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Reportable Operating Segments (Tables) | 6 Months Ended
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Jun. 30, 2023
Segment Reporting [Abstract] |
Schedule of Segment Reporting Information, by Segment | Reportable Operating SegmentsWe identify our operating segments based on management responsibility. The following tables summarize Revenues and Operating Profit for each of our reportable operating segments:
| Quarter ended |  | Year to date
Revenues | 2023 |  | 2022 |  | 2023 |  | 2022
KFC Division | $ | 682 |  |  | $ | 677 |  |  | $ | 1,369 |  |  | $ | 1,337 |
Taco Bell Division | 621 |  |  | 586 |  |  | 1,193 |  |  | 1,103 |
Pizza Hut Division | 242 |  |  | 235 |  |  | 496 |  |  | 479 |
Habit Burger Grill Division | 142 |  |  | 138 |  |  | 274 |  |  | 264 |
| $ | 1,687 |  |  | $ | 1,636 |  |  | $ | 3,332 |  |  | $ | 3,183 |
| Quarter ended |  | Year to date
Operating Profit | 2023 |  | 2022 |  | 2023 |  | 2022
KFC Division | $ | 326 |  |  | $ | 293 |  |  | $ | 631 |  |  | $ | 584 |
Taco Bell Division | 228 |  |  | 215 |  |  | 432 |  |  | 400 |
Pizza Hut Division | 91 |  |  | 93 |  |  | 195 |  |  | 195 |
Habit Burger Grill Division | 3 |  |  | (2) |  |  | (2) |  |  | (10) |
Corporate and unallocated G&A expenses(a) | (86) |  |  | (65) |  |  | (170) |  |  | (136) |
Unallocated Franchise and property expenses(a) | (1) |  |  | (4) |  |  | (2) |  |  | (4) |
Unallocated Refranchising gain (loss) | 17 |  |  | 8 |  |  | 21 |  |  | 12 |
Unallocated Other income (expense)(a) | (5) |  |  | 16 |  |  | (9) |  |  | 22 |
Operating Profit | $ | 573 |  |  | $ | 554 |  |  | $ | 1,096 |  |  | $ | 1,063 |
Investment income (expense), net(b) | 29 |  |  | (15) |  |  | 5 |  |  | (8) |
Other pension income (expense) | 1 |  |  | (1) |  |  | 3 |  |  | (1) |
Interest expense, net(c) | (125) |  |  | (148) |  |  | (255) |  |  | (266) |
Income before income taxes | $ | 478 |  |  | $ | 390 |  |  | $ | 849 |  |  | $ | 788 |
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 presented herein reflect revenues from and expenses to support the Russian operations for KFC and Pizza Hut prior to the dates of sale or transfer (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 reclassed such net profits and losses subsequent to that date from the Division segment results in which they were earned to Unallocated Other income (expense). As a result, we reclassed net operating losses of $1 million from KFC Division Other income (expense) to Unallocated Other income (expense) during the year to date ended June 30, 2023, and net operating profit of $9 million and $11 million from Divisional Other income (expense) to Unallocated Other income (expense) during the quarter and year to date ended June 30, 2022, respectively. Additionally, we recorded a $4 million loss to Unallocated Other income (expense) during the quarter and year to date ended June 30, 2023 from the sale of our KFC Russia business. Also, included in Unallocated Other income (expense) were $1 million in foreign exchange losses attributable to fluctuations in the value of the Russian Ruble during the quarter and year to date ended June 30, 2023, and foreign exchange gains of $11 million and $16 million during the quarter and year to date ended June 30, 2022, respectively. Additionally, we recorded charges of $3 million and $4 million to Corporate and unallocated G&A expenses and $1 million and $2 million to Unallocated Franchise and property expenses during the quarter and year to date ended June 30, 2023, respectively, for certain expenses related to the disposition of the businesses and other costs related to our exit from Russia. We recorded similar charges of $2 million and $4 million to Corporate and Unallocated G&A expenses and Unallocated Franchise and property expenses, respectively, during the quarter and year to date ended June 30, 2022. (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 (as discussed in our 2022 Form 10-K) during the quarter ended June 30, 2022.

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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 -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-25 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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