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Items Affecting Comparability of Net Income, Financial Position and Cash Flows (Tables) | 3 Months Ended | 6 Months Ended
--- | --- | ---
Jun. 30, 2018 | Jun. 30, 2018
Items Affecting Comparability of Net Income and Cash Flows [Abstract] |  |
Revenue Recognition adjustments made to Condensed Consolidated Balance Sheet [Table Text Block] | As a result, the following adjustments were made to the Condensed Consolidated Balance Sheet as of January 1, 2018:
CONDENSED CONSOLIDATED BALANCE SHEET
| As Reported 12/31/2017 |  | Adjustments |  |  | Balances with Adoption of Topic 606 1/1/2018
ASSETS |  |  |  |  |  |
Current Assets |  |  |  |  |  |
Cash and cash equivalents | $ | 1,522 |  |  | $ | 11 |  |  |  | $ | 1,533 |
Accounts and notes receivable, net | 400 |  |  | 112 |  |  |  | 512 |
Prepaid expenses and other current assets | 384 |  |  | 76 |  | (a) |  | 460 |
Advertising cooperative assets, restricted | 201 |  |  | (201 | ) |  |  | — |
Total Current Assets | 2,507 |  |  | (2 | ) |  |  | 2,505 |
Property, plant and equipment, net | 1,697 |  |  | 11 |  |  |  | 1,708 |
Goodwill | 512 |  |  | — |  |  |  | 512 |
Intangible assets, net | 110 |  |  | — |  |  |  | 110 |
Other assets | 346 |  |  | 118 |  |  |  | 464 |
Deferred income taxes | 139 |  |  | 26 |  |  |  | 165 |
Total Assets | $ | 5,311 |  |  | $ | 153 |  |  |  | $ | 5,464 |
LIABILITIES AND SHAREHOLDERS’ DEFICIT |  |  |  |  |  |
Current Liabilities |  |  |  |  |  |
Accounts payable and other current liabilities | $ | 813 |  |  | $ | 220 |  |  |  | $ | 1,033 |
Income taxes payable | 123 |  |  | — |  |  |  | 123 |
Short-term borrowings | 375 |  |  | — |  |  |  | 375 |
Advertising cooperative liabilities | 201 |  |  | (201 | ) |  |  | — |
Total Current Liabilities | 1,512 |  |  | 19 |  |  |  | 1,531 |
Long-term debt | 9,429 |  |  | — |  |  |  | 9,429 |
Other liabilities and deferred credits | 704 |  |  | 353 |  |  |  | 1,057 |
Total Liabilities | 11,645 |  |  | 372 |  |  |  | 12,017 |
Shareholders’ Deficit |  |  |  |  |  |
Accumulated deficit | (6,063 | ) |  | (240 | ) |  |  | (6,303 | )
Accumulated other comprehensive loss | (271 | ) |  | 21 |  |  |  | (250 | )
Total Shareholders’ Deficit | (6,334 | ) |  | (219 | ) |  |  | (6,553 | )
Total Liabilities and Shareholders’ Deficit | $ | 5,311 |  |  | $ | 153 |  |  |  | $ | 5,464 |
(a) Includes $58 million of restricted cash related to advertising cooperatives. These balances can only be used to settle obligations of the respective cooperatives.
CONDENSED CONSOLIDATED BALANCE SHEET
| As Reported 6/30/2018 |  | Impact |  | Balances under Legacy GAAP 6/30/2018
ASSETS |  |  |  |  |
Current Assets |  |  |  |  |
Cash and cash equivalents | $ | 313 |  |  | $ | (27 | ) |  | $ | 286 |
Accounts and notes receivable, net | 527 |  |  | (103 | ) |  | 424 |
Prepaid expenses and other current assets | 363 |  |  | (46 | ) |  | 317 |
Advertising cooperative assets, restricted | — |  |  | 176 |  |  | 176 |
Total Current Assets | 1,203 |  |  | — |  |  | 1,203 |
Property, plant and equipment, net | 1,533 |  |  | (16 | ) |  | 1,517 |
Goodwill | 502 |  |  | — |  |  | 502 |
Intangible assets, net | 90 |  |  | — |  |  | 90 |
Other assets | 787 |  |  | (118 | ) |  | 669 |
Deferred income taxes | 211 |  |  | (25 | ) |  | 186 |
Total Assets | $ | 4,326 |  |  | $ | (159 | ) |  | $ | 4,167 |
LIABILITIES AND SHAREHOLDERS’ DEFICIT |  |  |  |  |
Current Liabilities |  |  |  |  |
Accounts payable and other current liabilities | $ | 822 |  |  | $ | (215 | ) |  | $ | 607 |
Income taxes payable | 48 |  |  | — |  |  | 48 |
Short-term borrowings | 54 |  |  | — |  |  | 54 |
Advertising cooperative liabilities | — |  |  | 176 |  |  | 176 |
Total Current Liabilities | 924 |  |  | (39 | ) |  | 885 |
Long-term debt | 9,612 |  |  | — |  |  | 9,612 |
Other liabilities and deferred credits | 1,037 |  |  | (336 | ) |  | 701 |
Total Liabilities | 11,573 |  |  | (375 | ) |  | 11,198 |
Shareholders’ Deficit |  |  |  |  |
Accumulated deficit | (6,965 | ) |  | 238 |  |  | (6,727 | )
Accumulated other comprehensive loss | (282 | ) |  | (22 | ) |  | (304 | )
Total Shareholders’ Deficit | (7,247 | ) |  | 216 |  |  | (7,031 | )
Total Liabilities and Shareholders’ Deficit | $ | 4,326 |  |  | $ | (159 | ) |  | $ | 4,167 |
Impact of adopting Topic 606 on our Condensed Consolidated Statements of Income [Table Text Block] | The following tables reflect the impact of the adoption of Topic 606 on our Condensed Consolidated Statement of Income for the quarter and year to date ended June 30, 2018 and our Condensed Consolidated Balance Sheet as of June 30, 2018.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
| Quarter ended 6/30/2018
Revenues | As Reported |  | Impact |  |  | Balances under Legacy GAAP
Company sales | $ | 512 |  |  | $ | — |  |  |  | $ | 512 |
Franchise and property revenues | 584 |  |  | 7 |  |  |  | 591 |
Franchise contributions for advertising and other services | 272 |  |  | (272 | ) |  |  | — |
Total revenues | 1,368 |  |  | (265 | ) |  |  | 1,103 |
Costs and Expenses, Net |  |  |  |  |  |
Company restaurant expenses | 421 |  |  | — |  |  |  | 421 |
General and administrative expenses | 208 |  |  | — |  |  |  | 208 |
Franchise and property expenses | 40 |  |  | 5 |  |  |  | 45 |
Franchise advertising and other services expense | 274 |  |  | (274 | ) |  |  | — |
Refranchising (gain) loss | (29 | ) |  | 4 |  |  |  | (25 | )
Other (income) expense | 5 |  |  | — |  |  |  | 5 |
Total costs and expenses, net | 919 |  |  | (265 | ) |  |  | 654 |
Operating Profit | 449 |  |  | — |  | (a) |  | 449 |
Investment (income) expense, net | (23 | ) |  | — |  |  |  | (23 | )
Other pension (income) expense | 3 |  |  | — |  |  |  | 3 |
Interest expense, net | 112 |  |  | — |  |  |  | 112 |
Income before income taxes | 357 |  |  | — |  |  |  | 357 |
Income tax provision | 36 |  |  | — |  |  |  | 36 |
Net Income | $ | 321 |  |  | $ | — |  |  |  | $ | 321 |
Basic Earnings Per Common Share | $ | 0.99 |  |  | $ | — |  |  |  | $ | 0.99 |
Diluted Earnings Per Common Share | $ | 0.97 |  |  | $ | — |  |  |  | $ | 0.97 |
| Year to date ended 6/30/2018
Revenues | As Reported |  | Impact |  |  | Balances under Legacy GAAP
Company sales | $ | 1,024 |  |  | $ | — |  |  |  | $ | 1,024 |
Franchise and property revenues | 1,168 |  |  | 12 |  |  |  | 1,180 |
Franchise contributions for advertising and other services | 547 |  |  | (547 | ) |  |  | — |
Total revenues | 2,739 |  |  | (535 | ) |  |  | 2,204 |
Costs and Expenses, Net |  |  |  |  |  |
Company restaurant expenses | 859 |  |  | — |  |  |  | 859 |
General and administrative expenses | 427 |  |  | — |  |  |  | 427 |
Franchise and property expenses | 87 |  |  | 11 |  |  |  | 98 |
Franchise advertising and other services expense | 546 |  |  | (546 | ) |  |  | — |
Refranchising (gain) loss | (185 | ) |  | 4 |  |  |  | (181 | )
Other (income) expense | 3 |  |  | — |  |  |  | 3 |
Total costs and expenses, net | 1,737 |  |  | (531 | ) |  |  | 1,206 |
Operating Profit | 1,002 |  |  | (4 | ) | (a) |  | 998 |
Investment (income) expense, net | (89 | ) |  | — |  |  |  | (89 | )
Other pension (income) expense | 6 |  |  | — |  |  |  | 6 |
Interest expense, net | 219 |  |  | — |  |  |  | 219 |
Income before income taxes | 866 |  |  | (4 | ) |  |  | 862 |
Income tax provision | 112 |  |  | (1 | ) |  |  | 111 |
Net Income | $ | 754 |  |  | $ | (3 | ) |  |  | $ | 751 |
Basic Earnings Per Common Share | $ | 2.30 |  |  | $ | (0.01 | ) |  |  | $ | 2.29 |
Diluted Earnings Per Common Share | $ | 2.25 |  |  | $ | (0.01 | ) |  |  | $ | 2.24 |
(a) Includes $5 million and $9 million of franchise incentive payments related to the KFC U.S. Acceleration Agreement or the Pizza Hut U.S. Transformation Agreement that would have been expensed immediately and that we would not have allocated to the KFC Division or the Pizza Hut Division under Legacy GAAP for the quarter and year to date ended June 30, 2018, respectively. Upon the adoption of Topic 606, these payments have been capitalized as assets.

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