Short-term Borrowings and Long-term Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Short-term Borrowings and Long-term Debt

Short-term Borrowings and Long-term Debt

Short-term Borrowings	3/31/2024		12/31/2023
Current maturities of long-term debt	$	61	$	56
Less current portion of debt issuance costs and discounts	(3)		(3)
Short-term borrowings	$	58	$	53
Long-term Debt
Securitization Notes	$	3,743	$	3,743
Subsidiary Senior Unsecured Notes	750		750
Revolving Facility	—		—
Term Loan A Facility	713		717
Term Loan B Facility	1,455		1,459
YUM Senior Unsecured Notes	4,550		4,550
Finance lease obligations	49		50
	$	11,260	$	11,269
Less long-term portion of debt issuance costs and discounts	(69)		(71)
Less current maturities of long-term debt	(61)		(56)
Long-term debt	$	11,130	$	11,142

Details of our Short-term borrowings and Long-term debt as of December 31, 2023 can be found within our 2023 Form 10-K.

Subsequent to the first quarter, on April 26, 2024, KFC Holding Co., Pizza Hut Holdings, LLC and Taco Bell of America, LLC (collectively, the "Borrowers"), each of which is a wholly-owned subsidiary of the Company, completed the refinancing of the then outstanding $713 million under the Term Loan A Facility and $1.25 billion capacity under the Revolving Facility through the issuance of a $500 million term loan A facility and a $1.5 billion revolving facility pursuant to an amendment to the Credit Agreement (as defined in our 2023 Form 10-K). The transaction did not add any additional net new debt to the Company's Balance Sheet. The new term loan A facility and the revolving facility will mature on the earliest of (i) April 26, 2029, (ii) the date that is 91 days prior to the March 15, 2028 maturity of the Borrowers’ existing Term Loan B Facility if more than $250

million of such Term Loan B remains outstanding as of such date and (iii) the date that is 91 days prior to the June 1, 2027 maturity of the Borrowers’ existing Subsidiary Senior Unsecured Notes if more than $250 million of such Subsidiary Senior Unsecured Notes remains outstanding as of such date. Further, the Amendment removes the excess cash flow mandatory prepayment requirement with respect to the new term loan A facility. All other material provisions of the Credit Agreement remain unchanged.

Cash paid for interest during the quarter ended March 31, 2024, was $101 million. Cash paid for interest during the quarter ended March 31, 2023 was $104 million.