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Revenue Recognition | 12 Months Ended
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Dec. 31, 2023
Revenue Recognition and Deferred Revenue [Abstract] |
Revenue from Contract with Customer | 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.
|  | 2023
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger Grill Division |  | Total
U.S. |  |  |  |  |  |  |  |  |  |
Company sales |  | $ | 67 |  |  | $ | 1,069 |  |  | $ | 14 |  |  | $ | 575 |  |  | $ | 1,725 |
Franchise revenues |  | 205 |  |  | 822 |  |  | 284 |  |  | 7 |  |  | 1,318 |
Property revenues |  | 14 |  |  | 42 |  |  | 4 |  |  | 2 |  |  | 62 |
Franchise contributions for advertising and other services |  | 36 |  |  | 645 |  |  | 318 |  |  | 2 |  |  | 1,001 |
China |  |  |  |  |  |  |  |  |  |
Franchise revenues |  | 250 |  |  | — |  |  | 66 |  |  | — |  |  | 316 |
Other |  |  |  |  |  |  |  |  |  |
Company sales |  | 417 |  |  | — |  |  | — |  |  | — |  |  | 417 |
Franchise revenues |  | 1,178 |  |  | 54 |  |  | 266 |  |  | — |  |  | 1,498 |
Property revenues |  | 51 |  |  | — |  |  | 2 |  |  | — |  |  | 53 |
Franchise contributions for advertising and other services |  | 612 |  |  | 9 |  |  | 65 |  |  | — |  |  | 686 |
|  | $ | 2,830 |  |  | $ | 2,641 |  |  | $ | 1,019 |  |  | $ | 586 |  |  | $ | 7,076 |
| 2022
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger Grill Division |  | Total
U.S. |  |  |  |  |  |  |  |  |  |
Company sales |  | $ | 67 |  |  | $ | 1,002 |  |  | $ | 21 |  |  | $ | 558 |  |  | $ | 1,648 |
Franchise revenues |  | 202 |  |  | 745 |  |  | 280 |  |  | 6 |  |  | 1,233 |
Property revenues |  | 14 |  |  | 44 |  |  | 5 |  |  | 1 |  |  | 64 |
Franchise contributions for advertising and other services |  | 29 |  |  | 591 |  |  | 312 |  |  | 2 |  |  | 934 |
China |  |  |  |  |  |  |  |  |  |
Franchise revenues |  | 219 |  |  | — |  |  | 57 |  |  | — |  |  | 276 |
Other |  |  |  |  |  |  |  |  |  |
Company sales |  | 424 |  |  | — |  |  | — |  |  | — |  |  | 424 |
Franchise revenues |  | 1,152 |  |  | 48 |  |  | 263 |  |  | — |  |  | 1,463 |
Property revenues |  | 58 |  |  | — |  |  | 2 |  |  | — |  |  | 60 |
Franchise contributions for advertising and other services |  | 669 |  |  | 7 |  |  | 64 |  |  | — |  |  | 740 |
|  | $ | 2,834 |  |  | $ | 2,437 |  |  | $ | 1,004 |  |  | $ | 567 |  |  | $ | 6,842 |
| 2021
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger Grill Division |  | Total
U.S. |  |  |  |  |  |  |  |  |  |
Company sales |  | $ | 65 |  |  | $ | 944 |  |  | $ | 21 |  |  | $ | 520 |  |  | $ | 1,550 |
Franchise revenues |  | 198 |  |  | 661 |  |  | 279 |  |  | 4 |  |  | 1,142 |
Property revenues |  | 14 |  |  | 44 |  |  | 5 |  |  | — |  |  | 63 |
Franchise contributions for advertising and other services |  | 28 |  |  | 545 |  |  | 317 |  |  | 1 |  |  | 891 |
China |  |  |  |  |  |  |  |  |  |
Franchise revenues |  | 235 |  |  | — |  |  | 62 |  |  | — |  |  | 297 |
Other |  |  |  |  |  |  |  |  |  |
Company sales |  | 531 |  |  | — |  |  | 25 |  |  | — |  |  | 556 |
Franchise revenues |  | 1,049 |  |  | 37 |  |  | 249 |  |  | — |  |  | 1,335 |
Property revenues |  | 61 |  |  | — |  |  | 2 |  |  | — |  |  | 63 |
Franchise contributions for advertising and other services |  | 612 |  |  | 7 |  |  | 68 |  |  | — |  |  | 687 |
|  | $ | 2,793 |  |  | $ | 2,238 |  |  | $ | 1,028 |  |  | $ | 525 |  |  | $ | 6,584 |
Contract Liabilities Our contract liabilities are comprised of unamortized upfront fees received from franchisees and are presented within Accounts payable and other current liabilities and Other liabilities and deferred credits on our Consolidated Balance Sheet. A summary of significant changes to the contract liability balance during 2023 and 2022 is presented below.
|  | Deferred Franchise Fees
Balance at December 31, 2021 |  | $ | 421 |
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period |  | (79) |
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period |  | 112 |
Deferred franchise fees related to KFC Russia reclassified to liabilities held for sale (see Note 9) |  | (15) |
Other(a) |  | (5) |
Balance at December 31, 2022 |  | $ | 434 |
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period |  | (81) |
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period |  | 101 |
Other(a) |  | (10) |
Balance at December 31, 2023 |  | $ | 444 |
(a) Includes impact of foreign currency translation, as well as, in 2023, the recognition of deferred franchise fees into Refranchising (gain) loss upon the termination of existing franchise agreements when entering into master franchise agreements. We expect to recognize contract liabilities as revenue over the remaining term of the associated franchise agreement as follows:
Less than 1 year | $ | 72 |  |
1 - 2 years | 65 |  |
2 - 3 years | 60 |  |
3 - 4 years | 53 |  |
4 - 5 years | 45 |  |
Thereafter | 149 |  |
Total | $ | 444 |  |
We have applied the optional exemption, as provided for under Topic 606, which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty.

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- 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 -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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