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Segment Reporting (Tables)
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment

 

 

 

Quarter Ended 3/31/2021

 

 

Revenues

 

KFC

 

 

Pizza Hut

 

 

All Other Segments

 

 

Corporate and Unallocated(a)

 

 

Combined

 

 

Elimination

 

 

Consolidated

 

 

Revenue from external

   customers

 

$

1,832

 

 

$

541

 

 

$

53

 

 

$

131

 

 

 

2,557

 

 

$

—

 

 

$

2,557

 

 

Inter-segment revenue

 

 

—

 

 

 

—

 

 

 

25

 

 

 

—

 

 

 

25

 

 

 

(25

)

 

 

—

 

 

Total

 

$

1,832

 

 

$

541

 

 

$

78

 

 

$

131

 

 

$

2,582

 

 

$

(25

)

 

$

2,557

 

 

 

 

 

Quarter Ended 3/31/2020

 

 

Revenues

 

KFC

 

 

Pizza Hut

 

 

All Other Segments

 

 

Corporate and Unallocated(a)

 

 

Combined

 

 

Elimination

 

 

Consolidated

 

 

Revenue from external

   customers

 

$

1,269

 

 

$

324

 

 

$

21

 

 

$

140

 

 

 

1,754

 

 

$

—

 

 

$

1,754

 

 

Inter-segment revenue

 

 

—

 

 

 

—

 

 

 

7

 

 

 

—

 

 

 

7

 

 

 

(7

)

 

 

—

 

 

Total

 

$

1,269

 

 

$

324

 

 

$

28

 

 

$

140

 

 

$

1,761

 

 

$

(7

)

 

$

1,754

 

 

 

 

 

 

 

Quarter Ended

 

 

Operating Profit (Loss)

 

3/31/2021

 

 

3/31/2020

 

 

KFC(b)

 

$

327

 

 

$

153

 

 

Pizza Hut

 

 

60

 

 

 

(28

)

 

All Other Segments

 

 

(3

)

 

 

(10

)

 

Unallocated revenues from transactions with

   franchisees and unconsolidated affiliates(c)

 

 

129

 

 

 

139

 

 

Unallocated Other revenues

 

 

2

 

 

 

1

 

 

Unallocated expenses from transactions with

   franchisees and unconsolidated affiliates(c)

 

 

(129

)

 

 

(135

)

 

Unallocated Other operating costs and expenses

 

 

(3

)

 

 

(1

)

 

Unallocated and corporate G&A expenses

 

 

(41

)

 

 

(21

)

 

Unallocated Other expenses

 

 

—

 

 

 

(1

)

 

Operating Profit

 

$

342

 

 

$

97

 

 

Interest income, net(a)

 

 

15

 

 

 

9

 

 

Investment loss(a)

 

 

(12

)

 

 

(8

)

 

Income Before Income Taxes

 

$

345

 

 

$

98

 

 

 

 

 

Quarter Ended

 

 

Impairment Charges

 

3/31/2021

 

 

3/31/2020

 

 

KFC(d)

 

$

2

 

 

$

4

 

 

Pizza Hut(d)

 

 

1

 

 

 

6

 

 

All Other Segments(d)

 

 

—

 

 

 

2

 

 

 

 

$

3

 

 

$

12

 

 

 

 

 

 

Total Assets

 

 

 

 

3/31/2021

 

 

12/31/2020

 

 

KFC(e)

 

$

4,056

 

 

$

4,084

 

 

Pizza Hut

 

 

888

 

 

 

906

 

 

All Other Segments

 

 

379

 

 

 

378

 

 

Corporate and Unallocated(f)

 

 

5,514

 

 

 

5,507

 

 

 

 

$

10,837

 

 

$

10,875

 

 

 

(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 $20 million for the quarters ended March 31, 2021 and 2020, respectively.

(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. 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, restaurant-level impairment charges resulting from our semi-annual impairment evaluation as well as our additional impairment evaluation performed in the first quarter of 2020 in response to adverse impact from the COVID-19 pandemic. See Note 11.

 

(e)

Includes investments in unconsolidated affiliates.

 

(f)

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