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Segment Reporting (Tables)
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment

 

 

 

Quarter Ended 9/30/2019

 

Revenues

 

KFC

 

 

Pizza Hut

 

 

All Other

Segments

 

 

Corporate

and

Unallocated(a)

 

 

Combined

 

 

Elimination

 

 

Consolidated

 

Revenue from external

   customers

 

$

1,597

 

 

$

542

 

 

$

32

 

 

$

148

 

 

 

2,319

 

 

$

—

 

 

$

2,319

 

Inter-segment revenue

 

 

1

 

 

 

—

 

 

 

8

 

 

 

—

 

 

 

9

 

 

 

(9

)

 

 

—

 

Total

 

$

1,598

 

 

$

542

 

 

$

40

 

 

$

148

 

 

$

2,328

 

 

$

(9

)

 

$

2,319

 

 

 

 

Quarter Ended 9/30/2018

 

Revenues

 

KFC

 

 

Pizza Hut

 

 

All Other

Segments

 

 

Corporate

and

Unallocated(a)

 

 

Combined

 

 

Elimination

 

 

Consolidated

 

Revenue from external

   customers

 

$

1,501

 

 

$

550

 

 

$

24

 

 

$

137

 

 

 

2,212

 

 

$

—

 

 

$

2,212

 

Inter-segment revenue

 

 

—

 

 

 

—

 

 

 

6

 

 

 

—

 

 

 

6

 

 

 

(6

)

 

 

—

 

Total

 

$

1,501

 

 

$

550

 

 

$

30

 

 

$

137

 

 

$

2,218

 

 

$

(6

)

 

$

2,212

 

 

 

 

Year to Date Ended 9/30/2019

 

Revenues

 

KFC

 

 

Pizza Hut

 

 

All Other

Segments

 

 

Corporate

and

Unallocated(a)

 

 

Combined

 

 

Elimination

 

 

Consolidated

 

Revenue from external

   customers

 

$

4,647

 

 

$

1,595

 

 

$

77

 

 

$

428

 

 

 

6,747

 

 

$

—

 

 

$

6,747

 

Inter-segment revenue

 

 

1

 

 

 

—

 

 

 

27

 

 

 

—

 

 

 

28

 

 

 

(28

)

 

 

—

 

Total

 

$

4,648

 

 

$

1,595

 

 

$

104

 

 

$

428

 

 

$

6,775

 

 

$

(28

)

 

$

6,747

 

 

 

 

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

 

$

4,399

 

 

$

1,643

 

 

$

62

 

 

$

397

 

 

 

6,501

 

 

$

—

 

 

$

6,501

 

Inter-segment revenue

 

 

—

 

 

 

—

 

 

 

9

 

 

 

—

 

 

 

9

 

 

 

(9

)

 

 

—

 

Total

 

$

4,399

 

 

$

1,643

 

 

$

71

 

 

$

397

 

 

$

6,510

 

 

$

(9

)

 

$

6,501

 

 

 

 

 

Quarter Ended

 

 

Year to Date Ended

 

Operating Profit

 

9/30/2019

 

 

9/30/2018

 

 

9/30/2019

 

 

9/30/2018

 

KFC(b)

 

$

295

 

 

$

264

 

 

$

788

 

 

$

759

 

Pizza Hut

 

 

38

 

 

 

53

 

 

 

117

 

 

 

106

 

All Other Segments

 

 

(2

)

 

 

(6

)

 

 

(12

)

 

 

(16

)

Unallocated revenues from transactions with franchisees

   and unconsolidated affiliates(c)

 

 

147

 

 

 

136

 

 

 

425

 

 

 

395

 

Unallocated Other revenues

 

 

1

 

 

 

1

 

 

 

3

 

 

 

2

 

Unallocated expenses from transactions with franchisees

   and unconsolidated affiliates(c)

 

 

(145

)

 

 

(135

)

 

 

(421

)

 

 

(392

)

Unallocated Other operating costs and expenses

 

 

(1

)

 

 

—

 

 

 

(3

)

 

 

(1

)

Unallocated and corporate G&A expenses

 

 

(34

)

 

 

(42

)

 

 

(92

)

 

 

(94

)

Unallocated Other income (loss)(d)

 

 

1

 

 

 

(2

)

 

 

2

 

 

 

98

 

Operating Profit

 

$

300

 

 

$

269

 

 

$

807

 

 

$

857

 

Interest income, net(a)

 

 

10

 

 

 

10

 

 

 

29

 

 

 

28

 

Investment gain(a)

 

 

12

 

 

 

—

 

 

 

39

 

 

 

—

 

Income Before Income Taxes

 

$

322

 

 

$

279

 

 

$

875

 

 

$

885

 

 

 

 

Quarter Ended

 

 

Year to Date Ended

 

Impairment Charges

 

9/30/2019

 

 

9/30/2018

 

 

9/30/2019

 

 

9/30/2018

 

KFC(e)

 

$

1

 

 

$

1

 

 

$

13

 

 

$

9

 

Pizza Hut(e)

 

 

1

 

 

 

1

 

 

 

12

 

 

 

14

 

All Other Segments

 

 

—

 

 

$

—

 

 

$

2

 

 

$

—

 

 

 

$

2

 

 

$

2

 

 

$

27

 

 

$

23

 

 

 

 

Total Assets

 

 

 

9/30/2019

 

 

12/31/2018

 

KFC(f)

 

$

2,992

 

 

$

1,745

 

Pizza Hut

 

 

939

 

 

 

558

 

All Other Segments

 

 

164

 

 

 

132

 

Corporate and Unallocated(g)

 

 

2,615

 

 

 

2,175

 

 

 

$

6,710

 

 

$

4,610

 

 

(a)

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

 

(b)

Includes equity income from investments in unconsolidated affiliates of $19 million and $17 million for the quarters ended September 30, 2019 and 2018, respectively, and $56 million and $52 million for the years to date ended September 30, 2019 and 2018, respectively.

 

(c)

Primarily includes revenues and associated expenses of transactions with franchisee and unconsolidated affiliates derived from the Company’s central procurement model whereby the Company centrally purchases substantially all food and paper products from suppliers and then sells and delivers to restaurants, including franchisees and unconsolidated affiliates. Amounts have not been allocated to any segment for purposes of making operating decisions or assessing financial performance as the transactions are deemed corporate revenues and expenses in nature.

 

(d)

The amount for the year to date ended September 30, 2018 primarily includes gain from re-measurement of the previously held equity interest in connection with the acquisition of Wuxi KFC (See Note 2).

 

(e)

Primarily includes store closure impairment charges, incremental restaurant-level impairment charges as a result of adopting ASC 842 and restaurant-level impairment charges resulting from our semi-annual impairment evaluation (See Note 11).

 

(f)

Includes investments in unconsolidated affiliates.

 

(g)

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