v2.4.0.6
Items Affecting Comparability of Net Income and Cash Flows (Details) (USD $)
In Millions, unless otherwise specified
 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 4 Months Ended 12 Months Ended 12 Months Ended 4 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended 4 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended 4 Months Ended 12 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Dec. 25, 2010
Dec. 29, 2012
Closed Stores [Member]
Dec. 31, 2011
Closed Stores [Member]
Sep. 03, 2011
LJS and AW
Mar. 19, 2011
LJS and AW
Dec. 29, 2012
LJS and AW
Dec. 31, 2011
LJS and AW
Dec. 31, 2011
LJS and AW
Closures and impairment (income) expenses
Mar. 24, 2012
PH
UK
Dec. 29, 2012
PH
UK
Dec. 28, 2013
PH
UK
Dec. 29, 2012
PH
UK
Dec. 29, 2012
China
Dec. 31, 2011
China
Dec. 25, 2010
China
Dec. 29, 2012
YRI
Dec. 31, 2011
YRI
Dec. 25, 2010
YRI
Dec. 29, 2012
YRI
Russia
Dec. 31, 2011
YRI
Russia
Jul. 01, 2010
YRI
Russia
restaurants
Dec. 29, 2012
YRI
LJS and AW
Dec. 29, 2012
YRI
PH
UK
restaurants
Dec. 29, 2012
YRI
PH
UK
Dec. 31, 2011
YRI
PH
UK
Dec. 25, 2010
YRI
PH
Mexico
restaurants
Oct. 31, 2011
YRI
KFC
South Africa
restaurants
Dec. 25, 2010
YRI
KFC
Mexico
restaurants
Dec. 29, 2012
YRI
KFC
Taiwan
Dec. 25, 2010
YRI
KFC
Taiwan
restaurants
Mar. 24, 2012
U.S.
Dec. 29, 2012
U.S.
Dec. 29, 2012
U.S.
Dec. 31, 2011
U.S.
Dec. 25, 2010
U.S.
Dec. 29, 2012
U.S.
Employee Severance [Member]
Dec. 31, 2011
U.S.
Employee Severance [Member]
Dec. 25, 2010
U.S.
Employee Severance [Member]
Dec. 29, 2012
U.S.
LJS and AW
Dec. 29, 2012
U.S.
KFC
Dec. 31, 2011
U.S.
KFC
Dec. 25, 2010
U.S.
KFC
Dec. 29, 2012
India
Dec. 31, 2011
India
Dec. 25, 2010
India
Dec. 29, 2012
Total amount allocated to segments
Dec. 31, 2011
Total amount allocated to segments
Dec. 25, 2010
Total amount allocated to segments
Dec. 29, 2012
Unallocated Amount to Segment [Member]
Dec. 31, 2011
Unallocated Amount to Segment [Member]
Dec. 25, 2010
Unallocated Amount to Segment [Member]
Sep. 03, 2011
Unallocated Amount to Segment [Member]
PH
UK
Dec. 31, 2011
Unallocated Amount to Segment [Member]
PH
UK
Mar. 24, 2012
Little Sheep Group Limited [Member]
Dec. 29, 2012
Little Sheep Group Limited [Member]
Feb. 01, 2012
Little Sheep Group Limited [Member]
Dec. 31, 2011
Little Sheep Group Limited [Member]
Dec. 29, 2012
Little Sheep Group Limited [Member]
China
Dec. 29, 2012
2012 Deferred Vested Payout Plan for Former Employees [Member]
Dec. 29, 2012
2012 Deferred Vested Payout Plan for Former Employees [Member]
Dec. 29, 2012
United States Pension Plans of US Entity, Defined Benefit [Member]
Dec. 31, 2011
United States Pension Plans of US Entity, Defined Benefit [Member]
Facility Actions [Line Items]                                                                                                                                
Deferred vested pension payout                                                                                                                           $ (227) $ (278) [1] $ (29)
Pre-tax settlement charge for service and interest costs 84 0 0                                                                                                                   84 84    
Number of restaurants refranchised                                                 331     123   222   124                                                                
Deferred franchise royalty incentives                       53   53                                                                                                    
Amortization period of deferred franchise royalty incentives                       4 years 0 months 0 days   4 years 0 months 0 days                                                                                                    
Recognition of Deferred Revenue                         16                                                                                                      
U.S. Business Transformation [Abstract]                                                                                                                                
Charges relating to U.S. general and administrative productivity initiatives and realignment of resources                                                                     5 21 9                                                      
Unpaid portion of current severance liability related to U.S. Business Transformation                                                                           5 18                                                  
U.S. Business Transformation severance payments                                                                           14 4 7                                                
Depreciation reduction from the impairment of restaurants we offered to sell                                                   13 3                             3 10 9                                        
Divestiture of Business [Abstract]                                                                                                                                
Pre-tax losses recognized on business divestitures           17 68   86 80                                                                                                            
Net tax benefit on business divestitures, including benefit on pre-tax losses and valuation allowance related to capital losses               (104) (104)         (9)                                                                                                    
Percentage impact on system sales                                               1.00%                                 5.00%                                              
Percentage impact on Franchise license fees and income                                               1.00%                                 6.00%                                              
Percentage impact on Operating Profit                                               1.00%                                 1.00%                                              
Business Combination                                                                                                                                
Additional percentage of ownership acquired (in hundredths)                                                                                                                   66.00%            
Payments for acquisitions, net of cash acquired 543 81 62                                                                                                         540                
Cash acquired due to acquisition                                                                                                               44                
Current ownership percentage                                                                                                                 93.00%   27.00%          
Equity method investment in Little Sheep                                                                                                                   107            
Gain upon acquisition of Little Sheep 74 [2] 0 0                                                                                                         74 74              
Current assets                                                                                                                   109            
Property, plant and equipment                                                                                                                   64            
Goodwill                                                                                                                   376            
Intangibles Assets                                                                                                                   421            
Indefinite-lived trademark                                                                                                                   404            
Other assets                                                                                                                   35            
Total assets acquired                                                                                                                   1,005            
Deferred taxes                                                                                                                   105            
Other liabilities                                                                                                                   60            
Total liabilities assumed                                                                                                                   165            
Redeemable noncontrolling interest 59 0                                                                                                               59            
Other noncontrolling interest                                                                                                                   16            
Net assets acquired                                                                                                                   765            
Redeemable noncontrolling interest ownership percentage                                                                                                                 7.00%              
Percentage impact on revenue                                                                                                                       4.00%        
Number of restaurants acquired                                                         68                                                                      
Amount of cash paid to acquire interest in restaurants                                         9   60           71                                                                      
Number of company owned stores acquired                                             50                                                                                  
Number of franchise owned stores to which we gained full rights and responsibilities as franchisor                                             81                                                                                  
Amount of long term note receivable settled as part of acquisition                                             11                                                                                  
Amount of long term debt assumed as part of acquisition                                             10                                                                                  
Remaining balance of the purchase price anticipated to be paid in cash                                           12                                                                                    
Facility Actions [Abstract]                                                                                                                                
Refranchising (gain) loss (78) 72 63               24 46   70 (17) (14) (8) 61 [3] 69 [3] 53 [4],[5]                   (52)     (45) (69) (122) [6] 17 [6] 18 [6]               0 0 0       (78) [7],[8] 72 [7],[8] 63 [7],[8]                      
Goodwill write-off related to sale of business                 26         14                                 7                                                                  
Store closure (income) costs                             (4) [9] (1) [9] 0 [9] 12 [9] 4 [9] 2 [9]                             0 [9] 4 [9] 3 [9]               0 [9] 0 0 8 [9] 7 [9] 5 [9]                            
Store impairment charges                             13 13 16 7 18 12                             9 17 14               0 0 0 29 48 42                            
Closure and impairment (income) expenses 37 135 47                       9 12 16 19 22 14                             9 21 17               0 0 0 37 55 47 0 [7] 80 [10],[7] 0 [7]                      
Number of PHs a Latin American franchise buyer will serve as the master franchisor for Mexico                                                       53                                                                        
Carrying value of goodwill 1,034 [11] 681 [12] 659                 87   87 466 88 85 271 282 252                       30   297 297 311 [12] 322               0 0 0                                  
Number of KFCs a Latin American franchise buyer will serve as the master franchisor for Mexico                                                           102                                                                    
Refranchising loss due to impairment and probable obligations                                                                                                           76 76                  
Activity related to reserves for remaining lease obligations for closed stores [Roll Forward]                                                                                                                                
Beginning Balance       34 28                                                                                                                      
Amounts Used       (14) (12)                                                                                                                      
New Decisions       3 17                                                                                                                      
Estimate/Decision Changes       3 2                                                                                                                      
CTA/Other       1 (1)                                                                                                                      
Ending Balance       $ 27 $ 34                                                                                                                      
[1] See Note 4 for discussion of the settlement payments and settlement loss related to the U.S. Plan's deferred vested benefit program.
[2] See Note 4 for further details on the acquisition of Little Sheep.
[3] During the fourth quarter of 2012, we refranchised our remaining 331 Company-owned Pizza Hut dine-in restaurants in the United Kingdom. The newly signed franchise agreement for these stores allows the franchisee to pay continuing franchise fees in the initial years of the agreement at a reduced rate. We agreed to allow the franchisee to pay these reduced fees in part as consideration for their assumption of lease liabilities related to underperforming stores that we anticipate they will close that were part of the refranchising. We recognize the estimated value of terms in franchise agreements entered into concurrently with a refranchising transaction that are not consistent with market terms as part of the upfront refranchising gain (loss). Accordingly, upon the closing of this refranchising we recognized a loss of $53 million representing the estimated value of these reduced continuing fees. The associated deferred credit is recorded within Other liabilities and deferred credits in our Consolidated Balance Sheet as of December 29, 2012 and will be amortized into YRI's Franchise and license fees and income over the next 4 years, including $16 million in 2013. This upfront loss largely contributed to a $70 million Refranchising loss we recognized during 2012 as a result of this refranchising. Also included in that loss was the write-off of $14 million in goodwill allocated to the Pizza Hut UK reporting unit. The remaining carrying value of goodwill allocated to our Pizza Hut UK business of $87 million, after the aforementioned write-off, was determined not to be impaired as the fair value of the Pizza Hut UK reporting unit exceeded its carrying amount. An income tax benefit of $9 million was recorded in 2012 as a result of this $70 million refranchising loss.During 2011, we recorded a $76 million charge in Refranchising gain (loss) as a result of our decision to refranchise or close all of our remaining company-owned Pizza Hut UK dine-in restaurants, primarily to write down these restaurants' long-lived assets to their then estimated fair value. Impairment charges of Pizza Hut UK long-lived assets incurred as a result of this decision, including the charge mentioned in the previous sentence, reduced depreciation expense versus what would have otherwise been recorded by $13 million and $3 million for the years ended December 29, 2012 and December 31, 2011, respectively.
[4] In the year ended December 25, 2010 we recorded a $52 million loss on the refranchising of our Mexico equity market as we sold all of our Company-owned restaurants, comprised of 222 KFCs and 123 Pizza Huts, to an existing Latin American franchise partner. The buyer is serving as the master franchisee for Mexico which had 102 KFC and 53 Pizza Hut franchise restaurants at the time of the transaction. The write-off of goodwill included in this loss was minimal as our Mexico reporting unit included an insignificant amount of goodwill. This loss did not result in any related income tax benefit.
[5] During the year ended December 25, 2010 we refranchised all of our remaining company restaurants in Taiwan, which consisted of 124 KFCs. We included in our December 25, 2010 financial statements a write-off of $7 million of goodwill in determining the loss on refranchising of Taiwan. This loss did not result in a related income tax benefit. The remaining carrying value of goodwill related to our Taiwan business of $30 million, after the aforementioned write-off, was determined not to be impaired as the fair value of the Taiwan reporting unit exceeded its carrying amount.
[6] U.S. Refranchising (gain) loss in the year ended December 29, 2012 is primarily due to gains on sales of Taco Bells. U.S. Refranchising (gain) loss in the years ended December 31, 2011 and December 25, 2010 is primarily due to losses on sales of and offers to refranchise KFCs in the U.S. The non-cash impairment charges that were recorded related to our offers to refranchise these company-operated KFC restaurants in the U.S. decreased depreciation expense versus what would have otherwise been recorded by $3 million, $10 million and $9 million in the years ended December 29, 2012, December 31, 2011 and December 25, 2010, respectively. These depreciation reductions were not allocated to the U.S. segment resulting in depreciation expense in the U.S. segment results continuing to be recorded at the rate at which it was prior to the impairment charges being recorded for these restaurants.
[7] Amounts have not been allocated to the U.S., YRI or China Division segments for performance reporting purposes.
[8] See Note 4 for further discussion of Refranchising gain (loss).
[9] Store closure (income) costs include the net gain or loss on sales of real estate on which we formerly operated a Company restaurant that was closed, lease reserves established when we cease using a property under an operating lease and subsequent adjustments to those reserves and other facility-related expenses from previously closed stores.
[10] 2011 represents net losses resulting from the LJS and A&W divestitures. See Note 4.
[11] We recorded goodwill of $376 million related to our acquisition of Little Sheep. See Note 4.
[12] As a result of the LJS and A&W divestitures in 2011, we disposed of $26 million of goodwill assigned to our LJS and A&W reporting unit that was previously fully impaired. Goodwill that was assigned to our KFC U.S. and Taco Bell U.S. reporting units upon the acquisition of LJS and A&W and that has not been previously included in the carrying amounts of restaurants disposed of was not impaired, totals approximately $130 million and remains on our Consolidated Balance Sheet at December 29, 2012.