Yum China (YUMC) 10-Q 8 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 02, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	Yum China Holdings, Inc.
Entity Central Index Key	1,673,358
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Document Type	10-Q
Trading Symbol	YUMC
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Entity Common Stock Shares Outstanding		383,246,732

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues
Other revenues		$ 5	$ 3	$ 9	$ 8
Total revenues		2,068	1,841	4,289	3,767
Costs and Expenses, Net
General and administrative expenses		101	118	215	216
Other operating costs		7	3	11	6
Closures and impairment expenses, net		17	18	16	18
Other income, net		(7)	(11)	(133)	(31)
Total costs and expenses, net		1,875	1,670	3,701	3,300
Operating Profit		193	171	588	467
Interest income, net	[1]	10	4	18	8
Income Before Income Taxes		203	175	606	475
Income tax provision		(53)	(43)	(160)	(133)
Net income – including noncontrolling interests		150	132	446	342
Net income – noncontrolling interests		7	7	15	13
Net Income – Yum China Holdings, Inc.		$ 143	$ 125	$ 431	$ 329
Weighted-average common shares outstanding (in millions):
Basic	[2]	386	387	386	387
Diluted		398	399	400	397
Basic Earnings Per Common Share		$ 0.37	$ 0.32	$ 1.12	$ 0.85
Diluted Earnings Per Common Share		0.36	$ 0.31	1.08	$ 0.83
Cash Dividends Declared Per Common Share		$ 0.10		$ 0.20
Company Sales [Member]
Revenues
Revenues		$ 1,888	$ 1,664	$ 3,904	$ 3,402
Franchise [Member]
Revenues
Revenues		34	33	74	69
Costs and Expenses, Net
Cost of goods and services sold		17	17	37	35
Transactions With Franchisees and Unconsolidated Affiliates [Member]
Revenues
Revenues		141	141	302	288
Costs and Expenses, Net
Cost of goods and services sold		138	137	298	284
Company Restaurant Expenses [Member]
Costs and Expenses, Net
Food and paper		571	483	1,165	969
Payroll and employee benefits		424	366	866	734
Occupancy and other operating expenses		607	539	1,226	1,069
Cost of goods and services sold		$ 1,602	$ 1,388	$ 3,257	$ 2,772
[1]	Amounts have not been allocated to any segment for performance reporting purposes.
[2]	As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards on shares of common stock of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect.

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net income - including noncontrolling interests	$ 150	$ 132	$ 446	$ 342
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustments	(148)	32	(58)	47
Comprehensive income - including noncontrolling interests	2	164	388	389
Comprehensive income - noncontrolling interests	$ 2	8	13	15
Comprehensive Income - Yum China Holdings, Inc.		$ 156	$ 375	$ 374

Condensed Consolidated and Comb

Condensed Consolidated and Combined Statements of Cash Flows (Unaudited) - USD ($) $ in Millions		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017
Cash Flows – Operating Activities
Net income - including noncontrolling interests		$ 446	$ 342
Depreciation and amortization		235	196
Closures and impairment expenses		16	18
Gain from re-measurement of equity interest upon acquisition	[1]	(98)
Deferred income taxes		42	(3)
Equity income from investments in unconsolidated affiliates		(35)	(35)
Distributions received from unconsolidated affiliates		41	31
Share-based compensation		13	11
Changes in accounts receivable		(2)	12
Changes in inventories		18	(3)
Changes in prepaid expenses and other current assets		(28)	(1)
Changes in accounts payable and other current liabilities		182	46
Changes in income taxes payable		20	20
Other, net		(31)	(30)
Net Cash Provided by Operating Activities		819	604
Cash Flows – Investing Activities
Capital spending		(230)	(204)
Purchases of short-term investments		(370)	(318)
Maturities of short-term investments		295	81
Proceeds from refranchising of restaurants		3	3
Acquisition of business, net of cash acquired		(88)	(25)
Other, net		(16)	(2)
Net Cash Used in Investing Activities		(406)	(465)
Cash Flows – Financing Activities
Payment of capital lease obligation		(1)	(1)
Repayment of short-term borrowings assumed from acquisition		(10)
Repurchase of shares of common stock		(70)	(96)
Proceeds from exercise of stock options			4
Cash dividends paid		(77)
Dividends paid to noncontrolling interests		(27)	(17)
Other, net		(1)
Net Cash Used in Financing Activities		(186)	(110)
Effect of Exchange Rates on Cash and Cash Equivalents		(25)	12
Net Increase in Cash and Cash Equivalents		202	41
Cash and Cash Equivalents - Beginning of Period		1,059	885
Cash and Cash Equivalents - End of Period		1,261	926
Supplemental Cash Flow Data
Cash paid for income tax		$ 114	$ 121
[1]	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 1,261	$ 1,059
Short-term investments	278	205
Accounts receivable, net	73	81
Inventories, net	276	297
Prepaid expenses and other current assets	205	160
Total Current Assets	2,093	1,802
Property, plant and equipment, net	1,657	1,691
Goodwill	276	108
Intangible assets, net	145	101
Investments in unconsolidated affiliates	53	95
Other assets	421	385
Deferred income taxes	85	105
Total Assets	4,730	4,287
Current Liabilities
Accounts payable and other current liabilities	1,147	985
Income taxes payable	59	39
Total Current Liabilities	1,206	1,024
Capital lease obligations	27	28
Other liabilities and deferred credits	396	388
Total Liabilities	1,629	1,440
Redeemable Noncontrolling Interest	5	5
Equity
Common stock, $0.01 par value; 1,000 million shares authorized; 391 million shares and 389 million shares issued at June 30, 2018 and December 31, 2017, respectively; 385 million shares and 385 million shares outstanding at June 30, 2018 and December 31, 2017, respectively	4	4
Treasury stock	(221)	(148)
Additional paid-in capital	2,388	2,375
Retained earnings	751	397
Accumulated other comprehensive income	81	137
Total Equity – Yum China Holdings, Inc.	3,003	2,765
Noncontrolling interests	93	77
Total Equity	3,096	2,842
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$ 4,730	$ 4,287

Condensed Consolidated Balance6

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	391,000,000	389,000,000
Common stock, shares outstanding	385,000,000	385,000,000

Description of the Business

Description of the Business	6 Months Ended
	Jun. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of the Business	Note 1 – Description of the Business Yum China Holdings, Inc. (“Yum China” and, together with its subsidiaries, the “Company,” “we,” “us” and “our”) was incorporated in Delaware on April 1, 2016. The Company separated from Yum! Brands, Inc. (“YUM” or the “Parent”) on October 31, 2016 (the “separation”), becoming an independent publicly traded company as a result of a pro rata distribution (the “distribution”) of all outstanding shares of Yum China common stock to shareholders of YUM. On October 31, 2016, YUM’s shareholders of record as of 5:00 p.m. Eastern Time on October 19, 2016 received one share of Yum China common stock for every one share of YUM common stock held as of the record date. Yum China’s common stock began trading “regular way” under the ticker symbol “YUMC” on the New York Stock Exchange on November 1, 2016. The Company owns, franchises or has an ownership in entities that own and operate restaurants under the KFC, Pizza Hut, East Dawning, Little Sheep and Taco Bell concepts (collectively, the “Concepts”). In connection with the separation of the Company from YUM, Yum! Restaurants Asia Pte. Ltd., a wholly-owned indirect subsidiary of YUM, and Yum Restaurants Consulting (Shanghai) Company Limited (“YCCL”), a wholly-owned indirect subsidiary of Yum China, entered into a 50-year master license agreement with automatic renewals for additional consecutive renewal terms of 50 years each, subject only to YCCL being in “good standing” and unless YCCL gives notice of its intent not to renew, for the exclusive right to use and sub-license the use of intellectual property owned by YUM and its subsidiaries for the development and operation of the KFC, Pizza Hut and, subject to achieving certain agreed-upon milestones, Taco Bell brands and their related marks and other intellectual property rights for restaurant services in the People’s Republic of China, excluding Hong Kong, Taiwan and Macau (the “PRC” or “China”). In exchange, we pay a license fee to YUM equal to 3% of net system sales from both our Company and franchise restaurants. We own the East Dawning and Little Sheep intellectual property and pay no license fee related to these concepts. The Company also owns a controlling interest in the holding company of DAOJIA.com.cn (“Daojia”), an established online food delivery service provider in China.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Note 2 – Basis of Presentation In connection with our separation from YUM, the direct and indirect equity interests of all of our operating subsidiaries and intermediate holding companies were transferred from YUM to Yum China, when Yum China was still one of YUM’s subsidiaries, through a series of transactions, which were completed in August 2016. The Company separated from YUM on October 31, 2016, becoming an independent publicly traded company as a result of a pro rata distribution of all outstanding shares of Yum China common stock to shareholders of YUM. For periods prior to October 31, 2016, the combined financial statements of YUM’s China businesses and operations when Yum China was a wholly-owned subsidiary of YUM are referred to as Condensed Combined Financial Statements. For periods subsequent to October 31, 2016, the consolidated financial statements of the Company as a separate publicly traded company following its separation from YUM are referred to as Condensed Consolidated Financial Statements. Our preparation of the accompanying Condensed Consolidated Financial Statements in conformity with Generally Accepted Accounting Principles in the United States of America (“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. We have prepared the Condensed Consolidated Financial Statements in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The Condensed Consolidated Financial Statements include all normal and recurring adjustments considered necessary to present fairly our financial position as of June 30, 2018, and the results of our operations and comprehensive income for the quarters and years to date ended June 30, 2018 and 2017, and cash flows for the years to date ended June 30, 2018 and 2017. 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. These statements should be read in conjunction with the Consolidated and Combined Financial Statements and notes thereto defined and included in the Company’s Annual Report on Form 10-K as filed with the SEC on February 27, 2018. Through the acquisition of Daojia during the second quarter of 2017, the Company also acquired a variable interest entity (“VIE”) and subsidiaries of the VIE effectively controlled by Daojia. There exists a parent-subsidiary relationship between Daojia and its VIE as a result of certain exclusive agreements that require Daojia to consolidate its VIE and subsidiaries of the VIE because Daojia is the primary beneficiary that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb substantially all of the profits and all of the expected losses of the VIE. During the first quarter of 2018, the Company completed the acquisition of an additional 36% equity interest in an unconsolidated affiliate that operates KFC stores in Wuxi, China (“Wuxi KFC”), for cash consideration of approximately $98 million, increasing the Company’s equity interest to 83%, allowing the Company to consolidate the entity. The acquisition was considered immaterial. We began consolidating Wuxi KFC upon the completion of acquisition. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Liabilities-Extinguishments of liabilities (Subtopic 450-20): Revenue of Breakage for Certain Prepaid Stored-Value Products (a consensus of the FASB Emerging Issues Task Force) Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients The new standard did not have an impact on our recognition of revenue from Company-owned restaurants or our recognition of continuing fees from franchisees and unconsolidated affiliates; however, it changed the way we account for upfront fees. Upfront fees, such as initial and renewal fees from franchisees and unconsolidated affiliates, were previously recognized as revenue when we performed substantially all initial services required by the franchise agreement, generally upon the opening of a store or when a renewal agreement with a franchisee became effective. We now recognize the upfront fees from franchisees and unconsolidated affiliates as revenue over the term of each franchise agreement as the franchise rights are accounted for as rights to access our symbolic intellectual property in accordance with the new standard. Any unamortized portion of fees received is accounted for as a contract liability. The new standard also had an impact on certain transactions we entered into with franchisees and unconsolidated affiliates, such as sales of food and paper products and advertising services. These transactions were previously either not included or presented on a net basis in our statements of income or cash flows based on industry-specific guidance included in previous accounting guidance, which was superseded by the new standard. Under the new standard, we consider ourselves the principal in these arrangements as we have the ability to control a promised good or service before transferring that good or service to the customer. Therefore, we include such transactions in revenues and expenses on the Condensed Consolidated Statements of Income with no significant impact to Net income. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) We adopted ASU 2016-15 and such adoption did not have a material impact on our financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory We adopted ASU 2016-16 and such adoption did not have a material impact on our financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash We adopted ASU 2016-18 and such adoption did not have a material impact on our financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business We adopted ASU 2017-01 and such adoption did not have a material impact on our financial statements. Certain comparative items in the Condensed Consolidated Financial Statements have been reclassified to conform to the current period’s presentation to facilitate comparison. Our fiscal year ends on December 31. Effective at the beginning of fiscal year 2018, the Company changed its fiscal calendar from two months in the first quarter, three months in the second and third quarters and four months in the fourth quarter, to four three-month quarters ending on March 31, June 30, September 30 and December 31 of each year. The change was made to align with how management now measures performance internally and to facilitate the comparability of our results with peers using calendar quarters. Quarterly results of all prior financial periods presented have been recast as if they had been reported under our new fiscal calendar.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2018
Revenue From Contract With Customer [Abstract]
Revenue Recognition	Note 3 – Revenue Recognition The Company’s revenues primarily include Company sales, Franchise fees and income and Revenues from transactions with franchisees and unconsolidated affiliates. Company Sales Revenues from Company-owned restaurants are recognized when a customer takes possession of the food and tenders payment, which is when our obligation to perform is satisfied. The Company presents sales net of sales-related taxes. We recognize revenues from prepaid stored-value products, including gift cards and product vouchers, when they are redeemed by the customer. Prepaid gift cards sold at any given point generally expire over the next 36 months, and product vouchers generally expire over a period of up to 12 months. Franchise Fees and Income Franchise fees and income primarily include upfront fees, such as initial fees and renewal fees, and continuing fees. We have determined that the services we provide in exchange for upfront fees and continuing fees are highly interrelated with the franchise right. We recognize upfront fees received from a franchisee as revenue over the term of the franchise agreement or the renewal agreement because the franchise rights are accounted for as rights to access our symbolic intellectual property in accordance with ASC 606. The franchise agreement term is generally 10 years for KFC and Pizza Hut, and five or 10 years for Little Sheep. Revenues from Transactions with Franchisees and Unconsolidated Affiliates Revenues from transactions with franchisees and unconsolidated affiliates consist primarily of sales of food and paper products, advertising services and other services provided to franchisees The Company centrally purchases substantially all food and paper products from suppliers for substantially all of our restaurants, including franchisees and unconsolidated affiliates, and then sells and delivers them to the restaurants. The performance obligation arising from such transactions is considered distinct from the franchise agreement as it is not highly dependent on the franchise agreement and the customer can benefit from the procurement service on its own. We consider ourselves the principal in this arrangement as we have the ability to control a promised good or service before transferring that good or service to the franchisees and unconsolidated affiliates. Revenue is recognized upon transfer of control over ordered items, generally upon delivery to the franchisees and unconsolidated affiliates. For advertising services, the Company often engages third parties to provide services and acts as a principal in the transaction based on our responsibilities of defining the nature of the services and administering and directing all marketing and advertising programs in accordance with the provisions of our franchise agreements. The Company collects advertising contributions, which are generally based on certain percentage of sales from substantially all of our restaurants, including franchisees and unconsolidated affiliates. Other services provided to franchisees and unconsolidated affiliates consist primarily of customer support and technology support services. Advertising services and other services provided are highly interrelated to franchise right, so we do not consider them to be individually distinct and therefore account for them under ASC 606 as a single performance obligation and recognize revenue when the related sales occur. Loyalty Programs Each of the Company’s KFC and Pizza Hut reportable segments operates a loyalty program that allows registered members to earn points for each qualifying purchase. Points, which generally expire 18 months after being earned, may be redeemed for future purchases of KFC or Pizza Hut branded products or other products for free or at a discounted price. Points cannot be redeemed or exchanged for cash. The value of points earned by the loyalty program members is recorded as a reduction of revenue at the time the points are earned, based on the percentage of points that are projected to be redeemed, with a corresponding deferred revenue liability included in Accounts payable and other current liabilities on the Condensed Consolidated Balance Sheets and subsequently recognized into revenue when the points are redeemed. The Company estimates the value of the future redemption obligations based on the estimated value of the product for which points are expected to be redeemed and historical redemption patterns, including an estimate of the breakage for points that members will never redeem. The Company reviews its breakage estimates at least annually based upon the latest available information regarding redemption and expiration patterns. Accounts Receivable Accounts receivable mainly consist of trade receivables and royalties from franchisees and unconsolidated affiliates, and are generally due within 30 days of the period in which the corresponding sales occur and are classified as Accounts receivable on the Condensed Consolidated Balance Sheets. Our provision for uncollectible receivable balances is based upon pre-defined aging criteria or upon the occurrence of other events that indicate that we may not collect the balance due. Additionally, we monitor the financial condition of our franchisees and record provisions for estimated losses on receivables when we believe it probable that our franchisees will be unable to make their required payments. While we use the best information available in making our determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond our control. Trade receivables that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts. Costs to Obtain Contracts Costs to obtain contracts represent the portion of upfront license fees that we paid to YUM prior to the separation in relation to initial fees or renewal fees we received from franchisees and unconsolidated affiliates. They meet the requirements to be capitalized as the Company expects to generate future economic benefits from such costs incurred, which allow us to enter into franchise agreements and collect fees. Such costs to obtain contracts are included in Other assets on the Condensed Consolidated Balance Sheets and are amortized over the term of the franchise agreement. Subsequent to the separation, we are no longer required to pay YUM any upfront fees that we receive from franchisees and unconsolidated affiliates. The Company did not incur any impairment losses related to costs to obtain contracts during any of the periods presented. Costs to obtain contracts were $9 million and $12 million at June 30, 2018 and December 31, 2017, respectively. Contract Liabilities Contract liabilities at June 30, 2018 and December 31, 2017 were as follows: Contract liabilities 6/30/2018 12/31/2017 - Deferred revenue related to prepaid stored-value products $ 51 $ 50 - Deferred revenue related to customer loyalty programs 22 16 - Deferred revenue related to upfront fees 37 39 Total $ 110 $ 105 Contract liabilities consist of deferred revenue related to prepaid stored-value products, customer loyalty programs and upfront fees. Deferred revenue related to prepaid stored-value products and customer loyalty programs is included in Accounts payable and other current liabilities on the Condensed Consolidated Balance Sheets. Deferred revenue related to upfront fees that we expect to recognize as revenue in the next 12 months is included in Accounts payable and other current liabilities, and the remaining balance is included in Other liabilities and deferred credits on the Condensed Consolidated Balance Sheets. Revenue recognized in the quarter and year to date ended June 30, 2018 that was included in the contract liability balance at the beginning of each period amounted to $18 million and $30 million, respectively. Changes in contract liability balances were not materially impacted by business acquisition, change in estimate of transaction price or any other factors during any of the periods presented. The Company has elected, as a practical expedient, not to disclose the value of remaining performance obligations associated with sales-based royalty promised to franchisees in exchange for franchise right and other related services . The remaining duration of the performance obligation is the remaining contractual term of each franchise agreement. We recognize continuing franchisee fees and revenues from advertising services and other services provided to franchisees and unconsolidated affiliates based on certain percentage of sales, as those sales occur.

Earnings Per Common Share ("EPS

Earnings Per Common Share ("EPS")	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Earning Per Common Share (EPS)	Note 4 – Earnings Per Common Share (“EPS”) The following table summarizes the components of basic and diluted EPS (in millions, except for per share data): Quarter Ended Year to Date Ended 6/30/2018 6/30/2017 6/30/2018 6/30/2017 Net Income – Yum China Holdings, Inc. $ 143 $ 125 $ 431 $ 329 Weighted-average common shares outstanding (for basic calculation) (a) 386 387 386 387 Effect of dilutive share-based employee compensation (a) 10 11 11 9 Effect of dilutive warrants (b) 2 1 3 1 Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) 398 399 400 397 Basic Earnings Per Common Share $ 0.37 $ 0.32 $ 1.12 $ 0.85 Diluted Earnings Per Common Share $ 0.36 $ 0.31 $ 1.08 $ 0.83 Employee stock options, stock appreciation rights and warrants excluded from the diluted EPS computation (c) 1 10 1 14 (a) As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards on shares of common stock of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect. (b) Pursuant to the investment agreements dated September 1, 2016, Yum China issued to strategic investors two tranches of warrants on January 9, 2017, with each tranche providing the right to purchase 8,200,405 shares of Yum China common stock, at an exercise price of $31.40 and $39.25 per share, respectively, subject to customary anti-dilution adjustments. The warrants may be exercised at any time through October 31, 2021. The outstanding warrants are included in the computation of diluted EPS, if there is dilutive effect when the average market price of Yum China common stock for the period exceeds the exercise price of the warrants. ( c) These outstanding employee stock options, stock appreciation rights and warrants were not included in the computation of diluted EPS because to do so would have been antidilutive for the quarters and years to date presented.

Equity

Equity	6 Months Ended
	Jun. 30, 2018
Stockholders Equity Note [Abstract]
Equity	Note 5 – Equity Changes in Equity and Redeemable Noncontrolling Interest Yum China Holdings, Inc. Accumulated Common Additional Other Redeemable Stock Paid-in Retained Comprehensive Treasury Stock Noncontrolling Total Noncontrolling Shares Amount Capital Earnings Income Shares Amount Interests Equity Interest Balance at December 31, 2017 389 $ 4 $ 2,375 $ 397 $ 137 (4 ) $ (148 ) $ 77 $ 2,842 $ 5 Net Income 431 15 446 Foreign currency translation adjustments (56 ) (2 ) (58 ) Comprehensive income 388 Acquisition of business 36 36 Cash dividends declared ($0.20 per common share) (77 ) (77 ) Dividends declared (33 ) (33 ) Repurchase of shares of common stock (2 ) (73 ) (73 ) Exercise and vesting of share-based awards 2 — — — Share-based compensation 13 13 Balance at June 30, 2018 391 $ 4 $ 2,388 $ 751 $ 81 (6 ) $ (221 ) $ 93 $ 3,096 $ 5 Share Repurchase Program On February 7, 2017, we announced that our Board of Directors authorized a $300 million share repurchase program. On October 4, 2017, the Board of Directors increased Yum China’s existing share repurchase authorization from $300 million to an aggregate of $550 million. Under the authorization, we repurchased shares of Yum China common stock during the years to date ended June 30, 2018 and 2017 as indicated below. All amounts exclude applicable transaction fees. Authorization Date Shares Repurchased (thousands) Dollar Value of Shares Repurchased (millions) Remaining Dollar Value of Shares that may be Repurchased (millions) 2018 2017 2018 2017 2018 February 7, 2017 1,910 2,723 73 105 99 October 4, 2017 — — — — 250 Total 1,910 (a) 2,723 (b) 73 (a) 105 (b) 349 (a) Includes 0.1 million shares repurchased for $3 million with trade dates prior to June 30, 2018 but cash settlement dates subsequent to June 30, 2018. (b) Includes 0.2 million shares repurchased for $9 million with trade dates prior to June 30, 2017 but cash settlement dates subsequent to June 30, 2017.

Items Affecting Comparability o

Items Affecting Comparability of Net Income and Cash Flows	6 Months Ended
	Jun. 30, 2018
Items Affecting Comparability Of Net Income And Cash Flows [Abstract]
Comparability of Prior Year Financial Data	Note 6 – Items Affecting Comparability of Net Income and Cash Flows Store Closure and Impairment Activity Store closure income and Store impairment charges by reportable segments and All Other Segments are presented below: Quarter Ended Year to Date Ended 6/30/2018 6/30/2018 Total Company KFC Pizza Hut All Other Segments Total Company KFC Pizza Hut All Other Segments Store closure income (a) $ 2 $ 1 $ 1 $ — $ 5 $ 2 $ 3 $ — Store impairment charges (19 ) (7 ) (12 ) — (21 ) (8 ) (13 ) — Closure and impairment expenses $ (17 ) $ (6 ) $ (11 ) $ — $ (16 ) $ (6 ) $ (10 ) $ — Quarter Ended Year to Date Ended 6/30/2017 6/30/2017 Total Company KFC Pizza Hut All Other Segments Total Company KFC Pizza Hut All Other Segments Store closure income (a) $ 1 $ 1 $ — $ — $ 5 $ 3 $ 2 $ — Store impairment charges (19 ) (10 ) (9 ) — (23 ) (13 ) (10 ) — Closure and impairment expenses $ (18 ) $ (9 ) $ (9 ) $ — $ (18 ) $ (10 ) $ (8 ) $ — (a) Store closure income include proceeds from forced store closures, lease reserves established when we cease using a property under an operating lease and subsequent adjustments to those reserves and other facility-related expenses from previously closed stores. Remaining lease obligations for closed stores were not material at June 30, 2018 or December 31, 2017.

Other Income, Net

Other Income, Net	6 Months Ended
	Jun. 30, 2018
Other Income And Expenses [Abstract]
Other Income, Net	Note 7 – Other Income, net Quarter Ended Year to Date Ended 6/30/2018 6/30/2017 6/30/2018 6/30/2017 Equity income from investments in unconsolidated affiliates $ 12 $ 14 $ 35 $ 35 Gain from re-measurement of equity interest upon acquisition (a) — — 98 — Foreign exchange loss and other (5 ) (3 ) — (4 ) Other income, net $ 7 $ 11 $ 133 $ 31 (a) As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information	6 Months Ended
	Jun. 30, 2018
Supplemental Balance Sheet Information Disclosure [Abstract]
Supplemental Balance Sheet Information	Note 8 – Supplemental Balance Sheet Information Accounts Receivable, net 6/30/2018 12/31/2017 Accounts receivable, gross $ 75 $ 83 Allowance for doubtful accounts (2 ) (2 ) Accounts receivable, net $ 73 $ 81 Prepaid Expenses and Other Current Assets 6/30/2018 12/31/2017 Prepaid rent $ 43 $ 41 Receivables from payment processors and aggregators 34 38 Dividends receivable from unconsolidated affiliates 39 21 Other prepaid expenses and current assets 89 60 Prepaid expenses and other current assets $ 205 $ 160 Property, Plant and Equipment 6/30/2018 12/31/2017 Buildings and improvements $ 2,169 $ 2,184 Capital leases, primarily buildings 28 28 Machinery, equipment and construction in progress 1,208 1,204 Property, plant and equipment, gross 3,405 3,416 Accumulated depreciation (1,748 ) (1,725 ) Property, plant and equipment, net $ 1,657 $ 1,691 Other Assets 6/30/2018 12/31/2017 Land use right $ 136 $ 131 VAT assets 197 176 Costs to obtain contracts 9 12 Long-term deposits 61 56 Others 18 10 Other Assets $ 421 $ 385 Accounts Payable and Other Current Liabilities 6/30/2018 12/31/2017 Accounts payable $ 584 $ 424 Accrued capital expenditures 120 142 Accrued compensation and benefits 179 233 Accrued taxes, other than income taxes 25 16 Accrued marketing expenses 81 28 Contract liabilities 80 72 Other current liabilities 78 70 Accounts payable and other current liabilities $ 1,147 $ 985 Other Liabilities and Deferred Credits 6/30/2018 12/31/2017 Deferred escalating minimum rent $ 156 $ 162 Contract liabilities 30 33 Accrued income tax payable 96 112 Deferred income tax liabilities 69 32 Other noncurrent liabilities and deferred credits 45 49 Other liabilities and deferred credits $ 396 $ 388

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Note 9 – Goodwill and Intangible Assets The changes in the carrying amount of goodwill are as follows: Total Company KFC Pizza Hut All Other Segments Balance as of December 31, 2017 Goodwill, gross $ 490 $ 80 $ 19 $ 391 Accumulated impairment losses (a) (382 ) — — (382 ) Goodwill, net 108 80 19 9 Goodwill acquired (b) 175 175 — — Effect of currency translation adjustment (7 ) (7 ) — — Balance as of June 30, 2018 Goodwill, gross 658 248 19 391 Accumulated impairment losses (a) (382 ) — — (382 ) Goodwill, net $ 276 $ 248 $ 19 $ 9 ( a ) Accumulated impairment losses represent Little Sheep goodwill impairment. ( b ) Goodwill acquired in connection with the acquisition of Wuxi KFC. Intangible assets, net as of June 30, 2018 and December 31, 2017 are as follows: 6/30/2018 12/31/2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets Reacquired franchise rights (c) $ 156 $ (94 ) $ 62 $ 100 $ (87 ) $ 13 Daojia platform 17 (2 ) 15 18 (1 ) 17 Customer-related assets 12 (7 ) 5 12 (6 ) 6 Other 19 (11 ) 8 19 (10 ) 9 $ 204 $ (114 ) $ 90 $ 149 $ (104 ) $ 45 Indefinite-lived intangible assets Little Sheep trademark $ 55 $ — $ 55 $ 56 $ — $ 56 Total intangible assets $ 259 $ (114 ) $ 145 $ 205 $ (104 ) $ 101 ( c ) Increase in gross carrying amount of reacquired franchise rights during the year to date ended June 30, 2018 primarily resulted from the acquisition of Wuxi KFC. Amortization expense of definite-lived intangible assets was $7 million and $3 million for the quarters ended June 30, 2018 and 2017, respectively, and $13 million and $6 million for the years to date ended June 30, 2018 and 2017, respectively. As of June 30, 2018, expected amortization expense for the unamortized definite-lived intangible assets is approximately $14 million for the remainder of 2018, $20 million in 2019, $15 million in 2020, $15 million in 2021 and $15 million in 2022.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 10 – Fair Value Measurements As of June 30, 2018, 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. In addition, certain of the Company’s assets, such as property, plant and equipment, goodwill and intangible assets, are measured at fair value on a non-recurring basis, if determined to be impaired. During the quarter and year to date ended June 30, 2018, we recorded restaurant-level impairment (Level 3) of $13 million and $13 million, respectively. During the quarter and year to date ended June 30, 2017, we recorded restaurant-level impairment (Level 3) of $16 million and $19 million, respectively. The remaining net book value of the assets measured at fair value as of June 30, 2018, subsequent to these impairments, was not significant.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 11 – Income Taxes Quarter Ended Year to Date Ended 6/30/2018 6/30/2017 6/30/2018 6/30/2017 Income tax provision $ 53 $ 43 $ 160 $ 133 Effective tax rate 26.0 % 24.3 % 26.4 % 27.9 % The higher effective tax rate for the quarter was primarily due to less excess tax benefit driven by the exercise of share-based awards, offset by less estimated repatriation of current year earnings outside of China. The lower year-to-date effective tax rate was primarily due to less estimated repatriation of current year earnings outside of China. In December 2017, the U.S. enacted the Tax Cuts and Jobs Act , which included a broad range of tax reforms, including, but not limited , the elimination or reduction of certain business deductions and the imposition of tax on deemed repatriation of accumulated undistributed foreign earnings. The Tax Act impacted Yum China in two material aspects: (1) all of the foreign-source dividends received by Yum China from its foreign subsidiaries will be exempted from taxation starting from the tax year beginning after December 31, 2017 and (2) Yum China recorded additional income tax expense in the fourth quarter of 2017, including an estimated one-time transition tax on its deemed repatriation of accumulated undistributed foreign earnings and additional tax related to revaluation of certain deferred tax assets. The Tax Act requires a U.S. shareholder be subject to tax on Global Intangible Low Taxed Income ( “ ” As we collect and prepare necessary data, and interpret the Tax Act and any additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service ( “ ”

Reportable Operating Segments

Reportable Operating Segments	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Reportable Operating Segments	Note 12 – Reportable Operating Segments We have two reportable segments: KFC and Pizza Hut. We also have four operating segments, East Dawning, Little Sheep, Taco Bell and Daojia, which are combined and referred to as All Other Segments, as these operating segments are insignificant both individually and in the aggregate. Quarter Ended 6/30/2018 Revenues KFC Pizza Hut All Other Segments Corporate and Unallocated (a) Combined Elimination Consolidated Revenue from external customers $ 1,400 $ 528 $ 17 $ 123 2,068 $ — $ 2,068 Inter-segment revenue — — 1 — 1 (1 ) — Total $ 1,400 $ 528 $ 18 $ 123 $ 2,069 $ (1 ) $ 2,068 Quarter Ended 6/30/2017 Revenues KFC Pizza Hut All Other Segments Corporate and Unallocate d(a) Combined Elimination Consolidated Revenue from external customers $ 1,206 $ 498 $ 16 $ 121 1,841 $ — $ 1,841 Inter-segment revenue — — — — — — — Total $ 1,206 $ 498 $ 16 $ 121 $ 1,841 $ — $ 1,841 Year to Date Ended 6/30/2018 Revenues KFC Pizza Hut All Other Segments Corporate and Unallocated (a) Combined Elimination Consolidated Revenue from external customers $ 2,898 $ 1,093 $ 37 $ 261 4,289 $ — $ 4,289 Inter-segment revenue — — 1 — 1 (1 ) — Total $ 2,898 $ 1,093 $ 38 $ 261 $ 4,290 $ (1 ) $ 4,289 Year to Date Ended 6/30/2017 Revenues KFC Pizza Hut All Other Segments Corporate and Unallocated (a) Combined Elimination Consolidated Revenue from external customers $ 2,456 $ 1,026 $ 39 $ 246 3,767 $ — $ 3,767 Inter-segment revenue — — — — — — — Total $ 2,456 $ 1,026 $ 39 $ 246 $ 3,767 $ — $ 3,767 Quarter Ended Year to Date Ended Operating Profit 6/30/2018 6/30/2017 6/30/2018 6/30/2017 KFC (b) $ 199 $ 182 $ 495 $ 427 Pizza Hut 20 39 54 119 All Other Segments (7 ) (3 ) (11 ) (2 ) Unallocated revenues from transactions with franchisees and unconsolidated affiliates (a) 122 121 259 246 Unallocated Other revenues (a) 1 — 2 — Unallocated expenses from transactions with franchisees and unconsolidated affiliates (a) (120 ) (118 ) (257 ) (243 ) Unallocated Other operating costs (a) (1 ) — (2 ) — Unallocated and corporate G&A expenses (a) (19 ) (50 ) (52 ) (81 ) Unallocated Other income (loss) (a)(c) (2 ) — 100 1 Operating Profit $ 193 $ 171 $ 588 $ 467 Interest income, net (a) 10 4 18 8 Income Before Income Taxes $ 203 $ 175 $ 606 $ 475 Identifiable Assets 6/30/2018 12/31/2017 KFC (d) $ 1,760 $ 1,544 Pizza Hut 615 668 All Other Segments 137 144 Corporate and Unallocated (e) 2,218 1,931 $ 4,730 $ 4,287 Long-Lived Assets (f) 6/30/2018 12/31/2017 KFC $ 1,384 $ 1,152 Pizza Hut 529 580 All Other Segments 109 114 Corporate and Unallocated 56 54 $ 2,078 $ 1,900 (a) Amounts have not been allocated to any segment for performance reporting purposes. (b) Includes equity income from investments in unconsolidated affiliates of $12 million and $14 million for the quarters ended June 30, 2018 and 2017, respectively, and $35 million and $35 million for the years to date ended June 30, 2018 and 2017, respectively. (c) Amounts mainly include gain from re-measurement of previously held equity interest in connection with the acquisition of Wuxi KFC. See Note 2. ( d ) Includes investments in the unconsolidated affiliates. (e) Primarily includes cash and cash equivalents, short-term investments and inventories that are centrally managed. (f) Includes property, plant and equipment, goodwill and intangible assets, net.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments And Contingencies Disclosure [Abstract]
Contingencies	Note 13 – Contingencies Indemnification of China Tax on Indirect Transfers of Assets In February 2015, the Chinese State Administration of Taxation (“SAT”) issued Bulletin 7 on Income arising from Indirect Transfers of Assets by Non-Resident Enterprises. Pursuant to Bulletin 7, an “indirect transfer” of Chinese taxable assets, including equity interests in a Chinese resident enterprise, by a non-resident enterprise, may be recharacterized and treated as a direct transfer of Chinese taxable assets, if such arrangement does not have reasonable commercial purpose and the transferor has avoided payment of Chinese enterprise income tax. As a result, gains derived from such an indirect transfer may be subject to Chinese enterprise income tax at a rate of 10%. YUM concluded and we concurred that it is more likely than not that YUM will not be subject to this tax with respect to the distribution. However, given how recently Bulletin 7 was promulgated, there are significant uncertainties regarding what constitutes a reasonable commercial purpose, how the safe harbor provisions for group restructurings are to be interpreted and how the taxing authorities will ultimately view the distribution. As a result, YUM’s position could be challenged by Chinese tax authorities resulting in a 10% tax assessed on the difference between the fair market value and the tax basis of the separated China business. As YUM’s tax basis in the China business is minimal, the amount of such tax could be significant. Any tax liability arising from the application of Bulletin 7 to the distribution is expected to be settled in accordance with the tax matters agreement between the Company and YUM. Pursuant to the tax matters agreement, to the extent any Chinese indirect transfer tax pursuant to Bulletin 7 is imposed, such tax and related losses will be allocated between YUM and the Company in proportion to their respective share of the combined market capitalization of YUM and the Company during the 30 trading days after the separation. Such a settlement could be significant and have a material adverse effect on our results of operations and our financial condition. At the inception of the tax indemnity being provided to YUM, the fair value of the non-contingent obligation to stand ready to perform was insignificant and the liability for the contingent obligation to make payment was not probable or estimable. Guarantees From time to time we have guaranteed certain lines of credit and loans of franchisees and unconsolidated affiliates. As of June 30, 2018, we have provided guarantees of approximately $2 million on behalf of franchisees and no guarantees were outstanding for unconsolidated affiliates. Legal Proceedings From time to time, the Company is subject to various lawsuits covering a variety of allegations. The Company believes that the ultimate liability, if any, in excess of amounts already provided for these matters in the Condensed Consolidated Financial Statements, is not likely to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. Matters faced by the Company from time to time include, but are not limited to, claims from landlords, employees, customers and others related to operational, contractual or employment issues.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 14 – Subsequent Events On August 1, 2018, the Company announced that the Board of Directors declared a cash dividend of $0.10 per share on Yum China’s common stock, payable as of the close of business on September 19, 2018, to stockholders of record as of the close of business on August 29, 2018. Total estimated cash dividend payable is approximately $38 million. On August 1, 2018, the Company entered into an agreement for an offshore credit facility of $100 million. This credit facility has a term of three years and bears interest based on the prevailing rate stipulated by the London Interbank Offered Rate (LIBOR) administered by the ICE Benchmark Administration. As of the date of this report, the full amount of borrowing was available to us under this credit facility.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Note 2 – Basis of Presentation In connection with our separation from YUM, the direct and indirect equity interests of all of our operating subsidiaries and intermediate holding companies were transferred from YUM to Yum China, when Yum China was still one of YUM’s subsidiaries, through a series of transactions, which were completed in August 2016. The Company separated from YUM on October 31, 2016, becoming an independent publicly traded company as a result of a pro rata distribution of all outstanding shares of Yum China common stock to shareholders of YUM. For periods prior to October 31, 2016, the combined financial statements of YUM’s China businesses and operations when Yum China was a wholly-owned subsidiary of YUM are referred to as Condensed Combined Financial Statements. For periods subsequent to October 31, 2016, the consolidated financial statements of the Company as a separate publicly traded company following its separation from YUM are referred to as Condensed Consolidated Financial Statements. Our preparation of the accompanying Condensed Consolidated Financial Statements in conformity with Generally Accepted Accounting Principles in the United States of America (“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. We have prepared the Condensed Consolidated Financial Statements in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The Condensed Consolidated Financial Statements include all normal and recurring adjustments considered necessary to present fairly our financial position as of June 30, 2018, and the results of our operations and comprehensive income for the quarters and years to date ended June 30, 2018 and 2017, and cash flows for the years to date ended June 30, 2018 and 2017. 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. These statements should be read in conjunction with the Consolidated and Combined Financial Statements and notes thereto defined and included in the Company’s Annual Report on Form 10-K as filed with the SEC on February 27, 2018. Through the acquisition of Daojia during the second quarter of 2017, the Company also acquired a variable interest entity (“VIE”) and subsidiaries of the VIE effectively controlled by Daojia. There exists a parent-subsidiary relationship between Daojia and its VIE as a result of certain exclusive agreements that require Daojia to consolidate its VIE and subsidiaries of the VIE because Daojia is the primary beneficiary that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb substantially all of the profits and all of the expected losses of the VIE. During the first quarter of 2018, the Company completed the acquisition of an additional 36% equity interest in an unconsolidated affiliate that operates KFC stores in Wuxi, China (“Wuxi KFC”), for cash consideration of approximately $98 million, increasing the Company’s equity interest to 83%, allowing the Company to consolidate the entity. The acquisition was considered immaterial. We began consolidating Wuxi KFC upon the completion of acquisition.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Liabilities-Extinguishments of liabilities (Subtopic 450-20): Revenue of Breakage for Certain Prepaid Stored-Value Products (a consensus of the FASB Emerging Issues Task Force) Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients The new standard did not have an impact on our recognition of revenue from Company-owned restaurants or our recognition of continuing fees from franchisees and unconsolidated affiliates; however, it changed the way we account for upfront fees. Upfront fees, such as initial and renewal fees from franchisees and unconsolidated affiliates, were previously recognized as revenue when we performed substantially all initial services required by the franchise agreement, generally upon the opening of a store or when a renewal agreement with a franchisee became effective. We now recognize the upfront fees from franchisees and unconsolidated affiliates as revenue over the term of each franchise agreement as the franchise rights are accounted for as rights to access our symbolic intellectual property in accordance with the new standard. Any unamortized portion of fees received is accounted for as a contract liability. The new standard also had an impact on certain transactions we entered into with franchisees and unconsolidated affiliates, such as sales of food and paper products and advertising services. These transactions were previously either not included or presented on a net basis in our statements of income or cash flows based on industry-specific guidance included in previous accounting guidance, which was superseded by the new standard. Under the new standard, we consider ourselves the principal in these arrangements as we have the ability to control a promised good or service before transferring that good or service to the customer. Therefore, we include such transactions in revenues and expenses on the Condensed Consolidated Statements of Income with no significant impact to Net income. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) We adopted ASU 2016-15 and such adoption did not have a material impact on our financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory We adopted ASU 2016-16 and such adoption did not have a material impact on our financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash We adopted ASU 2016-18 and such adoption did not have a material impact on our financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business We adopted ASU 2017-01 and such adoption did not have a material impact on our financial statements. Certain comparative items in the Condensed Consolidated Financial Statements have been reclassified to conform to the current period’s presentation to facilitate comparison. Our fiscal year ends on December 31. Effective at the beginning of fiscal year 2018, the Company changed its fiscal calendar from two months in the first quarter, three months in the second and third quarters and four months in the fourth quarter, to four three-month quarters ending on March 31, June 30, September 30 and December 31 of each year. The change was made to align with how management now measures performance internally and to facilitate the comparability of our results with peers using calendar quarters. Quarterly results of all prior financial periods presented have been recast as if they had been reported under our new fiscal calendar.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue From Contract With Customer [Abstract]
Contract Liabilities	Contract liabilities at June 30, 2018 and December 31, 2017 were as follows: Contract liabilities 6/30/2018 12/31/2017 - Deferred revenue related to prepaid stored-value products $ 51 $ 50 - Deferred revenue related to customer loyalty programs 22 16 - Deferred revenue related to upfront fees 37 39 Total $ 110 $ 105

Earnings Per Common Share ("E23

Earnings Per Common Share ("EPS") (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Earnings Per Common Share	The following table summarizes the components of basic and diluted EPS (in millions, except for per share data): Quarter Ended Year to Date Ended 6/30/2018 6/30/2017 6/30/2018 6/30/2017 Net Income – Yum China Holdings, Inc. $ 143 $ 125 $ 431 $ 329 Weighted-average common shares outstanding (for basic calculation) (a) 386 387 386 387 Effect of dilutive share-based employee compensation (a) 10 11 11 9 Effect of dilutive warrants (b) 2 1 3 1 Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) 398 399 400 397 Basic Earnings Per Common Share $ 0.37 $ 0.32 $ 1.12 $ 0.85 Diluted Earnings Per Common Share $ 0.36 $ 0.31 $ 1.08 $ 0.83 Employee stock options, stock appreciation rights and warrants excluded from the diluted EPS computation (c) 1 10 1 14 (a) As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards on shares of common stock of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect. (b) Pursuant to the investment agreements dated September 1, 2016, Yum China issued to strategic investors two tranches of warrants on January 9, 2017, with each tranche providing the right to purchase 8,200,405 shares of Yum China common stock, at an exercise price of $31.40 and $39.25 per share, respectively, subject to customary anti-dilution adjustments. The warrants may be exercised at any time through October 31, 2021. The outstanding warrants are included in the computation of diluted EPS, if there is dilutive effect when the average market price of Yum China common stock for the period exceeds the exercise price of the warrants. ( c) These outstanding employee stock options, stock appreciation rights and warrants were not included in the computation of diluted EPS because to do so would have been antidilutive for the quarters and years to date presented.

Equity (Tables)

Equity (Tables)	6 Months Ended
	Jun. 30, 2018
Stockholders Equity Note [Abstract]
Changes in Equity and Redeemable Noncontrolling Interest	Yum China Holdings, Inc. Accumulated Common Additional Other Redeemable Stock Paid-in Retained Comprehensive Treasury Stock Noncontrolling Total Noncontrolling Shares Amount Capital Earnings Income Shares Amount Interests Equity Interest Balance at December 31, 2017 389 $ 4 $ 2,375 $ 397 $ 137 (4 ) $ (148 ) $ 77 $ 2,842 $ 5 Net Income 431 15 446 Foreign currency translation adjustments (56 ) (2 ) (58 ) Comprehensive income 388 Acquisition of business 36 36 Cash dividends declared ($0.20 per common share) (77 ) (77 ) Dividends declared (33 ) (33 ) Repurchase of shares of common stock (2 ) (73 ) (73 ) Exercise and vesting of share-based awards 2 — — — Share-based compensation 13 13 Balance at June 30, 2018 391 $ 4 $ 2,388 $ 751 $ 81 (6 ) $ (221 ) $ 93 $ 3,096 $ 5
Repurchase Of Shares Of Common Stock	Under the authorization, we repurchased shares of Yum China common stock during the years to date ended June 30, 2018 and 2017 as indicated below. All amounts exclude applicable transaction fees. Authorization Date Shares Repurchased (thousands) Dollar Value of Shares Repurchased (millions) Remaining Dollar Value of Shares that may be Repurchased (millions) 2018 2017 2018 2017 2018 February 7, 2017 1,910 2,723 73 105 99 October 4, 2017 — — — — 250 Total 1,910 (a) 2,723 (b) 73 (a) 105 (b) 349 (a) Includes 0.1 million shares repurchased for $3 million with trade dates prior to June 30, 2018 but cash settlement dates subsequent to June 30, 2018. (b) Includes 0.2 million shares repurchased for $9 million with trade dates prior to June 30, 2017 but cash settlement dates subsequent to June 30, 2017.

Items Affecting Comparability25

Items Affecting Comparability of Net Income and Cash Flows (Tables)	6 Months Ended
	Jun. 30, 2018
Closures and Impairment (Income) Expenses [Member]
Facility Actions [Line Items]
Store Closure and Impairment Activity	Store Closure and Impairment Activity Store closure income and Store impairment charges by reportable segments and All Other Segments are presented below: Quarter Ended Year to Date Ended 6/30/2018 6/30/2018 Total Company KFC Pizza Hut All Other Segments Total Company KFC Pizza Hut All Other Segments Store closure income (a) $ 2 $ 1 $ 1 $ — $ 5 $ 2 $ 3 $ — Store impairment charges (19 ) (7 ) (12 ) — (21 ) (8 ) (13 ) — Closure and impairment expenses $ (17 ) $ (6 ) $ (11 ) $ — $ (16 ) $ (6 ) $ (10 ) $ — Quarter Ended Year to Date Ended 6/30/2017 6/30/2017 Total Company KFC Pizza Hut All Other Segments Total Company KFC Pizza Hut All Other Segments Store closure income (a) $ 1 $ 1 $ — $ — $ 5 $ 3 $ 2 $ — Store impairment charges (19 ) (10 ) (9 ) — (23 ) (13 ) (10 ) — Closure and impairment expenses $ (18 ) $ (9 ) $ (9 ) $ — $ (18 ) $ (10 ) $ (8 ) $ — (a) Store closure income include proceeds from forced store closures, lease reserves established when we cease using a property under an operating lease and subsequent adjustments to those reserves and other facility-related expenses from previously closed stores. Remaining lease obligations for closed stores were not material at June 30, 2018 or December 31, 2017.

Other Income, Net (Tables)

Other Income, Net (Tables)	6 Months Ended
	Jun. 30, 2018
Other Income And Expenses [Abstract]
Other Income, Net	Quarter Ended Year to Date Ended 6/30/2018 6/30/2017 6/30/2018 6/30/2017 Equity income from investments in unconsolidated affiliates $ 12 $ 14 $ 35 $ 35 Gain from re-measurement of equity interest upon acquisition (a) — — 98 — Foreign exchange loss and other (5 ) (3 ) — (4 ) Other income, net $ 7 $ 11 $ 133 $ 31 (a) As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

Supplemental Balance Sheet In27

Supplemental Balance Sheet Information (Tables)	6 Months Ended
	Jun. 30, 2018
Supplemental Balance Sheet Information Disclosure [Abstract]
Accounts Receivable, Net	Accounts Receivable, net 6/30/2018 12/31/2017 Accounts receivable, gross $ 75 $ 83 Allowance for doubtful accounts (2 ) (2 ) Accounts receivable, net $ 73 $ 81
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets 6/30/2018 12/31/2017 Prepaid rent $ 43 $ 41 Receivables from payment processors and aggregators 34 38 Dividends receivable from unconsolidated affiliates 39 21 Other prepaid expenses and current assets 89 60 Prepaid expenses and other current assets $ 205 $ 160
Property, Plant and Equipment	Property, Plant and Equipment 6/30/2018 12/31/2017 Buildings and improvements $ 2,169 $ 2,184 Capital leases, primarily buildings 28 28 Machinery, equipment and construction in progress 1,208 1,204 Property, plant and equipment, gross 3,405 3,416 Accumulated depreciation (1,748 ) (1,725 ) Property, plant and equipment, net $ 1,657 $ 1,691
Accounts Payable and Other Current Liabilities	Other Assets 6/30/2018 12/31/2017 Land use right $ 136 $ 131 VAT assets 197 176 Costs to obtain contracts 9 12 Long-term deposits 61 56 Others 18 10 Other Assets $ 421 $ 385 Accounts Payable and Other Current Liabilities 6/30/2018 12/31/2017 Accounts payable $ 584 $ 424 Accrued capital expenditures 120 142 Accrued compensation and benefits 179 233 Accrued taxes, other than income taxes 25 16 Accrued marketing expenses 81 28 Contract liabilities 80 72 Other current liabilities 78 70 Accounts payable and other current liabilities $ 1,147 $ 985
Other Liabilities and Deferred Credits	Other Liabilities and Deferred Credits 6/30/2018 12/31/2017 Deferred escalating minimum rent $ 156 $ 162 Contract liabilities 30 33 Accrued income tax payable 96 112 Deferred income tax liabilities 69 32 Other noncurrent liabilities and deferred credits 45 49 Other liabilities and deferred credits $ 396 $ 388

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Changes in the Carrying Amount of Goodwill	The changes in the carrying amount of goodwill are as follows: Total Company KFC Pizza Hut All Other Segments Balance as of December 31, 2017 Goodwill, gross $ 490 $ 80 $ 19 $ 391 Accumulated impairment losses (a) (382 ) — — (382 ) Goodwill, net 108 80 19 9 Goodwill acquired (b) 175 175 — — Effect of currency translation adjustment (7 ) (7 ) — — Balance as of June 30, 2018 Goodwill, gross 658 248 19 391 Accumulated impairment losses (a) (382 ) — — (382 ) Goodwill, net $ 276 $ 248 $ 19 $ 9 ( a ) Accumulated impairment losses represent Little Sheep goodwill impairment. ( b ) Goodwill acquired in connection with the acquisition of Wuxi KFC.
Schedule of Finite and Indefinite Lived Intangible Assets by Major Class	Intangible assets, net as of June 30, 2018 and December 31, 2017 are as follows: 6/30/2018 12/31/2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets Reacquired franchise rights (c) $ 156 $ (94 ) $ 62 $ 100 $ (87 ) $ 13 Daojia platform 17 (2 ) 15 18 (1 ) 17 Customer-related assets 12 (7 ) 5 12 (6 ) 6 Other 19 (11 ) 8 19 (10 ) 9 $ 204 $ (114 ) $ 90 $ 149 $ (104 ) $ 45 Indefinite-lived intangible assets Little Sheep trademark $ 55 $ — $ 55 $ 56 $ — $ 56 Total intangible assets $ 259 $ (114 ) $ 145 $ 205 $ (104 ) $ 101 ( c ) Increase in gross carrying amount of reacquired franchise rights during the year to date ended June 30, 2018 primarily resulted from the acquisition of Wuxi KFC.

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Tax And Effective Tax Rate	Quarter Ended Year to Date Ended 6/30/2018 6/30/2017 6/30/2018 6/30/2017 Income tax provision $ 53 $ 43 $ 160 $ 133 Effective tax rate 26.0 % 24.3 % 26.4 % 27.9 %

Reportable Operating Segments (

Reportable Operating Segments (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Quarter Ended 6/30/2018 Revenues KFC Pizza Hut All Other Segments Corporate and Unallocated (a) Combined Elimination Consolidated Revenue from external customers $ 1,400 $ 528 $ 17 $ 123 2,068 $ — $ 2,068 Inter-segment revenue — — 1 — 1 (1 ) — Total $ 1,400 $ 528 $ 18 $ 123 $ 2,069 $ (1 ) $ 2,068 Quarter Ended 6/30/2017 Revenues KFC Pizza Hut All Other Segments Corporate and Unallocate d(a) Combined Elimination Consolidated Revenue from external customers $ 1,206 $ 498 $ 16 $ 121 1,841 $ — $ 1,841 Inter-segment revenue — — — — — — — Total $ 1,206 $ 498 $ 16 $ 121 $ 1,841 $ — $ 1,841 Year to Date Ended 6/30/2018 Revenues KFC Pizza Hut All Other Segments Corporate and Unallocated (a) Combined Elimination Consolidated Revenue from external customers $ 2,898 $ 1,093 $ 37 $ 261 4,289 $ — $ 4,289 Inter-segment revenue — — 1 — 1 (1 ) — Total $ 2,898 $ 1,093 $ 38 $ 261 $ 4,290 $ (1 ) $ 4,289 Year to Date Ended 6/30/2017 Revenues KFC Pizza Hut All Other Segments Corporate and Unallocated (a) Combined Elimination Consolidated Revenue from external customers $ 2,456 $ 1,026 $ 39 $ 246 3,767 $ — $ 3,767 Inter-segment revenue — — — — — — — Total $ 2,456 $ 1,026 $ 39 $ 246 $ 3,767 $ — $ 3,767 Quarter Ended Year to Date Ended Operating Profit 6/30/2018 6/30/2017 6/30/2018 6/30/2017 KFC (b) $ 199 $ 182 $ 495 $ 427 Pizza Hut 20 39 54 119 All Other Segments (7 ) (3 ) (11 ) (2 ) Unallocated revenues from transactions with franchisees and unconsolidated affiliates (a) 122 121 259 246 Unallocated Other revenues (a) 1 — 2 — Unallocated expenses from transactions with franchisees and unconsolidated affiliates (a) (120 ) (118 ) (257 ) (243 ) Unallocated Other operating costs (a) (1 ) — (2 ) — Unallocated and corporate G&A expenses (a) (19 ) (50 ) (52 ) (81 ) Unallocated Other income (loss) (a)(c) (2 ) — 100 1 Operating Profit $ 193 $ 171 $ 588 $ 467 Interest income, net (a) 10 4 18 8 Income Before Income Taxes $ 203 $ 175 $ 606 $ 475 Identifiable Assets 6/30/2018 12/31/2017 KFC (d) $ 1,760 $ 1,544 Pizza Hut 615 668 All Other Segments 137 144 Corporate and Unallocated (e) 2,218 1,931 $ 4,730 $ 4,287 Long-Lived Assets (f) 6/30/2018 12/31/2017 KFC $ 1,384 $ 1,152 Pizza Hut 529 580 All Other Segments 109 114 Corporate and Unallocated 56 54 $ 2,078 $ 1,900 (a) Amounts have not been allocated to any segment for performance reporting purposes. (b) Includes equity income from investments in unconsolidated affiliates of $12 million and $14 million for the quarters ended June 30, 2018 and 2017, respectively, and $35 million and $35 million for the years to date ended June 30, 2018 and 2017, respectively. (c) Amounts mainly include gain from re-measurement of previously held equity interest in connection with the acquisition of Wuxi KFC. See Note 2. ( d ) Includes investments in the unconsolidated affiliates. (e) Primarily includes cash and cash equivalents, short-term investments and inventories that are centrally managed. (f) Includes property, plant and equipment, goodwill and intangible assets, net.

Description of the Business - N

Description of the Business - Narrative (Details)	Oct. 31, 2016	Jun. 30, 2018
Segment Reporting Information [Line Items]
Entity, date of incorporation		Apr. 1, 2016
Entity incorporation, state name		Delaware
Expiration term of master license agreement		50 years
Additional consecutive renewal terms of license agreement		50 years
Percentage of license fees on net sales		3.00%
Parent Company Investment [Member]
Segment Reporting Information [Line Items]
Exchange ratio of shares	1

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details) - Wuxi KFC [Member] $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Summary Of Significant Accounting Policies [Line Items]
Percentage of additional equity interest acquired	36.00%
Cash consideration paid to acquire interest	$ 98
Equity interest in acquiree, including subsequent acquisition, percentage	83.00%

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Revenue From Contract With Customer [Line Items]
Prepaid gift cards expiration period		36 months
Product vouchers maximum expiration period		12 months
Points expiration period		18 months
Number of days from the period in which the corresponding sales occur that trade receivables are generally due		30 days
Impairment losses related to costs to obtain contracts		$ 0	$ 0
Costs to obtain contracts	$ 9	9	$ 12
Revenue recognized	$ 18	$ 30
KFC [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term		10 years
Pizza Hut [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term		10 years
Little Sheep [Member] | Minimum [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term		5 years
Little Sheep [Member] | Maximum [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term		10 years

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Contract liabilities
- Deferred revenue related to prepaid stored-value products	$ 51	$ 50
- Deferred revenue related to customer loyalty programs	22	16
- Deferred revenue related to upfront fees	37	39
Total	$ 110	$ 105

Earnings Per Common Share ("E35

Earnings Per Common Share ("EPS") (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Net Income – Yum China Holdings, Inc.		$ 143	$ 125	$ 431	$ 329
Weighted-average common shares outstanding (for basic calculation)	[1]	386	387	386	387
Effect of dilutive share-based employee compensation	[1]	10	11	11	9
Effect of dilutive warrants	[2]	2	1	3	1
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		398	399	400	397
Basic Earnings Per Common Share		$ 0.37	$ 0.32	$ 1.12	$ 0.85
Diluted Earnings Per Common Share		$ 0.36	$ 0.31	$ 1.08	$ 0.83
Employee stock options, stock appreciation rights and warrants excluded from the diluted EPS computation	[3]	1	10	1	14
[1]	As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards on shares of common stock of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect.
[2]	Pursuant to the investment agreements dated September 1, 2016, Yum China issued to strategic investors two tranches of warrants on January 9, 2017, with each tranche providing the right to purchase 8,200,405 shares of Yum China common stock, at an exercise price of $31.40 and $39.25 per share, respectively, subject to customary anti-dilution adjustments. The warrants may be exercised at any time through October 31, 2021. The outstanding warrants are included in the computation of diluted EPS, if there is dilutive effect when the average market price of Yum China common stock for the period exceeds the exercise price of the warrants.
[3]	These outstanding employee stock options, stock appreciation rights and warrants were not included in the computation of diluted EPS because to do so would have been antidilutive for the quarters and years to date presented.

Earnings Per Common Share ("E36

Earnings Per Common Share ("EPS") (Parenthetical) (Details)	Jan. 09, 2017Tranche$ / sharesshares
Class Of Warrant Or Right [Line Items]
Number of tranches of warrants | Tranche	2
Tranche One Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants to purchase shares of common stock | shares	8,200,405
Exercise price of warrants | $ / shares	$ 31.40
Tranche Two Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants to purchase shares of common stock | shares	8,200,405
Exercise price of warrants | $ / shares	$ 39.25

Equity (Details)

Equity (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018		Jun. 30, 2017
Class Of Stock [Line Items]
Balance at December 31, 2017			$ 2,842
Net Income	$ 150	$ 132	446		$ 342
Foreign currency translation adjustments	(148)	32	(58)		47
Comprehensive income	2	$ 164	388		389
Repurchase of shares of common stock			$ (73)	[1]	$ (105)	[2]
Repurchase of shares of common stock, shares			(1,910)	[1]	(2,723)	[2]
Balance at June 30, 2018	3,096		$ 3,096
Common Stock [Member]
Class Of Stock [Line Items]
Balance at December 31, 2017			$ 4
Balance (in shares) at Dec. 31, 2017			389,000
Exercise and vesting of share-based awards, shares			2,000
Balance at June 30, 2018	$ 4		$ 4
Balance (in shares) at June 30, 2018	391,000		391,000
Additional Paid-in Capital [Member]
Class Of Stock [Line Items]
Balance at December 31, 2017			$ 2,375
Share-based compensation			13
Balance at June 30, 2018	$ 2,388		2,388
Retained Earnings [Member]
Class Of Stock [Line Items]
Balance at December 31, 2017			397
Net Income			431
Cash dividends declared ($0.20 per common share)			(77)
Balance at June 30, 2018	751		751
Accumulated Other Comprehensive Income [Member]
Class Of Stock [Line Items]
Balance at December 31, 2017			137
Foreign currency translation adjustments			(56)
Balance at June 30, 2018	81		81
Treasury Stock [Member]
Class Of Stock [Line Items]
Balance at December 31, 2017			$ (148)
Balance (in shares) at Dec. 31, 2017			(4,000)
Repurchase of shares of common stock			$ (73)
Repurchase of shares of common stock, shares			(2,000)
Balance at June 30, 2018	$ (221)		$ (221)
Balance (in shares) at June 30, 2018	(6,000)		(6,000)
Noncontrolling Interests [Member]
Class Of Stock [Line Items]
Balance at December 31, 2017			$ 77
Net Income			15
Foreign currency translation adjustments			(2)
Acquisition of business			36
Dividends declared			(33)
Balance at June 30, 2018	$ 93		93
Total equity Including Noncontrolling Interest [Member]
Class Of Stock [Line Items]
Balance at December 31, 2017			2,842
Net Income			446
Foreign currency translation adjustments			(58)
Comprehensive income			388
Acquisition of business			36
Cash dividends declared ($0.20 per common share)			(77)
Dividends declared			(33)
Repurchase of shares of common stock			(73)
Share-based compensation			13
Balance at June 30, 2018	3,096		3,096
Redeemable Noncontrolling Interest [Member]
Class Of Stock [Line Items]
Balance at December 31, 2017			5
Balance at June 30, 2018	$ 5		$ 5
[1]	Includes 0.1 million shares repurchased for $3 million with trade dates prior to June 30, 2018 but cash settlement dates subsequent to June 30, 2018.
[2]	Includes 0.2 million shares repurchased for $9 million with trade dates prior to June 30, 2017 but cash settlement dates subsequent to June 30, 2017.

Equity (Parenthetical) (Details

Equity (Parenthetical) (Details) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Equity [Abstract]
Cash dividends declared, per common share	$ 0.10	$ 0.20

Equity - Narrative (Details)

Equity - Narrative (Details) - USD ($)	Oct. 04, 2017	Feb. 07, 2017
Equity [Abstract]
Stock repurchase program, authorized amount	$ 550,000,000	$ 300,000,000

Equity (Details 1)

Equity (Details 1) - USD ($) shares in Thousands, $ in Millions	6 Months Ended
	Jun. 30, 2018		Jun. 30, 2017
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased	1,910	[1]	2,723	[2]
Dollar Value of Shares Repurchased	$ 73	[1]	$ 105	[2]
Remaining Dollar Value of Shares that may be Repurchased	$ 349
February 7, 2017 [Member]
Repurchase Of Shares Of Common Stock [Line Items]
Authorization Date	Feb. 7, 2017
Shares Repurchased	1,910		2,723
Dollar Value of Shares Repurchased	$ 73		$ 105
Remaining Dollar Value of Shares that may be Repurchased	$ 99
October 4, 2017 [Member]
Repurchase Of Shares Of Common Stock [Line Items]
Authorization Date	Oct. 4, 2017
Remaining Dollar Value of Shares that may be Repurchased	$ 250
[1]	Includes 0.1 million shares repurchased for $3 million with trade dates prior to June 30, 2018 but cash settlement dates subsequent to June 30, 2018.
[2]	Includes 0.2 million shares repurchased for $9 million with trade dates prior to June 30, 2017 but cash settlement dates subsequent to June 30, 2017.

Equity (Parenthetical) (Detai41

Equity (Parenthetical) (Details 1) - USD ($) shares in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Equity [Abstract]
Value of shares repurchased with trade dates prior to the current reporting quarter, but settlement dates in the current quarter	$ 3	$ 9
Number of shares repurchased with trade dates prior to the current reporting quarter, but settlement dates in the current quarter	0.1	0.2

Items Affecting Comparability42

Items Affecting Comparability of Net Income and Cash Flows (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Facility Actions [Line Items]
Store closure income	[1]	$ 2	$ 1	$ 5	$ 5
Store impairment charges		(19)	(19)	(21)	(23)
Closure and impairment expenses		(17)	(18)	(16)	(18)
KFC [Member]
Facility Actions [Line Items]
Store closure income	[1]	1	1	2	3
Store impairment charges		(7)	(10)	(8)	(13)
Closure and impairment expenses		(6)	(9)	(6)	(10)
Pizza Hut [Member]
Facility Actions [Line Items]
Store closure income	[1]	1		3	2
Store impairment charges		(12)	(9)	(13)	(10)
Closure and impairment expenses		$ (11)	$ (9)	$ (10)	$ (8)
[1]	Store closure income include proceeds from forced store closures, lease reserves established when we cease using a property under an operating lease and subsequent adjustments to those reserves and other facility-related expenses from previously closed stores. Remaining lease obligations for closed stores were not material at June 30, 2018 or December 31, 2017.

Other Income, Net (Details)

Other Income, Net (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other Income And Expenses [Abstract]
Equity income from investments in unconsolidated affiliates		$ 12	$ 14	$ 35	$ 35
Gain from re-measurement of equity interest upon acquisition	[1]			98
Foreign exchange loss and other		(5)	(3)		(4)
Other income, net		$ 7	$ 11	$ 133	$ 31
[1]	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

Other Income, Net (Parenthetica

Other Income, Net (Parenthetical) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Other Operating Income (Expense), Net
Gain from re-measurement of previously held ownership interest at fair value	$ 98	[1]
Wuxi KFC [Member]
Other Operating Income (Expense), Net
Gain from re-measurement of previously held ownership interest at fair value	$ 98
Ownership interest previously held	47.00%
[1]	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

Supplemental Balance Sheet In45

Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Accounts Receivable, net
Accounts receivable, gross	$ 75	$ 83
Allowance for doubtful accounts	(2)	(2)
Accounts receivable, net	73	81
Prepaid Expenses and Other Current Assets
Prepaid rent	43	41
Receivables from payment processors and aggregators	34	38
Dividends receivable from unconsolidated affiliates	39	21
Other prepaid expenses and current assets	89	60
Prepaid expenses and other current assets	205	160
Other Assets
Land use right	136	131
VAT assets	197	176
Costs to obtain contracts	9	12
Long-term deposits	61	56
Others	18	10
Other Assets	421	385
Accounts Payable and Other Current Liabilities
Accounts payable	584	424
Accrued capital expenditures	120	142
Accrued compensation and benefits	179	233
Accrued taxes, other than income taxes	25	16
Accrued marketing expenses	81	28
Contract liabilities	80	72
Other current liabilities	78	70
Accounts payable and other current liabilities	1,147	985
Other Liabilities and Deferred Credits
Deferred escalating minimum rent	156	162
Contract liabilities	30	33
Accrued income tax payable	96	112
Deferred income tax liabilities	69	32
Other noncurrent liabilities and deferred credits	45	49
Other liabilities and deferred credits	$ 396	$ 388

Supplemental Balance Sheet In46

Supplemental Balance Sheet Information (Details 1) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 3,405	$ 3,416
Accumulated depreciation	(1,748)	(1,725)
Property, plant and equipment, net	1,657	1,691
Buildings and Improvements [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	2,169	2,184
Capital Leases, Primarily Buildings [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	28	28
Machinery, Equipment and Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 1,208	$ 1,204

Goodwill and Intangible Asset47

Goodwill and Intangible Assets (Details) - USD ($) $ in Millions		6 Months Ended
		Jun. 30, 2018	Dec. 31, 2017
Goodwill [Line Items]
Goodwill, gross		$ 658	$ 490
Accumulated impairment losses	[1]	(382)	(382)
Goodwill, net		276	108
Goodwill acquired	[2]	175
Effect of currency translation adjustment		(7)
KFC [Member]
Goodwill [Line Items]
Goodwill, gross		248	80
Goodwill, net		248	80
Goodwill acquired	[2]	175
Effect of currency translation adjustment		(7)
Pizza Hut [Member]
Goodwill [Line Items]
Goodwill, gross		19	19
Goodwill, net		19	19
All Other Segments [Member]
Goodwill [Line Items]
Goodwill, gross		391	391
Accumulated impairment losses	[1]	(382)	(382)
Goodwill, net		$ 9	$ 9
[1]	Accumulated impairment losses represent Little Sheep goodwill impairment.
[2]	Goodwill acquired in connection with the acquisition of Wuxi KFC.

Goodwill and Intangible Asset48

Goodwill and Intangible Assets (Details 1) - USD ($) $ in Millions		Jun. 30, 2018	Dec. 31, 2017
Definite-lived intangible assets
Gross Carrying Amount		$ 204	$ 149
Accumulated Amortization		(114)	(104)
Net Carrying Amount		90	45
Total intangible assets
Gross Carrying Amount		259	205
Intangible assets, net		145	101
Little Sheep trademark [Member]
Indefinite-lived intangible assets
Net Carrying Amount		55	56
Reacquired franchise rights [Member]
Definite-lived intangible assets
Gross Carrying Amount	[1]	156	100
Accumulated Amortization	[1]	(94)	(87)
Net Carrying Amount	[1]	62	13
Daojia platform [Member]
Definite-lived intangible assets
Gross Carrying Amount		17	18
Accumulated Amortization		(2)	(1)
Net Carrying Amount		15	17
Customer-related assets [Member]
Definite-lived intangible assets
Gross Carrying Amount		12	12
Accumulated Amortization		(7)	(6)
Net Carrying Amount		5	6
Other [Member]
Definite-lived intangible assets
Gross Carrying Amount		19	19
Accumulated Amortization		(11)	(10)
Net Carrying Amount		$ 8	$ 9
[1]	Increase in gross carrying amount of reacquired franchise rights during the year to date ended June 30, 2018 primarily resulted from the acquisition of Wuxi KFC.

Goodwill and Intangible Asset49

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Definite-lived intangible assets
Definite-lived intangible assets, amortization expense	$ 7	$ 3	$ 13	$ 6
Expected amortization expense for the unamortized definite-lived intangible assets - remainder of 2018	14		14
Expected amortization expense for the unamortized definite-lived intangible assets - 2019	20		20
Expected amortization expense for the unamortized definite-lived intangible assets - 2020	15		15
Expected amortization expense for the unamortized definite-lived intangible assets - 2021	15		15
Expected amortization expense for the unamortized definite-lived intangible assets - 2022	$ 15		$ 15

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
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	$ 13	$ 16	$ 13	$ 19

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income tax provision	$ 53	$ 43	$ 160	$ 133
Effective tax rate	26.00%	24.30%	26.40%	27.90%

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details)	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
U.S. federal statutory rate, percent	21.00%

Reportable Operating Segments -

Reportable Operating Segments - Narrative (Details)	6 Months Ended
	Jun. 30, 2018Segment
Segment Reporting [Abstract]
Number of reportable segments	2
Number of operating segments	4

Reportable Operating Segments54

Reportable Operating Segments (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Revenues		$ 2,068	$ 1,841	$ 4,289	$ 3,767
Operating Profit		193	171	588	467
Interest income, net	[1]	10	4	18	8
Income Before Income Taxes		203	175	606	475
Identifiable Assets		4,730		4,730		$ 4,287
Long-Lived Assets	[2]	2,078		2,078		1,900
KFC [Member]
Segment Reporting Information [Line Items]
Revenues		1,400	1,206	2,898	2,456
Pizza Hut [Member]
Segment Reporting Information [Line Items]
Revenues		528	498	1,093	1,026
All Other Segments [Member]
Segment Reporting Information [Line Items]
Revenues		17	16	37	39
Corporate and Unallocated [Member]
Segment Reporting Information [Line Items]
Revenues	[1]	123	121	261	246
Unallocated revenues from transactions with franchisees and unconsolidated affiliates	[1]	122	121	259	246
Unallocated Other revenues	[1]	1		2
Unallocated expenses from transactions with franchisees and unconsolidated affiliates	[1]	(120)	(118)	(257)	(243)
Unallocated Other operating costs	[1]	(1)		(2)
Unallocated and corporate G&A expenses	[1]	(19)	(50)	(52)	(81)
Unallocated Other income (loss)	[1],[3]	(2)		100	1
Identifiable Assets	[4]	2,218		2,218		1,931
Long-Lived Assets	[2]	56		56		54
Combined [Member]
Segment Reporting Information [Line Items]
Revenues		2,068	1,841	4,289	3,767
Combined [Member] | KFC [Member]
Segment Reporting Information [Line Items]
Revenues		1,400	1,206	2,898	2,456
Operating Profit	[5]	199	182	495	427
Identifiable Assets	[6]	1,760		1,760		1,544
Long-Lived Assets	[2]	1,384		1,384		1,152
Combined [Member] | Pizza Hut [Member]
Segment Reporting Information [Line Items]
Revenues		528	498	1,093	1,026
Operating Profit		20	39	54	119
Identifiable Assets		615		615		668
Long-Lived Assets	[2]	529		529		580
Combined [Member] | All Other Segments [Member]
Segment Reporting Information [Line Items]
Revenues		18	16	38	39
Operating Profit		(7)	(3)	(11)	(2)
Identifiable Assets		137		137		144
Long-Lived Assets	[2]	109		109		$ 114
Elimination [Member]
Segment Reporting Information [Line Items]
Revenues		(1)		(1)
Elimination [Member] | All Other Segments [Member]
Segment Reporting Information [Line Items]
Revenues		(1)		(1)
Combined [Member]
Segment Reporting Information [Line Items]
Revenues		$ 2,069	$ 1,841	$ 4,290	$ 3,767
[1]	Amounts have not been allocated to any segment for performance reporting purposes.
[2]	Includes property, plant and equipment, goodwill and intangible assets, net.
[3]	Amounts mainly include gain from re-measurement of previously held equity interest in connection with the acquisition of Wuxi KFC. See Note 2.
[4]	Primarily includes cash and cash equivalents, short-term investments and inventories that are centrally managed.
[5]	Includes equity income from investments in unconsolidated affiliates of $12 million and $14 million for the quarters ended June 30, 2018 and 2017, respectively, and $35 million and $35 million for the years to date ended June 30, 2018 and 2017, respectively.
[6]	Includes investments in the unconsolidated affiliates.

Reportable Operating Segments55

Reportable Operating Segments (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting [Abstract]
Equity income from investments in unconsolidated affiliates	$ 12	$ 14	$ 35	$ 35

Contingencies - Narrative (Deta

Contingencies - Narrative (Details) - USD ($)	1 Months Ended
	Feb. 28, 2015	Jun. 30, 2018
Commitments And Contingencies Disclosure [Abstract]
Income tax rate on gains derived from indirect transfer of assets	10.00%
Percentage of tax assessed on difference between fair market value and tax basis	10.00%
Guaranteed line of credit and loans of franchisees		$ 2,000,000
Guarantees outstanding of unconsolidated affiliates		$ 0

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Aug. 01, 2018	Jun. 30, 2018	Jun. 30, 2018
Subsequent Event [Line Items]
Cash dividends declared, per common share		$ 0.10	$ 0.20
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends declared date	Aug. 1, 2018
Cash dividends declared, per common share	$ 0.10
Dividends payable date	Sep. 19, 2018
Dividends payable, date of record	Aug. 29, 2018
Estimated cash dividend payable	$ 38
Subsequent Event [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Offshore credit facility maximum borrowing amount	$ 100
Offshore credit facility expiration period	3 years