Note 4 – Items Affecting Comparability of Net Income and Cash Flows

Refranchising Gain, net

The Refranchising gain, net by reportable segment and All Other Segments is presented below. We do not allocate such gains and losses to our segments for performance reporting purposes.

	Quarter ended				Year to date
	2016		2015		2016		2015
KFC	$	4	$	3	$	8	$	5
Pizza Hut Casual Dining		—		—		—		1
All Other Segments		—		—		—		1
Total Company	$	4	$	3	$	8	$	7

Store Closure and Impairment Activity

Store closure income (costs) and Store impairment charges by reportable segment and All Other Segments are presented below:

	Quarter ended											Year to date
	2016											2016
	Total Company			KFC			Pizza Hut Casual Dining		All Other Segments			Total Company			KFC			Pizza Hut Casual Dining			All Other Segments
Store closure income ^(a)	$	1		$	1		$	—	$	—		$	7		$	5		$	1		$	1
Store impairment charges		(6	)		(5	)		—		(1	)		(43	)		(30	)		(11	)		(2	)
Closure and impairment expenses	$	(5	)	$	(4	)	$	—	$	(1	)	$	(36	)	$	(25	)	$	(10	)	$	(1	)

	Quarter ended												Year to date
	2015												2015
	Total Company			KFC			Pizza Hut Casual Dining			All Other Segments			Total Company			KFC			Pizza Hut Casual Dining			All Other Segments
Store closure income (costs) ^(a)	$	2		$	2		$	1		$	(1	)	$	5		$	6		$	2		$	(3	)
Store impairment charges		(5	)		(4	)		(1	)		—			(27	)		(23	)		(3	)		(1	)
Closure and impairment expenses	$	(3	)	$	(2	)	$	—		$	(1	)	$	(22	)	$	(17	)	$	(1	)	$	(4	)

(a)

Store closure income (costs) include proceeds from forced store closures, lease reserves established when we cease using a property under an operating lease and subsequent adjustments to those reserves and other facility-related expenses from previously closed stores. Remaining lease obligations for closed stores were not material at August 31, 2016 or December 31, 2015.