Yum! Brands (YUM) 10-Q 11 Oct 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares shares in Millions	8 Months Ended
	Sep. 03, 2016	Oct. 07, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	YUM BRANDS INC
Entity Central Index Key	1,041,061
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		367,005,511
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 3, 2016

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended		8 Months Ended
	Sep. 03, 2016	Sep. 05, 2015	Sep. 03, 2016	Sep. 05, 2015
Revenues
Company sales	$ 2,841	$ 2,968	$ 7,560	$ 7,806
Franchise and license fees and income	475	459	1,383	1,348
Total revenues	3,316	3,427	8,943	9,154
Costs and Expenses, Net
Food and paper	817	933	2,230	2,462
Payroll and employee benefits	638	625	1,727	1,720
Occupancy and other operating expenses	816	871	2,192	2,292
Company restaurant expenses	2,271	2,429	6,149	6,474
General and administrative expenses	377	328	1,028	976
Franchise and license expenses	47	65	145	146
Closures and impairment (income) expenses	7	3	47	30
Refranchising (gain) loss	(25)	2	(85)	60
Other (income) expense	(15)	(3)	(50)	(12)
Total costs and expenses, net	2,662	2,824	7,234	7,674
Operating Profit	654	603	1,709	1,480
Interest expense, net	87	32	164	99
Income Before Income Taxes	567	571	1,545	1,381
Income tax provision	(65)	145	183	358
Net Income – including noncontrolling interests	632	426	1,362	1,023
Net Income - noncontrolling interests	10	5	10	5
Net Income - YUM! Brands, Inc.	$ 622	$ 421	$ 1,352	$ 1,018
Basic Earnings Per Common Share	$ 1.59	$ 0.97	$ 3.33	$ 2.33
Diluted Earnings Per Common Share	1.56	0.95	3.28	2.29
Dividends Declared Per Common Share	$ 0	$ 0	$ 0.92	$ 0.82

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		8 Months Ended
	Sep. 03, 2016	Sep. 05, 2015	Sep. 03, 2016	Sep. 05, 2015
Net Income - including noncontrolling interests	$ 632	$ 426	$ 1,362	$ 1,023
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature
Adjustments and gains (losses) arising during the period	(61)	(122)	(97)	(174)
Reclassification of adjustments and (gains) losses into Net Income	0	12	0	80
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature, before tax	(61)	(110)	(97)	(94)
Tax (expense) benefit	0	1	4	1
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature, net of tax	(61)	(109)	(93)	(93)
Changes in pension and post-retirement benefits
Unrealized gains (losses) arising during the period	0	(3)	0	(1)
Reclassification of (gains) losses into Net Income	2	11	8	34
Changes in pension and post-retirement benefits, before tax	2	8	8	33
Tax (expense) benefit	(1)	(3)	(3)	(12)
Changes in pension and post-retirement benefits, net of tax	1	5	5	21
Changes in derivative instruments
Unrealized gains (losses) arising during the period	11	8	(20)	20
Reclassification of (gains) losses into Net Income	(12)	(10)	21	(22)
Changes in derivative instruments, before tax	(1)	(2)	1	(2)
Tax (expense) benefit	1	0	1	0
Changes in derivative instruments, net of tax	0	(2)	2	(2)
Other comprehensive income (loss), net of tax	(60)	(106)	(86)	(74)
Comprehensive Income - including noncontrolling interests	572	320	1,276	949
Comprehensive Income - noncontrolling interests	8	4	9	3
Comprehensive Income - YUM! Brands, Inc.	$ 564	$ 316	$ 1,267	$ 946

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	8 Months Ended
	Sep. 03, 2016	Sep. 05, 2015
Cash Flows - Operating Activities
Net Income - including noncontrolling interests	$ 1,362	$ 1,023
Depreciation and amortization	489	505
Closures and impairment (income) expenses	47	30
Refranchising (gain) loss	(85)	60
Contributions to defined benefit pension plans	(4)	(83)
Deferred income taxes	(215)	(42)
Equity income from investments in unconsolidated affiliates	(44)	(31)
Distributions of income received from unconsolidated affiliates	18	9
Excess tax benefits from share-based compensation	(66)	(46)
Share-based compensation expense	41	40
Changes in accounts and notes receivable	(31)	(15)
Changes in inventories	(32)	62
Changes in prepaid expenses and other current assets	5	(27)
Changes in accounts payable and other current liabilities	146	201
Changes in income taxes payable	41	111
Changes in restricted cash	(82)	(4)
Other, net	(48)	24
Net Cash Provided by Operating Activities	1,542	1,817
Cash Flows - Investing Activities
Capital spending	(546)	(642)
Proceeds from refranchising of restaurants	165	72
Other, net	35	48
Net Cash Used in Investing Activities	(346)	(522)
Cash Flows - Financing Activities
Proceeds from long-term debt	6,900	0
Repayments of long-term debt	(308)	(10)
Short-term borrowings by original maturity
More than three months - proceeds	1,400	0
More than three months - payments	(2,000)	0
Three months or less, net	0	0
Revolving credit facilities, three months or less, net	(701)	(116)
Repurchase shares of Common Stock	(3,652)	(370)
Excess tax benefits from share-based compensation	66	46
Dividends paid on Common Stock	(559)	(532)
Debt issuance costs	(86)	0
Other, net	(77)	(37)
Net Cash Used in Financing Activities	983	(1,019)
Effect of Exchange Rates on Cash and Cash Equivalents	(31)	7
Net Increase in Cash and Cash Equivalents	2,148	283
Cash and Cash Equivalents - Beginning of Period	737	578
Cash and Cash Equivalents - End of Period	$ 2,885	$ 861

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 03, 2016	Dec. 26, 2015
Current Assets
Cash and cash equivalents	$ 2,885	$ 737
Accounts and notes receivable, net	440	377
Inventories	255	229
Prepaid expenses and other current assets	287	241
Advertising cooperative assets, restricted	136	103
Total Current Assets	4,003	1,687
Property, plant and equipment, net	4,010	4,189
Goodwill	635	656
Intangible assets, net	258	271
Investments in unconsolidated affiliates	64	61
Other assets	562	521
Deferred income taxes	900	676
Total Assets	10,432	8,061
Current Liabilities
Accounts payable and other current liabilities	2,058	1,985
Income taxes payable	57	77
Short-term borrowings	48	922
Advertising cooperative liabilities	136	103
Total Current Liabilities	2,299	3,087
Long-term debt	9,119	3,041
Other liabilities and deferred credits	844	958
Total Liabilities	12,262	7,086
Redeemable noncontrolling interest	0	6
Shareholders' Equity
Common Stock, no par value, 750 shares authorized; 376 and 420 shares issued in 2016 and 2015, respectively	0	0
Retained earnings (Accumulated deficit)	(1,572)	1,150
Accumulated other comprehensive income (loss)	(324)	(239)
Total Shareholders' Equity (Deficit) - YUM! Brands, Inc.	(1,896)	911
Noncontrolling interests	66	58
Total Shareholders' Equity (Deficit)	(1,830)	969
Total Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity (Deficit)	$ 10,432	$ 8,061

CONDENSED CONSOLIDATED BALANCE6

CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares shares in Millions	Sep. 03, 2016	Dec. 26, 2015
Statement of Financial Position [Abstract]
Common Stock, No Par Value	$ 0	$ 0
Common Stock, Shares Authorized	750	750
Common Stock, Shares, Issued	376	420

Financial Statement Presentatio

Financial Statement Presentation	8 Months Ended
	Sep. 03, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Financial Statement Presentation	Financial Statement Presentation We have prepared our accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by Generally Accepted Accounting Principles in the United States (“GAAP”) for complete financial statements. Therefore, we suggest that the accompanying Financial Statements be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 26, 2015 (“ 2015 Form 10-K”). YUM! Brands, Inc. and Subsidiaries (collectively referred to herein as “YUM” or the “Company”) comprise primarily the worldwide operations of KFC, Pizza Hut and Taco Bell (collectively the “Concepts”). References to YUM throughout these Notes to our Financial Statements are made using the first person notations of “we,” “us” or “our.” YUM currently consists of four reporting segments: • YUM China (“China” or “China Division”) which includes all operations in mainland China • The KFC Division which includes all operations of the KFC concept outside of China Division • The Pizza Hut Division which includes all operations of the Pizza Hut concept outside of China Division • The Taco Bell Division which includes all operations of the Taco Bell concept Effective January 2016 our India business was segmented by brand, integrated into the global KFC, Pizza Hut and Taco Bell Divisions, and is no longer a separate operating segment. While our consolidated results were not impacted, we have restated our historical segment information for consistent presentation. Integrating India into our Brand Divisions increased Total revenues for the KFC, Pizza Hut and Taco Bell Divisions by $27 million , $2 million and less than $1 million , respectively, and decreased Operating Profit by $6 million , $2 million and less than $1 million , respectively, for the quarter ended September 5, 2015 . Integrating India into our Brand Divisions increased Total revenues for the KFC, Pizza Hut and Taco Bell Divisions by $79 million , $5 million and $2 million respectively, and decreased Operating Profit by $12 million , $2 million and $1 million , respectively, for the year to date ended September 5, 2015 . In October 2015 we announced our intent to separate YUM’s China business from YUM into an independent, publicly-traded company. This transaction, which is expected to be a tax-free spin-off of our China business, will create two powerful, independent, focused growth companies with distinct strategies, financial profiles and investment characteristics. On September 23, 2016 the YUM Board of Directors (“Board”) approved a distribution of one share of YUM China common stock for each share of YUM common stock held at the close of business on October 19, 2016, the record date for the distribution. YUM expects to complete the distribution after the close of business on October 31, 2016. Completion of the spin-off will be subject to certain conditions, including, among others, receipt of various regulatory approvals, receipt of external opinions with respect to certain tax matters, the effectiveness of filings related to public listing and applicable securities laws, and other terms and conditions as may be determined by the Board of Directors. After the spin-off of our China business, we anticipate reclassifying our China Division historical results, other results attributable to China though not allocated to the China Division (e.g. refranchising gains), and related income tax expense for periods presented prior to the spin-off, including those periods in 2016, to Discontinued Operations within our Consolidated Income Statement. The China business results presented in Discontinued Operations will include an incremental license fee expense similar to what will be paid by YUM China to YUM going forward. Likewise, YUM's historical results for our KFC and Pizza Hut Divisions will include incremental license fee income from our China business such that recast total Net income, including Discontinued Operations, will be the same as previously reported results. YUM’s fiscal year ends on the last Saturday in December. The first three quarters of each fiscal year consist of 12 weeks and the fourth quarter consists of 16 weeks. Our subsidiaries operate on similar fiscal calendars except that China and certain other international subsidiaries operate on a monthly calendar with two months in the first quarter, three months in the second and third quarters and four months in the fourth quarter. The current fiscal year of 2016 will have a 53 week for YUM and our subsidiaries that do not operate on a monthly calendar, which will be included in our fourth quarter results. Our international subsidiaries that operate on a monthly calendar, including China, are not impacted by the addition of a 53 week. Our international subsidiaries within rd week. Our international subsidiaries within week. Our international subsidiaries within rd week for YUM and our subsidiaries that do not operate on a monthly calendar, which will be included in our fourth quarter results. Our international subsidiaries that operate on a monthly calendar, including China, are not impacted by the addition of a 53 week. Our international subsidiaries within rd week. Our international subsidiaries within week. Our international subsidiaries within week for YUM and our subsidiaries that do not operate on a monthly calendar, which will be included in our fourth quarter results. Our international subsidiaries that operate on a monthly calendar, including China, are not impacted by the addition of a 53 week. Our international subsidiaries within rd week. Our international subsidiaries within week. Our international subsidiaries within o our KFC, Pizza Hut and Taco Bell divisions generally close approximately one month earlier to facilitate consolidated reporting. our KFC, Pizza Hut and Taco Bell divisions generally close approximately one month earlier to facilitate consolidated reporting. our KFC, Pizza Hut and Taco Bell divisions generally close approximately one month earlier to facilitate consolidated reporting. our KFC, Pizza Hut and Taco Bell divisions generally close approximately one month earlier to facilitate consolidated reporting. our KFC, Pizza Hut and Taco Bell divisions generally close approximately one month earlier to facilitate consolidated reporting. our KFC, Pizza Hut and Taco Bell divisions generally close approximately one month earlier to facilitate consolidated reporting. our KFC, Pizza Hut and Taco Bell divisions generally close approximately one month earlier to facilitate consolidated reporting. our KFC, Pizza Hut and Taco Bell divisions generally close approximately one month earlier to facilitate consolidated reporting. ur KFC, Pizza Hut and Taco Bell divisions generally close approximately one month earlier to facilitate consolidated reporting. Our preparation of the accompanying Financial Statements in conformity with GAAP 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 accompanying Financial Statements include all normal and recurring adjustments considered necessary to present fairly, when read in conjunction with our 2015 Form 10-K, our financial position as of September 3, 2016 , and the results of our operations and comprehensive income for the quarters and years to date ended September 3, 2016 and September 5, 2015 and cash flows for the years to date ended September 3, 2016 and September 5, 2015 . Our results of operations, comprehensive income and cash flows for these interim periods are not necessarily indicative of the results to be expected for the full year. Our significant interim accounting policies include the recognition of certain advertising and marketing costs, generally in proportion to revenue, and the recognition of income taxes using an estimated annual effective tax rate. In April 2015 the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, “Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs” (ASU 2015-03). ASU 2015-03 amended the then-current presentation guidance by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 was effective for the Company beginning with the quarter ended March 19, 2016. The adoption of this standard required restatement of our consolidated balance sheet as of December 26, 2015. As a result, Other assets and Long-term debt each decreased by $13 million and Prepaid expenses and other current assets and Short-term borrowings each decreased by $1 million versus amounts previously reported. We have reclassified certain items in the Financial Statements for the prior periods to be comparable with the classification for the quarter and year to date ended September 3, 2016

Earnings Per Common Share ("EPS

Earnings Per Common Share ("EPS")	8 Months Ended
	Sep. 03, 2016
Earnings Per Share [Abstract]
Earnings Per Common Share (EPS)	Earnings Per Common Share (“EPS”) Quarter ended Year to date 2016 2015 2016 2015 Net Income – YUM! Brands, Inc. $ 622 $ 421 $ 1,352 $ 1,018 Weighted-average common shares outstanding (for basic calculation) 392 436 406 437 Effect of dilutive share-based employee compensation 6 8 6 8 Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) 398 444 412 445 Basic EPS $ 1.59 $ 0.97 $ 3.33 $ 2.33 Diluted EPS $ 1.56 $ 0.95 $ 3.28 $ 2.29 Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation (a) 2.3 4.2 6.2 4.3 (a)

Shareholders' Equity

Shareholders' Equity	8 Months Ended
	Sep. 03, 2016
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Shareholders’ Equity Under the authority of our Board of Directors, we repurchased shares of our Common Stock during the years to date as indicated below. All amounts exclude applicable transaction fees. Shares Repurchased (thousands) Dollar Value of Shares Repurchased Remaining Dollar Value of Shares that may be Repurchased Authorization Date 2016 2015 2016 2015 2016 November 2013 — 1,779 $ — $ 133 $ — November 2014 — 2,737 — 237 — December 2015 13,369 — 933 — — March 2016 2,823 — 228 — — May 2016 30,117 — 2,596 — 1,604 Total 46,309 (a) 4,516 $ 3,757 (a) $ 370 $ 1,604 (a) Includes the effect of $105 million in share repurchases ( 1.2 million shares) with trade dates prior to September 3, 2016 but cash settlement dates subsequent to September 3, 2016. On May 20, 2016 our Board of Directors authorized share repurchases through December 2016 of up to $4.2 billion (excluding applicable transaction fees) of our outstanding Common Stock. This authorization superseded all previous unutilized authorizations. Changes in accumulated other comprehensive income (loss) ("OCI") are presented below. Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature Pension and Post-Retirement Benefits Derivative Instruments Total Balance at December 26, 2015, net of tax $ (109 ) $ (113 ) $ (17 ) $ (239 ) Gains (losses) arising during the year classified into accumulated OCI, net of tax (92 ) — (20 ) (112 ) (Gains) losses reclassified from accumulated OCI, net of tax — 5 22 27 OCI, net of tax (92 ) 5 2 (85 ) Balance at September 3, 2016, net of tax $ (201 ) $ (108 ) $ (15 ) $ (324 )

Items Affecting Comparability o

Items Affecting Comparability of Net Income and Cash Flows	8 Months Ended
	Sep. 03, 2016
Items Affecting Comparability of Net Income and Cash Flows [Abstract]
Comparability of Prior Year Financial Data	Items Affecting Comparability of Net Income and Cash Flows Refranchising (Gain) Loss The Refranchising (gain) loss by reportable segment is presented below. We do not allocate such gains and losses to our segments for performance reporting purposes. During the quarter ended September 3, 2016 we refranchised 123 restaurants, primarily Taco Bell and Pizza Hut restaurants in the U.S. We received $67 million in proceeds and recorded $25 million of net pre-tax refranchising gains related to these transactions. During the year to date ended September 3, 2016 we refranchised 250 restaurants, primarily Pizza Hut and Taco Bell restaurants in the U.S. We received $165 million in proceeds and recorded $85 million of net pre-tax refranchising gains related to these transactions. Quarter ended Year to date 2016 2015 2016 2015 China $ (4 ) $ (3 ) $ (8 ) $ (7 ) KFC Division (a) 1 4 2 36 Pizza Hut Division (a) (8 ) 15 (64 ) 52 Taco Bell Division (14 ) (14 ) (15 ) (21 ) Worldwide $ (25 ) $ 2 $ (85 ) $ 60 (a) In 2010 we refranchised our then-remaining Company-operated restaurants in Mexico. To the extent we owned it, we did not sell the real estate related to certain of these restaurants, instead leasing it to the franchisee. During the quarter ended June 13, 2015, we initiated plans to sell this real estate and determined it was held for sale in accordance with GAAP. On September 28, 2015, subsequent to our quarter ended September 5, 2015, we sold the real estate for approximately $58 million . While these proceeds exceeded the book value of the real estate, the sale represented a substantial liquidation of our Mexican operations under GAAP. Accordingly, we were required to include accumulated translation losses associated with our Mexican business within our carrying value when performing impairment evaluations subsequent to determining that the real estate was held for sale. We recorded charges of $12 million and $80 million in the quarter and year to date ended September 5, 2015, respectively, representing the excess of the sum of the book value of the real estate and other related assets and our accumulated translation losses over the then-expected sales price. Consistent with the classification of the original market refranchising transaction, these charges were classified as Refranchising (Gain) Loss. Refranchising Losses of $4 million and $40 million were associated with the KFC Division for the quarter and year to date ended September 5, 2015, respectively. Refranchising Losses of $8 million and $40 million were associated with the Pizza Hut Division for the quarter and year to date ended September 5, 2015, respectively. The proceeds ultimately received for the real estate approximated our carrying value including the remaining unrecognized accumulated translation losses as of September 5, 2015. Additionally, during the quarter and year to date ended September 5, 2015 we recognized charges of $8 million and $13 million , respectively, within Refranchising (Gain) Loss associated with the planned refranchising of our company-owned Pizza Hut restaurants in Korea. KFC U.S. Acceleration Agreement During the first quarter of 2015, we reached an agreement with our KFC U.S. franchisees that gave us brand marketing control as well as an accelerated path to expanded menu offerings, improved assets and enhanced customer experience. In connection with this agreement we anticipate investing approximately $125 million from 2015 through 2017 primarily to fund new back-of-house equipment for franchisees and to provide incentives to accelerate franchisee store remodels. We recorded pre-tax charges of less than $1 million and $21 million for the quarters ended September 3, 2016 and September 5, 2015 , respectively, for these investments. We recorded pre-tax charges of $17 million and $31 million for the years to date ended September 3, 2016 and September 5, 2015 , respectively, for these investments. These amounts were recorded primarily as Franchise and license expenses. We recorded total pre-tax charges of $72 million during the year ended December 26, 2015 and we currently expect a total pre-tax charge of approximately $30 million in 2016 for these investments. These charges are not being allocated to the KFC Division segment operating results. In addition to the investments above we agreed to fund $60 million of incremental system advertising from 2015 through 2018. During the quarters ended September 3, 2016 , and September 5, 2015 , we incurred $5 million and $3 million in incremental system advertising expense, respectively. During the years to date ended September 3, 2016 and September 5, 2015 , we incurred $14 million and $6 million in incremental system advertising expense, respectively. We funded approximately $10 million of such advertising during the year ended December 26, 2015. These amounts were recorded primarily in Franchise and license expenses and are included in the KFC Division segment operating results. We currently expect to fund approximately $20 million of such advertising in both 2016 and 2017 and $10 million in 2018. Costs Associated with the Planned Spin-off of the China Business and YUM Recapitalization In connection with our planned separation of the YUM China business into an independent, publicly-traded company and the related recapitalization of YUM, we incurred $10 million and $29 million of pre-tax costs in the quarter and year to date ended September 3, 2016 , respectively, which were recorded in General and administrative ("G&A") expenses. Cumulative project costs since the announcement of the planned separation total $38 million and we currently expect to incur additional cash costs of approximately $25 million in the fourth quarter of 2016 to complete the spin-off transaction. Additionally, we expect to incur a non-cash charge related to certain share-based awards that will be modified in connection with the spin-off. The amount of the non-cash charge will be based on the net increase in fair value of the modified awards that are vested as of the separation date. These costs are not being allocated to any of our segment operating results. See Notes 10 and 11 for details on YUM's recapitalization. YUM's Strategic Transformation Initiatives On October 11, 2016, we announced our strategic transformation plans to drive global expansion of the KFC, Pizza Hut and Taco Bell brands ("YUM's Strategic Transformation Initiatives") following the anticipated separation of our China business on October 31, 2016. Major features of the Company’s growth and transformation strategy involve being more focused on the development of our three brands, increasing our franchise ownership and creating a leaner, more efficient cost structure. This transformation will result in YUM being at least 98% refranchised by the end of 2018. During the quarter ended September 3, 2016, YUM offered a Voluntary Retirement Program to certain U.S. employees as a step towards becoming a leaner, more efficient organization. This program will provide separation pay and benefits to employees who elected to voluntarily separate from YUM. We have incurred pre-tax costs of $26 million and $32 million for the quarter and year to date, respectively, related to our Strategic Transformation Initiatives primarily related to this U.S. Voluntary Retirement Program. YUM's Strategic Transformation Initiatives represent the continuation of YUM's transformation of its operating model and capital structure following the China spin-off and recapitalization of YUM. Due to the scope of the initiatives as well as their significance, costs associated with the initiatives are not being allocated to any segment for performance reporting. Income Tax Benefit related to Little Sheep Investment

Other (Income) Expense

Other (Income) Expense	8 Months Ended
	Sep. 03, 2016
Other Income and Expenses [Abstract]
Other (Income) Expense	Other (Income) Expense Quarter ended Year to date 2016 2015 2016 2015 Equity (income) loss from investments in unconsolidated affiliates $ (18 ) $ (15 ) $ (44 ) $ (31 ) Foreign exchange net (gain) loss and other 3 12 (6 ) 19 Other (income) expense $ (15 ) $ (3 ) $ (50 ) $ (12 )

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information	8 Months Ended
	Sep. 03, 2016
Supplemental Balance Sheet Information Disclosure [Abstract]
Supplemental Balance Sheet Information	Supplemental Balance Sheet Information Accounts and Notes Receivable, net The Company’s receivables are primarily generated as a result of ongoing business relationships with our franchisees and licensees as a result of franchise and lease agreements. Trade receivables consisting of royalties from franchisees and licensees are generally due within 30 days of the period in which the corresponding sales occur and are classified as Accounts and notes receivable on our Condensed Consolidated Balance Sheets. 9/3/2016 12/26/2015 Accounts and notes receivable, gross $ 460 $ 393 Allowance for doubtful accounts (20 ) (16 ) Accounts and notes receivable, net $ 440 $ 377 Property, Plant and Equipment, net 9/3/2016 12/26/2015 Property, plant and equipment, gross $ 7,708 $ 7,832 Accumulated depreciation and amortization (3,698 ) (3,643 ) Property, plant and equipment, net $ 4,010 $ 4,189 Assets held for sale at September 3, 2016 and December 26, 2015 total $14 million and $28 million , respectively, and are included in Prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. Noncontrolling Interests Noncontrolling interests represent the ownership interests of minority shareholders of the entities that operate KFC restaurants in Beijing and Shanghai, China. At December 26, 2015, the Redeemable noncontrolling interest comprised the 7% ownership interest in Little Sheep held by the Little Sheep founding shareholders, and was classified outside of permanent equity on our Condensed Consolidated Balance Sheets due to redemption rights held by the Little Sheep founding shareholders. During the quarter ended June 11, 2016, the Little Sheep founding shareholders sold their remaining 7% Little Sheep ownership interest to YUM pursuant to their redemption rights. The difference between the purchase price of less than $1 million , which was determined using a non-fair value based formula pursuant to the agreement governing the redemption rights, and the carrying value of their redeemable noncontrolling interest, was recorded as an $8 million loss attributable to noncontrolling interests during the quarter ended June 11, 2016. Consistent with our 2012 gain on the acquisition of Little Sheep and subsequent impairments of Little Sheep goodwill and intangibles in 2013 and 2014, this loss attributable to noncontrolling interests is not being allocated to any segment operating results. A reconciliation of the beginning and ending carrying amount of the equity attributable to noncontrolling interests is as follows: Noncontrolling Interests Redeemable Noncontrolling Interest Balance at December 26, 2015 $ 58 $ 6 Net Income (loss) – noncontrolling interests 17 1 Noncontrolling interest loss upon redemption — (8 ) Dividends declared (7 ) — Currency translation adjustments and other (2 ) 1 Balance at September 3, 2016 $ 66 $ —

Income Taxes

Income Taxes	8 Months Ended
	Sep. 03, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Quarter ended Year to date 2016 2015 2016 2015 Income tax (benefit) provision $ (65 ) $ 145 $ 183 $ 358 Effective tax rate (11.6 )% 25.3 % 11.8 % 25.9 % Our effective tax rate is generally lower than the U.S. federal statutory rate of 35% due to the majority of our income being earned outside the U.S. where tax rates are generally lower than the U.S. rate. During the quarter ended September 3, 2016, we recorded a tax benefit of $233 million related to previously recorded losses associated with our Little Sheep business. The tax benefit associated with these losses was able to be recognized as a result of legal entity restructuring completed in anticipation of the China spin-off. The cash tax savings associated with this benefit will be realized as we recognize future U.S. refranchising gains.

Reportable Operating Segments

Reportable Operating Segments	8 Months Ended
	Sep. 03, 2016
Segment Reporting [Abstract]
Reportable Operating Segments	Reportable Operating Segments We identify our operating segments based on management responsibility. As described in Note 1, effective January 1, 2016 our India business was segmented by brand and integrated into the global KFC, Pizza Hut and Taco Bell Divisions. Segment information for previous periods has been restated to reflect this reporting change. The following tables summarize Revenues and Operating Profit for each of our reportable operating segments: Quarter ended Year to date Revenues 2016 2015 2016 2015 China $ 1,883 $ 1,969 $ 4,774 $ 4,861 KFC Division 723 721 2,060 2,109 Pizza Hut Division 230 264 741 802 Taco Bell Division 481 473 1,370 1,382 Unallocated (1 ) — (2 ) — $ 3,316 $ 3,427 $ 8,943 $ 9,154 Quarter ended Year to date Operating Profit 2016 2015 2016 2015 China (a) $ 348 $ 327 $ 751 $ 661 KFC Division 160 144 469 459 Pizza Hut Division 61 65 212 206 Taco Bell Division 143 132 401 386 Unallocated and Corporate General and administrative expenses (b) (80 ) (53 ) (213 ) (153 ) Unallocated Other income (expense) (3 ) (10 ) 4 (19 ) Unallocated Refranchising gain (loss) (c) 25 (2 ) 85 (60 ) Operating Profit $ 654 $ 603 $ 1,709 $ 1,480 Interest expense, net (87 ) (32 ) (164 ) (99 ) Income Before Income Taxes $ 567 $ 571 $ 1,545 $ 1,381 (a) Includes equity income from investments in unconsolidated affiliates of $18 million and $15 million for the quarters ended September 3, 2016 and September 5, 2015 , respectively. Includes equity income from investments in unconsolidated affiliates of $44 million and $31 million for the years to date ended September 3, 2016 and September 5, 2015 , respectively. (b) Primarily Corporate G&A expenses for the quarters ended September 3, 2016 and September 5, 2015 . Amounts also include costs associated with the KFC U.S. Acceleration Agreement of $21 million for the quarter ended September 5, 2015 and $17 million and $31 million for the years to date ended September 3, 2016 and September 5, 2015 , respectively. Also included are $10 million and $29 million for the quarter and year to date ended September 3, 2016 , respectively, related to the planned spin-off of the China business and YUM recapitalization, and $26 million for the quarter and $32 million for the year to date ended September 3, 2016 , respectively, associated with YUM's Strategic Transformation Initiatives. See Note 4. (c)

Pension Benefits

Pension Benefits	8 Months Ended
	Sep. 03, 2016
Compensation and Retirement Disclosure [Abstract]
Pension Benefits	Pension Benefits We sponsor qualified and supplemental (non-qualified) 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. We fund our other U.S. plans as benefits are paid. The Plan and our most significant non-qualified plan in the U.S. are closed to new salaried participants. Subsequent to the quarter ended September 3, 2016 we contributed $20 million to the Plan, and do not expect to make any further significant contributions in 2016. The components of net periodic benefit cost associated with our significant U.S. pension plans are as follows: Quarter ended Year to date 2016 2015 2016 2015 Service cost $ 4 $ 5 $ 12 $ 13 Interest cost 12 13 37 38 Expected return on plan assets (15 ) (15 ) (45 ) (43 ) Amortization of net loss 1 10 4 31 Amortization of prior service cost 2 1 4 1 Net periodic benefit cost $ 4 $ 14 $ 12 $ 40 Additional loss (gain) recognized due to settlements (a) $ 1 $ — $ 1 $ 1 (a)

Short-term Borrowings and Long-

Short-term Borrowings and Long-term Debt	8 Months Ended
	Sep. 03, 2016
Debt Disclosure [Abstract]
Short-term Borrowings and Long-term Debt	Short-term Borrowings and Long-term Debt Short-term Borrowings 9/3/2016 12/26/2015 Current maturities of long-term debt $ 55 $ 313 Unsecured Short-term Loan Credit Facility (the "Bridge Facility") — 600 Other — 9 55 922 Less current portion of debt issuance costs and discounts (7 ) — Short-term borrowings $ 48 $ 922 Long-term Debt Securitization Notes $ 2,300 $ — Subsidiary Senior Unsecured Notes 2,100 — Term Loan A Facility 500 — Term Loan B Facility 2,000 — YUM Senior Unsecured Notes 2,200 2,500 Senior Unsecured Revolving Credit Facility — 701 Capital lease obligations 154 169 Other 9 — 9,263 3,370 Less debt issuance costs and discounts (89 ) (16 ) Less current maturities of long-term debt (55 ) (313 ) Long-term debt $ 9,119 $ 3,041 During the quarter ended September 3, 2016, a group of our subsidiaries issued $2.1 billion in Senior Unsecured Notes and entered into a Credit Agreement providing for senior, secured credit facilities consisting of a $500 million Term Loan A Facility, a $2.0 billion Term Loan B Facility and a $1.0 billion revolving credit facility that was undrawn as of September 3, 2016. Also during the quarter we repaid and terminated the Senior Unsecured Revolving Credit Facility, which had $701 million of outstanding borrowings as of December 26, 2015. During the quarter ended June 11, 2016, a subsidiary of Taco Bell issued $2.3 billion in Securitization Notes, and YUM repaid $300 million in YUM Senior Unsecured Notes and repaid and terminated the Bridge Facility, which had $600 million of outstanding borrowings as of December 26, 2015 . Details of the 2016 debt issuances and repayments are described below. Details of our short-term borrowings and long-term debt as of December 26, 2015 can be found within our 2015 Form 10-K. Credit Facilities and Subsidiary Senior Unsecured Notes On June 16, 2016, KFC Holding Co., Pizza Hut Holdings, LLC, a limited liability company, and Taco Bell of America, LLC, a limited liability company ("TBA"), each of which is a wholly-owned subsidiary of the Company, as co-borrowers (the "Borrowers"), entered into a credit agreement providing for senior secured credit facilities consisting of a $500 million Term Loan A facility (the “Term Loan A Facility"), a $2.0 billion Term Loan B facility (the “Term Loan B Facility”) and a $1.0 billion revolving facility (undrawn as of close) (the “Revolving Facility”), each of which may be increased subject to certain conditions. The Term Loan A Facility, the Term Loan B Facility, and the Revolving Facility are collectively referred to as the "Credit Agreement". As of September 3, 2016, there were no outstanding borrowings under the Revolving Facility. The Term Loan A Facility is subject to quarterly amortization payments beginning one full fiscal quarter after the first anniversary of the closing date , in an amount equal to 1.25% of the initial principal amount of the facility, in each of the second and third years of the facility; in an amount equal to 1.875% of the initial principal amount of the facility, in the fourth year of the facility; and in an amount equal to 3.75% of the initial principal amount of the facility, in the fifth year of the facility, with the balance payable at maturity on the fifth anniversary of the closing date. The Term Loan B Facility is subject to quarterly amortization payments in an amount equal to 0.25% of the initial principal amount of the facility, with the balance payable at maturity on the seventh anniversary of the closing date. The interest rate for the Term Loan A Facility and for borrowings under the Revolving Facility ranges from 2.00% to 2.50% plus LIBOR or from 1.00% to 1.50% plus the Base Rate (as defined in the Credit Agreement), at the Borrowers’ election, based upon the total net leverage ratio of the Borrowers and the Specified Guarantors. The Specified Guarantors are the following subisidiaries of the Company: YUM Restaurant Services Group, LLC, Restaurant Concepts LLC and Taco Bell Corp. ("TBC") and their subsidiaries, excluding Taco Bell Funding LLC, its special purpose, wholly-owned subsidiaries (see below), and YUM China and related subsidiaries expected to be included in the spin-off. The interest rate for the Term Loan B Facility is either LIBOR plus 2.75% or the Base Rate plus 1.75% , at the Borrowers’ election. Interest on any outstanding borrowings under the Credit Agreement is payable at least quarterly . The Term Loan A Facility and the Revolving Facility mature in June 2021 and the Term Loan B Facility matures in June 2023. The Credit Agreement is unconditionally guaranteed by the Company and certain of the Borrowers’ principal domestic subsidiaries and excludes Taco Bell Funding LLC and its special purpose, wholly-owned subsidiaries (see below). The Credit Agreement is also secured by first priority liens on substantially all assets of the Borrowers and each subsidiary guarantor, excluding the stock of certain subsidiaries and certain real property, and subject to other customary exceptions. The Credit Agreement is subject to certain mandatory prepayments, including an amount equal to 50% of excess cash flow (as defined in the Credit Agreement) on an annual basis and the proceeds of certain asset sales, casualty events and issuances of indebtedness, subject to customary exceptions and reinvestment rights . The Credit Agreement includes two financial maintenance covenants which require the Borrowers to maintain a total leverage ratio (defined as the ratio of Consolidated Total Debt to Consolidated EBITDA (as these terms are defined in the Credit Agreement)) of 5.0:1 or less and a fixed charge coverage ratio (defined as the ratio of EBITDA minus capital expenditures to fixed charges (inclusive of rental expense and scheduled amortization)) of at least 1.5:1 , each as of the last day of each fiscal quarter. The Credit Agreement includes other affirmative and negative covenants and events of default that are customary for facilities of this type. The Credit Agreement contains, among other things, limitations on certain additional indebtedness and liens, and certain other transactions specified in the agreement. We were in compliance with all debt covenants as of September 3, 2016 . Additionally, on June 16, 2016, the Borrowers issued $1.05 billion aggregate principal amount of 5.00% Senior Unsecured Notes due 2024 and $1.05 billion aggregate principal amount of 5.25% Senior Unsecured Notes due 2026 (together, the “Subsidiary Senior Unsecured Notes”). Interest on each series of Subsidiary Senior Unsecured Notes is payable semi-annually in arrears on June 1 and December 1, beginning on December 1, 2016. The Subsidiary Senior Unsecured Notes are guaranteed on a senior unsecured basis by (i) the Company, (ii) the Specified Guarantors and (iii) by each of the Borrower's and the Specified Guarantors’ domestic subsidiaries that guarantees the Borrower's obligations under the Credit Agreement, except for any of the Company’s foreign subsidiaries. The indenture governing the Subsidiary Senior Unsecured Notes contains covenants and events of default that are customary for debt securities of this type. We were in compliance with all debt covenants as of September 3, 2016. During the year to date ended September 3, 2016, the Company incurred debt issuance costs of $55 million in connection with the issuance of the Credit Agreement and the Subsidiary Senior Unsecured Notes. The debt issuance costs are being amortized to Interest expense, net through the contractual maturity of the agreements utilizing the effective interest rate method. We classify these deferred costs on our Condensed Consolidated Balance Sheet as a reduction in the related debt when borrowings are outstanding or within Other assets if borrowings are not outstanding. As of September 3, 2016, the effective interest rates, including the amortization of debt issuance costs and the impact of the interest rate swaps on Term Loan B Facility (See Note 11), were 5.16% , 5.39% , 2.93% , and 3.70% for the Senior Unsecured Notes due 2024, the Senior Unsecured Notes due 2026, the Term Loan A Facility, and the Term Loan B Facility, respectively. We used certain of the net proceeds from the issuances of the Subsidiary Senior Unsecured Notes and the Credit Agreement to repay all outstanding amounts on our existing senior unsecured revolving credit facility (the “Senior Unsecured Revolving Credit Facility”) in the quarter ended September 3, 2016 . Concurrent with this repayment the Senior Unsecured Revolving Credit Facility was terminated. The remaining proceeds are being used by the Company to return capital to shareholders through share repurchases and for general corporate purposes. Securitization Notes On May 11, 2016 Taco Bell Funding, LLC (the “Issuer”), a newly formed, special purpose limited liability company and a direct, wholly-owned subsidiary of TBC completed a securitization transaction and issued $800 million of its Series 2016-1 3.832% Fixed Rate Senior Secured Notes, Class A-2-I (the “Class A-2-I Notes”), $500 million of its Series 2016-1 4.377% Fixed Rate Senior Secured Notes, Class A-2-II (the “Class A-2-II Notes”) and $1.0 billion of its Series 2016-1 4.970% Fixed Rate Senior Secured Notes, Class A-2-III (the “Class A-2-III Notes” and, together with the Class A-2-I Notes and the Class A-2-II Notes, the “Class A-2 Notes”). In connection with the issuance of the Class A-2 Notes, the Issuer also entered into a revolving financing facility of Series 2016-1 Senior Notes, Class A-1 (the “Variable Funding Notes”), which allows for the borrowing of up to $100 million and the issuance of up to $50 million in letters of credit. The Class A-2 Notes and the Variable Funding Notes are referred to collectively as the “Securitization Notes”. The Class A-2 Notes were issued under a Base Indenture, dated as of May 11, 2016 (the “Base Indenture”), and the related Series 2016-1 Supplement thereto, dated as of May 11, 2016 (the “Series 2016-1 Supplement”). The Base Indenture and the Series 2016-1 Supplement (collectively, the “Indenture”) will allow the Issuer to issue additional series of notes. The Securitization Notes were issued in a transaction pursuant to which certain of TBC’s domestic assets, consisting principally of franchise-related agreements, and domestic intellectual property, were contributed to the Issuer and the Issuer’s special purpose, wholly-owned subsidiaries (the “Guarantors”, and collectively with the Issuer, the "Securitization Entities") to secure the Securitization Notes. The Securitization Notes are secured by substantially all of these same assets, and include a lien on all existing and future U.S. Taco Bell franchise and license agreements and the royalties payable thereunder, existing and future U.S. Taco Bell intellectual property, certain transaction accounts and a pledge of the equity interests in asset-owning Securitization Entities. The remaining U.S. Taco Bell assets that were excluded from the transfers to the Securitization Entities continue to be held by TBA and TBC. The Securitization Notes are not guaranteed by the remaining U.S. Taco Bell assets, the Company, or any other subsidiary of the Company. Payments of interest and principal on the Securitization Notes are made from the royalty fees paid pursuant to the franchise and license agreements with all U.S. Taco Bell restaurants, including both company and franchise operated restaurants. Interest on and principal payments of the Class A-2 Notes are due on a quarterly basis. In general, no amortization of principal of the Class A-2 Notes is required prior to their anticipated repayment dates unless as of any quarterly measurement date the consolidated leverage ratio (the ratio of total debt to Net Cash Flow (as defined in the Indenture)) for the preceding four fiscal quarters of either the Company and its subsidiaries or the Issuer and its subsidiaries exceeds 5.0:1, in which case amortization payments of 1% per year of the outstanding principal as of the closing of the Securitization Notes is required . The legal final maturity date of the Notes is in May 2046, but the anticipated repayment dates of the Class A-2-I Notes, the Class A-2-II Notes and the Class A-2-III Notes will be 4 , 7 and 10 years, respectively (the “Anticipated Repayment Dates”) from the date of issuance. If the Issuer has not repaid or refinanced a series of Class A-2 Notes prior to its respective Anticipated Repayment Dates, rapid amortization of principal on all Securitization Notes will occur and additional interest will accrue on the Class A-2 Notes, as stated in the Indenture. Interest on the Variable Funding Notes will be based on (i) the prime rate, (ii) the overnight federal funds rates, (iii) the London interbank offered rate (“LIBOR”) for U.S. Dollars or (iv) with respect to advances made by conduit investors, the weighted average cost of, or related to, the issuance of commercial paper allocated to fund or maintain such advances, plus any applicable margin, in each case as more fully set forth in the Variable Funding Note Purchase Agreement. It is anticipated that the principal of and interest on the Variable Funding Notes will be repaid in full on or prior to May 2021, subject to two additional one-year extensions at the option of the Issuer and further extensions as agreed between the Issuer and the Administrative Agent. Following the anticipated repayment date and any extensions thereof, additional interest will accrue on the Variable Funding Notes equal to 5.00% per year . As of September 3, 2016 , $15 million of letters of credit were outstanding against the Variable Funding Notes, which relate primarily to interest reserves required under the Indenture. The Variable Funding Notes were undrawn at September 3, 2016 . During the quarter ended June 11, 2016, the Company incurred debt issuance costs of $31 million in connection with the issuance of the Securitization Notes. The debt issuance costs are being amortized to Interest expense, net through the Anticipated Repayment Dates of the Securitization Notes utilizing the effective interest rate method. We classify these deferred costs on our Condensed Consolidated Balance Sheet as a reduction in the related debt when borrowings are outstanding or within Other assets if borrowings are not outstanding. As of September 3, 2016 , the effective interest rates, including the amortization of debt issuance costs, were 4.18% , 4.59% , and 5.14% for the Class A-2-I Notes, Class A-2-II Notes and Class A-2-III Notes, respectively. The Securitization Notes are subject to a series of covenants and restrictions customary for transactions of this type, including (i) that the Issuer maintains specified reserve accounts to be available to make required interest payments in respect of the Securitization Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Class A-2 Notes under certain circumstances, (iii) certain indemnification payments relating to taxes, enforcement costs and other customary items and (iv) covenants relating to recordkeeping, access to information and similar matters. The Securitization Notes are also subject to rapid amortization events provided for in the Indenture, including events tied to failure to maintain a stated debt service coverage ratio (as defined in the Indenture) of at least 1.1:1 , gross domestic sales for branded restaurants being below certain levels on certain measurement dates, a manager termination event, an event of default and the failure to repay or refinance the Class A-2 Notes on the Anticipated Repayment Date (subject to limited cure rights). The Securitization Notes are also subject to certain customary events of default, including events relating to non-payment of required interest or principal due on the Securitization Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, certain judgments and failure of the Securitization Entities to maintain a stated debt service coverage ratio. As of September 3, 2016, we were in compliance with all of our debt covenant requirements and were not subject to any rapid amortization events. In accordance with the Indenture, certain cash accounts have been established with the Indenture trustee for the benefit of the note holders, and are restricted in their use. The Indenture requires a certain amount of securitization cash flow collections to be allocated on a weekly basis and maintained in a cash reserve account. As of September 3, 2016 the Company had restricted cash of $52 million primarily related to required interest reserves. Such restricted cash is included in Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheet as of September 3, 2016 . Changes in restricted cash have been presented as a component of cash flows from operating activities in the Condensed Consolidated Statement of Cash Flows since the cash is restricted to the payment of interest. Once the required obligations are satisfied, there are no further restrictions, including payment of dividends, on the cash flows of the Securitization Entities. Additional cash reserves are required if any of the rapid amortization events occur, as noted above, or in the event that as of any quarterly measurement date the Securitization Entities fail to maintain a debt service coverage ratio (or the ratio of Net Cash Flow to all debt service payments for the preceding four fiscal quarters) of at least 1.75:1 . The amount of weekly cash flow that exceeds the required weekly allocations is generally remitted to the Company. During the quarter ended September 3, 2016, the Securitization Entities maintained a debt service coverage ratio significantly in excess of the 1.75:1 requirement . We used certain of the proceeds from the issuance of the Class A-2 Notes to repay $2.0 billion

Derivative Instruments

Derivative Instruments	8 Months Ended
	Sep. 03, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments We use derivative instruments to manage certain of our market risks related to fluctuations in interest rates and foreign currency exchange rates. Interest Rate Swaps We enter into interest rate swaps with the objective of reducing our exposure to interest rate risk for a portion of our variable-rate debt interest payments. During the quarter ended September 3, 2016, we agreed with multiple counterparties to swap the variable LIBOR-based component of the interest payments related to $1.55 billion of our $2.0 billion Term Loan B Facility, resulting in a fixed rate of 3.92% on the swapped portion of the Term Loan B Facility. These interest rate swaps will expire in July 2021 and are designated cash flow hedges as the changes in the future cash flows of the swaps are expected to offset changes in interest payments on the related variable-rate debt. There were no other interest rate swaps outstanding as of September 3, 2016. The effective portion of gains or losses on the interest rate swaps is reported as a component of Accumulated OCI ("AOCI") and reclassified into Interest expense, net in our Condensed Consolidated Statement of Income in the same period or periods during which the related hedged interest payments affect earnings. Gains or losses on the swaps representing hedge ineffectiveness are recognized in current earnings. As of September 3, 2016, the swaps were highly effective cash flow hedges and no ineffectiveness has been recorded. Foreign Currency Contracts We enter into foreign currency forward and swap contracts with the objective of reducing our exposure to earnings volatility arising from foreign currency fluctuations associated with certain foreign currency denominated intercompany receivables and payables. The notional amount, maturity date, and currency of these contracts match those of the underlying intercompany receivables or payables. Our foreign currency contracts are designated cash flow hedges as the future cash flows of the contracts are expected to offset changes in intercompany receivables and payables due to foreign currency exchange rate fluctuations. The effective portion of gains or losses on the foreign currency contracts is reported as a component of AOCI. Amounts are reclassified from AOCI each quarter to offset foreign currency transaction gains or losses recorded within Other (income) expense when the related intercompany receivables and payables affect earnings due to their functional currency remeasurements. Gains or losses on the foreign currency contracts representing hedge ineffectiveness are recognized in current earnings. As of September 3, 2016, all foreign currency contracts were highly effective cash flow hedges and no ineffectiveness has been recorded. As of September 3, 2016, and September 5, 2015, foreign currency forward and swap contracts outstanding had total notional amounts of $470 million , and have durations expiring starting in November 2016 and ending in June 2020. As of September 3, 2016, the estimated net loss included in AOCI related to our cash flow hedges that will be reclassified into earnings in the next 12 months is $5 million . As a result of the use of derivative instruments, the Company is exposed to risk that the counterparties will fail to meet their contractual obligations. To mitigate the counterparty credit risk, we only enter into contracts with carefully selected major financial institutions based upon their credit ratings and other factors, and continually assess the creditworthiness of counterparties. At September 3, 2016, all of the counterparties to our interest rate swaps and foreign currency contracts had investment grade ratings according to the three major ratings agencies. To date, all counterparties have performed in accordance with their contractual obligations. Gains and losses on derivative instruments designated as cash flow hedges recognized in OCI and reclassifications from AOCI into Net Income: Quarter ended Year to date Gains/(Losses) Recognized in OCI (Gains)/Losses Reclassified from AOCI into Net Income Gains/(Losses) Recognized in OCI (Gains)/Losses Reclassified from AOCI into Net Income 2016 2015 2016 2015 2016 2015 2016 2015 Interest rate swaps $ (4 ) $ — $ 1 $ — $ (4 ) $ — $ 1 $ — Foreign currency contracts 15 8 (13 ) (10 ) (16 ) 20 20 (22 ) Income tax benefit/(expense) — — 1 — — (4 ) 1 4

Fair Value Disclosures

Fair Value Disclosures	8 Months Ended
	Sep. 03, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Disclosures As of September 3, 2016, the carrying values of cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximated their fair values because of the short-term nature of these instruments. The fair values of notes receivable net of allowances and lease guarantees less subsequent amortization approximates their carrying values. We estimated the fair value of the YUM and Subsidiary Senior Unsecured Notes, Term Loan A Facility, and Term Loan B Facility using market quotes and calculations based on market rates. We estimated the fair value of the Class A-2 Notes by obtaining broker quotes from two separate brokerage firms that are knowledgeable about the Company’s Class A-2 Notes and, at times, trade these notes. The markets in which the Class A-2 Notes trade are not considered active markets. The fair value of the Company’s foreign currency contracts 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 fair value of the other investments (Level 1) was determined based on the closing market prices of the respective mutual funds as of September 3, 2016, and December 26, 2015. The YUM and Subsidiary Senior Unsecured Notes were estimated to have a combined fair value of $4.5 billion (Level 2), compared to their combined carrying value of $4.3 billion as of September 3, 2016. The fair values of the Company’s Term Loan A Facility and Term Loan B Facility approximated their respective carrying values of $0.5 billion (Level 2) and $2.0 billion (Level 2) as of September 3, 2016. As of September 3, 2016 the Company’s Class A-2 Notes were estimated to have a collective fair value of $2.4 billion (Level 2), compared to a collective carrying value of $2.3 billion . The following table presents fair values for those assets and liabilities (See Note 11 for discussion regarding derivative instruments) measured at fair value on a recurring basis and the level within the fair value hierarchy in which the measurements fall. No transfers among the levels within the fair value hierarchy occurred during the quarter and year to date ended September 3, 2016. Fair Value Level 9/3/2016 12/26/2015 Condensed Consolidated Balance Sheet Interest Rate Swaps - Liability 2 $ 7 $ 2 Accounts payable and other current liabilities Interest Rate Swaps - Asset 2 3 — Other assets Foreign Currency Contracts - Asset 2 6 — Prepaid expenses and other current assets Foreign Currency Contracts - Liability 2 3 — Other liabilities and deferred credits Foreign Currency Contracts - Asset 2 — 19 Other assets Other Investments 1 23 21 Other assets During the quarter and year to date ended September 3, 2016, we recorded restaurant-level impairment (Level 3) of $4 million and $39 million , respectively. During the quarter and year to date ended September 5, 2015, we recorded restaurant-level impairment (Level 3) of $1 million and $19 million

Guarantees, Commitments and Con

Guarantees, Commitments and Contingencies	8 Months Ended
	Sep. 03, 2016
Commitments and Contingencies Disclosure [Abstract]
Guarantees, Commitments and Contingencies	Guarantees, Commitments and Contingencies Lease Guarantees As a result of having assigned our interest in obligations under real estate leases as a condition to the refranchising of certain Company restaurants and guaranteeing certain other leases, we are frequently contingently liable on lease agreements. These leases have varying terms, the latest of which expires in 2065. As of September 3, 2016 the potential amount of undiscounted payments we could be required to make in the event of non-payment by the primary lessees was approximately $525 million . The present value of these potential payments discounted at our pre-tax cost of debt at September 3, 2016 was approximately $450 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 agreements in the event of non-payment under the leases. 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 as of September 3, 2016 was not material. Other Franchise Guarantees We have provided guarantees of $15 million on behalf of franchisees for several financing programs related to specific initiatives. The total loans outstanding under these financing programs were $43 million as of September 3, 2016 . Legal Proceedings We are subject to various claims and contingencies related to lawsuits, real estate, environmental and other matters arising in the normal course of business. An accrual is recorded with respect to claims or contingencies for which a loss is determined to be probable and reasonably estimable. The Company and Taco Bell were named as defendants in a number of putative class action suits filed in 2007, 2008, 2009 and 2010 alleging violations of California labor laws including unpaid overtime, failure to timely pay wages on termination, failure to pay accrued vacation wages, failure to pay minimum wage, denial of meal and rest breaks, improper wage statements, unpaid business expenses, wrongful termination, discrimination, conversion and unfair or unlawful business practices in violation of California Business & Professions Code §17200. Some plaintiffs also sought penalties for alleged violations of California’s Labor Code under California’s Private Attorneys General Act (“PAGA”) as well as statutory “waiting time” penalties and alleged violations of California’s Unfair Business Practices Act. Plaintiffs sought to represent a California state-wide class of hourly employees. These matters were consolidated, and the consolidated case is styled In Re Taco Bell Wage and Hour Actions . The In Re Taco Bell Wage and Hour Actions plaintiffs filed a consolidated complaint in June 2009, and in March 2010 the court approved the parties’ stipulation to dismiss the Company from the action, leaving Taco Bell as the sole defendant. Plaintiffs filed their motion for class certification on the vacation and final pay claims in December 2010, and on September 26, 2011 the court issued its order denying the certification of the vacation and final pay claims. Plaintiffs then sought to certify four separate meal and rest break classes. On January 2, 2013, the court rejected three of the proposed classes but granted certification with respect to the late meal break class. The parties thereafter agreed on a list of putative class members, and the class notice and opt out forms were mailed on January 21, 2014. Per order of the court, plaintiffs filed a second amended complaint to clarify the class claims. Plaintiffs also filed a motion for partial summary judgment. Taco Bell filed motions to strike and to dismiss, as well as a motion to alter or amend the second amended complaint. On August 29, 2014, the court denied plaintiffs’ motion for partial summary judgment. On that same date, the court granted Taco Bell’s motion to dismiss all but one of the PAGA claims. On October 29, 2014, plaintiffs filed a motion to amend the operative complaint and a motion to amend the class certification order. On December 16, 2014, the court partially granted both motions, rejecting plaintiffs’ proposed on-duty meal period class but certifying a limited rest break class and certifying an underpaid meal premium class, and allowing the plaintiffs to amend the complaint to reflect those certifications. On December 30, 2014, plaintiffs filed the third amended complaint. On February 26, 2015, the court denied a motion by Taco Bell to dismiss or strike the underpaid meal premium class. Beginning on February 22, 2016, the late meal period class claim, the limited rest break class claim, the underpaid meal premium class claim, and the associated statutory “waiting time” penalty claim was tried to a jury. On March 9, 2016, the jury returned verdicts in favor of Taco Bell on the late meal period claim, the limited rest break claim, and the statutory “waiting time” penalty claim. The jury found for the plaintiffs on the underpaid meal premium class claim, awarding approximately $0.5 million . A bench trial was subsequently conducted with respect to the PAGA claims and plaintiffs’ Business & Professions Code §17200 claim. On April 8, 2016, the court returned a verdict in favor of Taco Bell on the PAGA claims and the §17200 claim. In a separate ruling issued the same day, the court also ruled that plaintiffs were entitled to prejudgment interest on the underpaid meal premium class claim, awarding approximately $0.3 million . Taco Bell denies liability as to the underpaid meal premium class claim and filed a post-trial motion to overturn the verdict. Plaintiffs’ also filed various post-trial motions. On July 15, 2016, the court denied Taco Bell’s motion to overturn the verdict. The court denied Plaintiffs’ motions: (1) for a new trial, (2) for judgment as a matter of law to overturn the verdicts in favor of Taco Bell, (3) challenging the jury instructions and special verdict forms, and (4) to overturn the court’s rejection of the §17200 claims for meal and rest break violations. The court also denied Plaintiffs’ motions for additional costs and for enhanced awards to two of the named Plaintiffs. The court granted Plaintiffs’ motion for judgment on the §17200 claim regarding the underpaid meal premium claim, but rejected awarding any additional damages, finding that the jury verdict sufficiently compensated the class. The court granted Plaintiffs’ motion for attorneys’ fees, but awarded only approximately $1.1 million of the $7.3 million requested. The court also granted Plaintiffs’ bill of costs, but only awarded approximately $93,000 of Plaintiffs’ $166,000 . Thereafter, both Plaintiffs and Taco Bell timely filed notices of appeal and the matter is now before the Ninth Circuit. We have provided for a reasonable estimate of the possible loss relating to this lawsuit. However, in view of the inherent uncertainties of litigation, there can be no assurance that this lawsuit will not result in losses in excess of those currently provided for in our Condensed Consolidated Financial Statements.

Earnings Per Common Share ("E20

Earnings Per Common Share ("EPS") (Tables)	8 Months Ended
	Sep. 03, 2016
Earnings Per Share [Abstract]
Earnings Per Common Share Table	Quarter ended Year to date 2016 2015 2016 2015 Net Income – YUM! Brands, Inc. $ 622 $ 421 $ 1,352 $ 1,018 Weighted-average common shares outstanding (for basic calculation) 392 436 406 437 Effect of dilutive share-based employee compensation 6 8 6 8 Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) 398 444 412 445 Basic EPS $ 1.59 $ 0.97 $ 3.33 $ 2.33 Diluted EPS $ 1.56 $ 0.95 $ 3.28 $ 2.29 Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation (a) 2.3 4.2 6.2 4.3 (a)

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	8 Months Ended
	Sep. 03, 2016
Stockholders' Equity Note [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Changes in accumulated other comprehensive income (loss) ("OCI") are presented below. Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature Pension and Post-Retirement Benefits Derivative Instruments Total Balance at December 26, 2015, net of tax $ (109 ) $ (113 ) $ (17 ) $ (239 ) Gains (losses) arising during the year classified into accumulated OCI, net of tax (92 ) — (20 ) (112 ) (Gains) losses reclassified from accumulated OCI, net of tax — 5 22 27 OCI, net of tax (92 ) 5 2 (85 ) Balance at September 3, 2016, net of tax $ (201 ) $ (108 ) $ (15 ) $ (324 )
Repurchase Of Shares Of Common Stock	Under the authority of our Board of Directors, we repurchased shares of our Common Stock during the years to date as indicated below. All amounts exclude applicable transaction fees. Shares Repurchased (thousands) Dollar Value of Shares Repurchased Remaining Dollar Value of Shares that may be Repurchased Authorization Date 2016 2015 2016 2015 2016 November 2013 — 1,779 $ — $ 133 $ — November 2014 — 2,737 — 237 — December 2015 13,369 — 933 — — March 2016 2,823 — 228 — — May 2016 30,117 — 2,596 — 1,604 Total 46,309 (a) 4,516 $ 3,757 (a) $ 370 $ 1,604 (a) Includes the effect of $105 million in share repurchases ( 1.2 million shares) with trade dates prior to September 3, 2016 but cash settlement dates subsequent to September 3, 2016.

Items Affecting Comparability22

Items Affecting Comparability of Net Income and Cash Flows (Tables)	8 Months Ended
	Sep. 03, 2016
Items Affecting Comparability of Net Income and Cash Flows [Abstract]
Facility Actions	Refranchising (Gain) Loss The Refranchising (gain) loss by reportable segment is presented below. We do not allocate such gains and losses to our segments for performance reporting purposes. During the quarter ended September 3, 2016 we refranchised 123 restaurants, primarily Taco Bell and Pizza Hut restaurants in the U.S. We received $67 million in proceeds and recorded $25 million of net pre-tax refranchising gains related to these transactions. During the year to date ended September 3, 2016 we refranchised 250 restaurants, primarily Pizza Hut and Taco Bell restaurants in the U.S. We received $165 million in proceeds and recorded $85 million of net pre-tax refranchising gains related to these transactions. Quarter ended Year to date 2016 2015 2016 2015 China $ (4 ) $ (3 ) $ (8 ) $ (7 ) KFC Division (a) 1 4 2 36 Pizza Hut Division (a) (8 ) 15 (64 ) 52 Taco Bell Division (14 ) (14 ) (15 ) (21 ) Worldwide $ (25 ) $ 2 $ (85 ) $ 60 (a) In 2010 we refranchised our then-remaining Company-operated restaurants in Mexico. To the extent we owned it, we did not sell the real estate related to certain of these restaurants, instead leasing it to the franchisee. During the quarter ended June 13, 2015, we initiated plans to sell this real estate and determined it was held for sale in accordance with GAAP. On September 28, 2015, subsequent to our quarter ended September 5, 2015, we sold the real estate for approximately $58 million . While these proceeds exceeded the book value of the real estate, the sale represented a substantial liquidation of our Mexican operations under GAAP. Accordingly, we were required to include accumulated translation losses associated with our Mexican business within our carrying value when performing impairment evaluations subsequent to determining that the real estate was held for sale. We recorded charges of $12 million and $80 million in the quarter and year to date ended September 5, 2015, respectively, representing the excess of the sum of the book value of the real estate and other related assets and our accumulated translation losses over the then-expected sales price. Consistent with the classification of the original market refranchising transaction, these charges were classified as Refranchising (Gain) Loss. Refranchising Losses of $4 million and $40 million were associated with the KFC Division for the quarter and year to date ended September 5, 2015, respectively. Refranchising Losses of $8 million and $40 million were associated with the Pizza Hut Division for the quarter and year to date ended September 5, 2015, respectively. The proceeds ultimately received for the real estate approximated our carrying value including the remaining unrecognized accumulated translation losses as of September 5, 2015. Additionally, during the quarter and year to date ended September 5, 2015 we recognized charges of $8 million and $13 million

Other (Income) Expense (Tables)

Other (Income) Expense (Tables)	8 Months Ended
	Sep. 03, 2016
Other Income and Expenses [Abstract]
Other (Income) Expense Table	Quarter ended Year to date 2016 2015 2016 2015 Equity (income) loss from investments in unconsolidated affiliates $ (18 ) $ (15 ) $ (44 ) $ (31 ) Foreign exchange net (gain) loss and other 3 12 (6 ) 19 Other (income) expense $ (15 ) $ (3 ) $ (50 ) $ (12 )

Supplemental Balance Sheet In24

Supplemental Balance Sheet Information (Tables)	8 Months Ended
	Sep. 03, 2016
Supplemental Balance Sheet Information Disclosure [Abstract]
Accounts and Notes Receivable	9/3/2016 12/26/2015 Accounts and notes receivable, gross $ 460 $ 393 Allowance for doubtful accounts (20 ) (16 ) Accounts and notes receivable, net $ 440 $ 377
Property, Plant and Equipment	9/3/2016 12/26/2015 Property, plant and equipment, gross $ 7,708 $ 7,832 Accumulated depreciation and amortization (3,698 ) (3,643 ) Property, plant and equipment, net $ 4,010 $ 4,189
Equity attributable to noncontrolling interests, rollforward	A reconciliation of the beginning and ending carrying amount of the equity attributable to noncontrolling interests is as follows: Noncontrolling Interests Redeemable Noncontrolling Interest Balance at December 26, 2015 $ 58 $ 6 Net Income (loss) – noncontrolling interests 17 1 Noncontrolling interest loss upon redemption — (8 ) Dividends declared (7 ) — Currency translation adjustments and other (2 ) 1 Balance at September 3, 2016 $ 66 $ —

Income Taxes (Tables)

Income Taxes (Tables)	8 Months Ended
	Sep. 03, 2016
Income Tax Disclosure [Abstract]
Income Tax And Effective Tax Rate	Quarter ended Year to date 2016 2015 2016 2015 Income tax (benefit) provision $ (65 ) $ 145 $ 183 $ 358 Effective tax rate (11.6 )% 25.3 % 11.8 % 25.9 %

Reportable Operating Segments (

Reportable Operating Segments (Tables)	8 Months Ended
	Sep. 03, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following tables summarize Revenues and Operating Profit for each of our reportable operating segments: Quarter ended Year to date Revenues 2016 2015 2016 2015 China $ 1,883 $ 1,969 $ 4,774 $ 4,861 KFC Division 723 721 2,060 2,109 Pizza Hut Division 230 264 741 802 Taco Bell Division 481 473 1,370 1,382 Unallocated (1 ) — (2 ) — $ 3,316 $ 3,427 $ 8,943 $ 9,154 Quarter ended Year to date Operating Profit 2016 2015 2016 2015 China (a) $ 348 $ 327 $ 751 $ 661 KFC Division 160 144 469 459 Pizza Hut Division 61 65 212 206 Taco Bell Division 143 132 401 386 Unallocated and Corporate General and administrative expenses (b) (80 ) (53 ) (213 ) (153 ) Unallocated Other income (expense) (3 ) (10 ) 4 (19 ) Unallocated Refranchising gain (loss) (c) 25 (2 ) 85 (60 ) Operating Profit $ 654 $ 603 $ 1,709 $ 1,480 Interest expense, net (87 ) (32 ) (164 ) (99 ) Income Before Income Taxes $ 567 $ 571 $ 1,545 $ 1,381 (a) Includes equity income from investments in unconsolidated affiliates of $18 million and $15 million for the quarters ended September 3, 2016 and September 5, 2015 , respectively. Includes equity income from investments in unconsolidated affiliates of $44 million and $31 million for the years to date ended September 3, 2016 and September 5, 2015 , respectively. (b) Primarily Corporate G&A expenses for the quarters ended September 3, 2016 and September 5, 2015 . Amounts also include costs associated with the KFC U.S. Acceleration Agreement of $21 million for the quarter ended September 5, 2015 and $17 million and $31 million for the years to date ended September 3, 2016 and September 5, 2015 , respectively. Also included are $10 million and $29 million for the quarter and year to date ended September 3, 2016 , respectively, related to the planned spin-off of the China business and YUM recapitalization, and $26 million for the quarter and $32 million for the year to date ended September 3, 2016 , respectively, associated with YUM's Strategic Transformation Initiatives. See Note 4. (c)

Pension Benefits (Tables)

Pension Benefits (Tables)	8 Months Ended
	Sep. 03, 2016
Compensation and Retirement Disclosure [Abstract]
Components of Net Periodic Benefit Cost	The components of net periodic benefit cost associated with our significant U.S. pension plans are as follows: Quarter ended Year to date 2016 2015 2016 2015 Service cost $ 4 $ 5 $ 12 $ 13 Interest cost 12 13 37 38 Expected return on plan assets (15 ) (15 ) (45 ) (43 ) Amortization of net loss 1 10 4 31 Amortization of prior service cost 2 1 4 1 Net periodic benefit cost $ 4 $ 14 $ 12 $ 40 Additional loss (gain) recognized due to settlements (a) $ 1 $ — $ 1 $ 1 (a) Losses are a result of settlement transactions from a non-funded plan which exceeded the sum of annual service and interest costs for that plan. These losses were recorded in G&A expenses.

Short-term Borrowings and Lon28

Short-term Borrowings and Long-term Debt (Tables)	8 Months Ended
	Sep. 03, 2016
Debt Disclosure [Abstract]
Schedule of Short-term Borrowings and Long-term Debt	Short-term Borrowings 9/3/2016 12/26/2015 Current maturities of long-term debt $ 55 $ 313 Unsecured Short-term Loan Credit Facility (the "Bridge Facility") — 600 Other — 9 55 922 Less current portion of debt issuance costs and discounts (7 ) — Short-term borrowings $ 48 $ 922 Long-term Debt Securitization Notes $ 2,300 $ — Subsidiary Senior Unsecured Notes 2,100 — Term Loan A Facility 500 — Term Loan B Facility 2,000 — YUM Senior Unsecured Notes 2,200 2,500 Senior Unsecured Revolving Credit Facility — 701 Capital lease obligations 154 169 Other 9 — 9,263 3,370 Less debt issuance costs and discounts (89 ) (16 ) Less current maturities of long-term debt (55 ) (313 ) Long-term debt $ 9,119 $ 3,041

Derivative Instruments (Tables)

Derivative Instruments (Tables)	8 Months Ended
	Sep. 03, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gains and losses on derivative instruments designated as cash flow hedges recognized in other comprehensive income and reclassifications from AOCI to earnings	Gains and losses on derivative instruments designated as cash flow hedges recognized in OCI and reclassifications from AOCI into Net Income: Quarter ended Year to date Gains/(Losses) Recognized in OCI (Gains)/Losses Reclassified from AOCI into Net Income Gains/(Losses) Recognized in OCI (Gains)/Losses Reclassified from AOCI into Net Income 2016 2015 2016 2015 2016 2015 2016 2015 Interest rate swaps $ (4 ) $ — $ 1 $ — $ (4 ) $ — $ 1 $ — Foreign currency contracts 15 8 (13 ) (10 ) (16 ) 20 20 (22 ) Income tax benefit/(expense) — — 1 — — (4 ) 1 4

Fair Value Disclosures (Tables)

Fair Value Disclosures (Tables)	8 Months Ended
	Sep. 03, 2016
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following table presents fair values for those assets and liabilities (See Note 11 for discussion regarding derivative instruments) measured at fair value on a recurring basis and the level within the fair value hierarchy in which the measurements fall. No transfers among the levels within the fair value hierarchy occurred during the quarter and year to date ended September 3, 2016. Fair Value Level 9/3/2016 12/26/2015 Condensed Consolidated Balance Sheet Interest Rate Swaps - Liability 2 $ 7 $ 2 Accounts payable and other current liabilities Interest Rate Swaps - Asset 2 3 — Other assets Foreign Currency Contracts - Asset 2 6 — Prepaid expenses and other current assets Foreign Currency Contracts - Liability 2 3 — Other liabilities and deferred credits Foreign Currency Contracts - Asset 2 — 19 Other assets Other Investments 1 23 21 Other assets

Financial Statement Presentat31

Financial Statement Presentation (Details) - USD ($) $ in Millions	3 Months Ended		4 Months Ended	8 Months Ended
	Sep. 03, 2016	Sep. 05, 2015	Dec. 31, 2016	Sep. 03, 2016	Sep. 05, 2015
Total Revenues	$ 3,316	$ 3,427		$ 8,943	$ 9,154
Operating Profit	654	603		1,709	1,480
KFC Global Division [Member]
Total Revenues	723	721		2,060	2,109
Operating Profit	160	144		469	459
KFC Global Division [Member] | Impact of India Integration into Other Brand Divisions [Member]
Total Revenues	27			79
Operating Profit	(6)			(12)
Pizza Hut Global Division [Member]
Total Revenues	230	264		741	802
Operating Profit	61	65		212	206
Pizza Hut Global Division [Member] | Impact of India Integration into Other Brand Divisions [Member]
Total Revenues	2			5
Operating Profit	(2)			(2)
Taco Bell Global Division [Member]
Total Revenues	481	473		1,370	1,382
Operating Profit	143	$ 132		401	$ 386
Taco Bell Global Division [Member] | Impact of India Integration into Other Brand Divisions [Member]
Total Revenues	1			2
Operating Profit	$ (1)			$ (1)
CHINA | Subsequent Event [Member]
Separation date for China business			Oct. 31, 2016

Financial Statement Presentat32

Financial Statement Presentation (Details 2)	8 Months Ended
	Sep. 03, 2016Monthsoperating_segmentsweeksshares
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Fiscal Period Weeks Standard | weeks	12
Number of periods or months in advance that certain of our international businesses close their books	1
Fiscal Period Weeks Standard Fourth Quarter | weeks	16
Number of Reportable Segments | operating_segments	4
Fiscal period months standard first quarter	2
Fiscal period months standard second and third quarters	3
Fiscal period months standard fourth quarter	4
Number of Yum China Shares distributed for each Yum Share held at spin date | shares	1
Record date for distribution of Yum China common stock	Oct. 19, 2016

Financial Statement Presentat33

Financial Statement Presentation (Details 3) - USD ($) $ in Millions	Sep. 03, 2016	Dec. 26, 2015
Debt Issuance Costs, Noncurrent, Net	$ 89	$ 16
Debt Issuance Costs, Current, Net	$ 7	0
Accounting Standards Update 2015-03 [Member] | Decrease to Other Assets and Long-Term Debt from Restatement due to ASU 2015-03 [Member]
Debt Issuance Costs, Noncurrent, Net		13
Accounting Standards Update 2015-03 [Member] | Decrease to Prepaid Expense & Other Current Assets and Short-Term Borrowings from Restatement due to ASU 2015-03 [Member]
Debt Issuance Costs, Current, Net		$ 1

Earnings Per Common Share ("E34

Earnings Per Common Share ("EPS") (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended		8 Months Ended
		Sep. 03, 2016	Sep. 05, 2015	Sep. 03, 2016	Sep. 05, 2015
Earnings Per Share [Abstract]
Net Income - YUM! Brands, Inc.		$ 622	$ 421	$ 1,352	$ 1,018
Weighted-average common shares outstanding (for basic calculation)		392	436	406	437
Effect of dilutive share-based employee compensation		6	8	6	8
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		398	444	412	445
Basic EPS		$ 1.59	$ 0.97	$ 3.33	$ 2.33
Diluted EPS		$ 1.56	$ 0.95	$ 3.28	$ 2.29
Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation	[1]	2.3	4.2	6.2	4.3
[1]	These unexercised employee stock options and stock appreciation rights were not included in the computation of diluted EPS because to do so would have been antidilutive for the periods presented.

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($) shares in Thousands, $ in Millions	8 Months Ended
	Sep. 03, 2016		Sep. 05, 2015
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased	46,309	[1]	4,516
Dollar Value of Shares Repurchased	$ 3,757	[1]	$ 370
Remaining Dollar Value of Shares that may be Repurchased	1,604
Value of share repurchases with trade dates prior to current reporting date but with settlement dates subsequent to the current reporting date.	$ 105
Number of shares repurchased with trade dates prior to current reporting date but with settlement dates subsequent to the current reporting date.	1,200
November 2013 [Member]
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased	0		1,779
Dollar Value of Shares Repurchased	$ 0		$ 133
Remaining Dollar Value of Shares that may be Repurchased	$ 0
November 2014 [Member]
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased	0		2,737
Dollar Value of Shares Repurchased	$ 0		$ 237
Remaining Dollar Value of Shares that may be Repurchased	$ 0
December 2015 [Member]
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased	13,369		0
Dollar Value of Shares Repurchased	$ 933		$ 0
Remaining Dollar Value of Shares that may be Repurchased	$ 0
March 2016 [Member]
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased	2,823		0
Dollar Value of Shares Repurchased	$ 228		$ 0
Remaining Dollar Value of Shares that may be Repurchased	$ 0
May 2016 [Member]
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased	30,117		0
Dollar Value of Shares Repurchased	$ 2,596		$ 0
Remaining Dollar Value of Shares that may be Repurchased	1,604
Stock Repurchase Program, Authorized Amount	$ 4,200
[1]	Includes the effect of $105 million in share repurchases (1.2 million shares) with trade dates prior to September 3, 2016 but cash settlement dates subsequent to September 3, 2016.

Shareholders' Equity (Details 2

Shareholders' Equity (Details 2) - USD ($) $ in Millions	3 Months Ended		8 Months Ended
	Sep. 03, 2016	Sep. 05, 2015	Sep. 03, 2016	Sep. 05, 2015
Schedule of changes in accumulated comprehensive income [Line Items]
Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax			$ (239)
Other comprehensive income (loss), net of tax	$ (60)	$ (106)	(86)	$ (74)
Ending Accumulated Other Comprehensive Income (Loss), Net of Tax	(324)		(324)
Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature
Schedule of changes in accumulated comprehensive income [Line Items]
Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax			(109)
Gains (losses) arising during the year classified into accumulated OCI, net of tax			(92)
(Gains) losses reclassified from accumulated OCI, net of tax			0
Other comprehensive income (loss), net of tax			(92)
Ending Accumulated Other Comprehensive Income (Loss), Net of Tax	(201)		(201)
Pension and Post-Retirement Benefits
Schedule of changes in accumulated comprehensive income [Line Items]
Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax			(113)
Gains (losses) arising during the year classified into accumulated OCI, net of tax			0
(Gains) losses reclassified from accumulated OCI, net of tax			5
Other comprehensive income (loss), net of tax			5
Ending Accumulated Other Comprehensive Income (Loss), Net of Tax	(108)		(108)
Derivative Instruments
Schedule of changes in accumulated comprehensive income [Line Items]
Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax			(17)
Gains (losses) arising during the year classified into accumulated OCI, net of tax			(20)
(Gains) losses reclassified from accumulated OCI, net of tax			22
Other comprehensive income (loss), net of tax			2
Ending Accumulated Other Comprehensive Income (Loss), Net of Tax	(15)		(15)
Total
Schedule of changes in accumulated comprehensive income [Line Items]
Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax			(239)
Gains (losses) arising during the year classified into accumulated OCI, net of tax			(112)
(Gains) losses reclassified from accumulated OCI, net of tax			27
Other comprehensive income (loss), net of tax			(85)
Ending Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (324)		$ (324)

Items Affecting Comparability37

Items Affecting Comparability of Net Income and Cash Flows (Details) $ in Millions	3 Months Ended			8 Months Ended
	Sep. 03, 2016USD ($)restaurants	Sep. 05, 2015USD ($)		Sep. 03, 2016USD ($)restaurants	Sep. 05, 2015USD ($)		Dec. 26, 2015USD ($)
Proceeds from refranchising of restaurants	$ 67			$ 165	$ 72
Refranchising (gain) loss	(25)	$ 2		(85)	60
China Division [Member]
Refranchising (gain) loss	(4)	(3)		(8)	(7)
KFC Global Division [Member]
Refranchising (gain) loss	1	4	[1]	2	36	[1]
Pizza Hut Global Division [Member]
Refranchising (gain) loss	(8)	15	[1]	(64)	52	[1]
Taco Bell Global Division [Member]
Refranchising (gain) loss	$ (14)	(14)		$ (15)	(21)
MEXICO
Transfer of Financial Assets Accounted for as Sales, Cash Proceeds Received for Assets Derecognized, Amount							$ 58
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal		12			80
MEXICO | KFC Global Division [Member]
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal		4			40
MEXICO | Pizza Hut Global Division [Member]
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal		8			40
KOREA, REPUBLIC OF | Pizza Hut Global Division [Member]
Refranchising (gain) loss		$ (8)			$ (13)
Refranchising (gain) loss
Number of Restaurants Refranchised | restaurants	123			250
[1]	In 2010 we refranchised our then-remaining Company-operated restaurants in Mexico. To the extent we owned it, we did not sell the real estate related to certain of these restaurants, instead leasing it to the franchisee. During the quarter ended June 13, 2015, we initiated plans to sell this real estate and determined it was held for sale in accordance with GAAP. On September 28, 2015, subsequent to our quarter ended September 5, 2015, we sold the real estate for approximately $58 million. While these proceeds exceeded the book value of the real estate, the sale represented a substantial liquidation of our Mexican operations under GAAP. Accordingly, we were required to include accumulated translation losses associated with our Mexican business within our carrying value when performing impairment evaluations subsequent to determining that the real estate was held for sale. We recorded charges of $12 million and $80 million in the quarter and year to date ended September 5, 2015, respectively, representing the excess of the sum of the book value of the real estate and other related assets and our accumulated translation losses over the then-expected sales price. Consistent with the classification of the original market refranchising transaction, these charges were classified as Refranchising (Gain) Loss. Refranchising Losses of $4 million and $40 million were associated with the KFC Division for the quarter and year to date ended September 5, 2015, respectively. Refranchising Losses of $8 million and $40 million were associated with the Pizza Hut Division for the quarter and year to date ended September 5, 2015, respectively. The proceeds ultimately received for the real estate approximated our carrying value including the remaining unrecognized accumulated translation losses as of September 5, 2015.Additionally, during the quarter and year to date ended September 5, 2015 we recognized charges of $8 million and $13 million, respectively, within Refranchising (Gain) Loss associated with the planned refranchising of our company-owned Pizza Hut restaurants in Korea.

Items Affecting Comparability38

Items Affecting Comparability of Net Income and Cash Flows (Details 2) - USD ($) $ in Millions	3 Months Ended		8 Months Ended		12 Months Ended
	Sep. 03, 2016	Sep. 05, 2015	Sep. 03, 2016	Sep. 05, 2015	Dec. 26, 2015
Franchise and license expenses [Member] | Unallocated and General and administrative expenses [Domain]
Costs associated with KFC U.S. Acceleration Agreement	$ 1	$ 21	$ 17	$ 31	$ 72
Franchise and license expenses [Member] | 2015 to 2018 [Domain] | Unallocated and General and administrative expenses [Domain]
Costs associated with KFC U.S. Acceleration Agreement	125
Franchise and license expenses [Member] | 2016 [Domain] | Unallocated and General and administrative expenses [Domain]
Costs associated with KFC U.S. Acceleration Agreement			30
Incremental Advertising [Domain] | KFC Global Division [Member]
Costs associated with KFC U.S. Acceleration Agreement	5	$ 3	14	$ 6	$ 10
Advertising [Domain] | 2015 to 2018 [Domain] | KFC Global Division [Member]
Costs associated with KFC U.S. Acceleration Agreement	$ 60
Advertising [Domain] | 2016 [Domain] | KFC Global Division [Member]
Costs associated with KFC U.S. Acceleration Agreement			20
Advertising [Domain] | 2017 [Domain] | KFC Global Division [Member]
Costs associated with KFC U.S. Acceleration Agreement			20
Advertising [Domain] | 2018 [Member] | KFC Global Division [Member]
Costs associated with KFC U.S. Acceleration Agreement			$ 10

Items Affecting Comparability39

Items Affecting Comparability of Net Income and Cash Flows (Details 3) - USD ($) $ in Millions	3 Months Ended	4 Months Ended	8 Months Ended	12 Months Ended
	Sep. 03, 2016	Dec. 31, 2016	Sep. 03, 2016	Sep. 03, 2016
General and Administrative Expense [Member] | Unallocated [Member]
Costs Associated with strategic initiatives	$ 26		$ 32
CHINA | General and Administrative Expense [Member]
Costs Associated with strategic initiatives	10		29	$ 38
Expected Costs Remaining Associated with Planned Spin-Off of China Business	$ 25		$ 25	$ 25
2018 [Member]
Franchise Restaurant Ownership	98.00%		98.00%	98.00%
Subsequent Event [Member]
Date of announcement - YUM's Strategic Transformation Initiatives		Oct. 11, 2016
Subsequent Event [Member] | CHINA
Separation date for China business		Oct. 31, 2016
Employee Severance [Member] | UNITED STATES | General and Administrative Expense [Member] | Unallocated [Member]
Costs Associated with strategic initiatives	$ 20

Other (Income) Expense (Details

Other (Income) Expense (Details) - USD ($) $ in Millions	3 Months Ended		8 Months Ended
	Sep. 03, 2016	Sep. 05, 2015	Sep. 03, 2016	Sep. 05, 2015
Other Income and Expenses [Line Items]
Equity income from investments in unconsolidated affiliates	$ (18)	$ (15)	$ (44)	$ (31)
Foreign exchange net (gain) loss and other	3	12	(6)	19
Other (income) expense	$ (15)	$ (3)	$ (50)	$ (12)

Supplemental Balance Sheet In41

Supplemental Balance Sheet Information (Details) $ in Millions	3 Months Ended			8 Months Ended
	Sep. 03, 2016USD ($)	Jun. 11, 2016USD ($)	Sep. 05, 2015USD ($)	Sep. 03, 2016USD ($)days	Sep. 05, 2015USD ($)	Dec. 26, 2015USD ($)
Accounts and Notes Receivable [Abstract]
Number of days from the period in which the corresponding sales occur that trade receivables are generally due | days				30
Accounts and notes receivable, gross	$ 460			$ 460		$ 393
Allowance for doubtful accounts	(20)			(20)		(16)
Accounts and notes receivable, net	440			440		$ 377
Noncontrolling Interest [Line Items]
Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance				58
Net Income (loss) - noncontrolling interests	10		$ 5	10	$ 5
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance	66			66
Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance				58
Net Income (loss) - noncontrolling interests				17
Noncontrolling interest loss upon redemption				0
Dividends declared				(7)
Currency translation adjustments and other				(2)
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance	66			66
Redeemable Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount, Beginning Balance				6
Net Income (loss) - noncontrolling interests				1
Dividends declared				0
Currency translation adjustments and other				1
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount, Ending Balance	$ 0			0
Little Sheep [Member] | Redeemable Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners						7.00%
Payments for Repurchase of Redeemable Noncontrolling Interest		$ 1
Noncontrolling interest loss upon redemption		$ (8)		$ (8)

Supplemental Balance Sheet In42

Supplemental Balance Sheet Information (Details 2) - USD ($) $ in Millions	Sep. 03, 2016	Dec. 26, 2015
Property, plant and equipment, gross	$ 7,708	$ 7,832
Accumulated depreciation and amortization	(3,698)	(3,643)
Property, plant and equipment, net	4,010	4,189
Prepaid expenses and other current assets [Member]
Assets held for sale	$ 14	$ 28

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		8 Months Ended
	Sep. 03, 2016	Sep. 05, 2015	Sep. 03, 2016	Sep. 05, 2015
US Federal Statutory Rate	35.00%		35.00%
Income Tax And Effective Tax Rate [Abstract]
Income tax (benefit) provision	$ (65)	$ 145	$ 183	$ 358
Effective tax rate	(11.60%)	25.30%	11.80%	25.90%
Little Sheep [Member]
Income Tax And Effective Tax Rate [Abstract]
Income tax (benefit) provision	$ 233

Reportable Operating Segments44

Reportable Operating Segments (Details) - USD ($) $ in Millions		3 Months Ended		8 Months Ended		12 Months Ended
		Sep. 03, 2016	Sep. 05, 2015	Sep. 03, 2016	Sep. 05, 2015	Dec. 26, 2015
Segment Reporting Information [Line Items]
Total Revenues		$ 3,316	$ 3,427	$ 8,943	$ 9,154
Operating Profit		654	603	1,709	1,480
Interest expense, net		(87)	(32)	(164)	(99)
Income Before Income Taxes		567	571	1,545	1,381
Equity income from investments in unconsolidated affiliates		18	15	44	31
China Division [Member]
Segment Reporting Information [Line Items]
Total Revenues		1,883	1,969	4,774	4,861
Operating Profit	[1]	348	327	751	661
Equity income from investments in unconsolidated affiliates		18	15	44	31
KFC Global Division [Member]
Segment Reporting Information [Line Items]
Total Revenues		723	721	2,060	2,109
Operating Profit		160	144	469	459
Pizza Hut Global Division [Member]
Segment Reporting Information [Line Items]
Total Revenues		230	264	741	802
Operating Profit		61	65	212	206
Taco Bell Global Division [Member]
Segment Reporting Information [Line Items]
Total Revenues		481	473	1,370	1,382
Operating Profit		143	132	401	386
Unallocated and Corporate General and administrative expenses [Domain]
Segment Reporting Information [Line Items]
Operating Profit	[2]	(80)	(53)	(213)	(153)
Unallocated Other income (expense)
Segment Reporting Information [Line Items]
Operating Profit		(3)	(10)	4	(19)
Unallocated Refranchising gain (loss)
Segment Reporting Information [Line Items]
Operating Profit	[3]	25	(2)	85	(60)
Unallocated [Member]
Segment Reporting Information [Line Items]
Total Revenues		(1)	0	(2)	0
Franchise and license expenses [Member] | Unallocated and Corporate General and administrative expenses [Domain]
Segment Reporting Information [Line Items]
Costs associated with KFC U.S. Acceleration Agreement		1	$ 21	17	$ 31	$ 72
General and Administrative Expense [Member] | China Division [Member]
Segment Reporting Information [Line Items]
Costs Associated with strategic initiatives		10		29
General and Administrative Expense [Member] | Unallocated [Member]
Segment Reporting Information [Line Items]
Costs Associated with strategic initiatives		$ 26		$ 32
[1]	Includes equity income from investments in unconsolidated affiliates of $18 million and $15 million for the quarters ended September 3, 2016 and September 5, 2015, respectively. Includes equity income from investments in unconsolidated affiliates of $44 million and $31 million for the years to date ended September 3, 2016 and September 5, 2015, respectively.
[2]	Primarily Corporate G&A expenses for the quarters ended September 3, 2016 and September 5, 2015. Amounts also include costs associated with the KFC U.S. Acceleration Agreement of $21 million for the quarter ended September 5, 2015 and $17 million and $31 million for the years to date ended September 3, 2016 and September 5, 2015, respectively. Also included are $10 million and $29 million for the quarter and year to date ended September 3, 2016, respectively, related to the planned spin-off of the China business and YUM recapitalization, and $26 million for the quarter and $32 million for the year to date ended September 3, 2016, respectively, associated with YUM's Strategic Transformation Initiatives. See Note 4.
[3]	See the Refranchising (Gain) Loss section of Note 4.

Pension Benefits (Details)

Pension Benefits (Details) - USD ($) $ in Millions		1 Months Ended	3 Months Ended		8 Months Ended
		Oct. 11, 2016	Sep. 03, 2016	Sep. 05, 2015	Sep. 03, 2016	Sep. 05, 2015
Defined Benefit Plan Disclosure [Line Items]
Pension Contributions					$ 4	$ 83
U.S. Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Pension Contributions		$ 20
Service cost			$ 4	$ 5	12	13
Interest cost			12	13	37	38
Expected return on plan assets			(15)	(15)	(45)	(43)
Amortization of net loss			1	10	4	31
Amortization of prior service cost			2	1	4	1
Net periodic benefit cost			4	14	12	40
Additional loss (gain) recognized due to settlements	[1]		$ 1	$ 0	$ 1	$ 1
[1]	Losses are a result of settlement transactions from a non-funded plan which exceeded the sum of annual service and interest costs for that plan. These losses were recorded in G&A expenses.

Short-term Borrowings and Lon46

Short-term Borrowings and Long-term Debt (Details) $ in Millions	3 Months Ended		8 Months Ended
	Sep. 03, 2016USD ($)Rate	Jun. 11, 2016USD ($)YearsRate	Sep. 03, 2016USD ($)Rate	Dec. 26, 2015USD ($)
Short-term Borrowings and Long-term Debt [Line Items]
Capital lease obligations	$ 154		$ 154	$ 169
Other Long-term Debt	9		9	0
Long-term debt and capital less obligations, including current maturities and debt issuance costs	9,263		9,263	3,370
Less Debt Issuance Costs, Noncurrent, Net	(89)		(89)	(16)
Less current maturities of long-term debt	(55)		(55)	(313)
Long-term debt	9,119		9,119	3,041
Other	0		0	9
Short-term Debt, including debt issuance costs	55		55	922
Short-term borrowings	48		48	922
Less current portion of debt issuance costs and discounts	(7)		(7)	0
Prepaid expenses and other current assets [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Restricted Cash and Cash Equivalents, Current	52		52
Bridge Facility [Member] | Line of Credit [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Unsecured Short-Term Loan Credit Facility	0		0	600
Repayments of Lines of Credit		$ 2,000
Variable Funding Notes [Member] | Line of Credit [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Long-term Line of Credit	0		0
Line of Credit Facility, Maximum Borrowing Capacity		$ 100
Long-term Debt, Contingent Payment of Principal or Interest		Following the anticipated repayment date and any extensions thereof, additional interest will accrue on the Variable Funding Notes equal to 5.00% per year
Long-term Debt, Maturities, Repayment Terms		subject to two additional one-year extensions at the option of the Issuer and further extensions as agreed between the Issuer and the Administrative Agent.
Line of Credit Facility, Expiration Date		May 1, 2021
Variable Funding Notes [Member] | Letter of Credit [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 50
Letters of Credit Outstanding, Amount	15		15
the Credit Agreement [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Issuance Costs, Net	55		55
Unsecured Debt [Member] | Existing [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Senior Notes	2,200		2,200	2,500
Long-term Line of Credit	0		0	701
Repayments of Debt		300
Repayments of Lines of Credit	701
Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Proceeds from Issuance of Debt	2,100
Senior Notes	$ 2,100		$ 2,100	0
Debt Instrument, Issuance Date	Jun. 16, 2016
Debt Instrument, Frequency of Periodic Payment	semi-annually
Debt Instrument, Covenant Compliance	We were in compliance with all debt covenants as of September 3, 2016.
Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes due 2024 [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Proceeds from Issuance of Debt	$ 1,050
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | Rate	5.00%		5.00%
Debt Instrument, Maturity Date	Jun. 1, 2024
Debt Instrument, Interest Rate, Effective Percentage | Rate	5.16%		5.16%
Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes due 2026 [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Proceeds from Issuance of Debt	$ 1,050
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | Rate	5.25%		5.25%
Debt Instrument, Maturity Date	Jun. 1, 2026
Debt Instrument, Interest Rate, Effective Percentage | Rate	5.39%		5.39%
Secured Debt [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Senior Notes	$ 2,300		$ 2,300	0
Secured Debt [Member] | Class A-2 Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Proceeds from Issuance of Debt		$ 2,300
Debt Instrument, Issuance Date		May 11, 2016
Debt Instrument, Payment Terms		no amortization of principal of the Class A-2 Notes is required prior to their anticipated repayment dates
Long-term Debt, Contingent Payment of Principal or Interest		as of any quarterly measurement date the consolidated leverage ratio (the ratio of total debt to Net Cash Flow (as defined in the Indenture)) for the preceding four fiscal quarters of either the Company and its subsidiaries or the Issuer and its subsidiaries exceeds 5.0:1, in which case amortization payments of 1% per year of the outstanding principal as of the closing of the Securitization Notes is required
Debt Instrument, Maturity Date		May 1, 2046
Debt Instrument, Frequency of Periodic Payment		quarterly
Long-term Debt	2,300		2,300
Secured Debt [Member] | Securitization Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Debt Default, Description of Violation or Event of Default		The Securitization Notes are also subject to certain customary events of default, including events relating to non-payment of required interest or principal due on the Securitization Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, certain judgments and failure of the Securitization Entities to maintain a stated debt service coverage ratio.
Debt Issuance Costs, Gross	$ 31		$ 31
Debt Instrument, Covenant Compliance			As of September 3, 2016, we were in compliance with all of our debt covenant requirements and were not subject to any rapid amortization events.
Secured Debt [Member] | Class A-2-I Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Proceeds from Issuance of Debt		$ 800
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | Rate		3.832%
Long-term Debt, Anticipated Repayment Date | Years		4
Debt Instrument, Interest Rate, Effective Percentage | Rate	4.18%		4.18%
Secured Debt [Member] | Class A-2-II Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Proceeds from Issuance of Debt		$ 500
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | Rate		4.377%
Long-term Debt, Anticipated Repayment Date | Years		7
Debt Instrument, Interest Rate, Effective Percentage | Rate	4.59%		4.59%
Secured Debt [Member] | Class A-2-III Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Proceeds from Issuance of Debt		$ 1,000
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | Rate		4.97%
Long-term Debt, Anticipated Repayment Date | Years		10
Debt Instrument, Interest Rate, Effective Percentage | Rate	5.14%		5.14%
Secured Debt [Member] | the Credit Agreement [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Issuance Date	Jun. 16, 2016
Debt Instrument, Payment Terms		The Credit Agreement is subject to certain mandatory prepayments, including an amount equal to 50% of excess cash flow (as defined in the Credit Agreement) on an annual basis and the proceeds of certain asset sales, casualty events and issuances of indebtedness, subject to customary exceptions and reinvestment rights
Debt Instrument, Frequency of Periodic Payment	quarterly
Debt Instrument, Covenant Compliance	We were in compliance with all debt covenants as of September 3, 2016
Secured Debt [Member] | Term Loan A Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Proceeds from Issuance of Debt	$ 500
Debt Instrument, Payment Terms	amortization payments beginning one full fiscal quarter after the first anniversary of the closing date
Debt Instrument, Maturity Date	Jun. 16, 2021
Debt Instrument, Frequency of Periodic Payment	quarterly
Long-term Debt	$ 500		$ 500	0
Debt Instrument, Interest Rate, Effective Percentage | Rate	2.93%		2.93%
Term Loan A Facility, Repayments of Principal in Year Two and Three | Rate	1.25%
Term Loan A Facility, Repayments of Principal in Year Four | Rate	1.875%
Term Loan A, Repayments of Principal in Year Five | Rate	3.75%
Secured Debt [Member] | Revolving Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Long-term Line of Credit	$ 0		$ 0
Line of Credit Facility, Maximum Borrowing Capacity	1,000		1,000
Secured Debt [Member] | Term Loan B Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Proceeds from Issuance of Debt	$ 2,000
Debt Instrument, Maturity Date	Jun. 16, 2023
Debt Instrument, Frequency of Periodic Payment	quarterly
Long-term Debt	$ 2,000		$ 2,000	$ 0
Debt Instrument, Interest Rate, Effective Percentage | Rate		3.70%
Term Loan B, Repayment of Principal | Rate	0.25%
Debt Service Coverage Ratio - Rapid Amortization Events [Member] | Secured Debt [Member] | Securitization Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Covenant Description		debt service coverage ratio (as defined in the Indenture) of at least 1.1:1
Debt Service Coverage Ratio - Cash Trap Reserve Account [Member] | Secured Debt [Member] | Securitization Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Covenant Description		debt service coverage ratio (or the ratio of Net Cash Flow to all debt service payments for the preceding four fiscal quarters) of at least 1.75:1
Debt Instrument, Covenant Compliance	During the quarter ended September 3, 2016, the Securitization Entities maintained a debt service coverage ratio significantly in excess of the 1.75:1 requirement
Fixed Charge Coverage Ratio [Member] | Secured Debt [Member] | the Credit Agreement [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Covenant Description	fixed charge coverage ratio (defined as the ratio of EBITDA minus capital expenditures to fixed charges (inclusive of rental expense and scheduled amortization)) of at least 1.5:1
Total Leverage Ratio [Member] | Secured Debt [Member] | the Credit Agreement [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Covenant Description	require the Borrowers to maintain a total leverage ratio (defined as the ratio of Consolidated Total Debt to Consolidated EBITDA (as these terms are defined in the Credit Agreement)) of 5.0:1 or less
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | Term Loan B Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	2.75%
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	2.00%
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	2.50%
Base Rate [Member] | Secured Debt [Member] | Term Loan B Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	1.75%
Base Rate [Member] | Minimum [Member] | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	1.00%
Base Rate [Member] | Maximum [Member] | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	1.50%

Derivative Instruments (Details

Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended	8 Months Ended
	Sep. 03, 2016	Sep. 03, 2016	Dec. 26, 2015
Derivative, Notional Amount	$ 1,550	$ 1,550
Secured Debt [Member] | Term Loan B Facility [Member]
Long-term Debt	2,000	$ 2,000	$ 0
Cash Flow Hedging [Member]
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months	$ 5
Cash Flow Hedging [Member] | Interest Rate Swap [Member]
Derivative, Maturity Date	Jul. 27, 2021
Derivative, Fixed Interest Rate	3.92%	3.92%
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net		$ 0
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member]
Derivative, Notional Amount	$ 470	$ 470
Minimum [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member]
Derivative, Maturity Date	Nov. 21, 2016
Maximum [Member] | Cash Flow Hedging [Member] | Foreign Exchange Contract [Member]
Derivative, Maturity Date	Jun. 12, 2020

Derivative Instruments (Detai48

Derivative Instruments (Details 2) - USD ($) $ in Millions	3 Months Ended		8 Months Ended
	Sep. 03, 2016	Sep. 05, 2015	Sep. 03, 2016	Sep. 05, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	$ 11	$ 8	$ (20)	$ 20
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(12)	(10)	21	(22)
Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax	1	0	1	4
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax	0	0	0	(4)
Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	(4)	0	(4)	0
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	1	0	1	0
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	15	8	(16)	20
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	$ (13)	$ (10)	$ 20	$ (22)

Fair Value Disclosures (Details

Fair Value Disclosures (Details) - USD ($) $ in Millions	3 Months Ended		8 Months Ended
	Sep. 03, 2016	Sep. 05, 2015	Sep. 03, 2016	Sep. 05, 2015	Dec. 26, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	$ 0		$ 0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount	0		0
Closures and impairment (income) expenses [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of Long-Lived Assets Held-for-use	4	$ 1	39	$ 19
Unsecured Debt [Member] | YUM and Subsidiary Senior Unsecured Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt obligations, excluding capital leases, carrying amount	4,300		4,300
Unsecured Debt [Member] | YUM and Subsidiary Senior Unsecured Notes [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Debt, Fair Value	4,500		4,500
Secured Debt [Member] | Term Loan A Facility [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt obligations, excluding capital leases, carrying amount	500		500		$ 0
Secured Debt [Member] | Term Loan A Facility [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Debt, Fair Value	500		500
Secured Debt [Member] | Term Loan B Facility [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt obligations, excluding capital leases, carrying amount	2,000		2,000		0
Secured Debt [Member] | Term Loan B Facility [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Debt, Fair Value	2,000		2,000
Secured Debt [Member] | Class A-2 Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt obligations, excluding capital leases, carrying amount	2,300		2,300
Secured Debt [Member] | Class A-2 Notes [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Debt, Fair Value	2,400		2,400
Accounts Payable and Accrued Liabilities [Member] | Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability, Fair Value, Gross Liability	7		7		2
Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	23		23		21
Other Assets [Member] | Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability, Fair Value, Gross Asset	3		3		0
Other Assets [Member] | Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability, Fair Value, Gross Asset	0		0		19
Prepaid Expenses and Other Current Assets [Member] | Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability, Fair Value, Gross Asset	6		6		0
Other Liabilities [Member] | Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability, Fair Value, Gross Liability	$ 3		$ 3		$ 0

Guarantees, Commitments and C50

Guarantees, Commitments and Contingencies (Details) $ in Millions	8 Months Ended
	Sep. 03, 2016USD ($)
Franchise lending program guarantee
Guarantor Obligations [Line Items]
Loss contingency, amount of guarantee	$ 15
Total loans outstanding	$ 43
Property Lease Guarantee [Member]
Guarantor Obligations [Line Items]
Year longest lease expires	2,065
Potential amount of undiscounted payments we could be required to make in the event of non-payment by the primary lessee	$ 525
Present value of potential payments we could be required to make in the event of non-payment by the primary lessee	$ 450

Guarantees, Commitments and C51

Guarantees, Commitments and Contingencies (Details 2)	8 Months Ended
	Sep. 03, 2016USD ($)claimsClasses
Loss Contingencies [Line Items]
Taco Bell Wage and Hour Actions - Number of proposed classes concerning meals and rest breaks at Taco Bell for which plaintiffs sought certification | Classes	4
Taco Bell Wage and Hour Actions - Number of proposed classes concerning meals and rest breaks at Taco Bell which were rejected by the District Court | Classes	3
Taco Bell Wage and Hour Actions - Number of California Private Attorney General Act claims not dismissed | claims	1
Taco Bell Wage and Hour Actions - Amount awarded to plaintiffs for the underpaid meal premium class	$ 500,000
Taco Bell Wage and Hour Actions - Amount of prejudgement interest awarded to plaintiffs for the underpaid meal premium class	$ 300,000
Taco Bell Wage and Action - Number of Plaintiffs the court denied enhanced awards | Classes	2
Taco Bell Wage and Hour Actions - Amount of attorneys' fees awarded by the court	$ 1,100,000
Taco Bell Wage and Actions - Amount of attorneys' fees requested by the Plaintiffs	7,300,000
Taco Bell Wage and Hour Action - Amount of bill of costs awarded by the court	93,000
Taco Bell Wage and Hour Action - Amount of bill of costs requested by the Plaintiffs	$ 166,000