Note 11 –Segment Reporting

We have two reportable segments: KFC and Pizza Hut. We also have four operating segments, East Dawning, Little Sheep, Taco Bell and Daojia, which are combined and referred to as All Other Segments, as these operating segments are insignificant both individually and in the aggregate.

	Quarter Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	1,502	$	550	$	22	$	138		2,212	$	—		$	2,212
Inter-segment revenue		—		—		3		—		3		(3	)		—
Total	$	1,502	$	550	$	25	$	138	$	2,215	$	(3	)	$	2,212

	Quarter Ended 9/30/2017
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination		Consolidated
Revenue from external customers	$	1,402	$	569	$	23	$	136		2,130	$	—	$	2,130
Inter-segment revenue		—		—		—		—		—		—		—
Total	$	1,402	$	569	$	23	$	136	$	2,130	$	—	$	2,130

	Year to Date Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	4,400	$	1,643	$	59	$	399		6,501	$	—		$	6,501
Inter-segment revenue		—		—		4		—		4		(4	)		—
Total	$	4,400	$	1,643	$	63	$	399	$	6,505	$	(4	)	$	6,501

	Year to Date Ended 9/30/2017
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination		Consolidated
Revenue from external customers	$	3,858	$	1,595	$	62	$	382		5,897	$	—	$	5,897
Inter-segment revenue		—		—		—		—		—		—		—
Total	$	3,858	$	1,595	$	62	$	382	$	5,897	$	—	$	5,897

	Quarter Ended						Year to Date Ended
Operating Profit	9/30/2018			9/30/2017			9/30/2018			9/30/2017
KFC^(b)	$	264		$	256		$	759		$	683
Pizza Hut		53			54			107			173
All Other Segments		(6	)		(7	)		(17	)		(9	)
Unallocated revenues from transactions with franchisees and unconsolidated affiliates^(a)		136			136			395			382
Unallocated Other revenues^(a)		2			—			4			—
Unallocated expenses from transactions with franchisees and unconsolidated affiliates^(a)		(135	)		(136	)		(392	)		(379	)
Unallocated Other operating costs and expenses^(a)		(1	)		—			(3	)		—
Unallocated and corporate G&A expenses^(a)		(42	)		(43	)		(94	)		(124	)
Unallocated Other income (loss)^(a)(c)		(2	)		4			98			5
Operating Profit	$	269		$	264		$	857		$	731
Interest and other income, net^(a)		10			8			28			16
Income Before Income Taxes	$	279		$	272		$	885		$	747

	Total Assets
	9/30/2018		12/31/2017
KFC^(d)	$	1,716	$	1,544
Pizza Hut		580		668
All Other Segments		139		144
Corporate and Unallocated^(e)		2,256		1,931
	$	4,691	$	4,287

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

(b)	Includes equity income from investments in unconsolidated affiliates of $17 million and $19 million for the quarters ended September 30, 2018 and 2017, respectively, and $52 million and $54 million for the years to date ended September 30, 2018 and 2017, respectively.

(c)	Primarily includes gain from re-measurement of previously held equity interest in connection with the acquisition of Wuxi KFC. See Note 2.

(d)	Includes investments in unconsolidated affiliates.

(e)	Primarily includes cash and cash equivalents, short-term investments, inventories and investment in equity securities that are centrally managed.