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Reportable Operating Segments (Tables) | 6 Months Ended
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Jun. 30, 2022
Segment Reporting [Abstract] |
Schedule of Segment Reporting Information, by Segment | The following tables summarize Revenues and Operating Profit for each of our reportable operating segments:
| Quarter ended |  | Year to date
Revenues | 2022 |  | 2021 |  | 2022 |  | 2021
KFC Division | $ | 677 |  |  | $ | 682 |  |  | $ | 1,337 |  |  | $ | 1,307 |
Taco Bell Division | 586 |  |  | 532 |  |  | 1,103 |  |  | 1,020 |
Pizza Hut Division | 235 |  |  | 249 |  |  | 479 |  |  | 500 |
Habit Burger Grill Division | 138 |  |  | 139 |  |  | 264 |  |  | 261 |
| $ | 1,636 |  |  | $ | 1,602 |  |  | $ | 3,183 |  |  | $ | 3,088 |
| Quarter ended |  | Year to date
Operating Profit | 2022 |  | 2021 |  | 2022 |  | 2021
KFC Division | $ | 293 |  |  | $ | 318 |  |  | $ | 584 |  |  | $ | 618 |
Taco Bell Division | 215 |  |  | 198 |  |  | 400 |  |  | 376 |
Pizza Hut Division | 93 |  |  | 103 |  |  | 195 |  |  | 205 |
Habit Burger Grill Division | (2) |  |  | 5 |  |  | (10) |  |  | 5 |
Corporate and unallocated G&A expenses(a) | (65) |  |  | (63) |  |  | (136) |  |  | (113) |
Unallocated Franchise and property expenses(a) | (4) |  |  | — |  |  | (4) |  |  | — |
Unallocated Refranchising gain (loss) | 8 |  |  | 7 |  |  | 12 |  |  | 22 |
Unallocated Other income (expense)(a) | 16 |  |  | (1) |  |  | 22 |  |  | (3) |
Operating Profit | $ | 554 |  |  | $ | 567 |  |  | $ | 1,063 |  |  | $ | 1,110 |
Investment income (expense), net(b) | (15) |  |  | 1 |  |  | (8) |  |  | 1 |
Other pension income (expense) | (1) |  |  | (2) |  |  | (1) |  |  | (5) |
Interest expense, net(c) | (148) |  |  | (159) |  |  | (266) |  |  | (290) |
Income before income taxes | $ | 390 |  |  | $ | 407 |  |  | $ | 788 |  |  | $ | 816 |
Our chief operating decision maker (“CODM”) does not consider the impact of Corporate and unallocated amounts when assessing Divisional segment performance. As such, we do not allocate such amounts to our Divisional segments for performance reporting purposes. (a)Our operating results for the quarter and year to date ended June 30, 2022, continue to reflect royalty revenues and expenses to support the Russian operations for Pizza Hut prior to the date of transfer and for KFC for the entire quarter and year to date (see Note 1) within their historical financial statement line items and operating segments. However, given our decision to exit Russia and our pledge to direct any future net profits attributable to Russia subsequent to the date of invasion to humanitarian efforts, we have reclassed such net profits from the Division segment results in which they were earned to Corporate and unallocated. Additionally, we have incurred certain expenses related to the transfer of the businesses and other one-time costs related to our exit from Russia which we have recorded within Corporate and unallocated. As a result of these reclasses of net profits and the other costs and expenses we have incurred, we recorded charges of $2 million to Corporate and unallocated G&A expenses and $4 million to Unallocated Franchise and property expenses during both the quarter and year to date ended June 30, 2022, as well as income of $20 million and $27 million to Unallocated Other (income) expense during the quarter and year to date ended June 30, 2022, respectively. (b)Includes changes in the value of our investment in Devyani International Limited (see Note 12). (c)Includes a $23 million call premium and $5 million of unamortized debt issuance costs written off related to the redemption of the 2025 Notes (see Note 10) during the quarter ended June 30, 2022. Includes a $28 million call premium and $6 million of unamortized debt issuance costs written off related to the redemption of the $1,050 million aggregate principal amount of 5.25% Subsidiary Senior Unsecured Notes due in 2026 during the quarter ended June 30, 2021. Includes fees expensed and unamortized debt issuance costs written off totaling $12 million related to the refinancing of the Credit Agreement (as described within our 2021 Form 10-K) during the quarter ended March 31, 2021.

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599 + Details
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