Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Before Income Taxes

U.S. and foreign income before taxes are set forth below:

	2017			2016		2015
U.S.	$	(13	)	$	5	$	(7	)
China		818			659		502
Other Foreign		5			8		1
	$	810		$	672	$	496

Details of Income Tax Provision (Benefit)

The details of our income tax provision (benefit) are set forth below:

		2017			2016			2015
Current:	Federal	$	85		$	(2	)	$	7
	Foreign		232			200			132
		$	317		$	198		$	139
Deferred:	Federal	$	77		$	(36	)	$	(7	)
	Foreign		(13	)		(4	)		36
		$	64		$	(40	)	$	29
		$	381		$	158		$	168

Effective Income Tax and Tax Rate Reconciliation

The reconciliation of income taxes calculated at the U.S. federal statutory rate to our effective tax rate is set forth below:

	2017					2016					2015
U.S. federal statutory rate	$	284		35.0	%	$	235		35.0	%	$	173		35.0	%
Impact from the Tax Act		164		20.2			—		—			—		—
Statutory rate differential attributable to    foreign operations		(61	)	(7.5	)		(55	)	(8.4	)		(15	)	(3.1	)
Adjustments to reserves and prior years		(1	)	(0.2	)		16		2.4			3		0.6
Change in valuation allowances		2		0.2			—		—			12		2.4
Tax benefit from Little Sheep restructuring		—		—			(26	)	(3.8	)		—		—
Other, net		(7	)	(0.8	)		(12	)	(1.7	)		(5	)	(1.0	)
Effective income tax rate	$	381		46.9	%	$	158		23.5	%	$	168		33.9	%

Details of Deferred Tax Assets (Liabilities)

The details of 2017 and 2016 deferred tax assets (liabilities) are set forth below:

	2017			2016
Operating losses and tax credit carryforwards	$	43		$	86
Tax benefit from Little Sheep restructuring		20			26
Employee benefits		5			4
Share-based compensation		6			8
Deferred escalating minimum rent		45			42
Other liabilities		10			8
Deferred income and other		43			35
Gross deferred tax assets		172			209
Deferred tax asset valuation allowances		(68	)		(41	)
Net deferred tax assets	$	104		$	168
Intangible assets		(25	)	$	(22	)
Property, plant and equipment		(2	)		(1	)
Other		(10	)		(9	)
Gross deferred tax liabilities	$	(37	)	$	(32	)
Net deferred tax assets	$	67		$	136
Reported in Consolidated Balance Sheets as:
Deferred income taxes		99		$	162
Other liabilities and deferred credits		(32	)		(26	)
	$	67		$	136

Unrecognized Tax Benefits Reconciliation

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2017			2016
Beginning of Year	$	26		$	15
Additions on tax positions		8			14
Reductions due to statute expiration		(6	)		(3	)
End of Year	$	28		$	26

Summary of Income Tax Examinations

	2017		2016
Accrued interest and penalties	$	7	$	5