XML 26 R14.htm IDEA: XBRL DOCUMENT
v3.20.2

Revenue Recognition Accounting Policy | 9 Months Ended
--- | ---
Sep. 30, 2020
Revenue Recognition and Deferred Revenue [Abstract] |  |
Revenue Recognition | Revenue Recognition 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 9/30/2020
|  | KFC Division |  | Pizza Hut Division |  | Taco Bell Division |  | Habit Burger Grill Division |  | Total
U.S. |  |  |  |  |  |  |  |  |  |
Company sales |  | $ | 14 |  |  | $ | 5 |  |  | $ | 218 |  |  | $ | 118 |  |  | $ | 355 |
Franchise revenues |  | 44 |  |  | 62 |  |  | 148 |  |  | — |  |  | 254 |
Property revenues |  | 4 |  |  | 1 |  |  | 10 |  |  | — |  |  | 15 |
Franchise contributions for advertising and other services |  | 4 |  |  | 76 |  |  | 117 |  |  | — |  |  | 197 |
China |  |  |  |  |  |  |  |  |  |
Franchise revenues |  | 56 |  |  | 15 |  |  | — |  |  | — |  |  | 71 |
Other |  |  |  |  |  |  |  |  |  |
Company sales |  | 116 |  |  | 15 |  |  | — |  |  | — |  |  | 131 |
Franchise revenues |  | 219 |  |  | 55 |  |  | 7 |  |  | — |  |  | 281 |
Property revenues |  | 17 |  |  | 1 |  |  | — |  |  | — |  |  | 18 |
Franchise contributions for advertising and other services |  | 112 |  |  | 13 |  |  | 1 |  |  | — |  |  | 126 |
|  | $ | 586 |  |  | $ | 243 |  |  | $ | 501 |  |  | $ | 118 |  |  | $ | 1,448 |
| Quarter ended 9/30/2019
|  | KFC Division |  | Pizza Hut Division |  | Taco Bell Division |  | Total
U.S. |  |  |  |  |  |  |  |
Company sales |  | $ | 17 |  |  | $ | 5 |  |  | $ | 216 |  |  | $ | 238 |
Franchise revenues |  | 40 |  |  | 63 |  |  | 142 |  |  | 245 |
Property revenues |  | 5 |  |  | 2 |  |  | 10 |  |  | 17 |
Franchise contributions for advertising and other services |  | 2 |  |  | 71 |  |  | 114 |  |  | 187 |
China |  |  |  |  |  |  |  |
Franchise revenues |  | 57 |  |  | 16 |  |  | — |  |  | 73 |
Other |  |  |  |  |  |  |  |
Company sales |  | 118 |  |  | 8 |  |  | — |  |  | 126 |
Franchise revenues |  | 226 |  |  | 61 |  |  | 6 |  |  | 293 |
Property revenues |  | 16 |  |  | 1 |  |  | — |  |  | 17 |
Franchise contributions for advertising and other services |  | 128 |  |  | 14 |  |  | 1 |  |  | 143 |
|  | $ | 609 |  |  | $ | 241 |  |  | $ | 489 |  |  | $ | 1,339 |
| Year to date ended 9/30/2020
|  | KFC Division |  | Pizza Hut Division |  | Taco Bell Division |  | Habit Burger Grill Division |  | Total
U.S. |  |  |  |  |  |  |  |  |  |
Company sales |  | $ | 43 |  |  | $ | 15 |  |  | $ | 610 |  |  | $ | 231 |  |  | $ | 899 |
Franchise revenues |  | 126 |  |  | 190 |  |  | 411 |  |  | 1 |  |  | 728 |
Property revenues |  | 11 |  |  | 4 |  |  | 31 |  |  | — |  |  | 46 |
Franchise contributions for advertising and other services |  | 13 |  |  | 224 |  |  | 331 |  |  | — |  |  | 568 |
China |  |  |  |  |  |  |  |  |  |
Franchise revenues |  | 150 |  |  | 37 |  |  | — |  |  | — |  |  | 187 |
Other |  |  |  |  |  |  |  |  |  |
Company sales |  | 303 |  |  | 42 |  |  | — |  |  | — |  |  | 345 |
Franchise revenues |  | 577 |  |  | 160 |  |  | 18 |  |  | — |  |  | 755 |
Property revenues |  | 42 |  |  | 2 |  |  | — |  |  | — |  |  | 44 |
Franchise contributions for advertising and other services |  | 296 |  |  | 39 |  |  | 2 |  |  | — |  |  | 337 |
|  | $ | 1,561 |  |  | $ | 713 |  |  | $ | 1,403 |  |  | $ | 232 |  |  | $ | 3,909 |
| Year to date ended 9/30/2019
|  | KFC Division |  | Pizza Hut Division |  | Taco Bell Division |  | Total
U.S. |  |  |  |  |  |  |  |
Company sales |  | $ | 51 |  |  | $ | 15 |  |  | $ | 624 |  |  | $ | 690 |
Franchise revenues |  | 119 |  |  | 197 |  |  | 410 |  |  | 726 |
Property revenues |  | 16 |  |  | 5 |  |  | 31 |  |  | 52 |
Franchise contributions for advertising and other services |  | 7 |  |  | 223 |  |  | 327 |  |  | 557 |
China |  |  |  |  |  |  |  |
Franchise revenues |  | 165 |  |  | 46 |  |  | — |  |  | 211 |
Other |  |  |  |  |  |  |  |
Company sales |  | 344 |  |  | 20 |  |  | 2 |  |  | 366 |
Franchise revenues |  | 649 |  |  | 181 |  |  | 19 |  |  | 849 |
Property revenues |  | 50 |  |  | 2 |  |  | — |  |  | 52 |
Franchise contributions for advertising and other services |  | 358 |  |  | 41 |  |  | 1 |  |  | 400 |
|  | $ | 1,759 |  |  | $ | 730 |  |  | $ | 1,414 |  |  | $ | 3,903 |
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 |  | (55) |
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period |  | 36 |
Other(a) |  | (8) |
Balance at September 30, 2020 |  | $ | 414 |
(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 | $ | 64 |  |
1 - 2 years | 59 |  |
2 - 3 years | 54 |  |
3 - 4 years | 49 |  |
4 - 5 years | 43 |  |
Thereafter | 145 |  |
Total | $ | 414 |  |
| [1]
[1] | (a) Primarily includes impact of foreign currency translation.

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_RevenueRecognitionAndDeferredRevenueAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration