XML 27 R15.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Revenue Recognition Accounting Policy
 6 Months Ended
Jun. 30, 2024
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue Recognition 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.
Quarter ended 6/30/2024
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger Grill DivisionTotal
U.S.
Company sales$14 $268 $2 $139 $423 
Franchise revenues47 209 66 2 324 
Property revenues3 10 1 — 14 
Franchise contributions for advertising and other services10 161 73 — 244 
China
Franchise revenues62 — 17 — 79 
Other
Company sales149 — — — 149 
Franchise revenues282 15 63 — 360 
Property revenues11 — 1 — 12 
Franchise contributions for advertising and other services139 3 16 — 158 
$717 $666 $239 $141 $1,763 

Quarter ended 6/30/2023
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger Grill DivisionTotal
U.S.
Company sales$17 $253 $4 $139 $413 
Franchise revenues49 194 66 2 311 
Property revenues3 10 1 — 14 
Franchise contributions for advertising and other services8 148 74 1 231 
China
Franchise revenues61 — 16 — 77 
Other
Company sales98 — — — 98 
Franchise revenues290 14 65 — 369 
Property revenues13 — 1 — 14 
Franchise contributions for advertising and other services143 2 15 — 160 
$682 $621 $242 $142 $1,687 
Year to date 6/30/2024
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger Grill DivisionTotal
U.S.
Company sales$28 $508 $4 $266 $806 
Franchise revenues90 397 134 3 624 
Property revenues6 19 2 1 28 
Franchise contributions for advertising and other services20 307 146 1 474 
China
Franchise revenues130 — 34 — 164 
Other
Company sales240 — — — 240 
Franchise revenues554 28 125 — 707 
Property revenues22 — 1 — 23 
Franchise contributions for advertising and other services259 5 31 — 295 
$1,349 $1,264 $477 $271 $3,361 
Year to date 6/30/2023
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger Grill DivisionTotal
U.S.
Company sales$33 $482 $9 $269 $793 
Franchise revenues95 372 136 3 606 
Property revenues6 20 2 1 29 
Franchise contributions for advertising and other services16 288 152 1 457 
China
Franchise revenues127 — 34 — 161 
Other
Company sales192 — — — 192 
Franchise revenues574 27 131 — 732 
Property revenues26 — 1 — 27 
Franchise contributions for advertising and other services300 4 31 — 335 
$1,369 $1,193 $496 $274 $3,332 
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 in our Condensed Consolidated Balance Sheets. A summary of significant changes to the contract liability balance during 2024 is presented below.
Deferred Franchise Fees
Balance at December 31, 2023
$444 
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period(40)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period36 
Other(a)
(5)
Balance at June 30, 2024
$435 

(a)    Primarily includes the settlement of a preexisting contractual relationship related to the KFC U.K. and Ireland restaurant acquisition (see Note 2) and the impact of foreign currency translation.

We expect to recognize contract liabilities as revenue over the remaining term of the associated franchise agreement as follows:

Less than 1 year$73 
1 - 2 years65 
2 - 3 years59 
3 - 4 years52 
4 - 5 years44 
Thereafter142 
Total$435