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Items Affecting Comparability of Net Income and Cash Flows (Tables) | 12 Months Ended
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Dec. 31, 2018
Facility Actions [Line Items] |
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 Consolidated Statement of Income for the year ended December 31, 2018 and our Consolidated Balance Sheet as of December 31, 2018.
CONSOLIDATED STATEMENT OF INCOME |  |  |  |  |  |
| Year ended 12/31/2018
Revenues | As Reported |  | Impact |  |  | Balances under Legacy GAAP
Company sales | $ | 2,000 |  |  | $ | — |  |  |  | $ | 2,000 |
Franchise and property revenues | 2,482 |  |  | 43 |  |  |  | 2,525 |
Franchise contributions for advertising and other services | 1,206 |  |  | (1,206 | ) |  |  | — |
Total revenues | 5,688 |  |  | (1,163 | ) |  |  | 4,525 |
Costs and Expenses, Net |  |  |  |  |  |
Company restaurant expenses | 1,634 |  |  | — |  |  |  | 1,634 |
General and administrative expenses | 895 |  |  | — |  |  |  | 895 |
Franchise and property expenses | 188 |  |  | 27 |  |  |  | 215 |
Franchise advertising and other services expense | 1,208 |  |  | (1,208 | ) |  |  | — |
Refranchising (gain) loss | (540 | ) |  | 4 |  |  |  | (536 | )
Other (income) expense | 7 |  |  | — |  |  |  | 7 |
Total costs and expenses, net | 3,392 |  |  | (1,177 | ) |  |  | 2,215 |
Operating Profit | 2,296 |  |  | 14 |  | (a) |  | 2,310 |
Investment (income) expense, net | (9 | ) |  | — |  |  |  | (9 | )
Other pension (income) expense | 14 |  |  | — |  |  |  | 14 |
Interest expense, net | 452 |  |  | — |  |  |  | 452 |
Income from continuing operations before income taxes | 1,839 |  |  | 14 |  |  |  | 1,853 |
Income tax provision (benefit) | 297 |  |  | 3 |  |  |  | 300 |
Net Income | $ | 1,542 |  |  | $ | 11 |  |  |  | $ | 1,553 |
Basic Earnings Per Common Share | $ | 4.80 |  |  | $ | 0.03 |  |  |  | $ | 4.83 |
Diluted Earnings Per Common Share | $ | 4.69 |  |  | $ | 0.03 |  |  |  | $ | 4.72 |
(a) Includes $23 million of franchise incentive payments made to or on behalf of franchisees during 2018 that under Legacy GAAP would have been recognized as expense in full in 2018. Due to the size and nature of such payments, we historically would not have allocated their impact to our Divisional results. Upon the adoption of Topic 606, these payments have been capitalized as assets.
Revenue Recognition adjustments made to Condensed Consolidated Balance Sheet [Table Text Block] | As a result, the following adjustments were made to the Consolidated Balance Sheet as of January 1, 2018:
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 | 1,594 |  |  | 2 |  |  |  | 1,596 |
Goodwill | 512 |  |  | — |  |  |  | 512 |
Intangible assets, net | 214 |  |  | 9 |  |  |  | 223 |
Other assets | 345 |  |  | 118 |  |  |  | 463 |
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.
CONSOLIDATED BALANCE SHEET
| As Reported 12/31/2018 |  | Impact |  | Balances under Legacy GAAP 12/31/2018
ASSETS |  |  |  |  |
Current Assets |  |  |  |  |
Cash and cash equivalents | $ | 292 |  |  | $ | (13 | ) |  | $ | 279 |
Accounts and notes receivable, net | 561 |  |  | (120 | ) |  | 441 |
Prepaid expenses and other current assets | 354 |  |  | (107 | ) |  | 247 |
Advertising cooperative assets, restricted | — |  |  | 241 |  |  | 241 |
Total Current Assets | 1,207 |  |  | 1 |  |  | 1,208 |
Property, plant and equipment, net | 1,237 |  |  | (2 | ) |  | 1,235 |
Goodwill | 525 |  |  | — |  |  | 525 |
Intangible assets, net | 242 |  |  | (16 | ) |  | 226 |
Other assets | 724 |  |  | (127 | ) |  | 597 |
Deferred income taxes | 195 |  |  | (25 | ) |  | 170 |
Total Assets | $ | 4,130 |  |  | $ | (169 | ) |  | $ | 3,961 |
LIABILITIES AND SHAREHOLDERS’ DEFICIT |  |  |  |  |
Current Liabilities |  |  |  |  |
Accounts payable and other current liabilities | $ | 911 |  |  | $ | (287 | ) |  | $ | 624 |
Income taxes payable | 69 |  |  | — |  |  | 69 |
Short-term borrowings | 321 |  |  | — |  |  | 321 |
Advertising cooperative liabilities | — |  |  | 241 |  |  | 241 |
Total Current Liabilities | 1,301 |  |  | (46 | ) |  | 1,255 |
Long-term debt | 9,751 |  |  | — |  |  | 9,751 |
Other liabilities and deferred credits | 1,004 |  |  | (354 | ) |  | 650 |
Total Liabilities | 12,056 |  |  | (400 | ) |  | 11,656 |
Shareholders’ Deficit |  |  |  |  |
Accumulated deficit | (7,592 | ) |  | 251 |  |  | (7,341 | )
Accumulated other comprehensive loss | (334 | ) |  | (20 | ) |  | (354 | )
Total Shareholders’ Deficit | (7,926 | ) |  | 231 |  |  | (7,695 | )
Total Liabilities and Shareholders’ Deficit | $ | 4,130 |  |  | $ | (169 | ) |  | $ | 3,961 |
Impact of Change in Reporting Calendar [Table Text Block] | The impacts on our Consolidated Financial Statements of retrospectively applying these changes are included below:
|  | 2016
|  | As Previously Reported |  | Adjustments |  | After Change in Reporting Calendar
Total revenues |  | $ | 6,366 |  |  | $ | (10 | ) |  | $ | 6,356 |  |
Operating Profit |  | 1,625 |  |  | 25 |  | (a) | 1,650 |  | (b)
Income from continuing operations |  | 994 |  |  | 24 |  |  | 1,018 |  |
Income from discontinued operations, net of tax |  | 625 |  |  | — |  |  | 625 |  |
Net Income |  | $ | 1,619 |  |  | $ | 24 |  |  | $ | 1,643 |  |
Diluted EPS from continuing operations |  | $ | 2.48 |  |  | $ | 0.06 |  |  | $ | 2.54 |  |
Diluted EPS from discontinued operations |  | 1.56 |  |  | — |  |  | 1.56 |  |
Diluted EPS |  | $ | 4.04 |  |  | $ | 0.06 |  |  | $ | 4.10 |  |
(a) | Primarily represents gains of $24 million related to the refranchising of certain international restaurants which occurred in December 2016.
(b) Amount does not reconcile to our Consolidated Statements of Income for the year ended December 31, 2016 due to the impact of retrospectively adopting a new accounting standard on Benefit Costs of $32 million.
Refranchising (gain) loss [Member] |
Facility Actions [Line Items] |
Facility Actions | Refranchising (Gain) Loss The Refranchising (gain) loss by reportable segment is presented below. Given the size and volatility of recent refranchising initiatives, our chief operating decision maker ("CODM") does not consider the impact of Refranchising (gain) loss when assessing segment performance. As such, we do not allocate such gains and losses to our segments for performance reporting purposes. During the years ended December 31, 2018, 2017 and 2016, we refranchised 660, 1,470 and 432 restaurants, respectively. We received $825 million, $1,773 million and $370 million in pre-tax proceeds in 2018, 2017 and 2016, respectively, related to these transactions. A summary of Refranchising (gain) loss is as follows:
|  | Refranchising (gain) loss |  |  |  |  |
|  | 2018 |  | 2017 |  | 2016 |  |  |  |  |
KFC Division |  | $ | (240 | ) |  | $ | (581 | ) |  | $ | (44 | ) |  |  |  |  |
Pizza Hut Division |  | 13 |  |  | (16 | ) |  | (48 | ) |  |  |  |  |
Taco Bell Division |  | (313 | ) |  | (486 | ) |  | (71 | ) |  |  |  |  |
Worldwide |  | $ | (540 | ) |  | $ | (1,083 | ) |  | $ | (163 | ) |  |  |  |  |
As a result of classifying restaurant and related assets as held-for-sale and ceasing depreciation expense as well as recording any related write-downs to fair value, depreciation expense was reduced versus what would have otherwise been recorded by $3 million and $10 million during the years ended December 31, 2018 and 2017, respectively. Our CODM does not consider the impact of these depreciation reductions, which were recorded within Company restaurant expenses when assessing segment performance. These depreciation reductions were not allocated to the Division segments resulting in depreciation expense continuing to be recorded within our Divisional results at the rate at which it was prior to the held-for-sale classification.

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