Items Affecting Comparability of Net Income and Cash Flows (Tables)

12 Months Ended

Dec. 26, 2015

Details of Impairment of Long-Lived Assets Held and Used by Asset

The losses related to Little Sheep that have occurred concurrent with our trademark and goodwill impairments in 2014 and 2013, none of which have been allocated to any segment for performance reporting purposes, are summarized below:



	2014			2013			Income Statement Classification
Impairment of Goodwill	$	160		$	222		Closures and Impairment (income) expense
Impairment of Trademark	284			69			Closures and Impairment (income) expense
Impairment of PP&E	14			4			Closures and Impairment (income) expense
Impairment of Investment in Little Sheep Meat	5			—			Closures and Impairment (income) expense
Tax Benefit	(76		)	(18		)	Income tax provision
Loss Attributable to Non-Controlling Interest	(26		)	(19		)	Net Income (loss) noncontrolling interests
Net loss	$	361		$	258		Net Income - YUM! Brands, Inc.

Refranchising (gain) loss [Member]

Facility Actions [Line Items]

Facility Actions

Refranchising (Gain) Loss

The Refranchising (gain) loss by reportable segment is presented below. We do not allocate such gains and losses to our segments for performance reporting purposes.



	Refranchising (gain) loss
	2015			2014			2013
China	$	(13	)	$	(17	)	$	(5	)
KFC Division^(a)	30			(18		)	(8		)
Pizza Hut Division^(a)(b)	55			4			(3		)
Taco Bell Division	(65		)	(4		)	(84		)
India	3			2			—
Worldwide	$	10		$	(33	)	$	(100	)

(a)

In 2010 we refranchised our then-remaining Company-operated restaurants in Mexico. To the extent we owned it, we did not sell the real estate related to certain of these restaurants, instead leasing it to the franchisee. During 2015, we sold the real estate for approximately $58 million. While these proceeds exceeded the book value of the real estate, the sale represented a substantial liquidation of our Mexican foreign entities under GAAP. As such, the accumulated translation losses associated with our Mexican business were included in our loss on the sale. We recorded charges of $80 million representing the excess of the sum of the book value of the real estate and other related assets and our accumulated translation losses over the sales price. Consistent with the classification of the original market refranchising transaction, these charges were classified as Refranchising (gain) loss. Refranchising losses of $40 million were associated with both the KFC and Pizza Hut Divisions.

Our KFC and Pizza Hut Divisions earned approximately $2 million and $1 million, respectively, of rental income in 2015 and $3 million and $1 million, respectively, of rental income in 2014 related to this real estate that transferred to the buyer subsequent to the sale of the real estate. We continue to earn U.S. dollar-denominated franchise fees, most of which are sales-based royalties, under our existing franchise contracts with our Mexico franchisee.


(b)	During 2015 we recognized charges of $16 million within Refranchising (gain) loss associated with the refranchising of our company-owned Pizza Hut restaurants in Korea. While additional gains or losses may occur as the refranchising plans move forward, such amounts are not expected to be material at this time.

Closures and impairment (income) expenses

Facility Actions [Line Items]

Facility Actions

Store Closure and Impairment Activity

Store closure (income) costs and Store impairment charges by reportable segment are presented below. These tables exclude $463 million and $295 million of Little Sheep impairment losses in 2014 and 2013, respectively which were not allocated to any segment for performance reporting purposes.



	2015
	China			KFC		Pizza Hut			Taco Bell			India		Worldwide
Store closure (income) costs^(a)	$	(6	)	$	1	$	(2	)	$	(1	)	$	—	$	(8	)
Store impairment charges	70			7		5			4			1		87
Closure and impairment (income) expenses	$	64		$	8	$	3		3			$	1	$	79



	2014
	China		KFC		Pizza Hut		Taco Bell		India		Worldwide
Store closure (income) costs^(a)	$	—	$	2	$	1	$	—	$	—	$	3
Store impairment charges	54		7		4		3		1		69
Closure and impairment (income) expenses	$	54	$	9	$	5	$	3	$	1	$	72



	2013
	China			KFC			Pizza Hut			Taco Bell		India		Worldwide
Store closure (income) costs^(a)	$	(1	)	$	(1	)	$	(3	)	$	—	$	—	$	(5	)
Store impairment charges	31			4			3			1		2		41
Closure and impairment (income) expenses	$	30		$	3		$	—		$	1	$	2	$	36

(a)

Store closure (income) costs include the net gain or loss on sales of real estate on which we formerly operated a Company-owned 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. Remaining lease obligations for closed stores were not material at December 26, 2015 or December 27, 2014.