Reportable Operating Segments

5 Months Ended

May 31, 2017

Segment Reporting [Abstract]

Reportable Operating Segments

Note 12 – Reportable Operating Segments

During the second quarter of 2017, we integrated the businesses of Pizza Hut Casual Dining and Pizza Hut Home Service and began reporting them together as the Pizza Hut reportable segment. As a result, the Company has two reportable segments: KFC, which remains unchanged, and Pizza Hut. Our remaining operating segments, including the operations of East Dawning, Little Sheep, Taco Bell and Daojia, are combined and referred to as All Other Segments, as these operating segments are insignificant both individually and in the aggregate. Segment financial information for prior periods has been recast to align with this change in segment reporting. See Note 1.  

	Quarter ended				Year to date ended
Revenues	5/31/2017		5/31/2016		5/31/2017		5/31/2016
KFC	$	1,116	$	1,107	$	2,012	$	2,028
Pizza Hut		468		466		847		833
All Other Segments		10		15		19		30
Total	$	1,594	$	1,588	$	2,878	$	2,891

	Quarter ended						Year to date ended
Operating Profit	5/31/2017			5/31/2016			5/31/2017			5/31/2016
KFC(a)	$	154		$	109		$	361		$	300
Pizza Hut		30			12			97			50
All Other Segments		(2	)		(2	)		—			(1	)
Unallocated and corporate expenses(b)		(40	)		(37	)		(63	)		(61	)
Unallocated Other income(b)		—			4			—			4
Unallocated Refranchising gain(b)		1			1			2			4
Operating Profit	$	143		$	87		$	397		$	296
Interest income, net(b)		5			2			7			4
Income Before Income Taxes	$	148		$	89		$	404		$	300

	Identifiable Assets
	5/31/2017		12/31/2016
KFC(c)	$	1,424	$	1,411
Pizza Hut		667		628
All Other Segments		140		160
Corporate(d)		1,790		1,528
	$	4,021	$	3,727

	Long-Lived Assets(e)
	5/31/2017		12/31/2016
KFC	$	1,093	$	1,099
Pizza Hut		586		553
All Other Segments		112		129
Corporate		34		33
	$	1,825	$	1,814

(a) Includes equity income from investments in unconsolidated affiliates of $13 million and $10 million for the quarters ended May 31, 2017 and 2016, respectively, and $30 million and $26 million for the years to date ended May 31, 2017 and 2016, respectively.

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

(c) Includes investments in three unconsolidated affiliates totaling $51 million and $71 million for the quarter ended May 31, 2017 and the year ended December 31, 2016, respectively.

(d) Primarily includes cash and inventories that are centrally managed.

(e) Includes property, plant and equipment, net, goodwill, and intangible assets, net.