Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income (Loss) Before Income Taxes

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

	2021			2020			2019
U.S.	$	(1	)	$	(10	)	$	(7	)
Mainland China		1,424			1,014			941
Other Foreign	$	(31	)		104			69
	$	1,392		$	1,108		$	1,003

Details of Income Tax Provision

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

		2021			2020		2019
Current:	Federal	$	—		$	1	$	16
	Foreign		209			183		228
		$	209		$	184	$	244
Deferred:	Federal	$	(8	)	$	26	$	(1	)
	Foreign		168			85		17
		$	160		$	111	$	16
		$	369		$	295	$	260

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:

	2021					2020					2019
U.S. federal statutory rate	$	292		21.0	%	$	233		21.0	%	$	211		21.0	%
Impact from the Tax Act		—		—			—		—			8		0.8
Statutory rate differential attributable to    foreign operations		73		5.2			63		5.7			53		5.3
Adjustments to reserves and prior years		(4	)	(0.3	)		(6	)	(0.6	)		(2	)	(0.2	)
Change in valuation allowances		9		0.7			1		0.1			2		0.2
Impact from investment (gain) loss		(1	)	(0.1	)		7		0.7			(10	)	(1.0	)
Other, net		—		—			(3	)	(0.3	)		(2	)	(0.2	)
Effective income tax rate	$	369		26.5	%	$	295		26.6	%	$	260		25.9	%

Details of Deferred Tax Assets (Liabilities)

The details of 2021 and 2020 deferred tax assets (liabilities) are set forth below:

	2021			2020
Operating losses and tax credit carryforwards	$	43		$	24
Tax benefit from Little Sheep restructuring		17			17
Employee benefits		3			3
Share-based compensation		5			5
Lease		64			62
Other liabilities		15			13
Deferred income and other		89			75
Gross deferred tax assets		236			199
Deferred tax asset valuation allowances		(53	)		(42	)
Net deferred tax assets	$	183		$	157
Intangible assets		(69	)		(61	)
Property, plant and equipment		(138	)		(85	)
Gain from re-measurement of equity interest upon acquisition		(245	)		(87	)
Unrealized gains from equity securities		(18	)		(26	)
Withholding tax on distributable earnings		(32	)		(27	)
Gross deferred tax liabilities	$	(502	)	$	(286	)
Net deferred tax (liabilities)	$	(319	)	$	(129	)
Reported in Consolidated Balance Sheets as:
Deferred income taxes		106			98
Deferred income tax liabilities		(425	)		(227	)
	$	(319	)	$	(129	)

Unrecognized Tax Benefits Reconciliation

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

	2021			2020
Beginning of Year	$	21		$	19
Additions on tax positions		5			8
Reductions due to statute expiration		(6	)		(6	)
End of Year	$	20		$	21

Summary of Income Tax Examinations

	2021		2020
Accrued interest and penalties	$	5	$	5