XML 29 R11.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Items Affecting Comparability of Net Income and Cash Flows | 12 Months Ended
--- | ---
Dec. 31, 2022
Items Affecting Comparability Of Net Income And Cash Flows Disclosure [Abstract] |
Items Affecting Comparability of Net Income and Cash Flows | Items Affecting Comparability of Net Income and Cash Flows Refranchising (Gain) Loss The Refranchising (gain) loss by our Divisional reportable segments is presented below. Given the size and volatility of refranchising initiatives, our chief operating decision maker (“CODM”) does not consider the impact of Refranchising (gain) loss when assessing Divisional segment performance. As such, we do not allocate such gains and losses to our Divisional segments for performance reporting purposes. During the years ended December 31, 2023, 2022 and 2021, we refranchised 15, 22 and 83 restaurants, respectively. Additionally, during the years ended December 31, 2023, 2022 and 2021, we sold certain restaurant assets associated with existing franchise restaurants to the franchisee. We received $60 million, $73 million and $85 million in pre-tax cash refranchising proceeds in 2023, 2022 and 2021, respectively, as a result of the sales of these restaurants and restaurant assets. A summary of Refranchising (gain) loss is as follows:
|  | Refranchising (gain) loss |  |  |  |  |
|  | 2023 |  | 2022 |  | 2021 |  |  |  |  |
KFC Division |  | $ | 2 |  |  | $ | (3) |  |  | $ | (1) |  |  |  |  |  |
Taco Bell Division |  | (33) |  |  | (13) |  |  | (29) |  |  |  |  |  |
Pizza Hut Division |  | 2 |  |  | (1) |  |  | 1 |  |  |  |  |  |
Habit Burger Grill Division |  | — |  |  | (10) |  |  | (6) |  |  |  |  |  |
Worldwide |  | $ | (29) |  |  | $ | (27) |  |  | $ | (35) |  |  |  |  |  |
Resource Optimization During the third quarter of 2020, we initiated a resource optimization program that has allowed us to reallocate significant resources to accelerate our digital, technology and innovation capabilities to deliver a modern, world-class team member and customer experience and improve unit economics. We are currently exploring expanding the program to identify further opportunities to optimize the company’s spending and identify additional, critical areas in which to potentially reallocate resources, both with a goal to enable the acceleration of the Company’s growth rate. Costs incurred to date related to the program primarily include severance associated with positions that have been eliminated or relocated and consultant fees. As a result of this program, we recorded charges of $21 million, $11 million and $8 million in the years ended 2023, 2022 and 2021, respectively. These charges were primarily recorded as General and administrative expenses. Due to their scope and size, these costs were not allocated to any of our segment operating results for performance reporting purposes. Investment in Devyani In 2020, we received an approximate 5% minority interest in Devyani, an entity that owns our KFC India and Pizza Hut India master franchisee rights. The minority interest was received in lieu of cash proceeds upon the refranchising of approximately 60 KFC restaurants in India. On August 16, 2021, Devyani executed an initial public offering and subsequently the fair value of this investment became readily determinable. As a result, concurrent with the initial public offering we began recording changes in fair value in Investment (income) expense, net in our Consolidated Statements of Income and recognized pre-tax investment income of $8 million, $11 million and $87 million in the years ended December 31, 2023, 2022 and 2021, respectively (see Note 14). Long-term Debt Redemptions On February 23, 2022, the Company issued a notice of redemption for April 1, 2022, for $600 million aggregate principal amount of 7.75% YUM Senior Unsecured Notes due in 2025. The redemption amount was equal to 103.875% of the $600 million aggregate principal amount redeemed, reflecting a $23 million call premium, plus accrued and unpaid interest to the date of redemption. We recognized the call premium and the write-off of $5 million of unamortized debt issuance costs associated with the notes within Interest expense, net. On April 23, 2021, certain subsidiaries of the Company issued a notice of redemption for June 1, 2021, for $1,050 million aggregate principal amount of 5.25% Subsidiary Senior Unsecured Notes due in 2026. The redemption amount was equal to 102.625% of the $1,050 million aggregate principal amount redeemed, reflecting a $28 million call premium. We recognized the call premium and the write-off of $6 million of unamortized debt issuance costs associated with the notes within Interest expense, net. See Note 11 for further discussion of the YUM and Subsidiary Senior Unsecured Notes. Income Tax Matters Our effective tax rates in the years ended 2023, 2022 and 2021 have been significantly impacted by upfront recognition of and subsequent adjustments to amounts associated with recently completed intra-entity transfers of intellectual property ("IP") rights, as well as adjustments related to prior years. As a result, our effective tax rates have fluctuated significantly and were 12.1%, 20.3% and 5.9% for the years ended December 31, 2023, 2022 and 2021, respectively. See Note 18.

X
- Definition Comparability of Prior Year Financial Data [Text Block] + References No definition available. + Details
Name: | yum_ComparabilityofPriorYearFinancialDataTextBlock
Namespace Prefix: | yum_
Data Type: | dtr-types1:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Items Affecting Comparability of Net Income and Cash Flows Disclosure [Abstract] + References No definition available. + Details
Name: | yum_ItemsAffectingComparabilityOfNetIncomeAndCashFlowsDisclosureAbstract
Namespace Prefix: | yum_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration