 from the sale of our KFC Russia business.

Also included in Unallocated Other income (expense) were $1 million in foreign exchange losses and $13 million in foreign exchange gains attributable to fluctuations in the value of the Russian Ruble during the years ended December 31, 2023 and 2022, respectively. Additionally, we recorded charges of $5 million to Corporate and unallocated G&A expenses and $1 million to Unallocated Franchise and property expenses during the year ended December 31, 2023, for certain expenses related to the disposition of the businesses and other costs related to our exit from Russia. We recorded similar 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.

(d)Primarily includes cash and deferred tax assets.

(e)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 2023 and 2022.

(f)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 were classified as held for sale and are included in Prepaid expenses and other current assets in our Consolidated Balance Sheet (see Note 9).