v2.4.0.6
Reportable Operating Segments (Details) (USD $)
In Millions, unless otherwise specified
 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 08, 2012
Sep. 03, 2011
Sep. 08, 2012
Sep. 03, 2011
Sep. 08, 2012
China
Sep. 03, 2011
China
Sep. 08, 2012
China
Sep. 03, 2011
China
Sep. 08, 2012
YRI
Sep. 03, 2011
YRI
Sep. 08, 2012
YRI
Sep. 03, 2011
YRI
Sep. 08, 2012
U.S.
Sep. 03, 2011
U.S.
Sep. 08, 2012
U.S.
Sep. 03, 2011
U.S.
Sep. 08, 2012
India
Sep. 03, 2011
India
Sep. 08, 2012
India
Sep. 03, 2011
India
Sep. 08, 2012
Unallocated Amount to Segment [Member]
Sep. 03, 2011
Unallocated Amount to Segment [Member]
Sep. 08, 2012
Unallocated Amount to Segment [Member]
Sep. 03, 2011
Unallocated Amount to Segment [Member]
Mar. 24, 2012
Unallocated Amount to Segment [Member]
PH
UK
Sep. 03, 2011
Unallocated Amount to Segment [Member]
PH
UK
Sep. 08, 2012
Little Sheep Group Limited [Member]
Sep. 08, 2012
Level 2
Nonrecurring basis
Unallocated Amount to Segment [Member]
PH
UK
Sep. 03, 2011
Level 2
Nonrecurring basis
Unallocated Amount to Segment [Member]
PH
UK
Sep. 08, 2012
Level 2
Nonrecurring basis
Little Sheep Group Limited [Member]
Sep. 03, 2011
Level 2
Nonrecurring basis
Little Sheep Group Limited [Member]
Sep. 08, 2012
Level 2
Nonrecurring basis
Little Sheep Group Limited [Member]
Unallocated Amount to Segment [Member]
Segment Reporting Information [Line Items]                                                                
Total revenues $ 3,569 $ 3,274 $ 9,480 $ 8,515 $ 1,988 $ 1,600 $ 4,762 $ 3,686 $ 769 $ 779 $ 2,247 $ 2,167 $ 787 $ 873 $ 2,405 $ 2,609 $ 25 $ 22 $ 66 $ 53                        
Operating Profit 671 488 1,789 1,308 374 [1] 301 [1] 812 [1] 698 [1] 173 163 491 467 162 143 486 398 0 0 (1) (1)                        
Occupancy and other operating expenses 864 790 2,288 2,063                                 (3) [2] (2) [2] (12) [2] (8) [2]                
Corporate expenses                                         41 43 124 122                
Other (income) expense (11) (16) (97) (48)                                 2 (4) (72) [3] (11)                
Impairment expense 4 25 9 113 1 0 4 3 2 9 2 18 1 0 3 10 0 0 0 0 0 16 [4] 0 82 [4]                
Refranchising (gain) loss (2) 66 [5] (41) [5],[6] 69 [5] (3) (5) (7) (8) 0 75 [5] 19 [5] 74 [5] 1 (4) (53) [6] 3 0 0 0 0 (2) 66 [7] (41) [7] 69 [7] 20 76   20 [8] 0      
Interest expense, net 32 32 107 110                                                        
Income Before Income Taxes 639 456 1,682 1,198                                                        
Equity income from investments in unconsolidated affiliates 16 13 38 40                                                        
Gain upon acquisition of Little Sheep $ 0 $ 0 $ 74 $ 0                                             $ 74     $ 74 [8] $ 0 $ 74 [8]
[1] Includes equity income from investments in unconsolidated affiliates of $16 million and $13 million for the quarters ended September 8, 2012 and September 3, 2011, respectively, and $38 million and $40 million for the years to date ended September 8, 2012 and September 3, 2011, respectively.
[2] Amounts represent depreciation reduction recognized as a result of our decisions to refranchise Company operated Pizza Hut dine-in restaurants in the UK (see Note 4) and Company operated KFC restaurants in the U.S.
[3] Includes $74 million non-cash gain on acquisition of additional interest in Little Sheep for the year to date ended September 8, 2012. See Note 4.(d
[4] Amounts represent impairment charges resulting from our decision to divest the LJS and A&W businesses in 2011. See Note 4.(e
[5] During the quarter ended September 3, 2011, we decided to refranchise or close all of our remaining company operated Pizza Hut dine-in restaurants in the UK market. While the asset group comprising approximately 350 stores we anticipate selling did not meet the criteria for held for sale classification as of September 3, 2011, our decision to sell was considered an impairment indicator. As such we reviewed the asset group for potential impairment and determined that its carrying value was not fully recoverable based upon our estimate of expected refranchising proceeds and holding period cash flows anticipated while we continue to operate the restaurants as company units. Accordingly, we wrote the asset group down to our estimate of its fair value, which was based on the sales price we would expect to receive from a buyer. This fair value determination considered current market conditions, trends in the Pizza Hut UK business, and prices for similar transactions in the restaurant industry and resulted in a non-cash pre-tax write down of $74 million which was recorded to Refranchising (gain) loss. The decision to refranchise or close all remaining Pizza Hut dine-in restaurants in the UK was considered to be a goodwill impairment indicator. We determined that the fair value of our Pizza Hut UK reporting unit exceeded its carrying value and as such there was no goodwill impairment. Based on bids received in 2012, we recorded an additional non-cash pre-tax impairment charge of $20 million to Refranchising (gain) loss in the quarter ended March 24, 2012. While we continue to market the Pizza Hut dine-in restaurants in the UK for sale, the asset group continues not to meet all of the held for sale criteria as of the quarter ended September 8, 2012.These impairment charges decreased depreciation expense versus what would have otherwise been recorded by $3 million and $9 million for the quarter and year to date ended September 8, 2012, respectively. Neither the impairment charges nor the depreciation reduction were allocated to the YRI segment, resulting in depreciation expense in the YRI segment results continuing to be recorded at the rate at which it was prior to these impairment charges being recorded for these restaurants.
[6] The year to date ended September 8, 2012, U.S. Refranchising (gain) loss primarily relates to gains on the sales of Taco Bell restaurants.
[7] Includes U.S. refranchising gains of $53 million partially offset by an impairment charge of $20 million related to our Pizza Hut UK dine-in business for the year to date ended September 8, 2012. Includes refranchising losses of $76 million related to our Pizza Hut UK dine-in business for the quarter and year to date ended September 3, 2011. See Note 4.
[8] See Note 4 for further discussions of Refranchising (gain) loss, including our decision to refranchise Company operated Pizza Hut dine-in restaurants in the UK, the acquisition of Little Sheep and the LJS and A&W divestitures.