Supplemental Balance Sheet Information

6 Months Ended

Jun. 30, 2020

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Information

Note 8 – Supplemental Balance Sheet Information

Accounts Receivable, net	6/30/2020			12/31/2019
Accounts receivable, gross	$	84		$	89
Allowance for doubtful accounts		(1	)		(1	)
Accounts receivable, net	$	83		$	88

Prepaid Expenses and Other Current Assets	6/30/2020		12/31/2019
Receivables from payment processors and aggregators	$	26	$	41
Prepaid rent		1		2
Dividends receivable from unconsolidated affiliates		51		8
Other prepaid expenses and current assets		88		83
Prepaid expenses and other current assets	$	166	$	134

Property, Plant and Equipment	6/30/2020			12/31/2019
Buildings and improvements	$	2,146		$	2,159
Finance leases, primarily buildings		30			30
Machinery and equipment, and construction in progress		1,254			1,282
Property, plant and equipment, gross		3,430			3,471
Accumulated depreciation		(1,926	)		(1,877	)
Property, plant and equipment, net	$	1,504		$	1,594

Other Assets	6/30/2020		12/31/2019
VAT assets	$	237	$	243
Land use right		129		133
Investment in equity securities		93		110
Long-term deposits		73		71
Investment in long-term time deposits(a)		57		—
Restricted cash		7		9
Costs to obtain contracts		9		9
Others		6		5
Other Assets	$	611	$	580

Accounts Payable and Other Current Liabilities	6/30/2020		12/31/2019
Accounts payable	$	566	$	623
Operating leases liabilities		401		382
Accrued compensation and benefits		179		223
Contract liabilities		155		135
Accrued capital expenditures		122		150
Accrued marketing expenses		94		64
Other current liabilities		143		114
Accounts payable and other current liabilities	$	1,660	$	1,691

Other Liabilities	6/30/2020		12/31/2019
Accrued income tax payable	$	62	$	69
Deferred income tax liabilities		101		67
Contract liabilities		33		33
Other non-current liabilities		56		41
Other liabilities	$	252	$	210

(a) As of June 30, 2020, the Company had $57 million invested in long-term time deposits, bearing a fixed interest rate with original maturity of three years. The asset is restricted for use in order to secure the balance of prepaid stored-value cards issued by the Company pursuant to regulatory requirements.

Reconciliation of Cash, Cash equivalents, and Restricted Cash for Condensed Consolidated Statements of Cash Flows

	6/30/2020		12/31/2019
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets	$	674	$	1,046
Restricted cash included in Other assets (b)		7		9
Cash, Cash Equivalents and Restricted Cash as presented in Condensed Consolidated Statements of Cash Flows	$	681	$	1,055

(b) As of June 30, 2020, the $7 million of restricted cash included in Other assets within our Condensed Consolidated Balance Sheet represents amounts deposited into an escrow account pursuant to a definitive agreement entered into in April 2020 to acquire an additional 25% equity interest in an unconsolidated affiliate that operates KFC stores in and around Suzhou, China (“Suzhou KFC”). The Suzhou KFC acquisition was completed on August 3, 2020 and was considered immaterial. As of December 31, 2019, the $9 million of restricted cash represents amounts deposited into an escrow account pursuant to a definitive agreement entered into in August 2019 to acquire a controlling interest in the Huang Ji Huang group. The Huang Ji Huang acquisition was completed on April 8, 2020 and was considered immaterial.