Revenue Recognition Accounting Policy

3 Months Ended

Mar. 31, 2020

Revenue Recognition and Deferred Revenue [Abstract]

Disaggregation of Total Revenues

The following tables disaggregate revenue by Concept, for our two most significant markets based on Operating Profit and for all other markets. We believe this disaggregation best reflects the extent to which the nature, amount, timing and uncertainty of our revenues and cash flows are impacted by economic factors.



	Quarter ended 3/31/2020
		KFC Division		Pizza Hut Division		Taco Bell Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	16	$	5	$	198	$	9	$	228
Franchise revenues		38		62		131		—		231
Property revenues		4		1		10		—		15
Franchise contributions for advertising and other services		4		70		107		—		181

China
Franchise revenues		47		10		—		—		57

Other
Company sales		114		13		—		—		127
Franchise revenues		212		59		7		—		278
Property revenues		14		1		—		—		15
Franchise contributions for advertising and other services		117		14		—		—		131
		$	566	$	235	$	453	$	9	$	1,263



	Quarter ended 3/31/2019
		KFC Division		Pizza Hut Division		Taco Bell Division		Total
U.S.
Company sales		$	16	$	5	$	196	$	217
Franchise revenues		38		67		128		233
Property revenues		6		2		10		18
Franchise contributions for advertising and other services		2		74		104		180

China
Franchise revenues		56		15		—		71

Other
Company sales		109		6		1		116
Franchise revenues		205		60		6		271
Property revenues		18		1		—		19
Franchise contributions for advertising and other services		116		13		—		129
		$	566	$	243	$	445	$	1,254

Contract Liabilities

Our contract liabilities are comprised of unamortized upfront fees received from franchisees. A summary of significant changes to the contract liability balance during 2020 is presented below.



	Deferred Franchise Fees
Balance at December 31, 2019	$	441
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(19		)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	15
Other^(a)	(13		)
Balance at March 31, 2020	$	424


(a)	Primarily includes impact of foreign currency translation.

We expect to recognize contract liabilities as revenue over the remaining term of the associated franchise agreement as follows:



Less than 1 year	$	63
1 - 2 years	58
2 - 3 years	54
3 - 4 years	49
4 - 5 years	44
Thereafter	156
Total	$	424