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Discontinued Operations
 12 Months Ended
Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] Discontinued Operations

As discussed in Note 1, on October 31, 2016, the Company completed the Separation of our China business.

In connection with the Separation, the Company and Yum China entered into a Separation and Distribution Agreement as well as various other agreements that provide a framework for the relationships between the parties, including among others a Tax Matters
Agreement, an Employee Matters Agreement, a Transition Services Agreement and a Master License Agreement. These agreements provided for the allocation between the Company and Yum China of assets, employees, liabilities and obligations (including investments, property, employee benefits and tax-related assets and liabilities) attributable to periods prior to, at and after the Separation and govern certain relationships between the Company and Yum China after the Separation.

For all the periods prior to the Separation, the financial results of Yum China are presented as Income from discontinued operations, net of tax in the Consolidated Statements of Income, Assets and Liabilities of discontinued operations in the Consolidated Balance Sheets and Cash flows from discontinued operations in our Consolidated Statements of Cash Flows.

Prior to the Separation, an intercompany franchise agreement existed between an entity of Yum China and a Company entity requiring Yum China to remit to the Company royalties on sales earned by KFC and Pizza Hut Company-owned stores in China. The royalties related to the franchise agreement were eliminated as intercompany transactions and were not separately reflected in our previously issued financial statements. Additionally, third-party franchisees of Yum China paid to a Company entity royalties as a percentage of their sales. We have restated the results of our KFC and Pizza Hut Divisions for periods prior to the Separation to reflect the royalties that were previously eliminated as intercompany transactions and related taxes that were previously included in our China Division results. We have also restated the results of our KFC and Pizza Hut Divisions to include the royalties paid by third-party franchisees previously included in China Division results that will be continued pursuant to the Master License Agreement following the Separation. For 2016, 2015, and 2014 the combined impact to our KFC and Pizza Hut Divisions' Franchise and license fees and income was $208 million, $244 million, and $242 million, respectively. The value added tax associated with this royalty revenue was recorded as an increase in Franchise and license expenses and the combined impact to our KFC and Pizza Hut Divisions' Franchise and license expense totaled $13 million, $16 million and $16 million in 2016, 2015 and 2014, respectively. The net increases in the KFC and Pizza Hut Divisions' Operating Profit were offset with a corresponding reduction in Income from discontinued operations such that there is no impact on total reported Net income. Subsequent to the Separation, all royalty revenues earned by us under the Master License Agreement with Yum China are reflected as Franchise and license fees and income in our Consolidated Statements of Income. Cash inflows from Yum China to the Company from the date of Separation through the end of 2016 related to the Master License Agreement were $16 million and primarily related to royalty revenues.

The financial results of Yum China presented in discontinued operations reflect the results of the former China Division, an operating segment of the Company until the Separation, adjusted for the transactions discussed above and the inclusion of certain G&A expenses, non-cash impairment charges, refranchising gains, interest and taxes that were previously not allocated to but were related to the former China Division's historical results of operations. The following table presents the financial results of the Company’s discontinued operations:
 
 
2016(a)
 
2015
 
2014
Company sales
 
$
5,667

 
$
6,789

 
$
6,821

Franchise and license fees and income
 
109

 
120

 
113

Company restaurant expenses
 
(4,766
)
 
(5,913
)
 
(6,011
)
G&A expenses(b)
 
(406
)
 
(405
)
 
(391
)
Franchise and license expenses
 
(45
)
 
(48
)
 
(44
)
Closures and impairment expenses(c)
 
(57
)
 
(64
)
 
(517
)
Refranchising gain
 
12

 
13

 
17

Other income(d)
 
49

 
27

 
52

Interest income, net
 
8

 
7

 
13

Income from discontinued operations before income taxes
 
571

 
526

 
53

Income tax benefit (provision)(e)
 
65

 
(164
)
 
(38
)
Income from discontinued operations - including noncontrolling interests
 
636

 
362

 
15

(Income) loss from discontinued operations - noncontrolling interests
 
(11
)
 
(5
)
 
30

Income from discontinued operations - YUM! Brands, Inc.
 
$
625

 
$
357

 
$
45


(a)
Includes Yum China financial results from January 1, 2016 to October 31, 2016.

(b)
Includes costs incurred to execute the Separation of $68 million and $9 million for 2016 and 2015, respectively. Such costs primarily relate to transaction advisors, legal and other consulting fees.

(c)
During 2014, we recorded a $463 million non-cash impairment charge related to the investment in China's Little Sheep restaurant business. The tax benefit associated with these losses of $76 million and the losses allocated to the noncontrolling founding shareholder of $26 million resulted in a net impact of $361 million on Income from discontinued operations - YUM! Brands, Inc.

(d)
Primarily relates to equity income from KFC franchisees in which Yum China owns a minority interest.

(e)
During 2016, we recorded a tax benefit of $233 million related to previously recorded losses associated with our Little Sheep business. The tax benefit associated with these losses was able to be recognized as a result of legal entity restructuring completed in anticipation of the Separation.

The assets, liabilities and redeemable noncontrolling interest related to Yum China and presented as discontinued operations in our Consolidated Balance Sheets are as follows:
 
 
2015
Cash and cash equivalents
 
$
424

Accounts and notes receivable, net
 
53

Inventories
 
189

Prepaid expenses and other current assets
 
108

Current assets of discontinued operations
 
774

 
 
 
Property, plant and equipment, net
 
1,841

Goodwill
 
85

Intangible assets, net
 
107

Investments in unconsolidated affiliates
 
61

Other assets
 
192

Deferred income taxes
 
85

Noncurrent assets of discontinued operations
 
2,371

Total assets classified as discontinued operations
 
$
3,145

 
 
 
Accounts payable and other current liabilities
 
$
912

Income taxes payable
 
22

Current liabilities of discontinued operations
 
934

 
 
 
Long-term debt
 
34

Other liabilities and deferred credits
 
213

Non-current liabilities of discontinued operations
 
247

Total liabilities classified as discontinued operations
 
$
1,181

 
 
 
Redeemable noncontrolling interest
 
$
6



Assets and liabilities transferred to Yum China upon Separation at October 31, 2016 were $3,363 million and $1,310 million, respectively.