Other Income, Net

12 Months Ended

Dec. 31, 2021

Other Income And Expenses [Abstract]

Other Income, Net

Note 7– Other Income, net

	2021			2020			2019
Gain from re-measurement of equity interest upon acquisition(a)	$	628		$	239		$	—
Equity income from investments in unconsolidated affiliates(b)		43			62			69
Amortization of reacquired franchise rights(c)		(43	)		(22	)		(14	)
Derecognition of indemnification asset(d)		—			(3	)		—
Foreign exchanges and other		15			9			5
Other income, net	$	643		$	285		$	60

(a) In the fourth and third quarter of 2021, as a result of the consolidation of Hangzhou KFC and the Lavazza joint venture, the Company recognized a gain of $618 million and $10 million, respectively, from the re-measurement of our previously held equity interest at fair value. In the third quarter of 2020, the Company recognized a re-measurement gain of $239 million as a result of the consolidation of Suzhou KFC. The re-measurement gains were not allocated to any segment for performance reporting purposes. (See Note 3 for additional information).   

(b) Includes equity income from our investments in Hangzhou KFC, Suzhou KFC and the Lavazza joint venture before we consolidated the results of these entities upon completion of acquisitions. (See Note 3 for additional information).

(c) As a result of the acquisition of Hangzhou KFC, Suzhou KFC and Wuxi KFC, $66 million, $61 million and $61 million of the purchase price were allocated to intangible assets related to reacquired franchise rights, respectively, which are being amortized over the remaining franchise contract period of 1 year, 2.4 years and 5 years. (See Note 3 for additional information).

(d) In the second quarter of 2020, the Company derecognized a $3 million indemnification asset previously recorded for the Daojia acquisition as the indemnification right pursuant to the purchase agreement expired. The expense was included in Other income, net, but was not allocated to any segment for performance reporting purposes.