Yum! Brands (YUM) 10-K 17 Feb 10 2009 FY Annual report Financial data

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Dec. 26, 2009	Dec. 27, 2008
Current Assets
Cash and cash equivalents	$353	$216
Accounts and notes receivable, net	239	229
Inventories	122	143
Prepaid expenses and other current assets	314	172
Deferred income taxes	81	81
Advertising cooperative assets, restricted	99	110
Total Current Assets	1,208	951
Property, plant and equipment, net	3,899	3,710
Goodwill	640	605
Intangible assets, net	462	335
Investments in unconsolidated affiliates	144	65
Other assets	544	561
Deferred income taxes	251	300
Total Assets	7,148	6,527
Current Liabilities
Accounts payable and other current liabilities	1,413	1,473
Income taxes payable	82	114
Short-term borrowings	59	25
Advertising cooperative liabilities	99	110
Total Current Liabilities	1,653	1,722
Long-term debt	3,207	3,564
Other liabilities and deferred credits	1,174	1,335
Total Liabilities	6,034	6,621
Shareholders' Equity (Deficit)
Common Stock, no par value, 750 shares authorized; 469 shares and 459 shares issued in 2009 and 2008, respectively	253	7
Retained earnings	996	303
Accumulated other comprehensive income (loss)	(224)	(418)
Total Shareholders' Equity (Deficit) - YUM! Brands, Inc.	1,025	(108)
Noncontrolling Interest	89	14
Total Shareholders' Equity (Deficit)	1,114	(94)
Total Liabilities and Shareholders' Equity (Deficit)	$7,148	$6,527

PARENTHETICAL DATA FOR CONSOLID

PARENTHETICAL DATA FOR CONSOLIDATED BALANCE SHEETS (USD $)
Share data in Millions	Dec. 26, 2009	Dec. 27, 2008
Shareholders' Equity (Deficit)
Common Stock, no par value	0	0
Common Stock, shares authorized	750	750
Common Stock, shares issued	469	459

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 26, 2009	12 Months Ended Dec. 27, 2008	12 Months Ended Dec. 29, 2007
Revenues
Company sales	$9,413	$9,843	$9,100
Franchise and license fees and income	1,423	1,461	1,335
Total revenues	10,836	11,304	10,435
Company restaurants
Food and paper	3,003	3,239	2,824
Payroll and employee benefits	2,154	2,370	2,305
Occupancy and other operating expenses	2,777	2,856	2,644
Company restaurant expenses	7,934	8,465	7,773
General and administrative expenses	1,221	1,342	1,293
Franchise and license expenses	118	99	59
Closures and impairment (income) expenses	103	43	35
Refranchising (gain) loss	(26)	(5)	(11)
Other (income) expense	(104)	(157)	(71)
Total costs and expenses, net	9,246	9,787	9,078
Operating Profit	1,590	1,517	1,357
Interest expense, net	194	226	166
Income before income taxes	1,396	1,291	1,191
Income tax provision	313	319	282
Net Income - including noncontrolling interest	1,083	972	909
Net Income - noncontrolling interest	12	8	0
Net Income - YUM! Brands, Inc.	$1,071	$964	$909
Basic Earnings Per Common Share	2.28	2.03	1.74
Diluted Earnings Per Common Share	2.22	1.96	1.68
Dividends Declared Per Common Share	0.8	0.72	0.45

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	12 Months Ended Dec. 26, 2009	12 Months Ended Dec. 27, 2008	12 Months Ended Dec. 29, 2007
Cash Flows - Operating Activities
Net Income - including noncontrolling interest	$1,083	$972	$909
Depreciation and amortization	580	556	542
Closures and impairment (income) expenses	103	43	35
Refranchising (gain) loss	(26)	(5)	(11)
Contributions to defined benefit pension plans	(280)	(66)	(8)
Gain upon consolidation of a former unconsolidated affiliate in China	(68)	0	0
Gain on sale of interest in Japan unconsolidated affiliate	0	(100)	0
Deferred income taxes	72	1	(41)
Equity income from investments in unconsolidated affiliates	(36)	(41)	(51)
Distributions of income received from unconsolidated affiliates	31	41	40
Excess tax benefit from share-based compensation	(59)	(44)	(74)
Share-based compensation expense	56	59	61
Changes in accounts and notes receivable	3	(6)	(4)
Changes in inventories	27	(8)	(31)
Changes in prepaid expenses and other current assets	(7)	4	(6)
Changes in accounts payable and other current liabilities	(62)	18	102
Changes in income taxes payable	(95)	39	70
Other non-cash charges and credits, net	82	58	18
Net Cash Provided by Operating Activities	1,404	1,521	1,551
Cash Flows - Investing Activities
Capital spending	(797)	(935)	(726)
Proceeds from refranchising of restaurants	194	266	117
Acquisition of restaurants from franchisees	(24)	(35)	(4)
Acquisitions and disposals of investments	(115)	0	128
Sales of property, plant and equipment	34	72	56
Other, net	(19)	(9)	13
Net Cash Used in Investing Activities	(727)	(641)	(416)
Cash Flows - Financing Activities
Proceeds from long-term debt	499	375	1,195
Repayments of long-term debt	(528)	(268)	(24)
Revolving credit facilities, three months or less, net	(295)	279	(149)
Short-term borrowings by original maturity
More than three months - proceeds	0	0	1
More than three months - payments	0	0	(184)
Three months or less, net	(8)	(11)	(8)
Repurchase shares of Common Stock	0	(1,628)	(1,410)
Excess tax benefit from share-based compensation	59	44	74
Employee stock option proceeds	113	72	112
Dividends paid on Common Stock	(362)	(322)	(273)
Other, net	(20)	0	(12)
Net Cash Used in Financing Activities	(542)	(1,459)	(678)
Effect of Exchange Rates on Cash and Cash Equivalents	(15)	(11)	13
Net Increase (Decrease) in Cash and Cash Equivalents	120	(590)	470
Change in Cash and Cash Equivalents due to consolidation of entities in China	17	17	0
Cash and Cash Equivalents - Beginning of Year	216	789	319
Cash and Cash Equivalents - End of Year	$353	$216	$789

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) AND COMPREHENSIVE INCOME (LOSS) (USD $)
In Millions	Common Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Noncontrolling Interest [Member]	Total
Issued Common Stock, Shares, Balance at Dec. 30, 2006	530
Balance at Dec. 30, 2006	$0	$1,608	($156)	$0	$1,452
Net Income		909		0	909
Foreign currency translation adjustment			93		93
Foreign currency translation adjustment included in Net Income			1		1
Pension and post-retirement benefit plans (net of tax impact)			96		96
Net unrealized gain (loss) on derivative instruments (net of tax impact)			(14)		(14)
Adjustment for change in accounting for uncertainty in income taxes		(13)			(13)
Dividends declared		(231)			(231)
Repurchase of shares of Common Stock	(252)	(1,154)			(1,406)
Repurchase of shares of Common Stock (in shares)	(42)
Employee stock option and SARs exercises (includes tax impact)	181				181
Employee stock option and SARs exercises (includes tax impact) (in shares)	10
Compensation-related events (includes tax impact)	71				71
Compensation-related events (includes tax impact) (in shares)	1
Balance at Dec. 29, 2007	0	1,119	20	0	1,139
Issued Common Stock, Shares, Balance at Dec. 29, 2007	499
Net Income		964		8	972
Foreign currency translation adjustment			(198)		(198)
Foreign currency translation adjustment included in Net Income			(25)		(25)
Pension and post-retirement benefit plans (net of tax impact)			(208)		(208)
Net unrealized gain (loss) on derivative instruments (net of tax impact)			(7)		(7)
Consolidation of a former unconsolidated affiliate				12	12
Adjustment to change pension plans measurement date (net of tax impact)		(7)			(7)
Dividends declared		(339)		(6)	(345)
Repurchase of shares of Common Stock	(181)	(1,434)			(1,615)
Repurchase of shares of Common Stock (in shares)	(47)
Employee stock option and SARs exercises (includes tax impact)	112				112
Employee stock option and SARs exercises (includes tax impact) (in shares)	6
Compensation-related events (includes tax impact)	76				76
Compensation-related events (includes tax impact) (in shares)	1
Balance at Dec. 27, 2008	7	303	(418)	14	(94)
Issued Common Stock, Shares, Balance at Dec. 27, 2008	459
Net Income		1,071		12	1,083
Foreign currency translation adjustment			176		176
Pension and post-retirement benefit plans (net of tax impact)			13		13
Net unrealized gain (loss) on derivative instruments (net of tax impact)			5		5
Purchase of subsidiary shares from noncontrolling interest				70	70
Dividends declared		(378)		(7)	(385)
Employee stock option and SARs exercises (includes tax impact)	168				168
Employee stock option and SARs exercises (includes tax impact) (in shares)	10
Compensation-related events (includes tax impact)	78				78
Compensation-related events (includes tax impact) (in shares)	0
Balance at Dec. 26, 2009	$253	$996	($224)	$89	$1,114
Issued Common Stock, Shares, Balance at Dec. 26, 2009	469

1_PARENTHETICAL DATA FOR CONSOL

PARENTHETICAL DATA FOR CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (DEFICIT) AND COMPREHENSIVE INCOME (LOSS) (USD $)
In Millions	12 Months Ended Dec. 26, 2009	12 Months Ended Dec. 27, 2008	12 Months Ended Dec. 29, 2007
Statement of Stockholders' Equity [Abstract]
Compensation-related events (tax impact)	($2)	($6)	($5)
Adjustment to change pension plans measurement date (tax impact)		4
Net unrealized loss on derivative instruments (tax impact)	(3)	4	8
Pension and post-retirement benefit plans (tax impact)	(9)	114	(55)
Employee stock option and SARs exercises (tax impact)	($57)	($40)	($69)

Description of Business

Description of Business
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Description of Business	Note 1 Description of Business YUM! Brands, Inc. and Subsidiaries (collectively referred to as YUM or the Company) comprises the worldwide operations of KFC, Pizza Hut, Taco Bell, Long John Silvers (LJS) and AW All-American Food Restaurants (AW) (collectively the Concepts).YUM is the worlds largest quick service restaurant company based on the number of system units, with more than 37,000 units of which approximately 47% are located outside the U.S. in more than 110 countries and territories.YUM was created as an independent, publicly-owned company on October 6, 1997 (the Spin-off Date) via a tax-free distribution by our former parent, PepsiCo, Inc., of our Common Stock to its shareholders.References to YUM throughout these Consolidated Financial Statements are made using the first person notations of we, us or our. Through our widely-recognized Concepts, we develop, operate, franchise and license a system of both traditional and non-traditional quick service restaurants.Each Concept has proprietary menu items and emphasizes the preparation of food with high quality ingredients as well as unique recipes and special seasonings to provide appealing, tasty and attractive food at competitive prices.Our traditional restaurants feature dine-in, carryout and, in some instances, drive-thru or delivery service.Non-traditional units, which are principally licensed outlets, include express units and kiosks which have a more limited menu and operate in non-traditional locations like malls, airports, gasoline service stations, convenience stores, stadiums, amusement parks and colleges, where a full-scale traditional outlet would not be practical or efficient.We also operate multibrand units, where two or more of our Concepts are operated in a single unit.In addition, we continue to pursue the multibrand combination of Pizza Hut and WingStreet, a flavored chicken wings concept we have developed. YUM consists of six operating segments:KFC-U.S., Pizza Hut-U.S., Taco Bell-U.S., LJS/AW-U.S., YUM Restaurants International (YRI or International Division) and YUM Restaurants China (China Division).For financial reporting purposes, management considers the four U.S. operating segments to be similar and, therefore, has aggregated them into a single reportable operating segment (U.S.).The China Division includes mainland China (China), Thailand and KFC Taiwan, and the International Division includes the remainder of our international operations.

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Summary of Significant Accounting Policies	Note 2 Summary of Significant Accounting Policies Our preparation of the accompanying Consolidated Financial Statements in conformity with Generally Accepted Accounting Principles (GAAP) in the United States of America requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.Actual results could differ from these estimates.The Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. Principles of Consolidation and Basis of Preparation.Intercompany accounts and transactions have been eliminated. Certain investments in businesses that operate our Concepts and other restaurant concepts are accounted for by the equity method.Our lack of majority voting rights precludes us from controlling these affiliates, and thus we do not consolidate these affiliates.Our share of the net income or loss of those unconsolidated affiliates is included in Other (income) expense.On January 1, 2008 we began consolidating the entity that operates the KFCs in Beijing, China that was previously accounted for using the equity method.Additionally, in the second quarter of 2009 we began consolidating the entity that operates the KFCs in Shanghai, China.The increases in cash related to the consolidation of these entities cash balances ($17 million in both instances) are presented as a single line item on our Consolidated Statements of Cash Flows. In our 2008 Consolidated Financial Statements, we reported Operating profit attributable to the non-controlling interest in the Beijing entity in Other (income) expense and the related tax impact as a reduction to our Income tax provision.Additionally, we reported the equity attributable to the Beijing entity within Other liabilities and deferred credits.As required at the beginning of 2009, we began reporting Net income attributable to the non-controlling interest in Beijing separately on the face of our Consolidated Statements of Income.Also as required, the portion of equity in the entity not attributable to the Company began being reported within equity, separately from the Companys equity on the Consolidated Balance Sheet.These requirements were retroactive to our previous Consolidated Financial Statements and we have restated 2008 accordingly. See Note 5 for a further description of the accounting for the noncontrolling interests in the Beijing and Shanghai entities and discussions on the impact on our Consolidated Financial Statements. We participate in various advertising cooperatives with our franchisees and licensees established to collect and administer funds contributed for use in advertising and promotional programs designed to increase sales and enhance the reputation of the Company and its franchise owners. Contributions to the advertising cooperatives are required for both Company operated and franchise restaurants and are generally based on a percent of restaurant sales.In certain of these cooperatives

Two-for-One Common Stock Split

Two-for-One Common Stock Split
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Two-for-One Common Stock Split	Note 3 Two-for-One Common Stock Split On May 17, 2007, the Company announced that its Board of Directors approved a two-for-one split of the Companys outstanding shares of Common Stock.The stock split was effected in the form of a stock dividend and entitled each shareholder of record at the close of business on June 1, 2007 to receive one additional share for every outstanding share of Common Stock held.The stock dividend was distributed on June 26, 2007, with approximately 261 million shares of Common Stock distributed.All per share and share amounts in these Consolidated Financial Statements and Notes to the Consolidated Financial Statements have been adjusted to reflect the stock split.

Earnings Per Common Share

Earnings Per Common Share ("EPS")
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Earnings Per Common Share (EPS)	Note 4 Earnings Per Common Share (EPS) 2009 2008 2007 Net Income YUM! Brands, Inc. $ 1,071 $ 964 $ 909 Weighted-average common shares outstanding (for basic calculation) 471 475 522 Effect of dilutive share-based employee compensation 12 16 19 Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) 483 491 541 Basic EPS $ 2.28 $ 2.03 $ 1.74 Diluted EPS $ 2.22 $ 1.96 $ 1.68 Unexercised employee stock options and SARs (in millions) excluded from the diluted EPS compensation(a) 13.3 5.9 5.7 (a) These unexercised employee stock options and SARs were not included in the computation of diluted EPS because to do so would have been antidilutive for the periods presented.

Items Affecting Comparability o

Items Affecting Comparability of Net Income and Cash Flows
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Items Affecting Comparability of Net Income and Cash Flows	Note 5 Items Affecting Comparability of Net Income and Cash Flows U.S. Business Transformation As part of our plan to transform our U.S. business we took several measures (the U.S. business transformation measures) in 2008 and 2009 including: expansion of our U.S. refranchising; a reduced emphasis on multi-branding as a long-term growth strategy; GA productivity initiatives and realignment of resources (primarily severance and early retirement costs); and investments in our U.S. Brands made on behalf of our franchisees such as equipment purchases. In the years ended December 26, 2009 and December 27, 2008, we recorded a pre-tax gain of $34 million and a pre-tax loss of $5 million from refranchising in the U.S., respectively.The 2008 refranchising losses were the net result of, or offers to refranchise, stores or groups of stores in the U.S. at prices less than their recorded carrying values. As a result of a decline in future profit expectations for our LJS and AW businesses in the U.S. due in part to the impact of a reduced emphasis on multi-branding, we recorded a non-cash charge of $26 million, which resulted in no related tax benefit, in the fourth quarter of 2009 to write-off the goodwill associated with these businesses.See Note 10. In connection with our GA productivity initiatives and realignment of resources we recorded pre-tax charges of $16 million and $49 million in 2009 and 2008, respectively.The unpaid current liability for the severance portion of these charges was $5 million and $27 million as of December 26, 2009 and December 27, 2008, respectively.Severance payments in the year ended December 26, 2009 totaled approximately $26 million. Additionally, the Company recognized a reduction to Franchise and license fees and income of $32 million, pre-tax, in the year ended December 26, 2009 related to investments in our U.S. Brands.These investments reflect our reimbursements to KFC franchisees for installation costs of ovens for the national launch of Kentucky Grilled Chicken.The reimbursements were recorded as a reduction to franchise and license fees and income as we would not have provided the reimbursements absent the ongoing franchise relationship.In the year ended December 27, 2008, the Company recognized pre-tax expense of $7 million related to investments in our U.S. Brands in Franchise and license expenses. We are not including the impacts of these U.S. business transformation measures in our U.S. segment for performance reporting purposes as we do not believe they are indicative of our ongoing operations. Acquisition of Interest in Little Sheep During 2009, our China Division paid approximately $103 million, in several tranches, to purchase 27% of the outstanding common shares of Little Sheep Group Limited (Little Sheep) and obtain Board of Directors representation.We began reporting our investment in Little Sheep using the equity method of accounting and this investment is included in Investments in unconsolidated affiliates on our Consolidated Balance Sheet.The fair value of our investment in Little Sheep was approximately $156 million as of December 26, 2009.Equity income recognize

Supplemental Cash Flow Data

Supplemental Cash Flow Data
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Supplemental Cash Flow Data	Note 6 Supplemental Cash Flow Data 2009 2008 2007 Cash Paid For: Interest $ 209 $ 248 $ 177 Income taxes 308 260 264 Significant Non-Cash Investing and Financing Activities: Capital lease obligations incurred to acquire assets $ 7 $ 24 $ 59 Net investment in direct financing leases 8 26 33

Franchise and License Fees and

Franchise and License Fees and Income
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Franchise and license fees and income	Note 7 Franchise and License Fees and Income 2009 2008 2007 Initial fees, including renewal fees $ 57 $ 61 $ 49 Initial franchise fees included in refranchising gains (17 ) (20 ) (10 ) 40 41 39 Continuing fees 1,383 1,420 1,296 $ 1,423 $ 1,461 $ 1,335

Other

Other (Income) Expense
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Other (Income) Expense	Note 8 Other (Income) Expense 2009 2008 2007 Equity income from investments in unconsolidated affiliates $ (36 ) $ (41 ) $ (51 ) Gain upon consolidation of a former unconsolidated affiliate in China(a) (68 ) Gain upon sale of investment in unconsolidated affiliate(b)(c) (100 ) (6 ) Wrench litigation income(d) (11 ) Foreign exchange net (gain) loss and other (16 ) (3 ) Other (income) expense $ (104 ) $ (157 ) $ (71 ) (a) See Note 5 for further discussion of the consolidation of a former unconsolidated affiliate in Shanghai, China. (b) Fiscal year 2008 reflects the gain recognized on the sale of our interest in our unconsolidated affiliate in Japan.See Note 5. (c) Fiscal year 2007 reflects recognition of income associated with receipt of payments for a note receivable arising from the 2005 sale of our fifty percent interest in the entity that operated almost all KFCs and Pizza Huts in Poland and the Czech Republic to our then partner in the entity. (d) Fiscal year 2007 reflects financial recoveries from settlements with insurance carriers related to a lawsuit settled by Taco Bell Corporation in 2004.

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information
	12 Months Ended Dec. 26, 2009 USD / shares
Supplemental Balance Sheet Information
Supplemental Balance Sheet Information - Accounts and Notes Receivable	Note 9A Supplemental Balance Sheet Information 2009 2008 Accounts and notes receivable $ 274 $ 252 Allowance for doubtful accounts (35 ) (23 ) Accounts and notes receivable, net $ 239 $ 229
Supplemental Balance Sheet Information - Prepaid Expenses and Other Current Assets	Note 9B Supplemental Balance Sheet Information Prepaid Expenses and Other Current Assets 2009 2008 Income tax receivable $ 158 $ 20 Other prepaid expenses and current assets 156 152 $ 314 $ 172
Supplemental Balance Sheet Information - Property, Plant and Equipment	Note 9C Supplemental Balance Sheet Information Property, Plant and Equipment 2009 2008 Land $ 538 $ 517 Buildings and improvements 3,800 3,596 Capital leases, primarily buildings 282 259 Machinery and equipment 2,627 2,525 Property, Plant and equipment, gross 7,247 6,897 Accumulated depreciation and amortization (3,348 ) (3,187 ) Property, Plant and equipment, net $ 3,899 $ 3,710 Depreciation and amortization expense related to property, plant and equipment was $553 million, $542 million and $514 million in 2009, 2008 and 2007, respectively.
Supplemental Balance Sheet Information - Accounts Payable and Other Current Liabilities	Note 9D Supplemental Balance Sheet Information Accounts Payable and Other Current Liabilities 2009 2008 Accounts payable $ 499 $ 508 Capital expenditure liability 114 130 Accrued compensation and benefits 342 376 Dividends payable 98 87 Accrued taxes, other than income taxes 100 100 Other current liabilities 260 272 $ 1,413 $ 1,473

Goodwill and Intangible Assets

Goodwill and Intangible Assets
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Goodwill and Intangible Assets	Note 10 Goodwill and Intangible Assets The changes in the carrying amount of goodwill are as follows: U.S. YRI China Division Worldwide Balance as of December 29, 2007 Goodwill, gross $ 358 $ 259 $ 60 $ 677 Accumulated impairment losses (5 ) (5 ) Goodwill, net 358 254 60 672 Acquisitions 10 6 16 Impairment losses Disposals and other, net(a) (12 ) (71 ) (83 ) Balance as of December 27, 2008 Goodwill, gross 356 188 66 610 Accumulated impairment losses (5 ) (5 ) Goodwill, net 356 183 66 605 Acquisitions 1 53 54 Impairment losses(b)(c) (26 ) (12 ) (38 ) Disposals and other, net(a) (5 ) 24 19 Balance as of December 26, 2009 Goodwill, gross 352 212 119 683 Accumulated impairment losses (26 ) (17 ) (43 ) Goodwill, net $ 326 $ 195 $ 119 $ 640 (a) Disposals and other, net for YRI primarily reflects the impact of foreign currency translation on existing balances.Disposals and other, net for the U.S. Division, primarily reflects goodwill write-offs associated with refranchising. (b) We recorded a non-cash goodwill impairment charge of $26 million, which resulted in no related tax benefit, associated with our LJS and AW-U.S. reporting unit in the fourth quarter of 2009 as the carrying value of this reporting unit exceeded its fair value.The fair value of the reporting unit was based on our discounted expected after-tax cash flows from the future royalty stream, net of GA, expected to be earned from the underlying franchise agreements.These cash flows incorporated the decline in future profit expectations for our LJS and AW-U.S. reporting unit which were due in part to the impact of a reduced emphasis on multi-branding as a U.S. growth strategy.This charge was recorded in Closure and impairment (income) expenses in our Consolidated Statement of Income and was not allocated to the U.S. segment for performance reporting purposes.See Note 5. (c) We recorded a non-cash goodwill impairment charge of $12 million for our Pizza Hut South Korea reporting unit in the fourth quarter of 2009 as the carrying value of this reporting unit exceeded its fair value.The fair value of this reporting unit was based on the discounted expected after-tax cash flows from company operations and franchise royalties for the business.Our expectations of future cash flows were negatively im

Short-term Borrowings and Long-

Short-term Borrowings and Long-term Debt
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Short-term Borrowings and Long-term Debt	Note 11 Short-term Borrowings and Long-term Debt 2009 2008 Short-term Borrowings Current maturities of long-term debt $ 56 $ 15 Other 3 10 $ 59 $ 25 Long-term Debt Unsecured International Revolving Credit Facility, expires November 2012 $ $ Unsecured Revolving Credit Facility, expires November 2012 5 299 Senior, Unsecured Term Loan, due July 2011 375 Senior Unsecured Notes 2,906 2,542 Capital lease obligations (See Note 12) 249 234 Other, due through 2019 (11%) 67 70 3,227 3,520 Less current maturities of long-term debt (56 ) (15 ) Long-term debt excluding hedge accounting adjustment 3,171 3,505 Derivative instrument hedge accounting adjustment (See Note 13) 36 59 Long-term debt including hedge accounting adjustment $ 3,207 $ 3,564 Our primary bank credit agreement comprises a $1.15 billion syndicated senior unsecured revolving credit facility (the Credit Facility) which matures in November 2012 and includes 23 participating banks with commitments ranging from $20 million to $113 million.Under the terms of the Credit Facility, we may borrow up to the maximum borrowing limit, less outstanding letters of credit or bankers acceptances, where applicable.At December 26, 2009, our unused Credit Facility totaled $975 million net of outstanding letters of credit of $170 million.There were borrowings of $5 million outstanding under the Credit Facility at December 26, 2009.The interest rate for borrowings under the Credit Facility ranges from 0.25% to 1.25% over the London Interbank Offered Rate (LIBOR) or is determined by an Alternate Base Rate, which is the greater of the Prime Rate or the Federal Funds Rate plus 0.50%.The exact spread over LIBOR or the Alternate Base Rate, as applicable, depends on our performance under specified financial criteria.Interest on any outstanding borrowings under the Credit Facility is payable at least quarterly. We also have a $350 million, syndicated revolving credit facility (the International Credit Facility, or ICF) which matures in November 2012 and includes 6 banks with commitments ranging from $35 million to $90 million.There was available credit of $350 million and no borrowings outstanding under the ICF at the end of 2009.The interest rate for borrowings under the ICF ranges from 0.31% to 1.50% over LIBOR or is determined by a Canadian Alternate Base Rate, which is the greater of the Citibank, N.A., Canadian Branchs publicly announced reference rate or the Canadian Dollar Offered Rate plus 0.50%.The exact spread over LIBOR or the Canadian Alternate Base Rate, as applicable, depends on our performance under specified financial criteria. Interest on any outstanding borrowings under the ICF is payable at least quarterly. The Credit Facility and the ICF are unconditionally guaranteed by our principa

Leases

Leases
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Leases	Note 12 Leases At December 26, 2009 we operated more than 7,600 restaurants, leasing the underlying land and/or building in nearly 6,200 of those restaurants with the vast majority of our commitments expiring within 20 years from the inception of the lease.Our longest lease expires in 2151.We also lease office space for headquarters and support functions, as well as certain office and restaurant equipment.We do not consider any of these individual leases material to our operations.Most leases require us to pay related executory costs, which include property taxes, maintenance and insurance. Future minimum commitments and amounts to be received as lessor or sublessor under non-cancelable leases are set forth below: Commitments Lease Receivables Capital Operating Direct Financing Operating 2010 $ 67 $ 535 $ 13 $ 50 2011 26 492 13 41 2012 25 446 13 35 2013 24 409 17 31 2014 24 369 16 28 Thereafter 243 2,424 72 118 $ 409 $ 4,675 $ 144 $ 303 At December 26, 2009 and December 27, 2008, the present value of minimum payments under capital leases was $249 million and $234 million, respectively.At December 26, 2009 and December 27, 2008, unearned income associated with direct financing lease receivables was $61 million and $63 million, respectively. The details of rental expense and income are set forth below: 2009 2008 2007 Rental expense Minimum $ 541 $ 531 $ 474 Contingent 123 113 81 $ 664 $ 644 $ 555 Minimum rental income $ 38 $ 28 $ 23

Derivative Instruments

Derivative Instruments
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Derivative Instruments	Note 13 Derivative Instruments The Company is exposed to certain market risks relating to its ongoing business operations.The primary market risks managed by using derivative instruments are interest rate risk and cash flow volatility arising from foreign currency fluctuations. We enter into interest rate swaps with the objective of reducing our exposure to interest rate risk and lowering interest expense for a portion of our fixed-rate debt.At December 26, 2009, our interest rate derivative instruments have an outstanding notional amount of $775 million and have been designated as fair value hedges of a portion of our debt.The critical terms of these swaps, including reset dates and floating rate indices match those of our underlying fixed-rate debt and no ineffectiveness has been recorded. We enter into foreign currency forward contracts with the objective of reducing our exposure to cash flow volatility arising from foreign currency fluctuations associated with certain foreign currency denominated intercompany short-term receivables and payables.The notional amount, maturity date, and currency of these contracts match those of the underlying receivables or payables.For those foreign currency exchange forward contracts that we have designated as cash flow hedges, we measure ineffectiveness by comparing the cumulative change in the forward contract with the cumulative change in the hedged item.At December 26, 2009, foreign currency forward contracts outstanding had a total notional amount of $687 million. The fair values of derivatives designated as hedging instruments for the year ended December 26, 2009 were: Fair Value Consolidated Balance Sheet Location Interest Rate Swaps $ 44 Other assets Foreign Currency Forwards Asset 6 Prepaid expenses and other current assets Foreign Currency Forwards Liability (3) Accounts payable and other current liabilities Total $ 47 The unrealized gains associated with our interest rate swaps that hedge the interest rate risk for a portion of our debt have been reported as an addition of $36 million to long-term debt at December 26, 2009.During the year ended December 26, 2009, Interest expense, net was reduced by $31 million, for recognized gains on these interest rate swaps, including $13 million related to the settlement of interest rate swaps that were hedging the 2012 Senior Unsecured Notes that were extinguished (See Note 11). For our foreign currency forward contracts the following effective portions of gains and losses were recognized into Other Comprehensive Income (OCI) and reclassified into income from OCI in the year ended December 26, 2009. 2009 Gains (losses) recognized into OCI, net of tax $ (4) Gains (losses) reclassified from Accumulated OCI into income, net of tax $ (9) The gains/losses reclassified from Accumulated OCI into income were recognized as Other income (expense) in our Consolidated Statement of Income, largely offsetting foreign currency transaction losses/gains recorded when the related intercompany receivab

Fair Value Disclosures

Fair Value Disclosures
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Fair Value Measurements	Note 14 Fair Value Disclosures The following table presents the fair values for those assets and liabilities measured on a recurring basis. Fair Value Description Level 2009 2008 Foreign Currency Forwards, net 2 $ 3 $ 12 Interest Rate Swaps, net 2 44 62 Other Investments 1 13 10 Total $ 60 $ 84 The fair value of the Companys foreign currency forwards and interest rate swaps were determined based on the present value of expected future cash flows considering the risks involved, including nonperformance risk, and using discount rates appropriate for the duration based upon observable inputs.The other investments include investments in mutual funds, which are used to offset fluctuations in deferred compensation liabilities that employees have chosen to invest in phantom shares of a Stock Index Fund or Bond Index Fund.The other investments are classified as trading securities and their fair value is determined based on the closing market prices of the respective mutual funds as of December 26, 2009 and December 27, 2008. The following table presents the fair values for those assets and liabilities measured at fair value during 2009 on a non-recurring basis, and remaining on our Consolidated Balance Sheet as of December 26, 2009.Total losses include losses recognized from all non-recurring fair value measurements during the year ended December 26, 2009: Fair Value Measurements Using Total Losses Description As of December 26, 2009 Level 1 Level 2 Level 3 2009 Long-lived assets held for use $ 30 $ $ $ 30 $ 56 Goodwill 38 Long-lived assets held for use presented in the table above include restaurants or groups of restaurants that were impaired as a result of our semi-annual impairment review or restaurants not meeting held for sale criteria that have been offered for sale at a price less than their carrying value during the year ended December 26, 2009.Of the $56 million in impairment charges shown in the table above for the year ended December 26, 2009, $20 million was included in Refranchising (gain) loss and $36 million was included in Closures and impairment (income) expenses in the Consolidated Statements of Income. Goodwill in the table above includes the goodwill impairment charges for our Pizza Hut South Korea and LJS/AW-U.S. reporting units, which are discussed in Note 10.These impairment charges were recorded in Closures and impairment (income) expenses in the Consolidated Statements of Income. At December 26, 2009 the carrying values of cash and cash equivalents, accounts receivable and accounts payable approximated their fair values because of the short-term nature of these instruments.The fair value of notes receivable net of allowances and lease guarantees less subsequent amortization approximates their carrying value.The Companys debt obligations, excluding capital lea

Pension and Postretirement Medi

Pension and Postretirement Medical Benefits
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Pension and Postretirement Medical Benefits	Note 15 Pension and Post-retirement Medical Benefits Pension Benefits.We sponsor noncontributory defined benefit pension plans covering certain full-time salaried and hourly U.S. employees.The most significant of these plans, the YUM Retirement Plan (the Plan), is funded while benefits from the other U.S. plans are paid by the Company as incurred.During 2001, the plans covering our U.S. salaried employees were amended such that any salaried employee hired or rehired by YUM after September 30, 2001 is not eligible to participate in those plans.Benefits are based on years of service and earnings or stated amounts for each year of service.We also sponsor various defined benefit pension plans covering certain of our non-U.S. employees, the most significant of which are in the U.K.Our plans in the U.K. have previously been amended such that new employees are not eligible to participate in these plans. Obligation and Funded Status at Measurement Date: The following chart summarizes the balance sheet impact, as well as benefit obligations, assets, and funded status associated with our U.S. pension plans and significant International pension plans.The actuarial valuations for all plans reflect measurement dates coinciding with our fiscal year ends. U.S. Pension Plans International Pension Plans 2009 2008 2009 2008 Change in benefit obligation Benefit obligation at beginning of year $ 923 $ 842 $ 126 $ 161 Measurement date adjustment 21 2 Service cost 26 30 5 8 Interest cost 58 53 7 8 Participant contributions 2 2 Plan amendments 1 1 Acquisitions Curtailment gain (9 ) (6 ) Settlement loss 2 1 Special termination benefits 4 13 Exchange rate changes 15 (48 ) Benefits paid (47 ) (48 ) (3 ) (3 ) Settlement payments (10 ) (9 ) Actuarial (gain) loss 62 25 18 (4 ) Benefit obligation at end of year $ 1,010 $ 923 $ 170 $ 126 Change in plan assets Fair value of plan assets at beginning of year $ 513 $ 732 $ 83 $ 139 Actual return on plan assets 132 (213 ) 20 (33 ) Employer contributions 252 54 28 12 Participant contributions 2 2 Settlement payments (10 ) (9 ) Benefits paid (47 )

Stock Options and Stock Appreci

Stock Options and Stock Appreciation Rights
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Stock Options and Stock Appreciation Rights	Note 16 Stock Options and Stock Appreciation Rights At year end 2009, we had four stock award plans in effect: the YUM! Brands, Inc. Long-Term Incentive Plan and the 1997 Long-Term Incentive Plan (collectively the LTIPs), the YUM! Brands, Inc. Restaurant General Manager Stock Option Plan (RGM Plan) and the YUM! Brands, Inc. SharePower Plan (SharePower).Under all our plans, the exercise price of stock options and stock appreciation rights (SARs) granted must be equal to or greater than the average market price or the ending market price of the Companys stock on the date of grant. Potential awards to employees and non-employee directors under the LTIPs include stock options, incentive stock options, SARs, restricted stock, stock units, restricted stock units, performance restricted stock units, performance share units and performance units.Through December 26, 2009, we have issued only stock options, SARs, restricted stock units and performance share units under the LTIPs.While awards under the LTIPs can have varying vesting provisions and exercise periods, outstanding awards under the LTIPs vest in periods ranging from immediate to 5 years and expire ten years after grant. Potential awards to employees under the RGM Plan include stock options, SARs, restricted stock and restricted stock units.Through December 26, 2009, we have issued only stock options and SARs under this plan.RGM Plan awards granted have a four year cliff vesting period and expire ten years after grant.Certain RGM Plan awards are granted upon attainment of performance conditions in the previous year.Expense for such awards is recognized over a period that includes the performance condition period. Potential awards to employees under SharePower include stock options, SARs, restricted stock and restricted stock units.SharePower awards consist only of stock options and SARs to date, which vest over a period ranging from one to four years and expire no longer than ten years after grant. At year end 2009, approximately 24 million shares were available for future share-based compensation grants under the above plans. We estimated the fair value of each award made during 2009, 2008 and 2007 as of the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: 2009 2008 2007 Risk-free interest rate 1.9 % 3.0 % 4.7 % Expected term (years) 5.9 6.0 6.0 Expected volatility 32.3 % 30.9 % 28.9 % Expected dividend yield 2.6 % 1.7 % 2.0 % We believe it is appropriate to group our awards into two homogeneous groups when estimating expected term.These groups consist of grants made primarily to restaurant-level employees under the RGM Plan, which cliff vest after four years and expire ten years after grant, and grants made to executives under our other stock award plans, which typically have a graded vesting schedule of 25% per year over four years and expire ten years after grant.We use a single weighted-average term for our awards that have a graded vesting sc

Other Compensation and Benefit

Other Compensation and Benefit Programs
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Other Compensation and Benefit Programs	Note 17 Other Compensation and Benefit Programs Executive Income Deferral Program (the EID Plan) The EID Plan allows participants to defer receipt of a portion of their annual salary and all or a portion of their incentive compensation.As defined by the EID Plan, we credit the amounts deferred with earnings based on the investment options selected by the participants.These investment options are limited to cash, phantom shares of our Common Stock, phantom shares of a Stock Index Fund and phantom shares of a Bond Index Fund.Additionally, the EID Plan allows participants to defer incentive compensation to purchase phantom shares of our Common Stock and receive a 33% Company match on the amount deferred.Deferrals receiving a match are similar to a restricted stock unit award in that participants will generally forfeit both the match and incentive compensation amounts deferred if they voluntarily separate from employment during a vesting period that is two years.We expense the intrinsic value of the match and the incentive compensation over the requisite service period which includes the vesting period.Investments in cash, the Stock Index fund and the Bond Index fund will be distributed in cash at a date as elected by the employee and therefore are classified as a liability on our Consolidated Balance Sheets.We recognize compensation expense or income for the appreciation or depreciation, respectively, of these investments.We recognized compensation expense of $4 million in 2009, compensation income of $4 million in 2008 and compensation expense of $4 million in 2007 for losses and earnings on these investments. As investments in the phantom shares of our Common Stock can only be settled in shares of our Common Stock, we do not recognize compensation expense for the appreciation or the depreciation, if any, of these investments.Deferrals into the phantom shares of our Common Stock are credited to the Common Stock Account as they are earned.As of December 26, 2009, deferrals to phantom shares of our Common Stock within the EID Plan totaled approximately 6.4 million shares.We recognized compensation expense for amortization of the Company match of $5 million, $6 million and $5 million, in 2009, 2008 and 2007, respectively.These expense amounts do not include the salary or bonus actually credited to Common Stock of $23 million, $20 million and $17 million in 2009, 2008 and 2007, respectively. Contributory 401(k) Plan We sponsor a contributory plan to provide retirement benefits under the provisions of Section 401(k) of the Internal Revenue Code (the 401(k) Plan) for eligible U.S. salaried and hourly employees.Participants are able to elect to contribute up to 75% of eligible compensation on a pre-tax basis.Participants may allocate their contributions to one or any combination of 10 investment options or a self-managed account within the 401(k) Plan.Effective for contributions made from and after April 1, 2008, we match 100% of the participants contribution to the 401(k) Plan up to 6% of eligible compensation.Prior to April 1, 2008, we matched 100% of the participants contribution to the 401(k) Plan up to 3% of eligible compensatio

Shareholders' Equity

Shareholders' Equity
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Shareholders' Equity	Note 18 Shareholders Equity There were no shares of our Common Stock repurchased during 2009.Under the authority of our Board of Directors, we repurchased shares of our Common Stock during 2008 and 2007.All amounts exclude applicable transaction fees. Shares Repurchased (thousands) Dollar Value of Shares Repurchased Authorization Date 2009 2008 2007 2009 2008 2007 September 2009 $ $ $ January 2008 23,943 802 October 2007 22,875 11,431 813 437 March 2007 15,092 500 September 2006 15,274 469 Total 46,818 41,797 $ $ 1,615 (a) $ 1,406 (b) (a) Amount excludes the effect of $13 million in share repurchases (0.4 million shares) with trade dates prior to the 2007 fiscal year end but cash settlement dates subsequent to the 2007 fiscal year end. (b) Amount excludes the effects of $17 million in share repurchases (0.6 million shares) with trade dates prior to the 2006 fiscal year end but cash settlement dates subsequent to the 2006 fiscal year end and includes the effect of $13 million in share repurchases (0.4 million shares) with trade dates prior to the 2007 fiscal year end but cash settlement dates subsequent to the 2007 fiscal year. As of December 26, 2009, we have $300 million available for future repurchases under our September 2009 share repurchase authorization. Accumulated Other Comprehensive Income (Loss) Comprehensive income is Net Income plus certain other items that are recorded directly to shareholders equity.Amounts included in accumulated other comprehensive loss for the Companys derivative instruments and unrecognized pension and post-retirement losses are recorded net of the related income tax effects.Refer to Note 15 for additional information about our pension accounting and Note 13 for additional information about our derivative instruments.The following table gives further detail regarding the composition of accumulated other comprehensive income (loss) at December 26, 2009 and December 27, 2008. 2009 2008 Foreign currency translation adjustment $ 47 $ (129 ) Pension and post-retirement losses, net of tax (259 ) (272 ) Net unrealized losses on derivative instruments, net of tax (12 ) (17 ) Total accumulated other comprehensive income (loss) $ (224 ) $ (418 )

Income Taxes

Income Taxes
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Income Taxes	Note 19 Income Taxes The details of our income tax provision (benefit) are set forth below: 2009 2008 2007 Current: Federal $ (21 ) $ 168 $ 175 Foreign 251 151 151 State 11 (1 ) (3 ) 241 318 323 Deferred: Federal 92 (12 ) (71 ) Foreign (30 ) 3 27 State 10 10 3 72 1 (41 ) $ 313 $ 319 $ 282 For 2009, the current federal tax benefit resulted from the favorable impact for pension contributions made during the year and lower U.S. taxable income.The benefit associated with pension contributions was fully offset in the deferred federal provision.Also, for 2009, the current foreign tax provision included tax expense primarily related to continued growth in the China business as well as withholding tax expense associated with the distribution of intercompany dividends. The deferred tax provision includes $26 million, $30 million and $120 million of benefit in 2009, 2008 and 2007, respectively, for changes in valuation allowances due to changes in determinations regarding the likelihood of the use of certain deferred tax assets that existed at the beginning of the year.The deferred tax provision also includes $16 million, $43 million and $16 million in 2009, 2008 and 2007, respectively, for increases in valuation allowances recorded against deferred tax assets generated during the year.The increase for 2008 includes a full valuation allowance for net operating losses generated by certain tax planning strategies implemented during the year.Total changes in valuation allowances, including the impact of foreign currency translation and other adjustments, were decreases of $67 million, $54 million and $37 million in 2009, 2008 and 2007, respectively.See additional discussion of valuation allowance adjustments in the effective tax rate discussion on the following page. The deferred foreign tax provision includes less than $1 million of expense in 2009 and 2008, respectively, and $17 million of expense in 2007 for the impact of changes in statutory tax rates in various countries.The deferred foreign tax provision in 2008 includes $36 million of expense offset by the same amount in the current foreign tax provision that resulted from a tax law change.The $17 million of expense in 2007 includes $20 million for the Mexico tax law change enacted during the fourth quarter of 2007. The deferred state tax provision in 2009 includes $10 million ($7 million, net of federal tax) of expense for the impact of pension contributions made during the year.The deferred state tax provision in 2008 includes $18 million ($12 million, net of federal tax) of expense for the impact associated with our plan to distribute certain foreign earnings.The deferred state tax provision in 2007 includes $4 million ($3 million, net of federal tax) of benefit for the impact

Reportable Operating Segments

Reportable Operating Segments
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Reportable Operating Segments	Note 20 Reportable Operating Segments We are principally engaged in developing, operating, franchising and licensing the worldwide KFC, Pizza Hut, Taco Bell, LJS and AW concepts. KFC, Pizza Hut, Taco Bell, LJS and AW operate in 108, 92, 20, 6 and 9 countries and territories, respectively.Our five largest international markets based on operating profit in 2009 are China, Asia Franchise, Australia, United Kingdom, and Latin America Franchise. We identify our operating segments based on management responsibility.The China Division includes mainland China, Thailand and KFC Taiwan, and YRI includes the remainder of our international operations.In the U.S., we consider LJS and AW to be a single operating segment.We consider our KFC, Pizza Hut, Taco Bell and LJS/AW operating segments in the U.S. to be similar and therefore have aggregated them into a single reportable operating segment. Reported segment results for 2008 and 2007 have been restated to be consistent with current period presentation (See Note 2). Revenues 2009 2008 2007 U.S. $ 4,473 $ 5,132 $ 5,202 YRI(a) 2,713 3,044 3,089 China Division(a) 3,682 3,128 2,144 Unallocated(b)(c) (32 ) $ 10,836 $ 11,304 $ 10,435 Operating Profit; Interest Expense, Net; and Income Before Income Taxes 2009 2008 2007 U.S. $ 647 $ 641 $ 685 YRI 491 522 474 China Division(d) 602 480 375 Unallocated Franchise and license fees and income(b)(c) (32 ) Unallocated and corporate expenses(c)(e) (189 ) (248 ) (197 ) Unallocated Impairment expense(c)(f) (26 ) Unallocated Other income (expense)(c)(g) 71 117 9 Unallocated Refranchising gain (loss)(c) 26 5 11 Operating Profit 1,590 1,517 1,357 Interest expense, net (194 ) (226 ) (166 ) Income Before Income Taxes $ 1,396 $ 1,291 $ 1,191 Depreciation and Amortization 2009 2008 2007 U.S. $ 216 $ 231 $ 247 YRI 149 158 161 China Division 200 151 117 Corporate 15 16 17 $ 580 $ 556 $ 542 Capital Spending 2009 2008 2007 U.S. $ 270 $ 349 $ 320 YRI 232 260 179 China Division 290 320 224 Corporate 5

Contingencies

Contingencies
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Contingencies	Note 21 Contingencies Lease Guarantees As a result of (a) assigning our interest in obligations under real estate leases as a condition to the refranchising of certain Company restaurants; (b) contributing certain Company restaurants to unconsolidated affiliates; and (c) guaranteeing certain other leases, we are frequently contingently liable on lease agreements.These leases have varying terms, the latest of which expires in 2026.As of December 26, 2009, the potential amount of undiscounted payments we could be required to make in the event of non-payment by the primary lessee was approximately $500 million.The present value of these potential payments discounted at our pre-tax cost of debt at December 26, 2009 was approximately $425 million.Our franchisees are the primary lessees under the vast majority of these leases.We generally have cross-default provisions with these franchisees that would put them in default of their franchise agreement in the event of non-payment under the lease.We believe these cross-default provisions significantly reduce the risk that we will be required to make payments under these leases.Accordingly, the liability recorded for our probable exposure under such leases at December 26, 2009 and December 27, 2008 was not material. Franchise Loan Pool and Equipment Guarantees We have provided a partial guarantee of approximately $15 million of a franchisee loan program used primarily to assist franchisees in the development of new restaurants and, to a lesser extent, in connection with the Companys historical refranchising programs at December 26, 2009.We have also provided two letters of credit totaling approximately $23 million in support of the franchisee loan program.One such letter of credit could be used if we fail to meet our obligations under our guarantee.The other letter of credit could be used, in certain circumstances, to fund our participation in the funding of the franchisee loan program.The total loans outstanding under the loan pool were $54 million at December 26, 2009. In addition to the guarantee described above, YUM has provided guarantees of $40 million on behalf of franchisees for several equipment financing programs related to specific initiatives, the most significant of which was the purchase of ovens by KFC franchisees for the launch of Kentucky Grilled Chicken.We have provided a letter of credit totaling $5 million which could be used if we fail to meet our obligations under our guarantee under one equipment financing program.The total loans outstanding under these equipment financing programs were approximately $48 million at December 26, 2009. Unconsolidated Affiliates Guarantees From time to time we have guaranteed certain lines of credit and loans of unconsolidated affiliates.At December 26, 2009 there are no guarantees outstanding for unconsolidated affiliates.Our unconsolidated affiliates had total revenues of approximately $760 million for the year ended December 26, 2009 and assets and debt of approximately $365 million and $40 million, respectively, at December 26, 2009. Insurance Programs We are self-insured for a substantial portion of our current and

Selected Quarterly Financial Da

Selected Quarterly Financial Data (Unaudited)
	12 Months Ended Dec. 26, 2009 USD / shares
Notes To Financial Statements [Abstract]
Selected Quarterly Financial Data (Unaudited)	Note 22 Selected Quarterly Financial Data (Unaudited) 2009 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues: Company sales $ 1,918 $ 2,152 $ 2,432 $ 2,911 $ 9,413 Franchise and license fees and income 299 324 346 454 1,423 Total revenues 2,217 2,476 2,778 3,365 10,836 Restaurant profit 308 324 425 422 1,479 Operating Profit(a) 351 394 470 375 1,590 Net Income YUM! Brands, Inc. 218 303 334 216 1,071 Basic earnings per common share 0.47 0.65 0.71 0.46 2.28 Diluted earnings per common share 0.46 0.63 0.69 0.45 2.22 Dividends declared per common share 0.38 0.42 0.80 2008 First Quarter Second Quarter Third Quarter Fourth Quarter Total Revenues: Company sales $ 2,094 $ 2,323 $ 2,482 $ 2,944 $ 9,843 Franchise and license fees and income 319 336 360 446 1,461 Total revenues 2,413 2,659 2,842 3,390 11,304 Restaurant profit 308 311 358 401 1,378 Operating Profit(b) 426 317 411 363 1,517 Net Income YUM! Brands, Inc. 254 224 282 204 964 Basic earnings per common share 0.52 0.47 0.60 0.44 2.03 Diluted earnings per common share 0.50 0.45 0.58 0.43 1.96 Dividends declared per common share 0.15 0.19 0.38 0.72 (a) Includes net losses of $17 million, $3 million and $22 million in the first, third and fourth quarters of 2009, respectively, and a net gain of $60 million in the second quarter of 2009 related to the consolidation of a former unconsolidated affiliate, charges related to the U.S. business transformation measures and an impairment of an international market.See Note 5. (b) Includes a net gain of $68 million, net loss of $3 million and net loss of $26 million in the first, second and fourth quarters of 2008, respectively, related to the gain on the sale of our interest in our Japan unconsolidated affiliate and charges related to the U.S. business transformation measures.See Note 5.

Document Information

Document Information
	12 Months Ended Dec. 26, 2009 USD / shares
Document Information [Text Block]
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-26

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 26, 2009	Feb. 10, 2010	Jun. 13, 2009
Entity [Text Block]
Entity Registrant Name	YUM BRANDS INC
Entity Central Index Key	0001041061
Current Fiscal Year End Date	--12-26
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$16,255,525,133
Entity Common Stock, Shares Outstanding		469,275,605