XML 37 R26.htm IDEA: XBRL DOCUMENT v3.22.2.2
Reportable Operating Segments (Tables)
 9 Months Ended
Sep. 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 endedYear to date
Revenues2022202120222021
KFC Division$704 $692 $2,041 $1,999 
Taco Bell Division568 534 1,671 1,554 
Pizza Hut Division237 247 716 747 
Habit Burger Grill Division131 133 395 394 
 $1,640 $1,606 $4,823 $4,694 

 Quarter endedYear to date
Operating Profit 2022202120222021
KFC Division$304 $314 $888 $932 
Taco Bell Division204 184 604 560 
Pizza Hut Division92 101 287 306 
Habit Burger Grill Division(4)1 (14)6 
Corporate and unallocated G&A expenses(a)
(67)(70)(203)(183)
Unallocated Franchise and property expenses(a)
— — (4)— 
Unallocated Refranchising gain (loss)3 (1)15 21 
Unallocated Other income (expense)(a)
14 (2)36 (5)
Operating Profit$546 $527 $1,609 $1,637 
Investment income (expense), net(b)
27 51 19 52 
Other pension income (expense) (2)(1)(3)(6)
Interest expense, net(c)
(124)(126)(390)(416)
Income before income taxes$447 $451 $1,235 $1,267 
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 year to date ended September 30, 2022, continue to reflect royalty revenues from 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 operating profits from the Division segment results in which they were earned to Corporate and unallocated Other income (expense). As a result, we reclassed net operating profits of $18 million and $44 million from KFC and Pizza Hut Other income (expense) to Unallocated Other (income) expense during the quarter and year to date ended September 30, 2022, respectively.

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 other costs and expenses we have incurred, we recorded charges of $1 million to Corporate and unallocated G&A expenses and less than $1 million to Unallocated Franchise and property expenses during the quarter ended September 30, 2022. During the year to date ended September 30, 2022, we recorded charges of $3 million to Corporate and unallocated G&A expenses and $4 million to Unallocated Franchise and property expenses.

(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.