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Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment

 

 

Quarter Ended 6/30/2022

 

 Revenues

 

KFC

 

 

Pizza Hut

 

 

All Other Segments

 

 

Corporate and Unallocated(a)

 

 

Combined

 

 

Elimination

 

 

Consolidated

 

 Revenue from external
   customers

 

$

1,594

 

 

$

448

 

 

$

34

 

 

$

52

 

 

$

2,128

 

 

$

—

 

 

$

2,128

 

 Inter-segment revenue

 

 

—

 

 

 

—

 

 

 

108

 

 

 

4

 

 

 

112

 

 

 

(112

)

 

 

—

 

 Total

 

$

1,594

 

 

$

448

 

 

$

142

 

 

$

56

 

 

$

2,240

 

 

$

(112

)

 

$

2,128

 

 

 

 

Quarter Ended 6/30/2021

 

 Revenues

 

KFC

 

 

Pizza Hut

 

 

All Other Segments

 

 

Corporate and Unallocated(a)

 

 

Combined

 

 

Elimination

 

 

Consolidated

 

 Revenue from external
   customers

 

$

1,734

 

 

$

538

 

 

$

52

 

 

$

127

 

 

$

2,451

 

 

$

—

 

 

$

2,451

 

 Inter-segment revenue

 

 

—

 

 

 

—

 

 

 

54

 

 

 

—

 

 

 

54

 

 

 

(54

)

 

 

—

 

 Total

 

$

1,734

 

 

$

538

 

 

$

106

 

 

$

127

 

 

$

2,505

 

 

$

(54

)

 

$

2,451

 

 

 

 

Year to Date Ended 6/30/2022

 

 Revenues

 

KFC

 

 

Pizza Hut

 

 

All Other Segments

 

 

Corporate and Unallocated(a)

 

 

Combined

 

 

Elimination

 

 

Consolidated

 

 Revenue from external
   customers

 

$

3,611

 

 

$

995

 

 

$

75

 

 

$

115

 

 

$

4,796

 

 

$

—

 

 

$

4,796

 

 Inter-segment revenue

 

 

—

 

 

 

—

 

 

 

230

 

 

 

8

 

 

 

238

 

 

 

(238

)

 

 

—

 

 Total

 

$

3,611

 

 

$

995

 

 

$

305

 

 

$

123

 

 

$

5,034

 

 

$

(238

)

 

$

4,796

 

 

 

 

Year to Date Ended 6/30/2021

 

 Revenues

 

KFC

 

 

Pizza Hut

 

 

All Other Segments

 

 

Corporate and Unallocated(a)

 

 

Combined

 

 

Elimination

 

 

Consolidated

 

 Revenue from external
   customers

 

$

3,566

 

 

$

1,079

 

 

$

105

 

 

$

258

 

 

$

5,008

 

 

$

—

 

 

$

5,008

 

 Inter-segment revenue

 

 

—

 

 

 

—

 

 

 

79

 

 

 

—

 

 

 

79

 

 

 

(79

)

 

 

—

 

 Total

 

$

3,566

 

 

$

1,079

 

 

$

184

 

 

$

258

 

 

$

5,087

 

 

$

(79

)

 

$

5,008

 

 

 

 

 

Quarter Ended

 

 

Year to Date Ended

 

 Operating Profit (Loss)

 

6/30/2022

 

 

6/30/2021

 

 

6/30/2022

 

 

6/30/2021

 

 KFC(b)

 

$

122

 

 

$

240

 

 

$

342

 

 

$

567

 

 Pizza Hut

 

 

11

 

 

 

39

 

 

 

41

 

 

 

99

 

 All Other Segments

 

 

(13

)

 

 

(6

)

 

 

(30

)

 

 

(9

)

 Unallocated revenues from transactions with
    franchisees and unconsolidated affiliates(c)

 

 

47

 

 

 

125

 

 

 

104

 

 

 

254

 

 Unallocated other revenues

 

 

9

 

 

 

2

 

 

 

19

 

 

 

4

 

 Unallocated expenses from transactions with
    franchisees and unconsolidated affiliates(c)

 

 

(48

)

 

 

(123

)

 

 

(105

)

 

 

(252

)

 Unallocated other operating costs and expenses

 

 

(9

)

 

 

(2

)

 

 

(18

)

 

 

(5

)

 Unallocated and corporate G&A expenses

 

 

(39

)

 

 

(40

)

 

 

(83

)

 

 

(81

)

 Unallocated other income (expenses), net

 

 

1

 

 

 

(2

)

 

 

2

 

 

 

(2

)

 Operating Profit

 

$

81

 

 

$

233

 

 

$

272

 

 

$

575

 

 Interest income, net(a)

 

 

14

 

 

 

16

 

 

 

26

 

 

 

31

 

 Investment gain (loss)(a)

 

 

20

 

 

 

8

 

 

 

(17

)

 

 

(4

)

 Income Before Income Taxes and Equity in
   Net Earnings (Losses) from Equity Method Investments

 

$

115

 

 

$

257

 

 

$

281

 

 

$

602

 

 

 

 

Quarter Ended

 

 

Year to Date Ended

 

 Impairment Charges

 

6/30/2022

 

 

6/30/2021

 

 

6/30/2022

 

 

6/30/2021

 

 KFC(d)

 

$

14

 

 

$

9

 

 

$

19

 

 

$

11

 

 Pizza Hut(d)

 

 

4

 

 

 

6

 

 

 

5

 

 

 

7

 

 All Other Segments(d)

 

 

4

 

 

 

1

 

 

 

6

 

 

 

1

 

 

 

$

22

 

 

$

16

 

 

$

30

 

 

$

19

 

 

 

 

Total Assets

 

 

 

6/30/2022

 

 

12/31/2021

 

 KFC

 

$

5,499

 

 

$

6,072

 

 Pizza Hut

 

 

884

 

 

 

972

 

 All Other Segments

 

 

396

 

 

 

454

 

 Corporate and Unallocated(e)

 

 

5,275

 

 

 

5,725

 

 

 

$

12,054

 

 

$

13,223

 

 

(a)
Amounts have not been allocated to any segment for performance reporting purposes.
(b)
Includes equity income from our investment in Hangzhou KFC of $13 million and $32 million for the quarter and year to date ended June 30, 2021 before we consolidated the results of the entity upon completion of the acquisition. See Note 3 for details.
(c)
Primarily includes revenues and associated expenses of transactions with franchisees 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 them to KFC and Pizza Hut restaurants, including franchisees and unconsolidated affiliates that operate our concepts. 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)
Primarily includes store closure impairment charges.
(e)
Primarily includes cash and cash equivalents, short-term investments, investments in equity securities of Meituan, investments in Sunner and Hangzhou Catering, long-term time deposits and inventories that are centrally managed.