0000950170-23-005571 | 10-K | XBRL Viewer

Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2022

Balance Sheet Related Disclosures [Abstract]

Note 8 – Supplemental Balance Sheet Information


Accounts Receivable, net	2022			2021
Accounts receivable, gross	$	66		$	68
Allowance for doubtful accounts		(2	)		(1	)
Accounts receivable, net	$	64		$	67


Prepaid Expenses and Other Current Assets	2022		2021
VAT assets(a)	$	88	$	—
Receivables from payment processors and aggregators		53		45
Dividends receivable from unconsolidated affiliates		6		—
Other prepaid expenses and current assets		160		176
Prepaid expenses and other current assets	$	307	$	221


Property, Plant and Equipment	2022			2021
Buildings and improvements, and construction in progress	$	2,912		$	2,984
Finance leases, primarily buildings		62			52
Machinery and equipment		1,612			1,589
Property, plant and equipment, gross		4,586			4,625
Accumulated depreciation		(2,468	)		(2,374	)
Property, plant and equipment, net	$	2,118		$	2,251

Depreciation and amortization expense related to property, plant and equipment was $497 million, $465 million and $421 million in 2022, 2021 and 2020, respectively.


Other Assets	2022		2021
Land use right(b)	$	123	$	138
Investment in equity securities		95		122
Long-term deposits		90		101
Costs to obtain contracts		6		7
VAT assets(a)		5		322
Others		24		52
Other Assets	$	343	$	742

(a)

On June 7, 2022, the Chinese Ministry of Finance and the Chinese State Tax Administration jointly issued Circular [2022] No. 21, to extend full VAT credit refunds to more sectors and increase the frequency for accepting taxpayers' applications with an aim to support business recovery. Beginning on July 1, 2022, entities engaged in providing catering services in China are allowed to apply for a lump sum refund of VAT assets accumulated prior to March 31, 2019. In addition, VAT assets accumulated after March 31, 2019 can be refunded on a monthly basis. As the benefits of certain VAT assets are expected to be realized within one year pursuant to Circular [2022] No. 21, $303 million of VAT assets as of June 30, 2022 were reclassified from Other assets to Prepaid expenses and other current assets. As of December 31, 2022, VAT assets of $88 million were included in Prepaid expenses and other current asset.

(b)

Amortization expense related to land use right was $5 million in each of 2022, 2021 and 2020, respectively.


Accounts Payable and Other Current Liabilities	2022		2021
Accounts payable	$	727	$	830
Operating leases liabilities		448		508
Accrued compensation and benefits		285		283
Contract liabilities		182		182
Accrued capital expenditures		181		269
Accrued marketing expenses		72		71
Other current liabilities		203		189
Accounts payable and other current liabilities	$	2,098	$	2,332


Other Liabilities	2022		2021
Accrued income tax payable	$	52	$	56
Contract liabilities		28		26
Other noncurrent liabilities		82		85
Other liabilities	$	162	$	167

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 17 – Income Taxes

In December 2017, the U.S. enacted the Tax Act, which included a broad range of tax reforms. The Tax Act requires a U.S. shareholder to be subject to tax on Global Intangible Low Taxed Income (“GILTI”) earned by certain foreign subsidiaries. We have elected the option to account for current year GILTI tax as a period cost as incurred.

In August 2022, the IRA was signed into law in the U.S. The IRA contains certain tax measures, including a Corporate Alternative Minimum Tax (“CAMT”) of 15% on certain large corporations. On December 27, 2022, the U.S. Treasury Department and the Internal Revenue Services (the “IRS”) released Notice 2023-7, announcing their intention to issue proposed regulations addressing the application of the new CAMT. Notice 2023-7 also provides interim guidance regarding certain CAMT issues and states that, the U.S. Treasury Department and the IRS plan to issue additional interim guidance addressing other issues before publishing proposed regulations. The Company will monitor the regulatory developments and continue to evaluate the impact on our financial statements, if any.

In December 2022, a refined Foreign Sourced Income Exemption (“FSIE”) regime was published in Hong Kong and will take effect from January 1, 2023. Under the new FSIE regime, certain foreign soured income would be deemed as being sourced from Hong Kong and chargeable to Hong Kong Profits Tax, if the recipient entity fails to meet the prescribed exception requirements. Certain dividends, interests and disposal gains, if any, received by us and our Hong Kong subsidiaries may be subject to the new tax regime. We are in the process of evaluating the impact on our financial statements, if any.

U.S. and foreign income (loss) before taxes are set forth below:


	2022			2021			2020
U.S.	$	7		$	(1	)	$	(10	)
Mainland China		686			1,424			1,014
Other Foreign		(6	)		(31	)		104
	$	687		$	1,392		$	1,108

The details of our income tax provision are set forth below:


		2022			2021			2020
Current:	Federal	$	5		$	—		$	1
	Foreign		222			209			183
		$	227		$	209		$	184

Deferred:	Federal	$	(6	)	$	(8	)	$	26
	Foreign		(14	)		168			85
		$	(20	)	$	160		$	111
		$	207		$	369		$	295

The reconciliation of income taxes calculated at the U.S. federal statutory rate to our effective tax rate is set forth below:


	2022					2021					2020
U.S. federal statutory rate	$	144		21.0	%	$	292		21.0	%	$	233		21.0	%
Statutory rate differential attributable to foreign operations		54		7.9			73		5.2			63		5.7
Adjustments to reserves and prior years		(3	)	(0.6	)		(4	)	(0.3	)		(6	)	(0.6	)
Change in valuation allowances		9		1.3			9		0.7			1		0.1
Other, net		3		0.5			(1	)	(0.1	)		4		0.4
Effective income tax rate	$	207		30.1	%	$	369		26.5	%	$	295		26.6	%

Statutory rate differential attributable to foreign operations. This item includes local taxes, withholding taxes, and shareholder-level taxes, net of foreign tax credits. A majority of our income is earned in China, which is generally subject to a 25% tax rate. The negative impact in 2022, 2021 and 2020 is primarily due to the U.S. federal statutory rate of 21%, which is lower than China’s statutory income tax rate.

Adjustments to reserves and prior years. This item includes: (1) changes in tax reserves, including interest thereon, established for potential exposure we may incur if a taxing authority takes a position on a matter contrary to our position; and (2) the effects of reconciling income tax amounts recorded in our Consolidated Statements of Income to amounts reflected on our tax returns, including any adjustments to the Consolidated Balance Sheets. The impact of certain effects or changes may affect items reflected in ‘Statutory rate differential attributable to foreign operations’.

Change in valuation allowances. This item relates to changes for deferred tax assets generated or utilized during the current year and changes in our judgment regarding the likelihood of using deferred tax assets that existed at the beginning of the year. The impact of certain changes may affect items reflected in ‘Statutory rate differential attributable to foreign operations’.

Others. This item primarily includes the impact of permanent differences related to current year earnings, gain or loss on investment in equity securities, as well as U.S. tax credits and deductions.

The details of 2022 and 2021 deferred tax assets (liabilities) are set forth below:


	2022			2021
Operating losses and tax credit carryforwards	$	47		$	43
Tax benefit from Little Sheep restructuring		15			17
Employee benefits		6			3
Share-based compensation		6			5
Lease		49			64
Other liabilities		11			15
Deferred income and other		94			89
Gross deferred tax assets		228			236
Deferred tax asset valuation allowances		(57	)		(53	)
Net deferred tax assets	$	171		$	183
Intangible assets		(40	)		(69	)
Property, plant and equipment		(136	)		(138	)
Gain from re-measurement of equity interest upon acquisition		(226	)		(245	)
Unrealized gains from equity securities		(12	)		(18	)
Withholding tax on distributable earnings		(34	)		(32	)
Gross deferred tax (liabilities)	$	(448	)	$	(502	)
Net deferred tax (liabilities)	$	(277	)	$	(319	)
Reported in Consolidated Balance Sheets as:
Deferred income tax assets		113			106
Deferred income tax liabilities		(390	)		(425	)
	$	(277	)	$	(319	)

We have investments in our foreign subsidiaries where the carrying values for financial reporting exceed the tax basis. Except for the planned but yet to be distributed earnings, we have not provided deferred tax on the portion of the excess that we believe is indefinitely reinvested, as we have the ability and intent to indefinitely postpone the basis differences from reversing with a tax consequence. The Company’s separation from YUM was intended to qualify as a tax-free reorganization for U.S. income tax purposes resulting in the excess of financial reporting basis over tax basis in our investment in the China business continuing to be indefinitely reinvested. The excess of financial reporting basis over tax basis as of December 31, 2017 was subject to the one-time transition tax under the Tax Act as a deemed repatriation of accumulated undistributed earnings from the foreign subsidiaries. However, we continue to believe that the portion of the excess of financial reporting basis over tax basis (including earnings and profits subject to the one-time transition tax) is indefinitely reinvested in our foreign subsidiaries for foreign withholding tax purposes. We estimate that our total temporary difference for which we have not provided foreign withholding taxes is approximately $3 billion at December 31, 2022. The foreign withholding tax rate on this amount is 5% or 10% depending on the manner of repatriation and the applicable tax treaties or tax arrangements.

At December 31, 2022, the Company had operating loss carryforwards of $200 million, primarily related to our Little Sheep and Daojia as well as certain underperforming entities, most of which will expire by 2027. These losses are being carried forward in jurisdictions where we are permitted to use tax losses from prior periods to reduce future taxable income.

Cash payments for tax liabilities on income tax returns filed were $204 million, $255 million and $170 million in 2022, 2021 and 2020, respectively.

We recognize the benefit of positions taken or expected to be taken in tax returns in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	2022			2021
Beginning of Year	$	20		$	21
Additions on tax positions		6			5
Reductions due to statute expiration		(5	)		(6	)
End of Year	$	21		$	20

In 2022 and 2021, our unrecognized tax benefits were increased by $6 million and $5 million, respectively. The unrecognized tax benefits balance of $21 million as of December 31, 2022 related to the uncertainty with regard to the deductibility of certain business expenses incurred, all of which, if recognized upon audit settlement or statute expiration, would affect the effective tax rate. The Company believes it is reasonably possible its unrecognized tax benefits of $21 million as of December 31, 2022, which is included in Other liabilities on the Consolidated Balance Sheet, may decrease by approximately $5 million in the next 12 months, which if recognized, would affect the 2023 effective tax rate. The accrued interest and penalties related to income taxes at December 31, 2022 and 2021 are set forth below:


	2022		2021
Accrued interest and penalties	$	4	$	5

During 2022, 2021 and 2020, a net benefit of $1 million, nil and nil for interest and penalties was recognized in our Consolidated Statements of Income as components of our income tax provision, respectively.

The Company’s results are subject to examination in the U.S. federal jurisdiction as well as various U.S. state jurisdictions as part of YUM’s and our own income tax filings, and separately in foreign jurisdictions. Any liability arising from these examinations related to periods prior to the separation is expected to be settled among the Company, YCCL and YUM in accordance with the tax matters agreement we entered into in connection with the separation.

We are subject to reviews, examinations and audits by Chinese tax authorities, the IRS and other tax authorities with respect to income and non-income based taxes. Since 2016, we have been under a national audit on transfer pricing by the STA in China regarding our related party transactions for the period from 2006 to 2015. The information and views currently exchanged with the tax authorities focuses on our franchise arrangement with YUM. We continue to provide information requested by the tax authorities to the extent it is available to the Company. It is reasonably possible that there could be significant developments, including expert review and assessment by the STA, within the next 12 months. The ultimate assessment and decision of the STA will depend upon further review of the information provided, as well as ongoing technical and other discussions with the STA and in-charge local tax authorities, and therefore, it is not possible to reasonably estimate the potential impact at this time. We will continue to defend our transfer pricing position. However, if the STA prevails in the assessment of additional tax due based on its ruling, the assessed tax, interest and penalties, if any, could have a material adverse impact on our financial position, results of operations and cash flows.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (b)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Section 50
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-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Other Expenses (Income), Net

12 Months Ended

Dec. 31, 2022

Other Income and Expenses [Abstract]

Other Expenses (Income), Net

Note 7 – Other Expenses (Income), net


	2022			2021			2020
Amortization of reacquired franchise rights(a)	$	97		$	43		$	22
Gain from re-measurement of equity interest upon acquisition(b)		—			(628	)		(239	)
Equity income from investments in unconsolidated affiliates(c)		—			(43	)		(62	)
Derecognition of indemnification asset(d)		—			—			3
Foreign exchanges and other		(3	)		(15	)		(9	)
Other expenses (income), net	$	94		$	(643	)	$	(285	)

(a)

As a result of the acquisition of Hangzhou KFC, Suzhou KFC and Wuxi KFC, $66 million, $61 million and $61 million of the purchase price were allocated to intangible assets related to reacquired franchise rights, respectively, which are being amortized over the remaining franchise contract period of 1 year, 2.4 years and 5 years. (See Note 3 for additional information).

(b)

In the fourth and third quarters of 2021, as a result of the consolidation of Hangzhou KFC and the Lavazza joint venture, the Company recognized a gain of $618 million and $10 million, respectively, from the re-measurement of our previously held equity interest at fair value. In the third quarter of 2020, the Company recognized a re-measurement gain of $239 million as a result of the consolidation of Suzhou KFC. The re-measurement gains were not allocated to any segment for performance reporting purposes. (See Note 3 for additional information).

(c)

Includes equity income from our investments in Hangzhou KFC, Suzhou KFC and the Lavazza joint venture before we consolidated the results of these entities upon completion of acquisitions. (See Note 3 for additional information).

(d)

In the second quarter of 2020, the Company derecognized a $3 million indemnification asset previously recorded for the Daojia acquisition as the indemnification right pursuant to the purchase agreement expired. The expense was included in Other income, net, but was not allocated to any segment for performance reporting purposes.

Income Taxes - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Aug. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2023
Income Taxes Disclosure [Line Items]
Corporate alternative minimum tax rate	15.00%
U.S. federal statutory rate, percent		21.00%	21.00%	21.00%
Effective income tax rate		30.10%	26.50%	26.60%
Foreign withholding taxes not recognized, cumulative amount of temporary differences		$ 3,000
Cash payments for tax liabilities on income tax returns		$ 204	$ 255	$ 170
Percentage threshold that the positions taken or expected to be taken is more likely than not sustained upon examination by tax authorities (in hundredths)		50.00%		50.00%
Increase (decrease) in unrecognized tax benefits		$ 6	5
Amount of unrecognized tax benefits balance		21	20	$ 21
Total interest and penalties recorded during the period		(1)
Scenario Forecast [Member]
Income Taxes Disclosure [Line Items]
Increase (decrease) in unrecognized tax benefits in the next 12 months					$ (5)
Other Liabilities [Member]
Income Taxes Disclosure [Line Items]
Amount of unrecognized tax benefits balance		21
Little Sheep Group Limited and Daojia [Member]
Income Taxes Disclosure [Line Items]
Operating loss carryforwards		$ 200
Operating loss carryforwards expiration year		2027
Minimum [Member]
Income Taxes Disclosure [Line Items]
Effective Income Tax Rate Foreign Tax Withholding		5.00%
Maximum [Member]
Income Taxes Disclosure [Line Items]
Effective Income Tax Rate Foreign Tax Withholding		10.00%
China [Member]
Income Taxes Disclosure [Line Items]
Effective income tax rate		25.00%

Income Taxes (Details 3) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Net deferred tax assets (liabilities) [Abstract]
Operating losses and tax credit carryforwards	$ 47	$ 43
Employee benefits	6	3
Share-based compensation	6	5
Lease	49	64
Other liabilities	11	15
Deferred income and other	94	89
Gross deferred tax assets	228	236
Deferred tax asset valuation allowances	(57)	(53)
Net deferred tax assets	171	183
Intangible assets	(40)	(69)
Property, plant and equipment	(136)	(138)
Gain from re-measurement of equity interest upon acquisition	(226)	(245)
Unrealized gains from equity securities	(12)	(18)
Withholding tax on distributable earnings	(34)	(32)
Gross deferred tax (liabilities)	(448)	(502)
Net deferred tax (liabilities)	(277)	(319)
Reported in Consolidated Balance Sheets as:
Deferred income tax assets	113	106
Deferred income tax liabilities	(390)	(425)
Net deferred tax (liabilities)	(277)	(319)
Little Sheep Group Limited [Member]
Net deferred tax assets (liabilities) [Abstract]
Tax benefit from Little Sheep restructuring	$ 15	$ 17

Business Acquisitions and Equity Investments

12 Months Ended

Dec. 31, 2022

Business Acquisitions And Equity Investments [Abstract]

Business Acquisitions and Equity Investments

Note 3 – Business Acquisitions and Equity Investments

Consolidation of Hangzhou KFC and Equity Investment in Hangzhou Catering

During the fourth quarter of 2021, the Company completed its investment of a 28% equity interest in Hangzhou Catering for cash consideration of $255 million. Hangzhou Catering holds a 45% equity interest in Hangzhou KFC, of which the Company previously held a 47% equity interest. Along with the investment, the Company also obtained two additional board seats in Hangzhou KFC. Upon completion of the transaction, the Company directly and indirectly holds an approximately 60% equity interest in Hangzhou KFC and has majority representation on the board, and thus obtained control over Hangzhou KFC and started to consolidate its results from the acquisition date.

As a result of the consolidation of the Hangzhou KFC, the Company also recognized a gain of $618 million in the fourth quarter of 2021 from the re-measurement of our previously held equity interest at fair value. The gain was recorded in Other income, net and not allocated to any segment for performance reporting purposes. Additionally, $66 million of the purchase price was allocated to the reacquired franchise right, which is amortized over the remaining franchise contract period of 1 year.

In addition to its equity interest in Hangzhou KFC, Hangzhou Catering operates approximately 60 Chinese dining restaurants under four time-honored brands and a food processing business. The Company applies equity method of accounting to the 28% equity interests in Hangzhou Catering excluding the Hangzhou KFC business and classified this investment in Investment in unconsolidated affiliates based on its then fair value. The Company elected to report its share of Hangzhou Catering’s financial results with a one-quarter lag because its results are not available in time for the Company to record them in the concurrent period. The Company's equity income (loss) from Hangzhou Catering, net of taxes, was immaterial for the years ended December 31, 2022 and 2021, and included in Equity in net earnings (losses) from equity method investments in our Consolidated Statement of Income. As of December 31, 2022, the carrying amount of the Company’s equity method investment in Hangzhou Catering was $37 million, exceeding the Company’s interest in Hangzhou Catering’s underlying net assets by $26 million. Substantially all of this difference was attributable to its self-owned properties and impact of related deferred tax liabilities determined upon acquisition, which is being depreciated over a weighted-average remaining useful life of 20 years.

Consolidation of Suzhou KFC

In the third quarter of 2020, the Company completed the acquisition of an additional 25% equity interest in Suzhou KFC for cash consideration of $149 million, increasing our equity interest to 72%, and thus the Company obtained control over the joint venture and started to consolidate Suzhou KFC from the acquisition date.

As a result of the consolidation of Suzhou KFC, the Company also recognized a gain of $239 million in the third quarter of 2020, from the re-measurement of our previously held equity interest at fair value. The gain was recorded in Other income, net and not allocated to any segment for performance reporting purposes.

Additionally, $61 million of the purchase price was allocated to the reacquired franchise right in 2020, which is amortized over the remaining franchise contract period of 2.4 years.

In December 2022, the Company acquired an additional 20% equity interest in Suzhou KFC for cash consideration of $115 million, bringing our total ownership to 92%. As the Company has previously obtained control of Suzhou KFC, this transaction was accounted for as an equity transaction. Upon completion of the transaction, the excess of purchase consideration over the carrying amount of the non-controlling interests was $15 million, which was recorded in Additional paid-in capital.

Consolidation of Lavazza Joint Venture

In April 2020, the Company and Lavazza Group established the Lavazza joint venture to explore and develop the Lavazza coffee concept in China, with ownership of a 65% and 35% equity interest, respectively. The Company accounted for the Lavazza joint venture under the equity method of accounting because Lavazza Group held substantive participating rights on certain significant financial and operating decisions. In September 2021, the Company and Lavazza Group entered into agreements for the joint venture, whereby substantive participating rights previously held by Lavazza Group were removed, and thus the Company obtained control over the joint venture and started to consolidate its results from the acquisition date.

As a result of the consolidation of the Lavazza joint venture, the Company also recognized a gain of $10 million in the third quarter of 2021 from the re-measurement of our previously held equity interest at fair value. The gain was recorded in Other income, net and not allocated to any segment for performance reporting purposes.

Acquisition of Huang Ji Huang Group

On April 8, 2020, the Company completed the acquisition of a 93.3% interest in the Huang Ji Huang group (“Huang Ji Huang”), a leading Chinese-style casual dining franchise business, for cash consideration of $185 million. Huang Ji Huang became an operating segment of the Company. See Note 9 for the Company’s goodwill and intangible assets acquired from our acquisition of Huang Ji Huang.

Fujian Sunner Development Co., Ltd. (“Sunner”) Investment

In the first quarter of 2021, the Company acquired a 5% equity interest in Sunner, a Shenzhen Stock Exchange listed company, for a total consideration of approximately $261 million. Sunner is China’s largest white-feathered chicken producer and the Company’s largest poultry supplier.

The Company accounted for the equity securities at fair value based on their closing market price on each measurement date, with subsequent fair value changes recorded in our Consolidated Statements of Income. The unrealized loss of $22 million were included in Investment gain or loss in our Consolidated Statements of Income for the year ended December 31, 2021, representing changes in fair value before the equity method of accounting was applied.

In May 2021, a senior executive of the Company was nominated and appointed to Sunner’s board of directors upon Sunner’s shareholder approval. Through this representation, the Company participates in Sunner’s policy making process. The representation on the board, along with the Company being one of Sunner’s significant shareholders, provides the Company with the ability to exercise significant influence over the operating and financial policies of Sunner. As a result, the Company started to apply the equity method of accounting to the investment and reclassified this investment from Other assets to Investment in unconsolidated affiliates in May 2021 based on its then fair value. The Company elected to report its share of Sunner’s financial results with a one-quarter lag because Sunner’s results are not available in time for the Company to record them in the concurrent period. In 2022 and 2021, the Company’s equity income (loss) from Sunner, net of taxes, was immaterial, and included in Equity in net earnings (losses) from equity method investments in our Consolidated Statement of Income.

Since Sunner became the Company’s unconsolidated affiliate in May 2021, the Company purchased inventories of $318 million from Sunner for the year ended December 31, 2021. The Company purchased inventories of $433 million for year ended December 31, 2022. The Company’s accounts payable and other current liabilities due to Sunner were $53 million and $56 million as of December 31, 2022 and 2021, respectively.

As of December 31, 2022, the Company’s investment in Sunner was stated at the carrying amount of $227 million, which was $157 million higher than the Company’s interest in Sunner’s underlying net assets. Of this basis difference, $18 million was related to finite-lived intangible assets which are being amortized over estimated useful life of 20 years. The remaining differences were related to goodwill and indefinite-lived intangible assets, which are not subject to amortization, as well as deferred tax liabilities impact. As of December 31, 2022, the market value of the Company’s investment in Sunner was $214 million based on its quoted closing price.

Meituan Dianping (“Meituan”) Investment

In the third quarter of 2018, the Company subscribed for 8.4 million, or less than 1%, of the ordinary shares of Meituan, an e-commerce platform for services in China, for a total consideration of approximately $74 million, when it launched its initial public offering on the HKEX in September 2018. In the second quarter of 2020, the Company sold 4.2 million of the ordinary shares of Meituan for proceeds of approximately $54 million, and realized a $17 million pre-tax gain which was recognized during the holding period.

The Company accounted for the equity securities at fair value with subsequent fair value changes recorded in our Consolidated Statements of Income. The fair value of the investment in Meituan is determined based on the closing market price for the shares at the end of each reporting period. The fair value change, to the extent the closing market price of shares of Meituan as of the end of reporting period is higher than our cost, is subject to U.S. tax.

A summary of pre-tax gains or losses on investment in equity securities of Meituan recognized, which was included in Investment gain or loss in our Consolidated Statements of Income, is as follows:


	2022			2021			2020
Unrealized (losses) gains recorded on equity securities still held as of the end of the year	$	(27	)	$	(38	)	$	105
Losses recorded on equity securities sold during the year		—			—			(1	)
(Losses) gains recorded on equity securities	$	(27	)	$	(38	)	$	104

Goodwill and Intangible Assets (Details 1) - USD ($)
$ in Millions

Dec. 31, 2022

Dec. 31, 2021

Finite-lived intangible assets

Gross Carrying Amount

^[1]

$ 335

$ 356

Accumulated Amortization

^[1]

(292)

(211)

Accumulated Impairment Losses

^[2]

(14)

Net Carrying Amount

131

Indefinite-lived intangible assets

Net Carrying Amount

^[1]

130

141

Total intangible assets

Gross Carrying Amount

^[1]

465

497

Intangible assets, net

159

272

Reacquired franchise rights [Member]

Finite-lived intangible assets

Gross Carrying Amount

^[1]

276

295

Accumulated Amortization

^[1]

(271)

(191)

Net Carrying Amount

104

Daojia platform [Member]

Finite-lived intangible assets

Gross Carrying Amount

^[1]

Accumulated Amortization

^[1]

(4)

Accumulated Impairment Losses

^[2]

(12)

Customer-related assets [Member]

Finite-lived intangible assets

Gross Carrying Amount

^[1]

Accumulated Amortization

^[1]

(9)

Accumulated Impairment Losses

^[2]

(2)

Net Carrying Amount

Other [Member]

Finite-lived intangible assets

Gross Carrying Amount

^[1]

Accumulated Amortization

^[1]

(5)

Net Carrying Amount

Huang Ji Huang Group [Member]

Finite-lived intangible assets

Gross Carrying Amount

^[1]

Accumulated Amortization

^[1]

Net Carrying Amount

Trademark [Member] | Little Sheep [Member]

Indefinite-lived intangible assets

Net Carrying Amount

^[1]

Trademark [Member] | Huang Ji Huang Group [Member]

Indefinite-lived intangible assets

Net Carrying Amount

^[1]

$ 78

$ 84

[1]	Changes in gross carrying amount and accumulated amortization include effect of currency translation adjustment.
[2]	Accumulated impairment losses represent impairment charges on intangible assets acquired from Daojia primarily attributable to the Daojia platform.

Income Taxes (Details 1) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 1) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Details of income tax provision (benefit) [Abstract]
Current: Federal	$ 5		$ 1
Current: Foreign	222	$ 209	183
Total current income tax provision (benefit)	227	209	184
Deferred: Federal	(6)	(8)	26
Deferred: Foreign	(14)	168	85
Total deferred income tax provision	(20)	160	111
Effective income tax rate	$ 207	$ 369	$ 295

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Share-Based Compensation (Details 3) - PSUs [Member] - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of 2022 (in shares)	1,233,000
Granted (in shares)	102,000
Vested (in shares)	(125,000)
Forfeited or expired (in shares)	(134,000)
Unvested at the end of 2022 (in shares)	1,075,646	1,233,000
Unvested at the beginning of 2022	$ 42.86
Granted	61.33	$ 68.04	$ 39.78
Vested	43.08
Forfeited or expired	47.23
Unvested at the end of 2022	$ 44.04	$ 42.86

Earnings Per Common Share ("EPS")

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Earning Per Common Share (EPS)

Note 5 – Earnings Per Common Share (“EPS”)

The following table summarizes the components of basic and diluted earnings per share (in millions, except for per share data):


	2022		2021		2020
Net Income – Yum China Holdings, Inc.	$	442	$	990	$	784
Weighted-average common shares outstanding (for basic calculation)(a)		421		422		390
Effect of dilutive share-based awards(a)		4		6		7
Effect of dilutive warrants(b)		—		6		5
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		425		434		402
Basic Earnings Per Share	$	1.05	$	2.34	$	2.01
Diluted Earnings Per Share	$	1.04	$	2.28	$	1.95
Share-based awards excluded from the diluted EPS computation(c)		4		2		3

(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 were 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 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 incremental shares arising from outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect. See Note 15 for a further discussion of share-based compensation. In September 2020, 41,910,700 common shares were issued as a result of the Company’s global offering and secondary listing on the HKEX and they were included in the calculated weighted-average common shares outstanding.

(b)

Pursuant to the investment agreements dated September 1, 2016 (Note 11), Yum China issued to strategic investors two tranches of warrants on January 9, 2017, with each tranche initially providing the right to purchase 8,200,405 shares of Yum China common stock, at an initial exercise price of $31.40 and $39.25 per share, respectively, subject to customary anti-dilution adjustments. The warrants were exercisable at any time through October 31, 2021. The incremental shares arising from outstanding warrants were included in the computation of diluted EPS, if there is dilutive effect when the average market price of Yum China common stock for the year exceeds the applicable exercise price of the warrants. During 2021, an aggregate of 7,534,316 common shares were issued as a result of the cashless exercise of all warrants outstanding, which upon exercise were excluded from the calculation of dilutive warrants and included in the weighted-average common shares outstanding.

(c)

These outstanding SARs, RSUs and PSUs were excluded from the computation of diluted EPS because to do so would have been antidilutive for the years presented, or because certain PSUs are contingently issuable based on the achievement of performance and market conditions, which have not been met as of December 31, 2022, 2021 and 2020.

Other Expenses (Income), Net (Parenthetical) (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2021

Sep. 30, 2021

Sep. 30, 2020

Jun. 30, 2020

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Other Operating Income Expense Net [Line Items]

Gain from re-measurement of previously held equity interest

^[1]

$ 628

$ 239

Daojia platform [Member]

Other Operating Income Expense Net [Line Items]

Derecognition of indemnification assets related to Daojia

$ 3

^[2]

Hangzhou KFC [Member]

Other Operating Income Expense Net [Line Items]

Gain from re-measurement of previously held equity interest

$ 618

Hangzhou KFC [Member] | Reacquired Franchise Rights [Member]

Other Operating Income Expense Net [Line Items]

Purchase price allocated to intangible assets

$ 66

Remaining franchise contract period

1 year

Lavazza Group [Member]

Other Operating Income Expense Net [Line Items]

Gain from re-measurement of previously held equity interest

$ 10

Suzhou KFC [Member]

Other Operating Income Expense Net [Line Items]

Gain from re-measurement of previously held equity interest

$ 239

Suzhou KFC [Member] | Reacquired Franchise Rights [Member]

Other Operating Income Expense Net [Line Items]

Purchase price allocated to intangible assets

$ 61

Remaining franchise contract period

2 years 4 months 24 days

Wuxi KFC [Member] | Reacquired Franchise Rights [Member]

Other Operating Income Expense Net [Line Items]

Purchase price allocated to intangible assets

$ 61

Remaining franchise contract period

5 years

[1]

[2]

Segment Reporting

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Reporting

Note 18 – Segment Reporting

The Company has two reportable segments: KFC and Pizza Hut. Our remaining operating segments, including the operations of Taco Bell, Lavazza, Little Sheep, Huang Ji Huang, COFFii & JOY, East Dawning, our delivery operating segment and our e-commerce business, are combined and referred to as All Other Segments, as these operating segments are insignificant both individually and in the aggregate.


	2022
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	7,219	$	1,960	$	155	$	235	$	9,569	$	—		$	9,569
Inter-segment revenue		—		—		516		18		534		(534	)		—
Total	$	7,219	$	1,960	$	671	$	253	$	10,103	$	(534	)	$	9,569


	2021
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	7,003	$	2,109	$	227	$	514	$	9,853	$	—		$	9,853
Inter-segment revenue		—		—		246		6		252		(252	)		—
Total	$	7,003	$	2,109	$	473	$	520	$	10,105	$	(252	)	$	9,853


	2020
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	5,821	$	1,730	$	184	$	528	$	8,263	$	—		$	8,263
Inter-segment revenue		—		—		58		—		58		(58	)		—
Total	$	5,821	$	1,730	$	242	$	528	$	8,321	$	(58	)	$	8,263


Operating Profit (Loss)	2022			2021			2020
KFC(b)	$	787		$	827		$	801
Pizza Hut		70			111			62
All Other Segments		(50	)		(29	)		(7	)
Unallocated revenues from transactions with franchisees and unconsolidated affiliates(c)		211			500			533
Unallocated Other revenues		42			20			32
Unallocated expenses for transactions with franchisees and unconsolidated affiliates(c)		(211	)		(497	)		(531	)
Unallocated Other operating costs and expenses		(39	)		(17	)		(30	)
Unallocated and corporate G&A expenses		(184	)		(171	)		(144	)
Unallocated Other income(d)		3			642			245
Operating Profit	$	629		$	1,386		$	961
Interest income, net(a)		84			60			43
Investment (loss) gain(a)		(26	)		(54	)		104
Income Before Income Taxes and Equity in Net Earnings (Losses) from Equity Method Investments	$	687		$	1,392		$	1,108


	Depreciation and Amortization
	2022		2021		2020
KFC	$	460	$	378	$	315
Pizza Hut		108		111		113
All Other Segments		10		9		8
Corporate and Unallocated		24		18		14
	$	602	$	516	$	450


	Impairment Charges
	2022		2021		2020
KFC(e)	$	31	$	30	$	32
Pizza Hut(e)		9		13		29
All Other Segments(e)		11		5		5
	$	51	$	48	$	66


	Capital Spending
	2022		2021		2020
KFC	$	327	$	398	$	257
Pizza Hut		116		98		61
All Other Segments		16		16		5
Corporate and Unallocated		220		177		96
	$	679	$	689	$	419


	Total Assets
	2022		2021
KFC	$	5,296	$	6,072
Pizza Hut		880		972
All Other Segments		381		454
Corporate and Unallocated(f)		5,269		5,725
	$	11,826	$	13,223

(a)

Amounts have not been allocated to any segment for performance reporting purposes.

(b)

Includes equity income from investments in unconsolidated affiliates that operate our concepts of nil, $50 million and $63 million in 2022, 2021 and 2020, respectively.

(c)

Primarily includes revenues and associated expenses of transactions with franchisees and unconsolidated affiliates derived from the Company’s central procurement model whereby the Company centrally purchases substantially all food and paper products from suppliers then sells and delivers to KFC and Pizza Hut restaurants, including franchisees and unconsolidated affiliates that operate our concepts. Amounts have not been allocated to any segment for purposes of making operating decisions or assessing financial performance as the transactions are deemed corporate revenues and expenses in nature.

(d)

In 2021, unallocated other income primarily includes gain from re-measurement of previously held equity interest in connection with the acquisition of Hangzhou KFC and the Lavazza joint venture. In 2020, unallocated other income primarily includes gain from re-measurement of previously held equity interest in connection with the acquisition Suzhou KFC in 2020. See Note 3.

(e)

Primarily includes store closure impairment charges, restaurant-level impairment charges resulting from our semi-annual impairment evaluation as well as our additional impairment evaluation performed in the first quarter of 2020 in response to adverse impact from the COVID-19 pandemic. See Note 13.

(f)

Primarily includes cash and cash equivalents, short-term investments, investment in equity securities of Meituan, equity method investments, long-term time deposits, inventories that are centrally managed and PP&E.

As substantially all of the Company's revenue is derived from the PRC and substantially all of the Company's long-lived assets are located in the PRC, no geographical information is presented. In addition, revenue derived from and long-lived assets located in the U.S., the Company’s country of domicile, are immaterial.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 32
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

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-Publisher FASB
-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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+ Details

Business Acquisitions and Equity Investments - Narrative (Details)
shares in Millions, $ in Millions

3 Months Ended

12 Months Ended

Apr. 08, 2020

USD ($)

Dec. 31, 2021

USD ($)

Sep. 30, 2021

USD ($)

Mar. 31, 2021

USD ($)

Sep. 30, 2020

USD ($)

Jun. 30, 2020

USD ($)

Dec. 31, 2022

USD ($)

Restaurant

Dec. 31, 2021

USD ($)

Dec. 31, 2020

USD ($)

Apr. 30, 2020

Sep. 30, 2018

USD ($)

Business Acquisitions And Equity Investments [Line Items]

Gain from re-measurement of previously held equity interest

^[1]

$ 628

$ 239

Number of restaurants | Restaurant

10,000

Equity income

$ (2)

Acquisition of noncontrolling interest

115

562

144

Additional Paid-in Capital [Member]

Business Acquisitions And Equity Investments [Line Items]

Acquisition of noncontrolling interest

(15)

Fujian Sunner Development Co., Ltd. [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of equity interest acquired

5.00%

Total consideration paid to acquire interest

$ 261

Unrealized investment gain (loss)

(22)

Purchase of inventories

433

318

Investment carrying amount

227

Market value

214

Investment in net assets excess of carrying amount

$ 157

Finite-lived intangible asset, useful life

20 years

Fujian Sunner Development Co., Ltd. [Member] | Finite-Lived Intangible Assets [Member]

Business Acquisitions And Equity Investments [Line Items]

Investment in net assets excess of carrying amount

$ 18

Fujian Sunner Development Co., Ltd. [Member] | Accounts payable and other current liabilities [Member]

Business Acquisitions And Equity Investments [Line Items]

Accounts payable and other current liabilities due to Sunner

$ 56

Meituan Dianping [Member]

Business Acquisitions And Equity Investments [Line Items]

Unrealized investment gain (loss)

$ (27)

$ (38)

105

Number of ordinary shares subscribed | shares

8.4

Maximum percentage of ordinary shares subscribed

1.00%

Fair value of Investment in Meituan's ordinary shares

$ 74

Number of ordinary shares sold | shares

4.2

Proceeds from disposal of equity security

$ 54

Pre-tax gain from disposal of equity security

$ 17

Joint Venture [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of equity interest acquired

65.00%

Hangzhou KFC [Member]

Business Acquisitions And Equity Investments [Line Items]

Gain from re-measurement of previously held equity interest

$ 618

Lavazza Group [Member]

Business Acquisitions And Equity Investments [Line Items]

Gain from re-measurement of previously held equity interest

$ 10

Lavazza Group [Member] | Joint Venture [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of equity interest acquired

35.00%

Hangzhou KFC [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of equity interest previously held by company

47.00%

Percentage of equity interest by company

60.00%

Reacquired Franchise Rights [Member] | Hangzhou KFC [Member]

Business Acquisitions And Equity Investments [Line Items]

Purchase price allocated to intangible assets

$ 66

Remaining franchise contract period

1 year

Hangzhou Catering [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of additional equity interest acquired

28.00%

Cash consideration paid to acquire interest

$ 255

Number of restaurants | Restaurant

Investment carrying amount

$ 37

Investment in net assets excess of carrying amount

$ 26

Finite-lived intangible asset, useful life

20 years

Hangzhou Catering [Member] | Unconsolidated Affiliates [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of equity interest acquired

28.00%

Hangzhou Catering [Member] | Hangzhou KFC [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of equity interest acquired

45.00%

Suzhou KFC [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of additional equity interest acquired

25.00%

20.00%

Cash consideration paid to acquire interest

$ 149

$ 115

Gain from re-measurement of previously held equity interest

$ 239

Equity interest in acquiree, including subsequent acquisition, percentage

72.00%

92.00%

Suzhou KFC [Member] | Additional Paid-in Capital [Member]

Business Acquisitions And Equity Investments [Line Items]

Acquisition of noncontrolling interest

$ 15

Suzhou KFC [Member] | Reacquired Franchise Rights [Member]

Business Acquisitions And Equity Investments [Line Items]

Purchase price allocated to intangible assets

$ 61

Remaining franchise contract period

2 years 4 months 24 days

Huang Ji Huang Group [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of additional equity interest acquired

93.30%

Cash consideration paid to acquire interest

$ 185

[1]

Fair Value Measurements and Disclosures

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements and Disclosures

Note 13 – Fair Value Measurements and Disclosures

The Company’s financial assets and liabilities primarily consist of cash and cash equivalents, short-term investments, long-term time deposits, accounts receivable, accounts payable, and lease liabilities, and the carrying values of these assets and liabilities approximate their fair value in general.

The Company accounts for its investment in the equity securities of Meituan at fair value, which is determined based on the closing market price for the shares at the end of each reporting period, with subsequent fair value changes recorded in our Consolidated Statements of Income.

The following table is a summary of our financial assets measured on a recurring basis or disclosed at fair value and the level within the fair value hierarchy in which the measurement falls. The Company classifies its cash equivalents, short-term investments, long-term time deposits, and investment in equity securities within Level 1 or Level 2 in the fair value hierarchy because it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value, respectively. No transfers among the levels within the fair value hierarchy occurred in 2022 and 2021.


			Fair Value Measurement or Disclosure at December 31, 2022
	Balance at December 31, 2022		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	355			$	355
Fixed income debt securities(a)		129		29		100
Money market funds		59		59
Total cash equivalents		543		88		455		—
Short-term investments:
Time deposits		1,434				1,434
Fixed income debt securities(a)		500				500
Structured deposits		88				88
Total short-term investments		2,022		—		2,022		—
Long-term time deposits(b)		680				680
Other assets:
Investment in equity securities		95		95
Total	$	3,340	$	183	$	3,157	$	—


			Fair Value Measurement or Disclosure at December 31, 2021
	Balance at December 31, 2021		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	321			$	321
Fixed income debt securities(a)		163		63		100
Money market funds		45		45
Total cash equivalents		529		108		421		—
Short-term investments:
Time deposits		1,726				1,726
Fixed income debt securities(a)		1,055				1,055
Variable return investments		79		79
Total short-term investments		2,860		79		2,781		—
Long-term time deposits(b)		90				90
Other assets:
Investment in equity securities		122		122
Total	$	3,601	$	309	$	3,292	$	—

(a)

Classified as held-to-maturity investments and measured at amortized cost.

(b)

As of December 31, 2022 and 2021, long-term time deposits balance included $81 million and $90 million deposits, respectively, which is restricted for use in order to secure the balance of prepaid stored-value cards issued by the Company pursuant to regulatory requirements.

Non-recurring fair value measurements

In addition, certain of the Company’s restaurant-level assets (including operating lease ROU assets, property, plant and equipment), goodwill and intangible assets, are measured at fair value based on unobservable inputs (Level 3) on a non-recurring basis, if determined to be impaired. As of December 31, 2022, the fair value of restaurant-level assets, if determined to be impaired, are primarily represented by the price market participant would pay to sub-lease the operating lease ROU assets and acquire remaining restaurants assets, which reflects the highest and best use of the assets. Significant unobservable inputs used in the fair value measurement include market rental prices, which were determined with the assistance of an independent valuation specialist. The direct comparison approach is used as the valuation technique by assuming sub-lease of each of these properties in its existing state with vacant possession. By making reference to lease transactions as available in the relevant market, comparable properties in close proximity have been selected and adjustments have been made to account for the difference in factors such as location and property size.

The following table presents amounts recognized from all non-recurring fair value measurements based on unobservable inputs (Level 3) during the years ended December 31, 2022, 2021 and 2020. These amounts exclude fair value measurements made for restaurants that were subsequently closed or refranchised prior to those respective year-end dates.


	2022		2021		2020		Account Classification

Restaurant-level impairment(a)		24		32		52	Closure and impairment expenses, net

(a)

Restaurant-level impairment charges are recorded in Closures and impairment expenses, net and resulted primarily from our semi-annual impairment evaluation of long-lived assets of individual restaurants that were being operated at the time of impairment and had not been offered for refranchising. We performed an additional impairment evaluation in the first quarter of 2020, considering the adverse effects of the COVID-19 pandemic as an impairment indicator. After considering the impairment charges recorded during the corresponding years, the fair value of assets as of the relevant measurement date was $97 million, $112 million and $157 million during the years ended December 31, 2022, 2021 and 2020, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021	Oct. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000	1,000,000,000
Common stock, shares issued	419,000,000	449,000,000	364,000,000
Common stock, shares outstanding	419,000,000	428,000,000	364,000,000

Fair Value Measurements and Disclosures - Narrative (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value Equity Level 2 To Level 1 Transfer Amount	$ 0	$ 0
Fair Value Equity Level 1 To Level 2 Transfer Amount	$ 0		$ 0

Leases - Summary of Maturities of Lease Liabilities (Details)
$ in Millions

Dec. 31, 2022

USD ($)

Amount of Operating Leases

$ 552

450

387

338

279

808

Total undiscounted lease payment

2,814

Less: imputed interest

460

^[1]

Present value of lease liabilities

2,354

Amount of Finance Leases

Total undiscounted lease payment

Less: imputed interest

^[1]

Present value of lease liabilities

Amount of Operating And Finance Leases, Total

559

456

393

344

284

840

Total undiscounted lease payment

2,876

Less: imputed interest

475

^[1]

Present value of lease liabilities

$ 2,401

[1]

As the rate implicit in the lease cannot be readily determined, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the imputed interest and present value of lease payments. We used the incremental borrowing rate on January 1, 2019 for operating leases that commenced prior to that date.

Share-Based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Compensation

Note 15 – Share-Based Compensation

Overview

Upon the separation, holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards of either YUM or Yum China in their entirety, to maintain the pre-separation intrinsic value of the awards. Depending on the tax laws of the country of employment, awards were modified using either the shareholder method or the employer method. Share issuances for Yum China awards held by YUM’s employees will be satisfied by Yum China. Share issuances for YUM awards held by the Company’s employees will be satisfied by YUM. The shareholder method was based on the premise that employees holding YUM awards prior to the separation should receive an equal number of awards of both YUM and Yum China. Under the employer method, employees holding YUM awards prior to the separation had their awards converted into awards of the Company that they worked for subsequent to the separation. As a result, Yum China may issue shares of common stock to YUM’s employees upon exercise or vesting of various types of awards, including stock options, SARs, RSUs, and awards from the executive income deferral plan.

The modified equity awards have the same terms and conditions as the awards held immediately before the separation, except that the number of shares and the price were adjusted. In accordance with ASC 718, the Company compared the fair value of the awards immediately prior to the separation to the fair value immediately after the separation to measure the incremental compensation cost, using the Black-Scholes option-pricing model (the “BS model”). The incremental compensation cost was insignificant, and YUM and the Company continue to recognize the unamortized original grant-date fair value of the modified awards over the remaining requisite service period as their respective employees continue to provide services. Share-based compensation for the Company’s employees is based on both YUM awards and Yum China awards held by those employees.

Effective October 31, 2016, the Company adopted the Yum China Holdings, Inc. Long Term Incentive Plan (the “2016 Plan”). The Company has reserved for issuance under the 2016 Plan of 45,000,000 shares of our common stock. Under this plan, the exercise price of stock options and SARs granted must be equal to or greater than the fair market value of the Company’s stock on the date of grant.

In connection with the Primary Conversion, the Company’s stockholders approved the Yum China Holdings, Inc. 2022 Long Term Incentive Plan (the “2022 Plan”), with 31,000,000 shares of Company common stock authorized for grants. The 2022 Plan replaced the 2016 Plan and became effective on October 24, 2022. The 2016 Plan continued to govern awards granted prior to the effectiveness of the 2022 Plan. Under the 2022 Plan, the exercise price of stock options and SARs granted must be the higher of 1) the fair market value of the Company’s stock on the date of grant and (ii) the average fair market value for the five trading days immediately preceding the date of grant. The 2022 Plan is largely based on the 2016 Plan, but with updates to conform to the requirements of the HKEX, to delete provisions relating to our spin-off that are no longer applicable and to make certain other administrative changes.

Similar to the 2016 Plan, potential awards to employees and non-employee directors under the 2022 Plan include stock options, incentive options, SARs, restricted stock, stock units, RSUs, performance shares, performance units, and cash incentive awards. While awards under the 2016 and 2022 Plan can have varying vesting provisions and exercise periods, outstanding awards vest in periods ranging from three to five years. Stock options and SARs expire 10 years after grant.

The Company recognizes all share-based payments to employees and non-employee directors in the Consolidated Financial Statements as compensation cost on a straight-line basis over the service period based on their fair value on the date of grant, for awards that actually vest and when performance conditions are probable of being achieved, if applicable. If no substantive service condition exists, the grant-date fair value is fully recognized as expense upon grant.

Award Valuation

Stock Options and SARs

The Company estimated the fair value of each stock option and SAR award granted to the Company’s employees as of the date of grant, using the BS model with the following assumptions:


	2022			2021			2020
Risk-free interest rate		1.6	%		0.4	%		1.5	%
Expected term (years)		6.25			6.25			6.50
Expected volatility		32.4	%		33.9	%		33.2	%
Expected dividend yield		1.0	%		0.8	%		1.1	%

Share option and SAR awards granted to employees typically have a graded vesting schedule of 25% per year over four years and expire 10 years after grant. The Company uses a single weighted-average term for awards that have a graded vesting schedule and determined average terms of exercise based on analysis of the historical exercise and post-vesting termination behavior. Forfeitures were estimated based on historical experience. Historical data used to estimate the expected term and forfeiture rate include data associated with the Company’s employees who were granted share-based awards by YUM prior to the separation.

For those awards granted by the Company after the separation, the Company considered the volatility of common shares of comparable companies in the same business as the Company, as well as the historical volatility of the Company stock. The dividend yield was estimated based on the Company’s dividend policy at the time of the grant.

RSUs

RSU awards generally vest over three to four years, with either cliff vesting at 100% on the third grant anniversary or graded vesting on anniversary dates. The fair values of RSU awards are based on the closing price of the Company’s stock on the date of grant.

PSUs

In February 2020, the Company’s board of directors approved new grants of a special award of PSUs (“Partner PSU Awards”) to select employees who were deemed critical to the Company’s execution of its strategic operating plan under the 2016 Plan. These Partner PSU Awards are subject to market and performance conditions, and will cliff vest only if threshold performance goals are achieved over a four-year performance period, with the payout ranging from 0% to 200% of the target number of shares.

In addition, the Company also granted annual PSU awards since 2020. These annual PSU awards are based on the Company’s achievement of one or more performance goals, including relative total shareholder return against the MSCI China Index, and will cliff vest only if threshold performance goals are achieved over a three-year performance period.

The fair value of PSU awards was determined based on the closing price of the Company's stock on the date of the grant and the outcome of the MCS model with the following assumptions:



	2022			2021			2020
Risk-free interest rate		1.8	%		0.2	%		1.4	%
Expected volatility		30.8	%		35.7	%		33.4	%
Expected dividend yield	Not applicable			Not applicable				1.1	%

Compensation costs associated with annual and Partner PSU Awards are recognized on a straight-line basis over the performance period when performance conditions are probable of being achieved, adjusted for estimated forfeiture rate.

Others

Commencing from November 11, 2016, Yum China also granted annual awards of common stock to non-employee directors for their service on Yum China’s board of directors. The fair value of these awards is based on the closing price of the Company’s common stock on the date of grant. The shares were issued outright to the directors on the date of grant, with no conditions attached. Therefore, the fair value of the awards was fully recognized as expenses upon grant. For the years ended December 31, 2022, 2021 and 2020, a total of 47,820, 31,182 and 54,757 shares of Yum China common stock, respectively, were granted to non-employee directors and the grant-date fair value of $2.1 million, $2.1 million and $2.6 million, respectively, was immediately recognized in full in the Consolidated Statements of Income.

Award Activity

Stock Options and SARs


	Shares (in thousands)				Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of 2022		10,823				31.65
Granted		964				50.16
Exercised		(1,932	)			23.32
Forfeited or expired		(250	)			49.66
Outstanding at the end of 2022		9,605		(a)		34.71		4.95		194
Exercisable at the end of 2022		7,124				29.44		3.87		180

(a)

Outstanding awards include 180,256 stock options and 9,424,555 SARs with weighted-average exercise prices of $20.31 and $34.99, respectively. Outstanding awards represent Yum China awards held by employees of both the Company and YUM.

The weighted-average grant-date fair value of SARs granted in 2022, 2021 and 2020 was $15.55, $17.44 and $13.36, respectively. The total intrinsic value of stock options and SARs exercised by the Company’s employees during the years ended December 31, 2022, 2021 and 2020 was $22 million, $22 million and $75 million, respectively.

As of December 31, 2022, $25 million of unrecognized compensation cost related to unvested SARs, which will be reduced by any forfeitures that occur, is expected to be recognized over a remaining weighted-average vesting period of approximately 1.63 years. The total fair value at grant date or modification date of awards held by the Company’s employees that vested during 2022, 2021 and 2020 was $16 million, $15 million and $15 million, respectively.

RSUs


	Shares (in thousands)			Weighted- Average Grant Date Fair Value
Unvested at the beginning of 2022		684			53.77
Granted		409			50.11
Vested		(170	)		42.81
Forfeited or expired		(48	)		54.83
Unvested at the end of 2022		875			54.13

The weighted-average grant-date fair value of RSUs granted in 2022, 2021 and 2020 was $50.11, $58.77 and $48.01, respectively. As of December 31, 2022, $27 million of unrecognized compensation cost related to 874,914 unvested RSUs, which will be reduced by any forfeiture that occurs, is expected to be recognized over a remaining weighted-average vesting period of approximately 1.72 years. The total fair value at grant date of awards that vested during 2022, 2021 and 2020 was $7 million, $11 million and $11 million, respectively.

PSUs


	Shares (in thousands)			Weighted- Average Grant Date Fair Value
Unvested at the beginning of 2022		1,233			42.86
Granted		102			61.33
Vested		(125	)		43.08
Forfeited or expired		(134	)		47.23
Unvested at the end of 2022		1,076			44.04

The weighted-average grant-date fair value of PSUs granted in 2022, 2021 and 2020 was $61.33, $68.04 and $39.78, respectively. As of December 31, 2022, $12 million of unrecognized compensation cost related to 1,075,646 unvested PSUs, which will be reduced by any forfeiture that occurs and adjusted based on the Company’s achievement of performance goals, is expected to be recognized over a remaining weighted-average vesting period of approximately 1.33 years. The total fair value at grant date of awards that vested during 2022, 2021 and 2020 was $5 million, $3 million and $3 million, respectively.

On December 30, 2022, in recognition of the extended impact of the COVID-19 pandemic and the Company’s performance over the three-year performance period of the 2020 annual PSU awards, the Compensation Committee of the board of directors determined to adjust the weighting of the performance goals applicable to the 2020 annual PSU awards. This modification pertained to all recipients of this award, and resulted in incremental compensation expense of $6 million recognized during the year ended December 31, 2022.

Impact on Net Income

Share-based compensation expense was $42 million, $41 million and $36 million for 2022, 2021 and 2020, respectively. Deferred tax benefits of $1 million was recognized in each of 2022, 2021 and 2020.

Summary of Significant Accounting Policies - Schedule of Government Subsidies in Form of Cash Recognized as Reduction in Expense Line Items in Consolidated Statements of Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summary Of Significant Accounting Policies [Line Items]
General and administrative expenses	$ 594	$ 564	$ 479
Total costs and expenses, net	8,940	8,467	7,302
Government Subsidies [Member]
Summary Of Significant Accounting Policies [Line Items]
General and administrative expenses	26	28	30
Total costs and expenses, net	44	45	51
Company Restaurant Expenses [Member] \| Government Subsidies [Member]
Summary Of Significant Accounting Policies [Line Items]
Payroll and employee benefits	15	14	19
Occupancy and other operating expenses	3	3	2
Company restaurants expenses	$ 18	$ 17	$ 21

Leases - Narrative (Details) $ in Millions	12 Months Ended
Leases - Narrative (Details) $ in Millions	Dec. 31, 2022 USD ($) Restaurant
Schedule Of Lease Assets And Liabilities [Line Items]
Number of restaurants leased \| Restaurant	10,000
Additional lease signed but not commenced with total undiscounted minimum lease payments \| $	$ 107
Maximum [Member]
Schedule Of Lease Assets And Liabilities [Line Items]
Lease agreements initial terms	20 years
Lease terms	20 years
Minimum [Member]
Schedule Of Lease Assets And Liabilities [Line Items]
Lease agreements initial terms	10 years
Lease terms	1 year

Earnings Per Common Share ("EPS") (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Common Share

The following table summarizes the components of basic and diluted earnings per share (in millions, except for per share data):


	2022		2021		2020
Net Income – Yum China Holdings, Inc.	$	442	$	990	$	784
Weighted-average common shares outstanding (for basic calculation)(a)		421		422		390
Effect of dilutive share-based awards(a)		4		6		7
Effect of dilutive warrants(b)		—		6		5
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		425		434		402
Basic Earnings Per Share	$	1.05	$	2.34	$	2.01
Diluted Earnings Per Share	$	1.04	$	2.28	$	1.95
Share-based awards excluded from the diluted EPS computation(c)		4		2		3

(a)

(b)

(c)

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Summary of Supplemental Balance Sheet


Supplemental Balance Sheet
	2022/12/31		2021/12/31		Account Classification
Assets
Operating lease right-of-use assets	$	2,219	$	2,612	Operating lease right-of-use assets
Finance lease right-of-use assets		38		33	Property, plant and equipment, net
Total leased assets	$	2,257	$	2,645

Liabilities
Current
Operating lease liabilities	$	448	$	508	Accounts payable and other current liabilities
Finance lease liabilities		5		3	Accounts payable and other current liabilities
Non-current
Operating lease liabilities		1,906		2,286	Non-current operating lease liabilities
Finance lease liabilities		42		40	Non-current finance lease liabilities
Total lease liabilities	$	2,401	$	2,837

Summary of Lease Cost


Summary of Lease Cost										Account Classification
	2022			2021			2020

Operating lease cost	$	564		$	564		$	496		Occupancy and other operating expenses, G&A or Franchise expenses
Finance lease cost
Amortization of leased assets		4			3			2		Occupancy and other operating expenses
Interest on lease liabilities		2			2			2		Interest expense, net
Variable lease cost(a)		303			346			262		Occupancy and other operating expenses or Franchise expenses
Short-term lease cost		12			9			10		Occupancy and other operating expenses or G&A
Sublease income		(23	)		(26	)		(24	)	Franchise fees and income or Other revenues
Total lease cost	$	862		$	898		$	748

(a)

The Company was granted $39 million, $12 million and $36 million in lease concessions from landlords related to the effects of the COVID-19 pandemic for the years ended December 31, 2022, 2021 and 2020, respectively. The lease concessions were primarily in the form of rent reduction over the period of time when the Company’s restaurant business was adversely impacted. The Company applied the interpretive guidance in a FASB staff question-and-answer document issued in April 2020 and elected: (1) not to evaluate whether a concession received in response to the COVID-19 pandemic is a lease modification and (2) to assume such concession was contemplated as part of the existing lease contract with no contract modification. Such concession was recognized as negative variable lease cost in the period the concession was granted.

Schedule of Supplemental Cash Flow Information


Supplemental Cash Flow Information
	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	549	$	573	$	493
Operating cash flows from finance leases		2		2		2
Financing cash flows from finance leases		4		2		2
Right-of-use assets obtained in exchange for new lease liabilities(b):
Operating leases	$	191	$	541	$	337
Finance leases		10		11		2

(b)

This supplemental non-cash disclosure for ROU obtained in exchange for new lease liabilities includes an increase in lease liabilities associated with obtaining new ROU assets of $344 million, $557 million and $358 million for the years ended December 31, 2022, 2021 and 2020, respectively, as well as adjustments to lease liabilities or ROU assets due to modification or other reassessment events, which resulted in a decrease of $143 million, $5 million and $19 million in lease liabilities for the years ended December 31, 2022, 2021 and 2020, respectively.

Schedule of Lease Terms and Discount Rate


Lease Term and Discount Rate	2022			2021
Weighted-average remaining lease term (years)
Operating leases		7.1			7.2
Finance leases		11.2			11.3

Weighted-average discount rate
Operating leases		5.1	%		5.5	%
Finance leases		5.1	%		5.5	%

Summary of Maturities of Lease Liabilities

Maturities of lease liabilities as of December 31, 2022 were as follows:


	Amount of Operating Leases		Amount of Finance Leases		Total
2023	$	552	$	7	$	559
2024		450		6		456
2025		387		6		393
2026		338		6		344
2027		279		5		284
Thereafter		808		32		840
Total undiscounted lease payment		2,814		62		2,876
Less: imputed interest(c)		460		15		475
Present value of lease liabilities	$	2,354	$	47	$	2,401

(c)

Share-Based Compensation (Parenthetical) (Details 1)	Dec. 31, 2022 $ / shares shares
Share-Based Payment Arrangement [Abstract]
Stock options outstanding at the end of 2022 (in shares) \| shares	180,256
SARs outstanding at the end of 2022 (in shares) \| shares	9,424,555
Stock options outstanding at the end of 2022, Weighted-average exercise price (in dollars per share) \| $ / shares	$ 20.31
SARs outstanding at the end of 2022, Weighted-average exercise price (in dollars per share) \| $ / shares	$ 34.99

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Summary of award activity


	Shares (in thousands)				Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of 2022		10,823				31.65
Granted		964				50.16
Exercised		(1,932	)			23.32
Forfeited or expired		(250	)			49.66
Outstanding at the end of 2022		9,605		(a)		34.71		4.95		194
Exercisable at the end of 2022		7,124				29.44		3.87		180

(a)

Summary of RSUs

RSUs


	Shares (in thousands)			Weighted- Average Grant Date Fair Value
Unvested at the beginning of 2022		684			53.77
Granted		409			50.11
Vested		(170	)		42.81
Forfeited or expired		(48	)		54.83
Unvested at the end of 2022		875			54.13

Summary of PSUs

PSUs


	Shares (in thousands)			Weighted- Average Grant Date Fair Value
Unvested at the beginning of 2022		1,233			42.86
Granted		102			61.33
Vested		(125	)		43.08
Forfeited or expired		(134	)		47.23
Unvested at the end of 2022		1,076			44.04

Stock Options and Stock Appreciation Rights [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Assumptions Used in the BS and MCS Model

The Company estimated the fair value of each stock option and SAR award granted to the Company’s employees as of the date of grant, using the BS model with the following assumptions:


	2022			2021			2020
Risk-free interest rate		1.6	%		0.4	%		1.5	%
Expected term (years)		6.25			6.25			6.50
Expected volatility		32.4	%		33.9	%		33.2	%
Expected dividend yield		1.0	%		0.8	%		1.1	%

Partner PSU Awards[Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Assumptions Used in the BS and MCS Model

The fair value of PSU awards was determined based on the closing price of the Company's stock on the date of the grant and the outcome of the MCS model with the following assumptions:



	2022			2021			2020
Risk-free interest rate		1.8	%		0.2	%		1.4	%
Expected volatility		30.8	%		35.7	%		33.4	%
Expected dividend yield	Not applicable			Not applicable				1.1	%

Credit Facilities

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Credit Facilities

Note 10 – Credit Facilities

As of December 31, 2022, the Company had credit facilities of RMB4,518 million (approximately $655 million), comprised of onshore credit facilities of RMB3,000 million (approximately $435 million) in the aggregate and offshore credit facilities of $220 million in the aggregate.

The credit facilities had remaining terms ranging from less than one year to two years as of December 31, 2022. Each credit facility bears interest based on the prevailing rate stipulated by the People’s Bank of China, Loan Prime Rate (“LPR”) published by the National Interbank Funding Centre of the PRC, London Interbank Offered Rate (“LIBOR”) administered by the ICE Benchmark Administration, or Secured Overnight Financing Rate (“SOFR”) published by the Federal Reserve Bank of New York. Each credit facility contains a cross-default provision whereby our failure to make any payment on a principal amount from any credit facility will constitute a default on other credit facilities. Some of the credit facilities contain covenants limiting, among other things, certain additional indebtedness and liens, and certain other transactions specified in the respective agreement. Interest on any outstanding borrowings is due at least monthly. Some of the onshore credit facilities contain sub-limits for overdrafts, non-financial bonding, standby letters of credit and guarantees. As of December 31, 2022, we had outstanding bank guarantees of RMB209 million (approximately $30 million) mainly to secure our lease payments to landlords for certain Company-owned restaurants. The credit facilities were therefore reduced by the same amount. There was a $2-million bank borrowing outstanding as of December 31, 2022, which was secured by a $1-million short-term investment. The bank borrowing was due within one year and included in Accounts payable and other current liabilities.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
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+ Details

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2 – Summary of Significant Accounting Policies

Our preparation of the accompanying Consolidated Financial Statements in conformity with Generally Accepted Accounting Principles 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.

Basis of Preparation and Principles of Consolidation. Intercompany accounts and transactions have been eliminated in consolidation. We consolidate entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. We also consider consolidating an entity in which we have certain interests where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it.

Our most significant variable interests are in entities that operate restaurants under franchise arrangements. We do not generally have an equity interest in our franchisee businesses. Additionally, we do not typically provide significant financial support such as loans or guarantees to our franchisees. We have variable interests in certain entities that operate restaurants under franchise agreements through real estate lease arrangements with them to which we are a party. At December 31, 2022, the Company had future lease payments due from franchisees, on a nominal basis, of approximately $29 million. As our franchise arrangements provide our franchisee entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might otherwise be considered a VIE.

Through the acquisition of Daojia, the Company also acquired a 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 is entitled to substantially all of the profits and has the obligation to absorb all of the expected losses of the VIE. The acquired VIE and its subsidiaries were considered immaterial, both individually and in the aggregate. The results of Daojia’s operations have been included in the Company’s Consolidated Financial Statements since the acquisition date.

We consolidate the entities that operate KFCs in and around Shanghai, Beijing, Wuxi, Suzhou and Hangzhou, as well as the Lavazza joint venture where we have controlling interests since the respective acquisition dates.

Comparative Information. Certain comparative items in the Consolidated Financial Statements have been reclassified to conform to the current year’s presentation to facilitate comparison.

Fiscal Calendar. Our fiscal year ends on December 31, with each quarter comprised of three months.

Foreign Currency. Our functional currency for the operating entities in China is the Chinese Renminbi (“RMB”), the currency of the primary economic environment in which they operate. Income and expense accounts for our operations are then translated into U.S. dollars at the average exchange rates prevailing during the period. Assets and liabilities are then translated into U.S. dollars at exchange rates in effect at the balance sheet date. Foreign currency translation adjustments are recorded in the Accumulated other comprehensive income on the Consolidated Balance Sheets. Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency, to the extent they arise, are included in Other income, net in our Consolidated Statements of Income.

Franchise Operations. We execute agreements which set out the terms of our arrangement with franchisees. Our franchise agreements typically require the franchisee to pay an initial, non-refundable fee and continuing fees based upon a percentage of sales. Subject to our approval and their payment of a renewal fee, a franchisee may generally renew the franchise agreement upon its expiration.

The 3% license fees we pay to YUM for the right to sublicense the KFC, Pizza Hut and Taco Bell intellectual property to franchisees and unconsolidated affiliates that operate our concepts are recorded in Franchise expenses. License fees due to YUM for our Company-owned stores are included in Occupancy and other operating expenses. Total license fees paid to YUM were $277 million, $298 million and $256 million during the years ended December 31, 2022, 2021 and 2020, respectively.

Certain direct costs of our franchise operations are charged to Franchise expenses. These costs include provisions for estimated uncollectible fees, rent or depreciation expense associated with restaurants we sub-lease to franchisees, and certain other direct incremental franchise support costs.

We also have certain transactions with franchisees and unconsolidated affiliates that operate our concepts, which consist primarily of sales of food and paper products, advertising services, delivery services and other services provided to franchisees and unconsolidated affiliates that operate our concepts. Related expenses are included in Expenses for transactions with franchisees and unconsolidated affiliates.

Revenue Recognition. The Company’s revenues primarily include Company sales, Franchise fees and income and Revenues from transactions with franchisees and unconsolidated affiliates that operate our concepts.

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 also offer our customers delivery through both our own mobile applications and third-party aggregators’ platforms, and we primarily use our dedicated riders to deliver orders. When orders are fulfilled by our dedicated riders, we control and determine the price for the delivery service and generally recognize revenue, including delivery fees, when a customer takes possession of the food. When orders are fulfilled by the delivery staff of third-party aggregators, who control and determine the price for the delivery service, we recognize revenue, excluding delivery fees, when control of the food is transferred to the third-party aggregators’ delivery staff. The payment terms with respect to these sales are short-term in nature.

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. We recognize breakage revenue, which is the amount of prepaid stored-value products that is not expected to be redeemed, either (1) proportionally in earnings as redemptions occur, in situations where the Company expects to be entitled to a breakage amount, or (2) when the likelihood of redemption is remote, in situations where the Company does not expect to be entitled to breakage, provided that there is no requirement for remitting balances to government agencies under unclaimed property laws. The Company reviews its breakage estimates at least annually based upon the latest available information regarding redemption and expiration patterns.

Our privilege membership programs offer privilege members rights to multiple benefits, such as free delivery and discounts on certain products. For certain KFC and Pizza Hut privilege membership programs offering a pre-defined amount of benefits that can be redeemed ratably over the membership period, revenue is ratably recognized over the period based on the elapse of time. With respect to the KFC and Pizza Hut privilege membership program offering members a mix of distinct benefits, including a welcome gift and assorted discount coupons with pre-defined quantities, consideration collected is allocated to the benefits provided based on their relative standalone selling price and revenue is recognized when food or services are delivered or the benefits expire. In determining the relative standalone selling price of the benefits, the Company considers likelihood of future redemption based on historical redemption pattern and reviews such estimates periodically based upon the latest available information regarding redemption and expiration patterns.

Franchise Fees and Income

Franchise fees and income primarily include upfront franchise fees, such as initial fees and renewal fees, and continuing fees. We have determined that the services we provide in exchange for upfront franchise fees and continuing fees are highly interrelated with the franchise right. We recognize upfront franchise 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. The franchise agreement term is generally 10 years for KFC and Pizza Hut, generally five years for Little Sheep, and three to 10 years for Huang Ji Huang. We recognize continuing fees, which are based upon a percentage of franchisee sales, as those sales occur.

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, delivery services and other services provided to franchisees and unconsolidated affiliates that operate our concepts.

The Company centrally purchases substantially all food and paper products from suppliers for substantially all of our restaurants, including franchisees and unconsolidated affiliates that operate our concepts, and then sells and delivers them to the restaurants. In addition, the Company owns seasoning facilities for its Chinese dining business unit, which manufacture and sell seasoning products to Huang Ji Huang and Little Sheep franchisees. The Company also provides delivery services to franchisees and unconsolidated affiliates that operate our concepts. 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 such services 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 that operate our concepts. Revenue is recognized upon transfer of control over ordered items or services, generally upon delivery to the franchisees and unconsolidated affiliates that operate our concepts.

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 that operate our concepts. Other services provided to franchisees and unconsolidated affiliates consist primarily of customer and technology support services. Advertising services and other services provided are highly interrelated to franchise right, and are not considered individually distinct. We recognize revenue when the related sales occur.

Other Revenues

Other revenues primarily include i) sales of products to customers through e-commerce channels and the sale of our seasoning products to distributors, and ii) revenues from logistics and warehousing services provided to third parties through our supply chain network. Our segment disclosures also include revenues relating to delivery services that were provided to our Company-owned restaurants and, therefore, were eliminated for consolidation purposes.

Other revenues are recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services.

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 estimated 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 Consolidated Balance Sheets and subsequently recognized into revenue when the points are redeemed or expire. 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 and reviews such estimates periodically based upon the latest available information regarding redemption and expiration patterns.

Direct Marketing Costs. We charge direct marketing costs to expense ratably in relation to revenues over the year in which incurred and, in the case of advertising production costs, in the year the advertisement is first shown. Deferred direct marketing costs, which are classified as prepaid expenses, consist of media and related advertising production costs which will generally be used for the first time in the next fiscal year and have historically not been significant. Our direct marketing expenses incurred for Company-owned restaurants were $343 million, $368 million and $307 million in 2022, 2021 and 2020, respectively, and were included in Occupancy and other operating expenses. In addition, the direct marketing costs incurred for franchisees and unconsolidated affiliates that operate our concepts were $23 million, $55 million and $60 million in 2022, 2021 and 2020, respectively, and were recorded in Expenses for transactions with franchisees and unconsolidated affiliates.

Research and Development Expenses. Research and development expenses associated with our food innovation activities, which are expensed as incurred, are reported in general and administrative ("G&A") expenses. Research and development expenses were $6 million, $6 million and $3 million in 2022, 2021 and 2020, respectively.

Share-Based Compensation. Prior to the separation, all employee equity awards were granted by YUM. Upon the separation, holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards of either YUM or Yum China in their entirety, to maintain the pre-separation intrinsic value of the awards. The modified equity awards have the same terms and conditions as the awards held immediately before the separation, except the number of shares and the price were adjusted. The incremental compensation cost, measured as the excess of the fair value of the award immediately after the modification over the fair value of the award immediately before the modification, based on Black-Scholes option-pricing model was immaterial, and YUM and the Company continue to recognize the unamortized fair value of the awards over the remaining requisite service period as their respective employees continue to provide services. All awards granted following the separation were granted under the Company’s long term incentive plans adopted in 2016 and 2022.

We recognize all share-based payments to employees and directors, including grants of stock options, restricted stock units (“RSUs”), stock appreciation rights (“SARs”) and performance share units (“PSUs”), in the Consolidated Financial Statements as compensation cost over the service period based on their fair value on the date of grant. This compensation cost is recognized over the service period on a straight-line basis, net of an assumed forfeiture rate, for awards that actually vest and when performance conditions are probable of being achieved, if applicable. Forfeiture rates are estimated at grant date based on historical experience and compensation cost is adjusted in subsequent periods for differences in actual forfeitures from the previous estimates. We present this compensation cost consistent with the other compensation costs for the employee recipient in either payroll and employee benefits or G&A expenses.

Impairment or Disposal of Long-Lived Assets. Long-lived assets, primarily Property, plant and equipment (“PP&E”) and operating lease right-of-use (“ROU”) assets are tested for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. The assets are not recoverable if their carrying value is higher than the undiscounted cash flows we expect to generate from such assets. If the assets are not deemed to be recoverable, impairment is measured based on the excess of their carrying value over their fair value.

For purposes of impairment testing for our restaurants, we have concluded that an individual restaurant is the lowest level of independent cash flows unless our intent is to refranchise restaurants as a group. We review our long-lived assets of such individual restaurants (primarily operating lease ROU assets and PP&E) semi-annually for impairment, or whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. Our primary indicators of potential impairment for our semi-annual impairment testing of these restaurant assets include two consecutive years of operating losses after a restaurant has been open for three years. We evaluate the recoverability of these restaurant assets by comparing the forecasted undiscounted cash flows of the restaurant’s operation, which are based on our entity-specific assumptions, to the carrying value of such assets. The forecasted undiscounted cash flows incorporate our best estimate of sales growth based upon our operation plans for the unit and actual results at comparable restaurants. For restaurant assets that are not deemed to be recoverable, we write down an impaired restaurant to its estimated fair value, which becomes its new cost basis. Fair value is an estimate of the price market participants would pay for the restaurant and its related assets. In determining the fair value of restaurant-level assets, we considered the highest and best use of the assets from market participants’ perspective, which is represented by the higher of the forecasted discounted cash flows from operating restaurants and the price market participants would pay to sub-lease the operating lease ROU assets and acquire remaining restaurant assets, even if that use differs from the current use by the Company. The after-tax cash flows incorporate reasonable assumptions we believe a franchisee would make such as sales growth and include a deduction for royalties we would receive under a franchise agreement with terms substantially at market. The discount rate used in the fair value calculation is our estimate of the required rate-of-return that a franchisee would expect to receive when purchasing a similar restaurant and the related long-lived assets. The discount rate incorporates rates of returns for historical refranchising market transactions and is commensurate with the risks and uncertainty inherent in the forecasted cash flows. Estimates of the price market participants would pay to sub-lease the operating lease ROU assets are based on comparable market rental information that could be reasonably obtained for the property. In situations where the highest and best use of the restaurant-level assets from market participants’ perspective is represented by sub-leasing the operating lease ROU assets and acquiring remaining restaurant assets, the Company continues to use these assets in operating its restaurant business, which is consistent with its long-term strategy of growing revenue through operating restaurant concepts.

When we believe it is more likely than not a restaurant or groups of restaurants will be refranchised for a price less than their carrying value, but do not believe the restaurant(s) have met the criteria to be classified as held for sale, we review the restaurants for impairment. We evaluate the recoverability of these restaurant assets by comparing estimated sales proceeds plus holding period cash flows, if any, to the carrying value of the restaurant or group of restaurants. For restaurant assets that are not deemed to be recoverable, we recognize impairment for any excess of carrying value over the fair value of the restaurants, which is based on the expected net sales proceeds. To the extent ongoing agreements to be entered into with the franchisee simultaneous with the refranchising are expected to contain terms, such as royalty rates, not at prevailing market rates, we consider the off-market terms in our impairment evaluation. We recognize any such impairment charges in Refranchising gain. Refranchising gain includes the gains or losses from the sales of our restaurants to new and existing franchisees, including any impairment charges discussed above. We recognize gains on restaurant refranchising when the sale transaction closes, the franchisee has a minimum amount of the purchase price in at-risk equity and we are satisfied that the franchisee can meet its financial obligations.

When we decide to close a restaurant, it is reviewed for impairment, and depreciable lives are adjusted based on the expected disposal date. Other costs incurred when closing a restaurant such as costs of disposing of the assets as well as other facility-related expenses are generally expensed as incurred. Additionally, at the time we decide to close a restaurant, we reassess whether it is reasonably certain that we will exercise the termination option, and remeasure lease liability to reflect changes in lease term and remaining lease payments based on the planned exit date, if applicable. The amount of the re-measurement of the lease liability is recorded as an adjustment to the operating lease ROU asset first, with any remaining amount recorded in Closures and impairment expenses if the carrying amount of the operating lease ROU asset is reduced to zero. Any costs recorded upon store closure as well as any subsequent adjustments to remaining operating lease ROU assets and lease liabilities as a result of lease termination are recorded in Closures and impairment expenses. In the event we are forced to close a store and receive compensation for such closure, that compensation is recorded in Closures and impairment expenses. To the extent we sell assets associated with a closed store, any gain or loss upon that sale is also recorded in Closures and impairment expenses.

Considerable management judgment is necessary to estimate future cash flows, including cash flows from continuing use, terminal value, lease term and refranchising proceeds. Accordingly, actual results could vary significantly from our estimates.

Government Subsidies. Government subsidies generally consist of financial subsidies received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. The eligibility to receive such benefits and amount of financial subsidy to be granted are determined at the discretion of the relevant government authorities. Government subsidies are recognized when it is probable that the Company will comply with the conditions attached to them, and the subsidies are received. If the subsidy is related to an expense item, it is recognized as a reduction to the related expense to match the subsidy to the costs that it is intended to compensate. If the subsidy is related to an asset, it is deferred and recorded in Other liabilities and then recognized ratably over the expected useful life of the related asset in the Consolidated Statements of Income. The balances of deferred government subsidies included in Other liabilities were immaterial as of both December 31, 2022 and 2021. There were no significant commitment or contingencies for the government subsidies received for the years ended December 31, 2022, 2021 and 2020.

Government subsidies in the form of cash were recognized as reduction in following expense line items in our Consolidated Statements of Income as follows:


Costs and Expenses, Net	2022		2021		2020
Company restaurant
Payroll and employee benefits(a)	$	15	$	14	$	19
Occupancy and other operating expenses		3		3		2
Company restaurant expenses		18		17		21
General and administrative expenses		26		28		30
Total	$	44	$	45	$	51

(a)

This primarily represents government subsidies for employee benefits and providing trainings to employees, with higher amounts received during the three years (2020-2022) impacted by the COVID-19 pandemic.

Based on the policy related to COVID-19 issued in 2020 on reducing enterprise social security contribution and utility expenses, the Company also recorded one-time relief of $33 million and $59 million during 2022 and 2020, respectively, which were recognized as a reduction to the Company restaurant expenses and G&A expenses.

Income Taxes. We record deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences or carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Additionally, in determining the need for recording a valuation allowance against the carrying amount of deferred tax assets, we consider the amount of taxable income and periods over which it must be earned, actual levels of past taxable income and known trends and events or transactions that are expected to affect future levels of taxable income. Where we determine that it is more likely than not that all or a portion of an asset will not be realized, we record a valuation allowance.

We are subject to reviews, examinations and audits by Chinese tax authorities, the IRS and other taxing authorities with respect to income and non-income based taxes. We recognize the benefit of positions taken or expected to be taken in our tax returns when it is more likely than not that the position would be sustained upon examination by these tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. We evaluate unrecognized tax benefits, including interest thereon, on a quarterly basis to ensure that they have been appropriately adjusted for events, including audit settlements, which may impact our ultimate payment for such exposures.

We have investments in our foreign subsidiaries where the carrying values for financial reporting exceed the tax basis. Except for the planned but yet to be distributed earnings, we have not provided deferred tax on the portion of the excess that we believe is indefinitely reinvested, as we have the ability and intent to indefinitely postpone the basis differences from reversing with a tax consequence. The Company’s separation from YUM was intended to qualify as a tax-free reorganization for U.S. income tax purposes resulting in the excess of financial reporting basis over tax basis in our investment in the China business continuing to be indefinitely reinvested. The excess of financial reporting basis over tax basis as of December 31, 2017 was subject to the one-time transition tax under the Tax Cuts and Jobs Act (“Tax Act”) as a deemed repatriation of accumulated undistributed earnings from the foreign subsidiaries. However, we continue to believe that the portion of the excess of financial reporting basis over tax basis (including earnings and profits subject to the one-time transition tax) is indefinitely reinvested in our foreign subsidiaries for foreign withholding tax purposes.

Pursuant to the China Enterprise Income Tax Law (“EIT Law”), a 10% PRC withholding tax is generally levied on dividends declared by companies in China to their non-resident enterprise investors unless otherwise reduced according to treaties or arrangements between the Chinese central government and the governments of other countries or regions where the non-China resident enterprises are incorporated. Hong Kong has a tax arrangement with mainland China that provides for a 5% withholding tax on dividends distributed to a Hong Kong resident enterprise, upon meeting certain conditions and requirements, including, among others, that the Hong Kong resident enterprise own at least 25% equity interest of the Chinese enterprise and is a “beneficial owner” of the dividends. We believe that our principal Hong Kong subsidiary, which is the equity holder of our Chinese subsidiaries operating substantially all of our KFC and Pizza Hut restaurants, met the relevant requirements pursuant to the tax arrangement between mainland China and Hong Kong in 2018 and is expected to meet the requirements in the subsequent years; thus, it is more likely than not that our dividends or earnings expected to be repatriated to our principal Hong Kong subsidiary since 2018 are subject to the reduced withholding tax of 5%.

See Note 17 for a further discussion of our income taxes.

Fair Value Measurements. Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants. For those assets and liabilities we record or disclose at fair value, we determine fair value based upon the quoted market price, if available. If a quoted market price is not available for identical assets, we determine fair value based upon the quoted market price of similar assets or the present value of expected future cash flows considering the risks involved, including counterparty performance risk if appropriate, and using discount rates appropriate for the duration. The fair values are assigned a level within the fair value hierarchy, depending on the source of the inputs into the calculation.


Level 1		Inputs based upon quoted prices in active markets for identical assets.

Level 2		Inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly.

Level 3		Inputs that are unobservable for the asset.

In addition, when we acquire additional equity interest in the unconsolidated affiliates to obtain control, it may result in gain or loss from re-measurement of our previously held equity interest at fair value using a discounted cash flow valuation approach and incorporating assumptions and estimates that are Level 3 inputs. Key assumptions used in estimating future cash flows included projected revenue growth and costs and expenses, which were based on internal projections, store expansion plans, historical performance of stores and the business environment, as well as the selection of an appropriate discount rate based on the weighted-average cost of capital which includes company-specific risk premium.

Cash and Cash Equivalents. Cash equivalents represent highly liquid investments with original maturities not exceeding three months and are primarily comprised of time deposits, fixed income debt securities and money market funds. Cash and overdraft balances that meet the criteria for right to offset are presented net on our Consolidated Balance Sheets. See Note 13 for detail discussion on our Cash equivalents.

Short-term Investments. Short-term investments purchased primarily represent i) time deposits, fixed income debt securities with original maturities of over three months but less than one year when purchased; ii) time deposits with original maturities over one year but are expected to be realized in cash during the next 12 months; iii) variable return investments offered by financial institutions measured at fair value; and iv) certain structured deposits that are principal-protected and provide returns in the form of both fixed and variable interests with original maturities of less than one year. Such variable interest rates indexed to gold prices or foreign exchange rates are considered embedded derivatives and bifurcated from host contracts, and measured at fair value on a recurring basis. The fair value change of the embedded derivatives is recorded in Investment gain or loss in the Consolidated Statements of Income. The remaining host contracts to receive guaranteed principal and fixed interest are measured at amortized cost, with accretion of interest recorded in Interest income in the Consolidated Statements of Income. As of December 31, 2022, the fair value of embedded derivatives included in Short-term investments was immaterial. See Note 13 for detail discussion on our Short-term investments.

Long-term Time Deposits. Long-term time deposits represent time deposits bearing fixed interest rate with remaining maturities exceeding one year for which the Company has the positive intent to hold for more than one year. In 2021, certain time deposits held by the Company had the remaining maturity over one year, but were classified as Short-term investments as management had the positive intent and ability to hold these investments within 12 months at the time. In December 2022, the Company changed its intent and planned to hold these deposits up to three years in order to enhance the investment return. Accordingly, the Company reclassified all outstanding time deposits with the remaining maturity over one year from Short-term investments to Long-term time deposits. See Note 13 for detail discussion on our Long-term time deposits.

Accounts Receivable. Accounts Receivable primarily consist of trade receivables and royalties from franchisees, and are generally due within 30 days of the period in which the corresponding sales occur. Our provision of credit losses for accounts receivable is based upon the current expected credit losses ("CECL") model. The CECL model requires an estimate of the credit losses expected over the life of accounts receivable since initial recognition, and accounts receivable with similar risk characteristics are grouped together when estimating CECL. In assessing the CECL, the Company considers both quantitative and qualitative information that is reasonable and supportable, including historical credit loss experience, adjusted for relevant factors impacting collectability and forward-looking information indicative of external market conditions. 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. Accounts receivable that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts. As of December 31, 2022 and 2021, the ending balances of provision for accounts receivable were $2 million and $1 million, respectively, and amounts of accounts receivable past due were immaterial.

Receivables from Payment Processors or Aggregators. Receivables from payment processors such as WeChat and Alipay or aggregators are cash due from them for clearing transactions and are included in Prepaid expenses and other current assets. The cash was paid by customers through these payment processors or aggregators for food provided by the Company. The Company considers and monitors the credit worthiness of the third-party payment processors and aggregators used. We adopted the same methodology of estimating expected credit losses based upon the CECL model as described above. Receivable balances are written off after all collection efforts have been exhausted. As of December 31, 2022 and 2021, no allowance for doubtful accounts was provided for such receivables.

Inventories. We value our inventories at the lower of cost (computed on the first-in, first-out method) or net realizable value.

Property, Plant and Equipment. We state PP&E at cost less accumulated depreciation and amortization. We calculate depreciation and amortization on a straight-line basis over the estimated useful lives of the assets as follows: generally 20 to 50 years for buildings, the lesser of estimated useful lives (generally 5 to 12 years) and remaining lease term for leasehold improvements, 3 to 10 years for restaurant machinery and equipment and 3 to 5 years for capitalized software costs. We suspend depreciation and amortization on assets related to restaurants that are held for sale. The useful life of PP&E is periodically reviewed.

We capitalize direct costs associated with the site acquisition and construction of a Company unit on that site, including direct internal payroll and payroll-related costs. Only those site-specific costs incurred subsequent to the time that the site acquisition is considered probable are capitalized. If we subsequently make a determination that it is probable a site for which internal development costs have been capitalized will not be acquired or developed, any previously capitalized internal development costs are expensed and included in G&A expenses.

We capitalize software costs incurred in connection with developing or obtaining computer software for internal use. We capitalize payroll and payroll-related costs for employees that are directly attributable to the development of our internal-use software. Internal costs incurred in the software application development stage are capitalized and amortized over the estimated useful lives of software. Costs associated with planning and post-implementation operation and software maintenance costs are expensed and included in G&A expenses.

Leases. ROU assets and lease liabilities are recognized upon lease commencement for operating leases based on the present value of lease payments over the lease term. As the rate implicit in the lease cannot be readily determined, we use our incremental borrowing rate at the lease commencement date in determining the imputed interest and present value of lease payments. The incremental borrowing rate was determined using a portfolio approach based on the rate of interest that we would have to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The incremental borrowing rate is primarily influenced by the risk-free interest rate of China, the Company’s credit rating and lease term, and is updated on a quarterly basis for measurement of new lease liabilities.

For operating leases, the Company recognizes a single lease cost on a straight-line basis over the remaining lease term. For finance leases, the Company recognizes straight-line amortization of the ROU asset and interest on the lease liability. For rental payments either based on a percentage of the restaurant’s sales in excess of a fixed base amount or solely based on a percentage of the restaurant’s sales, they are recognized as variable lease expenses as incurred.

The Company has elected not to recognize ROU assets or lease liabilities for leases with an initial term of 12 months or less; we recognize lease expense for these leases on a straight-line basis over the lease term. In addition, the Company has elected not to separate non-lease components (e.g., common area maintenance fees) from the lease components.

From time to time, we purchase the rights to use government-owned land and the building occupying the land for a fixed period of time. Prior to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASC 842”), these land use rights and related buildings were recorded in Other Assets and Property, Plant and Equipment in our Consolidated Balance Sheets, and are amortized on a straight-line basis over the term of the land use rights. Upon the adoption of ASC 842 on January 1, 2019, land use rights acquired are assessed in accordance with ASC 842 and recognized in ROU assets if they meet the definition of lease.

See Note 12 for further discussions on our leases.

Goodwill and Intangible Assets. From time to time, the Company acquires restaurants from our existing franchisees or acquires another business, including restaurants business of unconsolidated affiliates that operate our concepts. Goodwill from these acquisitions represents the excess of the cost of a business acquired over the net of the amounts assigned to assets acquired, including identifiable intangible assets and liabilities assumed. Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing. Our reporting units are our individual operating segments.

We evaluate goodwill for impairment on an annual basis or more often if an event occurs or circumstances change that indicate impairment might exist. We have selected the beginning of our fourth quarter as the date on which to perform our ongoing annual impairment test for goodwill. We may elect to perform a qualitative assessment for our reporting units to determine whether it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, then the reporting unit’s fair value is compared to its carrying value. Fair value is the price a willing buyer would pay for a reporting unit, and is generally estimated using discounted expected future after-tax cash flows from the business operation of the reporting unit. The discount rate is our estimate of the required rate-of-return that a third-party buyer would expect to receive when purchasing a business from us that constitutes a reporting unit. We believe the discount rate is commensurate with the risks and uncertainty inherent in the forecasted cash flows. If the carrying value of a reporting unit exceeds its fair value, we will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit.

If we record goodwill upon acquisition of a restaurant(s) from a franchisee and such restaurant(s) is then sold within two years of acquisition, the goodwill associated with the acquired restaurant(s) is written off in its entirety. If the restaurant is refranchised two years or more subsequent to its acquisition, we include goodwill in the carrying amount of the restaurants disposed of based on the relative fair values of the portion of the reporting unit disposed of in the refranchising and the portion of the reporting unit that will be retained.

We determine the useful life of intangible assets with consideration of factors including the expected use of the asset, the expected useful life of another asset or a group of assets to which the useful life of the intangible asset may relate, any legal, regulatory or contractual provisions that may limit the useful life, our historical experience in renewing or extending similar arrangements, the effects of obsolescence, demand, competition and other economic factors, and the level of maintenance expenditures required to obtain the expected future cash flows from the assets. We evaluate the remaining useful life of an intangible asset that is not being amortized each reporting period to determine whether events and circumstances continue to support an indefinite useful life. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, we amortize the intangible asset prospectively over its estimated remaining useful life. The Company’s indefinite-lived intangible asset represents Little Sheep and Huang Ji Huang trademarks as we consider their useful life to be indefinite since we intend to use Little Sheep and Huang Ji Huang trademarks indefinitely and there are no legal, regulatory or contractual provisions that may limit the useful life of the trademarks. Intangible assets that are deemed to have a finite life are generally amortized over their estimated useful lives on a straight-line basis to their residual value as follows:


Reacquired franchise rights		1 to 10 years
Huang Ji Huang franchise related assets		19 years
Daojia platform		8 years
Customer-related assets		2 to 15 years
Others		up to 20 years

The useful life of reacquired franchise rights was determined based on the contractual term whereas both the contractual term and historical pattern of renewing franchise agreements were considered in assessing the useful life of Huang Ji Huang franchise related assets. Customer-related assets primarily represent the customer relationship and user base acquired and the estimate of the useful life was based on the historical pattern of extending similar arrangements and attrition rate of users. Others primarily represent Little Sheep’s secret recipe. The useful life of the Daojia platform and Little Sheep’s secret recipe was assessed based on our estimate of periods generating cash flows from utilizing such assets.

We evaluate our indefinite-lived intangible assets for impairment on an annual basis or more often if an event occurs or circumstances change that indicate impairments might exist. We perform our annual test for impairment of our indefinite-lived intangible assets at the beginning of our fourth quarter. We may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of an indefinite-lived intangible asset exceeds its carrying value, then the asset’s fair value is compared to its carrying value. Fair value is an estimate of the price a willing buyer would pay for the intangible asset and is generally estimated by discounting the expected future after-tax cash flows associated with the intangible asset.

Our finite-lived intangible assets that are not allocated to an individual restaurant are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. An intangible asset that is deemed not recoverable based on forecasted undiscounted future cash flow is written down to its estimated fair value, which is our estimate of the price a willing buyer would pay for the intangible asset based on discounted expected future after-tax cash flows. For purposes of our impairment analysis, we update the cash flows that were initially used to value the finite-lived intangible asset to reflect our current estimates and assumptions over the asset’s future remaining life.

Equity Investments. The Company’s equity investments include investments in unconsolidated affiliates and investments in equity securities with readily determinable fair value.

The Company applies the equity method to account for the investments in unconsolidated affiliates over which it has significant influence but does not control. Equity method investments are included as Investments in unconsolidated affiliates on our Consolidated Balance Sheets. Our share of earnings or losses and share of changes in other comprehensive income or losses of equity method investees is included in net income and other comprehensive income or losses, respectively. We record impairment charges related to an investment in an unconsolidated affiliate whenever events or circumstances indicate that a decrease in the fair value of an investment has occurred which is other than temporary.

For our investments in equity securities with readily determinable fair value, over which the Company has neither significant influence nor control, they are measured at fair value with subsequent changes recognized in net income.

See Note 3 for further discussions on our equity investments.

Financial Instruments. We account for derivative instruments as either assets or liabilities in the Consolidated Balance Sheets. The financial instruments are recorded at their respective fair value as determined on the day of issuance and subsequently adjusted to the fair value at each reporting date. Changes in the fair value of financial instruments are recognized periodically in the Consolidated Statements of Income. The estimated fair values of derivative instruments are determined at discrete points in time using standard valuation techniques.

Noncontrolling Interests. We report Net income attributable to noncontrolling interests separately on the face of our Consolidated Statements of Income. The portion of equity attributable to noncontrolling interests is reported within equity, separately from the Company’s stockholders’ equity on the Consolidated Balance Sheets.

When the noncontrolling interest is redeemable at the option of the noncontrolling shareholder, or contingently redeemable upon the occurrence of a conditional event that is not solely within the control of the Company, the noncontrolling interest is separately classified as mezzanine equity. In connection with the acquisition of Huang Ji Huang and Daojia, redeemable noncontrolling interests were initially recognized at fair value and classified outside of permanent equity on our Consolidated Balance Sheets due to redemption rights being held by noncontrolling shareholders. Subsequent changes in the redemption value of redeemable noncontrolling interests are immediately recognized as they occur and adjusted to the carrying amount of redeemable noncontrolling interests.

Guarantees. We account for guarantees in accordance with ASC Topic 460 (“ASC 460”), Guarantees. Accordingly, the Company evaluates its guarantees to determine whether (a) the guarantee is specifically excluded from the scope of ASC 460, (b) the guarantee is subject to ASC 460 disclosure requirements only, but not subject to the initial recognition and measurement provisions, or (c) the guarantee is required to be recorded in the financial statements at fair value. The Company provides: (i) indemnifications to certain investors and other parties for certain losses suffered or incurred by the indemnified party in connection with third-party claims; and (ii) indemnifications of officers and directors against third-party claims arising from the services they provide to the Company. To date, the Company has not incurred costs as a result of these obligations and does not expect to incur material costs in the future. Accordingly, the Company has not accrued any liabilities on the Consolidated Balance Sheets related to these indemnifications.

Asset Retirement Obligations. We recognize an asset and a liability for the fair value of a required asset retirement obligation (“ARO”) when such an obligation is incurred. The Company’s AROs are primarily associated with leasehold improvements which, at the end of the lease, the Company is contractually obligated to remove in order to comply with the lease agreement. As such, we amortize the asset on a straight-line basis over the lease term and accrete the liability to its nominal value using the effective interest method over the lease term.

Contingencies. The Company records accruals for certain of its outstanding legal proceedings or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal proceedings or claims that could affect the amount of any accrual, as well as any developments that would make a loss contingency both probable and reasonably estimable. The Company discloses the amount of the accrual if it is material.

Retirement Plans. Certain of the Company’s employees participate in noncontributory defined benefit plans and post-retirement medical plans sponsored by YUM prior to October 31, 2016. Subsequent to the separation, employees participating in YUM’s plans were enrolled in the Yum China Holdings, Inc. Leadership Retirement Plan (“YCHLRP”), an unfunded, unsecured account-based retirement plan which allocates a percentage of pay to an account payable to the executive following the executive’s separation of employment from the Company or attainment of age 55.

The Company also offers other defined contribution plans to employees. The total contribution for such employee benefits was expensed as incurred. The Company has no additional legal obligation or liabilities for the benefits beyond the paid and accrued amounts. See Note 14 for additional information.

PRC Value-Added Tax. The Company has been subject to VAT within the normal course of its restaurant business nationwide since May 1, 2016.

Entities that are VAT general taxpayers are permitted to offset qualified input VAT paid to suppliers against their output VAT upon receipt of appropriate supplier VAT invoices on an entity-by-entity basis. When the output VAT exceeds the input VAT, the difference is remitted to tax authorities, usually on a monthly basis; whereas when the input VAT exceeds the output VAT, the difference is treated as a VAT asset which can be carried forward indefinitely to offset future net VAT payables. VAT related to purchases and sales which have not been settled at the balance sheet date is disclosed separately as an asset and liability, respectively, on the Consolidated Balance Sheets. VAT assets are classified as Prepaid expenses and other current assets if they are expected to be used within one year. At each balance sheet date, the Company reviews the outstanding balance of VAT assets for recoverability assessment.

Earnings Per Share. Basic earnings per share represent net earnings to common stockholders divided by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares. See Note 5 for further information.

Common Stock Repurchases. We may repurchase shares of Yum China common stock under a program authorized by our board of directors from time to time in open market or, subject to applicable regulatory requirements, through privately negotiated transactions, block trades, accelerated share repurchase transactions and the use of Rule 10b5-1 trading plans. Shares repurchased are included in treasury stock in the financial statements until they are retired. When repurchased shares are retired, the Company's accounting policy is to allocate the excess of the repurchase price over the par value of shares acquired between Additional paid-in capital and Retained earnings. The amount allocated to Additional paid-in capital is based on the value of Additional paid-in capital per share outstanding at the time of retirement and the number of shares to be retired. Any remaining amount is allocated to Retained earnings. In connection with the Primary Conversion, all shares repurchased and included in the treasury stock were immediately retired. See Note 16 for further information.

In August 2022, the Inflation Reduction Act of 2022 (the “IRA”) was signed into law in the U.S. The IRA contains certain tax measures, including an excise tax of 1% on net share repurchases that occur after December 31, 2022. Any excise tax incurred on share repurchases will generally be recognized as part of the cost of the shares repurchased.

Recently Adopted Accounting Pronouncements

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”), which eliminates two of the three models in ASC 470-20 that require separate accounting for embedded conversion features and eliminates some of the conditions for equity classification in ASC 815-40 for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and generally requires them to include the effect of share settlement for instruments that may be settled in cash or shares. We adopted this standard on January 1, 2022, and such adoption did not have a material impact on our financial statements.

In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). It requires issuers to account for a modification or exchange of freestanding equity-classified written call options that remain equity-classified after the modification or exchange based on the economic substance of the modification or exchange. We adopted this standard on January 1, 2022, and such adoption did not have a material impact on our financial statements.

In July 2021, the FASB issued ASU 2021-05, Lessors — Certain Leases with Variable Lease (“ASU 2021-05”). It requires lessors to classify leases as operating leases if they have variable lease payments that do not depend on an index or rate and would have selling losses if they were classified as sales-type or direct financing leases. We adopted this standard on January 1, 2022, and such adoption did not have a material impact on our financial statements.

In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) — Disclosures by Business Entities about Government Assistance (“ASU 2021-10”). It requires issuers to make annual disclosures about government assistance, including the nature of the transaction, the related accounting policy, the financial statement line items affected and the amounts applicable to each financial statement line item, as well as any significant terms and conditions, including commitments and contingencies. We adopted ASU 2021-10 during 2022 using the retrospective approach. See Note 2 for related disclosure.

Segment Reporting (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Segment Reporting Information [Line Items]

Revenues

$ 9,569

$ 9,853

$ 8,263

Operating profit

629

1,386

961

Interest income, net

Investment (loss) gain

(26)

(54)

104

Income Before Income Taxes and Equity in Net Earnings (Losses) from Equity Method Investments

687

1,392

1,108

Depreciation and amortization

602

516

450

Impairment Charges

Capital Spending

679

689

419

Total Assets

11,826

13,223

Corporate and Unallocated [Member]

Segment Reporting Information [Line Items]

Revenues

^[1]

Revenue From External Customers [Member]

Segment Reporting Information [Line Items]

Revenues

9,569

9,853

8,263

Revenue From External Customers [Member] | KFC [Member]

Segment Reporting Information [Line Items]

Revenues

7,219

7,003

Revenue From External Customers [Member] | Pizza Hut [Member]

Segment Reporting Information [Line Items]

Revenues

1,960

2,109

Revenue From External Customers [Member] | All Other Segments [Member]

Segment Reporting Information [Line Items]

Revenues

155

227

Revenue From External Customers [Member] | Corporate and Unallocated [Member]

Segment Reporting Information [Line Items]

Revenues

^[1]

235

514

Corporate and Unallocated [Member]

Segment Reporting Information [Line Items]

Revenues

^[1]

253

520

528

Unallocated revenues from transactions with franchisees and unconsolidated affiliates

^[2]

211

500

533

Unallocated Other revenues

Unallocated expenses for transactions with franchisees and unconsolidated affiliates

^[2]

211

497

531

Unallocated Other operating costs and expenses

Unallocated and corporate G&A expenses

184

171

144

Unallocated Other income

^[3]

642

245

Depreciation and amortization

Capital Spending

220

177

Total Assets

^[4]

5,269

5,725

Corporate and Unallocated [Member] | Revenue From External Customers [Member]

Segment Reporting Information [Line Items]

Revenues

^[1]

528

Operating Segments [Member]

Segment Reporting Information [Line Items]

Operating profit

629

1,386

961

Interest income, net

^[1]

Investment (loss) gain

^[1]

(26)

(54)

104

Operating Segments [Member] | KFC [Member]

Segment Reporting Information [Line Items]

Revenues

7,219

7,003

5,821

Operating profit

^[5]

787

827

801

Depreciation and amortization

460

378

315

Impairment Charges

^[6]

Capital Spending

327

398

257

Total Assets

5,296

6,072

Operating Segments [Member] | Pizza Hut [Member]

Segment Reporting Information [Line Items]

Revenues

1,960

2,109

1,730

Operating profit

111

Depreciation and amortization

108

111

113

Impairment Charges

^[6]

Capital Spending

116

Total Assets

880

972

Operating Segments [Member] | All Other Segments [Member]

Segment Reporting Information [Line Items]

Revenues

671

473

242

Operating profit

(50)

(29)

(7)

Depreciation and amortization

Impairment Charges

^[6]

Capital Spending

Total Assets

381

454

Operating Segments [Member] | Revenue From External Customers [Member]

Segment Reporting Information [Line Items]

Revenues

8,263

Operating Segments [Member] | Revenue From External Customers [Member] | KFC [Member]

Segment Reporting Information [Line Items]

Revenues

5,821

Operating Segments [Member] | Revenue From External Customers [Member] | Pizza Hut [Member]

Segment Reporting Information [Line Items]

Revenues

1,730

Operating Segments [Member] | Revenue From External Customers [Member] | All Other Segments [Member]

Segment Reporting Information [Line Items]

Revenues

184

Elimination [Member]

Segment Reporting Information [Line Items]

Revenues

(534)

(252)

(58)

Elimination [Member] | All Other Segments [Member]

Segment Reporting Information [Line Items]

Revenues

516

246

Elimination [Member] | Corporate and Unallocated [Member]

Segment Reporting Information [Line Items]

Revenues

^[1]

Elimination [Member] | Combined Elimination [Member]

Segment Reporting Information [Line Items]

Revenues

Combined [Member]

Segment Reporting Information [Line Items]

Revenues

10,103

10,105

$ 8,321

Combined [Member] | Combined Elimination [Member]

Segment Reporting Information [Line Items]

Revenues

534

252

Combined [Member] | Revenue From External Customers [Member]

Segment Reporting Information [Line Items]

Revenues

$ 9,569

$ 9,853

[1]	Amounts have not been allocated to any segment for performance reporting purposes.
[2]	Primarily includes revenues and associated expenses of transactions with franchisees and unconsolidated affiliates derived from the Company’s central procurement model whereby the Company centrally purchases substantially all food and paper products from suppliers then sells and delivers to KFC and Pizza Hut restaurants, including franchisees and unconsolidated affiliates that operate our concepts. Amounts have not been allocated to any segment for purposes of making operating decisions or assessing financial performance as the transactions are deemed corporate revenues and expenses in nature.
[3]	In 2021, unallocated other income primarily includes gain from re-measurement of previously held equity interest in connection with the acquisition of Hangzhou KFC and the Lavazza joint venture. In 2020, unallocated other income primarily includes gain from re-measurement of previously held equity interest in connection with the acquisition Suzhou KFC in 2020. See Note 3.
[4]	Primarily includes cash and cash equivalents, short-term investments, investment in equity securities of Meituan, equity method investments, long-term time deposits, inventories that are centrally managed and PP&E.
[5]	Includes equity income from investments in unconsolidated affiliates that operate our concepts of nil, $50 million and $63 million in 2022, 2021 and 2020, respectively.
[6]	Primarily includes store closure impairment charges, restaurant-level impairment charges resulting from our semi-annual impairment evaluation as well as our additional impairment evaluation performed in the first quarter of 2020 in response to adverse impact from the COVID-19 pandemic. See Note 13.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2022

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, 2020
Goodwill, gross	$	1,223		$	748		$	20		$	455
Accumulated impairment losses(a)		(391	)		—			—			(391	)
Goodwill, net	$	832		$	748		$	20		$	64
Goodwill acquired(b)		1,288			1,272			—			16
Effect of currency translation adjustments		22			20			—			2
Balance as of December 31, 2021
Goodwill, gross		2,533			2,040			20			473
Accumulated impairment losses(a)		(391	)		—			—			(391	)
Goodwill, net	$	2,142		$	2,040		$	20		$	82
Goodwill acquired(b)		16			15			1			—
Effect of currency translation adjustments		(170	)		(162	)		(2	)		(6	)
Balance as of December 31, 2022
Goodwill, gross		2,379			1,893			19			467
Accumulated impairment losses(a)		(391	)		—			—			(391	)
Goodwill, net	$	1,988		$	1,893		$	19		$	76

(a)

Accumulated impairment losses represent goodwill impairment attributable to the reporting units of Little Sheep and Daojia.

(b)

Goodwill acquired resulted from the acquisitions of Hangzhou KFC and the Lavazza joint venture during 2021 (Note 3), as well as the acquisition of restaurants from our existing franchisees during 2022, which was immaterial.

Intangible assets, net as of December 31, 2022 and 2021 are as follows:


	2022										2021
	Gross Carrying Amount(a)		Accumulated Amortization(a)			Accumulated Impairment Losses(b)			Net Carrying Amount		Gross Carrying Amount(a)		Accumulated Amortization(a)			Accumulated Impairment Losses(b)			Net Carrying Amount
Finite-lived intangible assets
Reacquired franchise rights	$	276	$	(271	)	$	—		$	5	$	295	$	(191	)	$	—		$	104
Huang Ji Huang franchise related assets		22		(3	)		—			19		23		(2	)		—			21
Daojia platform		16		(4	)		(12	)		—		16		(4	)		(12	)		—
Customer-related assets		12		(9	)		(2	)		1		12		(9	)		(2	)		1
Other		9		(5	)		—			4		10		(5	)		—			5
	$	335	$	(292	)	$	(14	)	$	29	$	356	$	(211	)	$	(14	)	$	131
Indefinite-lived intangible assets
Little Sheep trademark	$	52	$	—		$	—		$	52	$	57	$	—		$	—		$	57
Huang Ji Huang trademark		78		—			—			78		84		—			—			84
	$	130	$	—		$	—		$	130	$	141	$	—		$	—		$	141

Total intangible assets	$	465	$	(292	)	$	(14	)	$	159	$	497	$	(211	)	$	(14	)	$	272

(a)

Changes in gross carrying amount and accumulated amortization include effect of currency translation adjustment.

(b)

Accumulated impairment losses represent impairment charges on intangible assets acquired from Daojia primarily attributable to the Daojia platform.

Amortization expense for finite-lived intangible assets was $99 million in 2022, $45 million in 2021 and $24 million in 2020. Amortization expense for finite-lived intangible assets is expected to approximate $4 million in 2023 and $2 million in each of 2024, 2025, 2026 and 2027. Increase in amortization expenses for finite-lived intangible assets in 2022 primarily relates to reacquired franchise rights resulting from the acquisition of Hangzhou KFC (Note 3).

Income Taxes (Details 2) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 2) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
U.S. federal statutory rate	$ 144	$ 292	$ 233
Statutory rate differential attributable to foreign operations	54	73	63
Adjustments to reserves and prior years	(3)	(4)	(6)
Change in valuation allowances	9	9	1
Other, net	3	(1)	4
Effective income tax rate	$ 207	$ 369	$ 295
Effective income tax rate reconciliation [Abstract]
U.S. federal statutory rate, percent	21.00%	21.00%	21.00%
Statutory rate differential attributable to foreign operations, percent	7.90%	5.20%	5.70%
Adjustments to reserves and prior years	(0.60%)	(0.30%)	(0.60%)
Change in valuation allowances, percent	1.30%	0.70%	0.10%
Other, net, percent	0.50%	(0.10%)	0.40%
Effective income tax rate, percent	30.10%	26.50%	26.60%

Supplemental Balance Sheet Information (Details 1) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 4,586	$ 4,625
Accumulated depreciation	(2,468)	(2,374)
Property, plant and equipment, net	2,118	2,251
Buildings and Improvements, and Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	2,912	2,984
Finance Leases, Primarily Buildings [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	62	52
Machinery and Equipment [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 1,612	$ 1,589

Other Expenses (Income), Net (Tables)

12 Months Ended

Dec. 31, 2022

Other Income and Expenses [Abstract]

Other Expenses (Income), Net


	2022			2021			2020
Amortization of reacquired franchise rights(a)	$	97		$	43		$	22
Gain from re-measurement of equity interest upon acquisition(b)		—			(628	)		(239	)
Equity income from investments in unconsolidated affiliates(c)		—			(43	)		(62	)
Derecognition of indemnification asset(d)		—			—			3
Foreign exchanges and other		(3	)		(15	)		(9	)
Other expenses (income), net	$	94		$	(643	)	$	(285	)

(a)

(b)

(c)

(d)

Retirement Plans - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, vesting interest percentage	30.00%
Deferred compensation arrangement with individual, minimum service period	3 years
Defined contribution plan, additional annual vesting interest percentage	10.00%
Government-Sponsored Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company	$ 183	$ 183	$ 167
Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	5.00%
Minimum [Member] \| Local Social Security Bureau [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	13.00%
Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	10.00%
Defined contribution plan, additional annual vesting interest percentage	100.00%
Maximum [Member] \| Local Social Security Bureau [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	20.00%

Share-Based Compensation (Details 1) - Stock Options and Stock Appreciation Rights [Member]
$ / shares in Units, shares in Thousands, $ in Millions

12 Months Ended

Dec. 31, 2022

USD ($)

$ / shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Outstanding at the beginning of 2022 (in shares) | shares

10,823

Granted (in shares) | shares

964

Exercised (in shares) | shares

(1,932)

Forfeited or expired (in shares) | shares

(250)

Outstanding at the end of 2022 (in shares) | shares

9,605

^[1]

Exercisable at the end of 2022 (in shares) | shares

7,124

Outstanding at the beginning 2021, Weighted-average exercise price (in dollars per share) | $ / shares

$ 31.65

Granted, Weighted-average exercise price (in dollars per share) | $ / shares

50.16

Exercised, Weighted-average exercise price (in dollars per share) | $ / shares

23.32

Forfeited or expired, Weighted-average exercise price (in dollars per share) | $ / shares

49.66

Outstanding at the end of 2022, Weighted-average exercise price (in dollars per share) | $ / shares

34.71

Exercisable at the end of 2022, Weighted-average exercise price (in dollars per share) | $ / shares

$ 29.44

Outstanding at the end of 2022, Weighted-average remaining contractual term (in years)

4 years 11 months 12 days

Exercisable at the end of 2022, Weighted-average remaining contractual term (in years)

3 years 10 months 13 days

Outstanding at the end of 2022, Aggregate intrinsic value (in dollars) | $

$ 194

Exercisable at the end of 2022, Aggregate intrinsic value (in dollars) | $

$ 180

[1]	Outstanding awards include 180,256 stock options and 9,424,555 SARs with weighted-average exercise prices of $20.31 and $34.99, respectively. Outstanding awards represent Yum China awards held by employees of both the Company and YUM.

Share-Based Compensation (Details)	12 Months Ended
Share-Based Compensation (Details)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock Options and Stock Appreciation Rights [Member]
Award Valuation
Risk-free interest rate	1.60%	0.40%	1.50%
Expected term (years)	6 years 3 months	6 years 3 months	6 years 6 months
Expected volatility	32.40%	33.90%	33.20%
Expected dividend yield	1.00%	0.80%	1.10%
Partner PSU Awards[Member]
Award Valuation
Risk-free interest rate	1.80%	0.20%	1.40%
Expected volatility	30.80%	35.70%	33.40%
Expected dividend yield			1.10%

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2022

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, 2020
Goodwill, gross	$	1,223		$	748		$	20		$	455
Accumulated impairment losses(a)		(391	)		—			—			(391	)
Goodwill, net	$	832		$	748		$	20		$	64
Goodwill acquired(b)		1,288			1,272			—			16
Effect of currency translation adjustments		22			20			—			2
Balance as of December 31, 2021
Goodwill, gross		2,533			2,040			20			473
Accumulated impairment losses(a)		(391	)		—			—			(391	)
Goodwill, net	$	2,142		$	2,040		$	20		$	82
Goodwill acquired(b)		16			15			1			—
Effect of currency translation adjustments		(170	)		(162	)		(2	)		(6	)
Balance as of December 31, 2022
Goodwill, gross		2,379			1,893			19			467
Accumulated impairment losses(a)		(391	)		—			—			(391	)
Goodwill, net	$	1,988		$	1,893		$	19		$	76

(a)

Accumulated impairment losses represent goodwill impairment attributable to the reporting units of Little Sheep and Daojia.

(b)

Schedule of Finite and Indefinite Lived Intangible Assets by Major Class

Intangible assets, net as of December 31, 2022 and 2021 are as follows:


	2022										2021
	Gross Carrying Amount(a)		Accumulated Amortization(a)			Accumulated Impairment Losses(b)			Net Carrying Amount		Gross Carrying Amount(a)		Accumulated Amortization(a)			Accumulated Impairment Losses(b)			Net Carrying Amount
Finite-lived intangible assets
Reacquired franchise rights	$	276	$	(271	)	$	—		$	5	$	295	$	(191	)	$	—		$	104
Huang Ji Huang franchise related assets		22		(3	)		—			19		23		(2	)		—			21
Daojia platform		16		(4	)		(12	)		—		16		(4	)		(12	)		—
Customer-related assets		12		(9	)		(2	)		1		12		(9	)		(2	)		1
Other		9		(5	)		—			4		10		(5	)		—			5
	$	335	$	(292	)	$	(14	)	$	29	$	356	$	(211	)	$	(14	)	$	131
Indefinite-lived intangible assets
Little Sheep trademark	$	52	$	—		$	—		$	52	$	57	$	—		$	—		$	57
Huang Ji Huang trademark		78		—			—			78		84		—			—			84
	$	130	$	—		$	—		$	130	$	141	$	—		$	—		$	141

Total intangible assets	$	465	$	(292	)	$	(14	)	$	159	$	497	$	(211	)	$	(14	)	$	272

(a)

Changes in gross carrying amount and accumulated amortization include effect of currency translation adjustment.

(b)

Accumulated impairment losses represent impairment charges on intangible assets acquired from Daojia primarily attributable to the Daojia platform.

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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-Paragraph 1
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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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+ Details

Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases

$ 549

$ 573

$ 493

Operating cash flows from finance leases

Financing cash flows from finance leases

Right-of-use assets obtained in exchange for new lease liabilities:

Operating leases

^[1]

191

541

337

Finance leases

^[1]

$ 10

$ 11

$ 2

[1]

Leases - Schedule of Supplemental Cash Flow Information (Parenthetical) (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Schedule Of Lease Assets And Liabilities [Line Items]

Right-of-use assets non-cash transactions, operating leases

^[1]

$ 191

$ 541

$ 337

Non Cash Transactions [Member]

Schedule Of Lease Assets And Liabilities [Line Items]

Right-of-use assets non-cash transactions, operating leases

344

557

358

Modification or Other Reassessment Events [Member]

Schedule Of Lease Assets And Liabilities [Line Items]

Right-of-use assets non-cash transactions, operating leases

$ 143

$ 5

$ 19

[1]

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Summary of Estimated Useful Lives of Intangible Assets

Intangible assets that are deemed to have a finite life are generally amortized over their estimated useful lives on a straight-line basis to their residual value as follows:


Reacquired franchise rights		1 to 10 years
Huang Ji Huang franchise related assets		19 years
Daojia platform		8 years
Customer-related assets		2 to 15 years
Others		up to 20 years

Schedule of Government Subsidies in Form of Cash Recognized as Reduction in Expense Line Items in Consolidated Statements of Income

Government subsidies in the form of cash were recognized as reduction in following expense line items in our Consolidated Statements of Income as follows:


Costs and Expenses, Net	2022		2021		2020
Company restaurant
Payroll and employee benefits(a)	$	15	$	14	$	19
Occupancy and other operating expenses		3		3		2
Company restaurant expenses		18		17		21
General and administrative expenses		26		28		30
Total	$	44	$	45	$	51

(a)

Fair Value Measurements and Disclosures - Assets Measured on Recurring Basis or Disclosed at Fair Value (Parenthetical) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Restricted Time Deposits	$ 81	$ 90

Earnings Per Common Share ("EPS") (Parenthetical) (Details)		1 Months Ended	12 Months Ended
	Jan. 09, 2017 Tranche $ / shares shares	Sep. 30, 2020 shares	Dec. 31, 2022 Tranche	Dec. 31, 2021 shares
Class Of Warrant Or Right [Line Items]
Number of tranches of warrants \| Tranche	2		2
Number of common shares issued as result of cashless exercise				7,534,316
Tranche One Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants to purchase shares of common stock	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	8,200,405
Exercise price of warrants \| $ / shares	$ 39.25
Secondary Listing [Member]
Class Of Warrant Or Right [Line Items]
Global offering shares of common stock		41,910,700

Revenue

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Note 4 – Revenue

The following table presents revenue disaggregated by types of arrangements and segments:


	2022
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	7,120	$	1,939	$	51	$	—	$	9,110	$	—		$	9,110
Franchise fees and income		56		7		18		—		81		—			81
Revenues from transactions with franchisees and unconsolidated affiliates		33		4		39		211		287		—			287
Other revenues		10		10		563		42		625		(534	)		91
Total revenues	$	7,219	$	1,960	$	671	$	253	$	10,103	$	(534	)	$	9,569


	2021
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	6,816	$	2,092	$	53	$	—	$	8,961	$	—		$	8,961
Franchise fees and income		120		8		25		—		153		—			153
Revenues from transactions with franchisees and unconsolidated affiliates		59		6		98		500		663		—			663
Other revenues		8		3		297		20		328		(252	)		76
Total revenues	$	7,003	$	2,109	$	473	$	520	$	10,105	$	(252	)	$	9,853


	2020
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	5,633	$	1,721	$	42	$	—	$	7,396	$	—		$	7,396
Franchise fees and income		125		5		18		—		148		—			148
Revenues from transactions with franchisees and unconsolidated affiliates		61		4		60		522		647		—			647
Other revenues		2		—		122		6		130		(58	)		72
Total revenues	$	5,821	$	1,730	$	242	$	528	$	8,321	$	(58	)	$	8,263

Franchise Fees and Income


	2022		2021		2020
Initial fees, including renewal fees	$	6	$	8	$	8
Continuing fees and rental income		75		145		140
Franchise fees and income	$	81	$	153	$	148

Costs to Obtain Contracts

Costs to obtain contracts consist of upfront franchise 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 that operate our concepts, as well as license fees that are payable to YUM in relation to our deferred revenue of prepaid stored-value products, privilege membership programs and customer loyalty programs. They meet the requirements to be capitalized as they are incremental costs of obtaining contracts with customers and the Company expects to generate future economic benefits from such costs incurred. Such costs to obtain contracts are included in Other assets in the Consolidated Balance Sheets and are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the assets relate. Subsequent to the separation, we are no longer required to pay YUM initial or renewal 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 $6 million and $7 million at December 31, 2022 and 2021, respectively.

Contract Liabilities

Contract liabilities at December 31, 2022 and 2021 were as follows:


	2022		2021
Contract liabilities
- Deferred revenue related to prepaid stored-value products	$	139	$	134
- Deferred revenue related to upfront franchise fees		32		30
- Deferred revenue related to customer loyalty programs		23		25
- Deferred revenue related to privilege membership programs		16		18
- Others		—		1
Total	$	210	$	208

Contract liabilities primarily consist of deferred revenue related to prepaid stored-value products, privilege membership programs, customer loyalty programs and upfront franchise fees. Deferred revenue related to prepaid stored-value products, privilege membership programs, and customer loyalty programs is included in Accounts payable and other current liabilities in the Consolidated Balance Sheets. Deferred revenue related to upfront franchise 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 in the Consolidated Balance Sheets. Revenue recognized that was included in the contract liability balance at the beginning of the year amounted to $110 million and $127 million in 2022 and 2021, 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 years 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 that operate our concepts based on certain percentage of sales, as those sales occur.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interests [Member]	Treasury Stock [Member]	Total equity Including Noncontrolling Interest [Member]	Redeemable Noncontrolling Interest [Member]
Balance at Dec. 31, 2019	$ 3,175	$ 4	$ 2,427	$ 1,416	$ (49)	$ 98	$ (721)
Balance (in shares) at Dec. 31, 2019		395.0					(19.0)
Net Income (loss)	813			784		29		$ 813
Foreign currency translation adjustments	230				216	14
Comprehensive income - including noncontrolling interests	1,043							1,043
Dividends declared	(32)					(32)
Cash dividends declared	(95)			(95)
Acquisition of business	144					144			$ 12
Issuance of common stock, net of issuance costs	2,193		2,193
Issuance of common stock, net of issuance costs (in shares)		42.0
Repurchase of shares of common stock	$ (7)						$ (7)
Repurchase of shares of common stock (in shares)	(0.2)
Exercise and vesting of share-based awards	$ 2		2
Exercise and vesting of share-based awards (in shares)		3.0
Share-based compensation	36		36
Acquisition of noncontrolling interest	144					144			12
Balance at Dec. 31, 2020	6,459	$ 4	4,658	2,105	167	253	$ (728)		12
Balance (in shares) at Dec. 31, 2020		440.0					(20.0)
Net Income (loss)	1,023			990		32		1,022	1
Foreign currency translation adjustments	108				101	7
Comprehensive income - including noncontrolling interests	1,131							1,130	1
Dividends declared	(39)					(39)
Cash dividends declared	(203)			(203)
Acquisition of business	562					562
Contributions from noncontrolling interests	37					37
Repurchase of shares of common stock	$ (75)						$ 75
Repurchase of shares of common stock (in shares)	(1.3)						1.0
Exercise and vesting of share-based awards	$ (3)		(3)
Exercise and vesting of share-based awards (in shares)		2.0
Exercise of the warrants, shares		8.0
Share-based compensation	41		41
Revaluation of redeemable noncontrolling interest	(1)		(1)						1
Acquisition of noncontrolling interest	562					562
Balance at Dec. 31, 2021	7,908	$ 4	4,695	2,892	268	852	$ (803)	7,908	14
Balance (in shares) at Dec. 31, 2021		449.0					(21.0)
Net Income (loss)	478			442		37		479	(1)
Foreign currency translation adjustments	(431)				(371)	(60)
Comprehensive income - including noncontrolling interests	47							$ 48	(1)
Dividends declared	(81)					81
Cash dividends declared	(202)			(202)
Acquisition of business	115		(15)			(100)			(1)
Contributions from noncontrolling interests	18					18
Repurchase of shares of common stock	$ (466)
Repurchase of shares of common stock (in shares)	(10.5)
Exercise and vesting of share-based awards	$ (3)		(3)
Exercise and vesting of share-based awards (in shares)		1.0
Share-based compensation	41		41
Repurchase and retirement of shares (shares)		(31.0)					21.0
Repurchase and retirement of shares	(466)		(328)	(941)			$ 803
Acquisition of noncontrolling interest	115		(15)			(100)			(1)
Balance at Dec. 31, 2022	$ 7,148	$ 4	$ 4,390	$ 2,191	$ (103)	$ 666			$ 12
Balance (in shares) at Dec. 31, 2022		419.0

Fair Value Measurements and Disclosures (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Assets Measured on Recurring Basis or Disclosed at Fair Value


			Fair Value Measurement or Disclosure at December 31, 2022
	Balance at December 31, 2022		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	355			$	355
Fixed income debt securities(a)		129		29		100
Money market funds		59		59
Total cash equivalents		543		88		455		—
Short-term investments:
Time deposits		1,434				1,434
Fixed income debt securities(a)		500				500
Structured deposits		88				88
Total short-term investments		2,022		—		2,022		—
Long-term time deposits(b)		680				680
Other assets:
Investment in equity securities		95		95
Total	$	3,340	$	183	$	3,157	$	—


			Fair Value Measurement or Disclosure at December 31, 2021
	Balance at December 31, 2021		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	321			$	321
Fixed income debt securities(a)		163		63		100
Money market funds		45		45
Total cash equivalents		529		108		421		—
Short-term investments:
Time deposits		1,726				1,726
Fixed income debt securities(a)		1,055				1,055
Variable return investments		79		79
Total short-term investments		2,860		79		2,781		—
Long-term time deposits(b)		90				90
Other assets:
Investment in equity securities		122		122
Total	$	3,601	$	309	$	3,292	$	—

(a)

Classified as held-to-maturity investments and measured at amortized cost.

(b)

Schedule of Amounts Recognized From Non-recurring Fair Value Measurements


	2022		2021		2020		Account Classification

Restaurant-level impairment(a)		24		32		52	Closure and impairment expenses, net

(a)

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income - including noncontrolling interests	$ 478	$ 1,023	$ 813
Other comprehensive (loss) income, net of tax of nil
Foreign currency translation adjustments	(431)	108	230
Comprehensive income - including noncontrolling interests	47	1,131	1,043
Comprehensive (loss) income - noncontrolling interests	(24)	40	43
Comprehensive Income - Yum China Holdings, Inc.	$ 71	$ 1,091	$ 1,000

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

Segment Reporting (Parenthetical) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Equity income	$ (2)
KFC [Member]
Segment Reporting Information [Line Items]
Equity income		$ 50	$ 63

Retirement Plans

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

Retirement Plans

Note 14 – Retirement Plans

For executives who were hired or re-hired after September 30, 2001, YUM has implemented the YUM LRP. This is an unfunded, unsecured account-based retirement plan which allocates a percentage of pay to an account payable to the executive following the executive’s separation of employment from YUM or attainment of age 55. The Company adopted the YCHLRP upon separation while the assets and liabilities associated with these employees under YUM LRP were transferred to YCHLRP. YCHLRP will continue to be in effect until terminated by the Company’s board of directors. The terms of the YCHLRP are substantially similar to the terms of the YUM LRP. Under the YCHLRP, certain executives who are at least age 21, who are classified as salary level 12, who are not eligible to participate in a tax-qualified defined benefit plan, and who satisfy certain additional requirements as to work location and assignment, are eligible to participate in the YCHLRP if selected for participation by the Company. The YCHLRP is an unfunded, unsecured account-based retirement plan that allocates a percentage of pay to an account payable to an executive following the later to occur of the executive’s separation of employment from the Company or attainment of age 55. Under the YCHLRP, participants aged 55 or older are entitled to a lump sum distribution of their account balance on the last day of the calendar quarter that occurs on or follows their separation of employment. The liabilities attributable to our employees under the YCHLRP were insignificant as of December 31, 2022 and 2021.

YUM offers certain of the Company’s executives working in China retirement benefits under the Bai Sheng Restaurants China Holdings Limited Retirement Scheme (previously known as the Bai Sheng Restaurants (Hong Kong) Ltd. Retirement Scheme). Under this defined contribution plan, YUM provides a Company-funded contribution ranging from 5% to 10% of an executive’s base salary. Upon termination, participants will receive a lump sum equal to a percentage of the Company’s contributions inclusive of investment return. This percentage is based on a vesting schedule that provides participants with a vested 30% interest upon completion of a minimum of 3 years of service, and an additional 10% vested interest for each additional completed year, up to a maximum of 100%. The Company adopted the same plan after the separation and the contribution amount to the plan for the years ended December 31, 2022, 2021 and 2020 was immaterial.

As stipulated by Chinese state regulations, the Company participates in a government-sponsored defined contribution retirement plan. Substantially all employees are entitled to an annual pension equal to a fixed proportion of the average basic salary amount of the geographical area of their last employment at their retirement date. We are required to make contributions to the local social security bureau between 13% and 20% of the previous year’s average basic salary amount of the geographical area where the employees are under our employment. Contributions are recorded in the Consolidated Statements of Income as they become payable. We have no obligation for the payment of pension benefits beyond the annual contributions as set out above. The Company contributed $183 million, $183 million and $167 million to the government-sponsored plan for the year ended December 31, 2022, 2021 and 2020, respectively.

- Definition

The entire disclosure for retirement benefits.

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+ Details

Description of Business - Narrative (Details) $ in Millions		3 Months Ended		12 Months Ended
Description of Business - Narrative (Details) $ in Millions	Sep. 10, 2020 USD ($) shares	Dec. 31, 2021 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2022 USD ($) Segment Restaurant	Sep. 30, 2021
Segment Reporting Information [Line Items]
Entity, date of incorporation				Apr. 01, 2016
Entity Incorporation, State or Country Code				DE
Additional consecutive renewal terms of license agreement				50 years
Percentage of license fees on net sales				3.00%
Number of restaurants \| Restaurant				10,000
Number of reportable segments \| Segment				2
Global Offering [Member]
Segment Reporting Information [Line Items]
Global offering shares of common stock \| shares	41,910,700
Net proceeds from global offering \| $	$ 2,200
Lavazza Joint Venture [Member]
Segment Reporting Information [Line Items]
Joint venture equity interest percentage					65.00%
Suzhou KFC [Member]
Segment Reporting Information [Line Items]
Percentage of additional equity interest acquired			25.00%	20.00%
Cash consideration paid to acquire interest \| $			$ 149	$ 115
Equity interest in acquiree, including subsequent acquisition, percentage			72.00%	92.00%
Hangzhou Catering [Member]
Segment Reporting Information [Line Items]
Number of restaurants \| Restaurant				60
Percentage of additional equity interest acquired		28.00%
Cash consideration paid to acquire interest \| $		$ 255
Hangzhou KFC [Member]
Segment Reporting Information [Line Items]
Controlling ownership percentage maintained		60.00%
KFC [Member] \| Minimum [Member]
Segment Reporting Information [Line Items]
Number of restaurants \| Restaurant				9,000
KFC [Member] \| Shanghai [Member] \| Owner and Operator of KFC [Member]
Segment Reporting Information [Line Items]
Controlling ownership percentage maintained				58.00%
KFC [Member] \| Beijing [Member] \| Owner and Operator of KFC [Member]
Segment Reporting Information [Line Items]
Controlling ownership percentage maintained				70.00%
KFC [Member] \| Wuxi [Member] \| Owner and Operator of KFC [Member]
Segment Reporting Information [Line Items]
Controlling ownership percentage maintained				83.00%
Pizza Hut [Member] \| Minimum [Member]
Segment Reporting Information [Line Items]
Number of restaurants \| Segment				2,900
KFC and Pizza Hut [Member]
Segment Reporting Information [Line Items]
Expiration term of license agreement				50 years
Taco Bell [Member]
Segment Reporting Information [Line Items]
Expiration term of license agreement				50 years

Description of Business

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business

Note 1 – Description of 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 owns, franchises or has ownership in entities that own and operate restaurants (also referred to as “stores” or “units”) under the KFC, Pizza Hut, Taco Bell, Lavazza, Little Sheep and Huang Ji Huang concepts (collectively, the “concepts”). In connection with the separation of the Company in 2016 from its former parent company, Yum! Brands, Inc. (“YUM”), a master license agreement was entered into between Yum Restaurants Consulting (Shanghai) Company Limited (“YCCL”), a wholly-owned indirect subsidiary of the Company and YUM, through YRI China Franchising LLC, a subsidiary of YUM, effective from January 1, 2020 and previously through Yum! Restaurants Asia Pte. Ltd., another subsidiary of YUM, from October 31, 2016 to December 31, 2019, for the exclusive right to use and sublicense 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 (the “PRC” or “China”), excluding Hong Kong, Macau and Taiwan. The term of the license is 50 years from October 31, 2016 for the KFC and Pizza Hut brands and, subject to achieving certain agreed-upon milestones, 50 years from April 15, 2022 for the Taco Bell brand, with automatic renewals for additional consecutive renewal terms of 50 years each, subject only to us being in “good standing” and unless we give notice of our intent not to renew. 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 intellectual property of Little Sheep and Huang Ji Huang and pay no license fee related to these concepts.

In 1987, KFC was the first quick-service restaurant brand to enter China. As of December 31, 2022, there are over 9,000 KFC stores in China. We maintain a 58%, 70%, and 83% controlling interest in the entities that own and operate the KFCs in and around Shanghai, Beijing and Wuxi, respectively. During the third quarter of 2020, the Company completed the acquisition of an additional 25% equity interest in an unconsolidated affiliate that operates KFC stores in and around Suzhou, China (“Suzhou KFC”), for cash consideration of $149 million. Upon closing of the acquisition, the Company increased its equity interest to 72%, allowing the Company to consolidate Suzhou KFC. In December 2022, the Company acquired an additional 20% equity interest in Suzhou KFC for cash consideration of $115 million, bringing our total ownership to 92%. During the fourth quarter of 2021, the Company completed its investment of a 28% equity interest in Hangzhou Catering Service Group (“Hangzhou Catering”), for cash consideration of $255 million. Upon closing, the Company directly and indirectly holds an approximately 60% equity interest in the Hangzhou KFC joint venture that operates KFC stores in and around Hangzhou, China (“Hangzhou KFC”), allowing the Company to consolidate Hangzhou KFC. These acquisitions were considered immaterial.

The first Pizza Hut in China opened in 1990. As of December 31, 2022, there are over 2,900 Pizza Hut restaurants in China.

In the second quarter of 2020, the Company partnered with Luigi Lavazza S.p.A. (“Lavazza Group”), the world renowned family-owned Italian coffee company, and entered into a joint venture to explore and develop the Lavazza coffee concept in China. In September 2021, the Company and Lavazza Group entered into agreements for the previously formed joint venture (“Lavazza joint venture”) to accelerate the expansion of Lavazza coffee shops in China. Upon execution of these agreements, the Company controls and consolidates the joint venture with its 65% equity interest. The acquisition was considered immaterial.

In 2017, the Company acquired a controlling interest in the holding company of DAOJIA.com.cn (“Daojia”), an online food delivery service provider in China. This business was extended to also include a team managing the delivery services for restaurants, including restaurants in our system, with their results reported under our delivery operating segment.

As part of our strategy to drive growth from off-premise occasions, we also developed our own retail brand operations, Shaofaner, which sells packaged foods through online and offline channels. The operating results of Shaofaner are included in our e-commerce business operating segment.

The Company has two reportable segments: KFC and Pizza Hut. Our remaining operating segments, including the operations of Taco Bell, Lavazza, Little Sheep, Huang Ji Huang, COFFii & JOY, East Dawning, our delivery operating segment and our e-commerce business, are combined and referred to as All Other Segments, as those operating segments are insignificant both individually and in the aggregate. Additional details on our segment reporting are included in Note 18.

The Company’s common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “YUMC”. On September 10, 2020, the Company completed a secondary listing of its common stock on the Main Board of the Hong Kong Stock Exchange (“HKEX”) under the stock code “9987,” in connection with a global offering of 41,910,700 shares of its common stock. Net proceeds raised by the Company from the global offering after deducting underwriting fees and the offering expenses amounted to $2.2 billion. On October 24, 2022, the Company’s voluntary conversion of its secondary listing status to a primary listing status on the HKEX became effective (“Primary Conversion”) and the Company became a dual primary listed company on the NYSE and HKEX. On the same day, the Company’s shares of common stock traded on the HKEX were included in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. The Company’s common stock listed on the NYSE and HKEX continue to be fully fungible.

Revenue - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Impairment losses related to costs to obtain contracts	$ 0	$ 0
Costs to obtain contracts	6	7
Revenue recognized	$ 110	$ 127

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2022	Feb. 22, 2023	Jun. 30, 2022
Document And Entity Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Trading Symbol	YUMC
Entity Registrant Name	Yum China Holdings, Inc.
Entity Central Index Key	0001673358
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock Shares Outstanding		418,400,738
Entity Public Float			$ 20.3
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Interactive Data Current	Yes
Entity File Number	001-37762
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-2421743
Entity Address, Address Line One	101 East Park Boulevard, Suite 805
Entity Address, City or Town	Plano
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75074
Entity Address, Country	US
City Area Code	469
Local Phone Number	980-2898
Document Annual Report	true
Document Transition Report	false
Title of 12(b) Security	Common Stock, Par Value $0.01 Per Share
Security Exchange Name	NYSE
ICFR Auditor Attestation Flag	true
Auditor Name	KPMG Huazhen LLP
Auditor Location	Shanghai, China
Auditor Firm ID	1186
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Portions of the definitive proxy statement for the registrant’s 2023 annual meeting of stockholders (the “2023 Proxy Statement”), to be filed not later than 120 days after the end of the registrant’s fiscal year, are incorporated by reference into Part III of this Form 10-K.
The Stock Exchange of Hong Kong Limited [Member]
Document And Entity Information [Line Items]
Trading Symbol	9987
Other Address [Member]
Document And Entity Information [Line Items]
Entity Address, Address Line One	Yum China Building
Entity Address, City or Town	Shanghai
Entity Address, Postal Zip Code	200030
Entity Address, Country	CN
Entity Address, Address Line Two	20 Tian Yao Qiao Road

Other Expenses (Income), Net (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Other Income And Expenses [Line Items]

Amortization of reacquired franchise rights

^[1]

$ 97

$ 43

$ 22

Gain from re-measurement of equity interest upon acquisition

^[2]

(628)

(239)

Equity income from investments in unconsolidated affiliates

^[3]

(43)

(62)

Foreign exchanges and other

(3)

(15)

(9)

Other expenses (income), net

$ 94

$ (643)

(285)

Daojia platform [Member]

Other Income And Expenses [Line Items]

Derecognition of indemnification asset

$ 3

^[4]

[1]	As a result of the acquisition of Hangzhou KFC, Suzhou KFC and Wuxi KFC, $66 million, $61 million and $61 million of the purchase price were allocated to intangible assets related to reacquired franchise rights, respectively, which are being amortized over the remaining franchise contract period of 1 year, 2.4 years and 5 years. (See Note 3 for additional information).
[2]	In the fourth and third quarters of 2021, as a result of the consolidation of Hangzhou KFC and the Lavazza joint venture, the Company recognized a gain of $618 million and $10 million, respectively, from the re-measurement of our previously held equity interest at fair value. In the third quarter of 2020, the Company recognized a re-measurement gain of $239 million as a result of the consolidation of Suzhou KFC. The re-measurement gains were not allocated to any segment for performance reporting purposes. (See Note 3 for additional information).
[3]	Includes equity income from our investments in Hangzhou KFC, Suzhou KFC and the Lavazza joint venture before we consolidated the results of these entities upon completion of acquisitions. (See Note 3 for additional information).
[4]	In the second quarter of 2020, the Company derecognized a $3 million indemnification asset previously recorded for the Daojia acquisition as the indemnification right pursuant to the purchase agreement expired. The expense was included in Other income, net, but was not allocated to any segment for performance reporting purposes.

Contingencies - Narrative (Details) - USD ($)	1 Months Ended
Contingencies - Narrative (Details) - USD ($)	Feb. 28, 2015	Dec. 31, 2022
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%
Guarantees outstanding of unconsolidated affiliates		$ 0
Fair value obligations related to indemnifications		$ 0

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Current Assets
Cash and cash equivalents	$ 1,130	$ 1,136
Short-term investments	2,022	2,860
Accounts receivable, net	64	67
Inventories, net	417	432
Prepaid expenses and other current assets	307	221
Total Current Assets	3,940	4,716
Property, plant and equipment, net	2,118	2,251
Operating lease right-of-use assets	2,219	2,612
Goodwill	1,988	2,142
Intangible assets, net	159	272
Long-term time deposits	680	90
Investments in unconsolidated affiliates	266	292
Deferred income tax assets	113	106
Other assets	343	742
Total Assets	11,826	13,223
Current Liabilities
Accounts payable and other current liabilities	2,098	2,332
Income taxes payable	68	51
Total Current Liabilities	2,166	2,383
Non-current operating lease liabilities	1,906	2,286
Non-current finance lease liabilities	42	40
Deferred income tax liabilities	390	425
Other liabilities	162	167
Total Liabilities	4,666	5,301
Redeemable Noncontrolling Interest	12	14
Equity
Common stock, $0.01 par value; 1,000 million shares authorized; 419 million shares and 449 million shares issued at December 31, 2022 and 2021, respectively; 419 million shares and 428 million shares outstanding at December 31, 2022 and 2021, respectively	4	4
Treasury stock		(803)
Additional paid-in capital	4,390	4,695
Retained earnings	2,191	2,892
Accumulated other comprehensive (loss) income	(103)	268
Total Yum China Holdings, Inc. Stockholders' Equity	6,482	7,056
Noncontrolling interests	666	852
Total Equity	7,148	7,908
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$ 11,826	$ 13,223

Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2022
Reacquired Franchise Rights [Member] \| Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful lives	1 year
Reacquired Franchise Rights [Member] \| Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful lives	10 years
Huang Ji Huang Group [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful lives	19 years
Daojia platform [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful lives	8 years
Customer-related Assets [Member] \| Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful lives	2 years
Customer-related Assets [Member] \| Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful lives	15 years
Others [Member] \| Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful lives	20 years

Equity

12 Months Ended

Dec. 31, 2022

Stockholders' Equity Note [Abstract]

Equity

Note 16 – Equity

Immediately after the separation on October 31, 2016, Yum China authorized capital stock consisted of 1,000 million shares of common stock, par value $0.01 per share, and 364 million shares of Yum China common stock were issued and outstanding. As of December 31, 2022, 419 million shares of Yum China common stock were issued and outstanding.

Share Repurchase and Retirement

The Company repurchased 10.5 million, 1.3 million and 0.2 million shares of common stock at a total cost of $466 million, $75 million and $7 million for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, $1.2 billion remained available for repurchase under the current authorization.

As of December 31, 2022, all shares repurchased were retired and resumed the status of authorized and unissued shares of common stock.

Cash Dividend

On October 4, 2017, the board of directors approved a regular quarterly cash dividend program, and we have paid a quarterly cash dividend on Yum China’s common stock since the fourth quarter of 2017, except for the second and third quarters of 2020 due to the unprecedented effects of the COVID-19 pandemic. Cash dividends totaling $202 million, $203 million and $95 million were paid to stockholders in 2022, 2021 and 2020, respectively.

Accumulated Other Comprehensive Income (“AOCI”)

The Company’s other comprehensive income (loss) for the years ended December 31, 2022, 2021 and 2020 and AOCI balances as of December 31, 2022 and 2021 were comprised solely of foreign currency translation adjustments. Other comprehensive loss was $431 million for the year ended December 31, 2022, and other comprehensive income was $108 million and $230 million for the years ended December 31, 2021 and 2020, respectively. The accumulated balances reported in AOCI in the Consolidated Balance Sheets for currency translation adjustments were a net loss of $103 million as of December 31, 2022 and a net gain of $268 million as of December 31, 2021. There was no tax effect related to the components of other comprehensive income for all years presented.

Restricted net assets

The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the Consolidated Financial Statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries.

In accordance with the PRC Regulations on Enterprises with Foreign Investment and the articles of association of the Company’s PRC subsidiaries, a foreign-invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A foreign-invested enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign-invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends.

As a result of these PRC laws and regulations subject to the limit discussed above that require annual appropriations of 10% of after-tax income to be set aside, prior to payment of dividends as general reserve fund, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company in the form of dividend payments, loans or advances. The restricted net assets of the PRC subsidiaries were approximately $1 billion as of December 31, 2022.

Furthermore, cash transfers from the Company’s PRC subsidiaries to its subsidiaries outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the PRC subsidiaries to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency-denominated obligations.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Items Affecting Comparability of Net Income - Narrative (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2021

Sep. 30, 2021

Sep. 30, 2020

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Mar. 31, 2021

Operating profit

$ 629

$ 1,386

$ 961

Gain from re-measurement of equity interest upon acquisition

^[1]

628

239

Hangzhou KFC [Member]

Gain from re-measurement of equity interest upon acquisition

$ 618

Lavazza Group [Member]

Gain from re-measurement of equity interest upon acquisition

$ 10

Meituan Dianping [Member]

Pre-tax loss from disposal of equity security

(105)

Pre-tax gain (loss) from disposal of equity security

(27)

(38)

104

Fujian Sunner Development Co., Ltd. [Member]

Pre-tax loss from disposal of equity security

Percentage of equity interest acquired

5.00%

Suzhou KFC [Member]

Gain from re-measurement of equity interest upon acquisition

$ 239

COVID-19 [Member]

Operating profit

$ 629

$ 758

$ 722

[1]

Leases - Summary of Supplemental Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Schedule Of Lease Assets And Liabilities [Abstract]
Operating lease right-of-use assets	$ 2,219	$ 2,612
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Operating lease right-of-use assets	Operating lease right-of-use assets
Finance lease right-of-use assets	$ 38	$ 33
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, Plant and Equipment, Net	Property, Plant and Equipment, Net
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, plant and equipment, net	Property, plant and equipment, net
Total leased assets	$ 2,257	$ 2,645
Operating lease liabilities	448	508
Finance lease liabilities, Current	$ 5	$ 3
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accounts payable and other current liabilities	Accounts payable and other current liabilities
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accounts payable and other current liabilities	Accounts payable and other current liabilities
Non-current operating lease liabilities	$ 1,906	$ 2,286
Non-current finance lease liabilities	42	40
Total lease liabilities	$ 2,401	$ 2,837

Segment Reporting - Narrative (Details)	12 Months Ended
Segment Reporting - Narrative (Details)	Dec. 31, 2022 Segment
Segment Reporting [Abstract]
Number of reportable segments	2

Supplemental Balance Sheet Information (Details) - USD ($)
$ in Millions

Dec. 31, 2022

Jun. 30, 2022

Dec. 31, 2021

Accounts Receivable, net

Accounts receivable, gross

$ 66

$ 68

Allowance for doubtful accounts

(2)

(1)

Accounts receivable, net

Prepaid Expenses and Other Current Assets

VAT assets

$ 303

Receivables from payment processors and aggregators

Dividends receivable from unconsolidated affiliates

Other prepaid expenses and current assets

160

176

Prepaid expenses and other current assets

307

221

Other Assets

Land use right

^[1]

123

138

Investment in equity securities

122

Long-term deposits

101

Costs to obtain contracts

VAT assets

^[2]

322

Others

Other Assets

343

742

Accounts Payable and Other Current Liabilities

Accounts payable

727

830

Operating leases liabilities

448

508

Accrued compensation and benefits

285

283

Accrued capital expenditures

181

269

Contract liabilities

182

Accrued marketing expenses

Other current liabilities

203

189

Accounts payable and other current liabilities

2,098

2,332

Other Liabilities

Accrued income tax payable

Contract liabilities

Other noncurrent liabilities

Other liabilities

$ 162

$ 167

[1]

Amortization expense related to land use right was $5 million in each of 2022, 2021 and 2020, respectively.

[2]

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
U.S. and foreign income (loss) before income taxes [Abstract]
U.S.	$ 7	$ (1)	$ (10)
Mainland China	686	1,424	1,014
Other Foreign	(6)	(31)	104
Income Before Income Taxes	$ 687	$ 1,392	$ 1,108

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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+ Details

Fair Value Measurements and Disclosures - Schedule of Amounts Recognized From Non-recurring Fair Value Measurements (Parenthetical) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cumulative adjustment to retained earnings	$ 2,191	$ 2,892
Restaurant-level impairment [Member] \| Fair Value, Measurements, Nonrecurring [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 97	$ 112	$ 157

Supplemental Balance Sheet Information (Parenthetical) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2022
Supplemental Balance Sheet Information Disclosure [Abstract]
Amortization expense related to land use right	$ 5	$ 5	$ 5
VAT assets	$ 88			$ 303

Government Subsidies - Schedule Of Government Subsidies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Government Assistance [Line Items]
General and administrative expenses	$ 594	$ 564	$ 479
Total costs and expenses, net	8,940	8,467	7,302
Company Restaurant Expenses [Member]
Government Assistance [Line Items]
Payroll and employee benefits	2,389	2,258	1,730
Occupancy and other operating expenses	2,604	2,664	2,226
Cost of goods and services sold	$ 7,829	$ 7,734	$ 6,298

Summary of Significant Accounting Policies - Narrative (Details 1) - USD ($)	1 Months Ended	12 Months Ended
	Aug. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Oct. 24, 2022
Foreign Currency [Abstract]
License fee percentage		3.00%
Total license fees paid		$ 277,000,000	$ 298,000,000	$ 256,000,000
Direct Marketing Costs [Abstract]
Direct marketing expenses		343,000,000	368,000,000	307,000,000
Research and Development Expenses [Abstract]
Research and development expenses		$ 6,000,000	6,000,000	$ 3,000,000
Impairment or Disposal of Long-Lived Assets [Abstract]
Number of consecutive years of operating losses used as primary indicator of potential impairment for our semi-annual impairment testing of restaurant assets		2 years
Income Taxes [Abstract]
Percentage threshold that the positions taken or expected to be taken is more likely than not sustained upon examination by tax authorities (in hundredths)		50.00%		50.00%
Receivables [Abstract]
Number of days from the period in which the corresponding sales occur that trade receivables are generally due		30 days
Provision for accounts receivable		$ 2,000,000	1,000,000
Goodwill and Intangible Assets [Abstract]
Goodwill Written Off Related To Sale Of Business Unit Years From Acquisition		2 years
Fair Value Goodwill Written Off Related To Sale Of Business Unit Minimum Years Refranchised		2 years
Common Stock Repurchases [Abstract]
Excise tax on corporate stock buy-backs	1.00%
Buildings [Member] \| Minimum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)		20 years
Buildings [Member] \| Maximum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)		50 years
Leasehold Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)		5 years
Leasehold Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)		12 years
Machinery and Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)		3 years
Machinery and Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)		10 years
Capitalized Software Costs [Member] \| Minimum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)		3 years
Capitalized Software Costs [Member] \| Maximum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)		5 years
Payment Processors and Aggregators [Member]
Receivables [Abstract]
Allowance for doubtful accounts		$ 0	0
Chinese Local Tax Authority [Member]
Income Taxes [Abstract]
PRC withholding tax on dividends		10.00%
Percentage of withholding tax on dividends by Hong Kong		5.00%
Minimum percentage of equity interest in a PRC-resident enterprise to be held by Hong Kong resident enterprise		25.00%
Tax withholding reduction percentage		5.00%
2022 Long Term Incentive Plan (the "2022 Plan") [Member] \| Common Stock [Member]
Compensation Related Costs [Abstract]
Number of shares authorized for grants					31,000,000
Transactions With Franchisees and Unconsolidated Affiliates [Member]
Direct Marketing Costs [Abstract]
Direct marketing expenses		$ 23,000,000	$ 55,000,000	$ 60,000,000
COVID-19 [Member]
Government Assistance [Abstract]
One-time government relief		$ 33,000,000		$ 59,000,000

Supplemental Balance Sheet Information (Tables)

12 Months Ended

Dec. 31, 2022

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable, Net


Accounts Receivable, net	2022			2021
Accounts receivable, gross	$	66		$	68
Allowance for doubtful accounts		(2	)		(1	)
Accounts receivable, net	$	64		$	67

Prepaid Expenses and Other Current Assets


Prepaid Expenses and Other Current Assets	2022		2021
VAT assets(a)	$	88	$	—
Receivables from payment processors and aggregators		53		45
Dividends receivable from unconsolidated affiliates		6		—
Other prepaid expenses and current assets		160		176
Prepaid expenses and other current assets	$	307	$	221

Property, Plant and Equipment


Property, Plant and Equipment	2022			2021
Buildings and improvements, and construction in progress	$	2,912		$	2,984
Finance leases, primarily buildings		62			52
Machinery and equipment		1,612			1,589
Property, plant and equipment, gross		4,586			4,625
Accumulated depreciation		(2,468	)		(2,374	)
Property, plant and equipment, net	$	2,118		$	2,251

Accounts Payable and Other Current Liabilities


Other Assets	2022		2021
Land use right(b)	$	123	$	138
Investment in equity securities		95		122
Long-term deposits		90		101
Costs to obtain contracts		6		7
VAT assets(a)		5		322
Others		24		52
Other Assets	$	343	$	742

(a)

(b)

Amortization expense related to land use right was $5 million in each of 2022, 2021 and 2020, respectively.


Accounts Payable and Other Current Liabilities	2022		2021
Accounts payable	$	727	$	830
Operating leases liabilities		448		508
Accrued compensation and benefits		285		283
Contract liabilities		182		182
Accrued capital expenditures		181		269
Accrued marketing expenses		72		71
Other current liabilities		203		189
Accounts payable and other current liabilities	$	2,098	$	2,332

Other Liabilities and Deferred Credits


Other Liabilities	2022		2021
Accrued income tax payable	$	52	$	56
Contract liabilities		28		26
Other noncurrent liabilities		82		85
Other liabilities	$	162	$	167

Items Affecting Comparability of Net Income

12 Months Ended

Dec. 31, 2022

Items Affecting Comparability Of Net Income [Abstract]

Items Affecting Comparability of Net Income

Note 6 – Items Affecting Comparability of Net Income

Impact of COVID-19 Pandemic

Starting in the first quarter of 2020, the COVID-19 pandemic significantly impacted the Company’s operations. Since then, fluid COVID-19 conditions have caused significant volatility in our operations. During the first half of 2022, severe COVID-19 outbreaks in China significantly affected the Company’s business and operating profit. Operating profit increased in the third quarter of 2022 when COVID-19 conditions were relatively calmer. However, in October and November 2022, sporadic occurrences of COVID infections quickly evolved into major regional outbreaks and massive waves of infections to nearly all provinces in China following COVID-19 policy change in the fourth quarter of 2022. Operating profit for the years ended December 31, 2022, 2021 and 2020 was $629 million, $1,386 million and $961 million, respectively. Excluding the impacts of $628 million and $239 million in gains from the re-measurement of our previously held equity interests in former unconsolidated affiliates recognized upon acquisition in 2021 and 2020, respectively, as described in Note 3, the Operating profit for the years ended December 31, 2022, 2021 and 2020 was $629 million, $758 million and $722 million, respectively.

Consolidation of Former Unconsolidated Affiliates

In the fourth and third quarters of 2021, as a result of the consolidation of Hangzhou KFC and the Lavazza joint venture, the Company recognized a gain of $618 million and $10 million, respectively, from the re-measurement of our previously held equity interest at fair value in Other income. In the third quarter of 2020, the Company recognized a re-measurement gain of $239 million as a result of the consolidation of Suzhou KFC in Other income. See Note 3 for additional information.

Fair Value Changes for Investment in Equity Securities

In September 2018, we invested in the equity securities of Meituan, the fair value of which is determined based on the closing market price for the shares at the end of each reporting period, with subsequent fair value changes recorded as Investment gain (loss) in our consolidated statements of income. We recorded related pre-tax loss of $27 million and $38 million in 2022 and 2021, and related pre-tax gains of $104 million in 2020, respectively.

In the first quarter of 2021, we invested in a 5% equity interest in Sunner. The investment in Sunner was recorded at fair value based on their closing market price on each measurement date before it became subject to the equity method of accounting when the Company established significant influence over the operating and financial policies of Sunner in May 2021. We recorded related pre-tax loss of $22 million in 2021, representing changes in fair value before the equity method of accounting was applied.

See Note 3 for additional information on our investment in Meituan and Sunner.

Supplemental Balance Sheet Information - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Supplemental Balance Sheet Information Disclosure [Abstract]
Depreciation and amortization expense related to property, plant and equipment	$ 497	$ 465	$ 421

Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions		1 Months Ended	12 Months Ended
	Oct. 24, 2022 TradingDays shares	Feb. 29, 2020	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares	Oct. 31, 2016 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense			$ 42.0	$ 41.0	$ 36.0
Deferred tax benefit recognized			$ 1.0	$ 1.0	$ 1.0
Non-Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock granted \| shares			47,820	31,182	54,757
Grant date fair value			$ 2.1	$ 2.1	$ 2.6
Stock Options and Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			4 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
Vesting schedule of grants under stock award plans			25.00%
Total intrinsic value of stock options and SARs exercised			$ 22.0	$ 22.0	$ 75.0
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value of awards granted (in dollars per share) \| $ / shares			$ 50.11	$ 58.77	$ 48.01
Unrecognized compensation cost			$ 27.0
Remaining weighted-average vesting period			1 year 8 months 19 days
Total fair value at grant date or modification date of awards vested			$ 7.0	$ 11.0	$ 11.0
Unvested shares \| shares			874,914	684,000
RSUs [Member] \| Third Grant Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting schedule of grants under stock award plans			100.00%
Annual PSU Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period			3 years
PSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value of awards granted (in dollars per share) \| $ / shares			$ 61.33	$ 68.04	$ 39.78
Unrecognized compensation cost			$ 12.0
Remaining weighted-average vesting period			1 year 3 months 29 days
Total fair value at grant date or modification date of awards vested			$ 5.0	$ 3.0	$ 3.0
Incremental compensation expense			$ 6.0
Unvested shares \| shares			1,075,646	1,233,000
Partner PSU Awards[Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period		4 years
Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value of awards granted (in dollars per share) \| $ / shares			$ 15.55	$ 17.44	$ 13.36
Unrecognized compensation cost			$ 25.0
Remaining weighted-average vesting period			1 year 7 months 17 days
Total fair value at grant date or modification date of awards vested			$ 16.0	$ 15.0	$ 15.0
Minimum [Member] \| RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			3 years
Minimum [Member] \| Partner PSU Awards[Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation PSU award percentage		0.00%
Maximum [Member] \| RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			4 years
Maximum [Member] \| Partner PSU Awards[Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation PSU award percentage		200.00%
Long Term Incentive Plan (the "2016" Plan) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance \| shares						45,000,000
2022 Long Term Incentive Plan (the "2022 Plan") [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of trading days \| TradingDays	5
2022 Long Term Incentive Plan (the "2022 Plan") [Member] \| Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for grants \| shares	31,000,000
2016 and 2022 Plan [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			3 years
2016 and 2022 Plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			5 years

Income Taxes (Details 4) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 4) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Beginning of Year	$ 20	$ 21
Additions for tax positions of prior years	6	5
Reductions due to statute expiration	(5)	(6)
End of Year	$ 21	$ 20

Leases - Summary of Lease Cost (Parenthetical) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Lease, Cost [Abstract]
Lease concessions from landlords related to the effects of COVID-19	$ 39	$ 12	$ 36

Share-Based Compensation (Details 2) - RSUs [Member] - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of 2022 (in shares)	684,000
Granted (in shares)	409,000
Vested (in shares)	(170,000)
Forfeited or expired (in shares)	(48,000)
Unvested at the end of 2022 (in shares)	874,914	684,000
Unvested at the beginning of 2022	$ 53.77
Granted	50.11	$ 58.77	$ 48.01
Vested	42.81
Forfeited or expired	54.83
Unvested at the end of 2022	$ 54.13	$ 53.77

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Basis of Preparation and Principles of Consolidation

Comparative Information

Comparative Information. Certain comparative items in the Consolidated Financial Statements have been reclassified to conform to the current year’s presentation to facilitate comparison.

Fiscal Calendar

Fiscal Calendar. Our fiscal year ends on December 31, with each quarter comprised of three months.

Foreign Currency

Franchise and License Operations

Revenue Recognition

Company Sales

Franchise Fees and Income

Revenues from Transactions with Franchisees and Unconsolidated Affiliates

Other Revenues

Loyalty Programs

Direct Marketing Costs

Research and Development Expenses

Share-Based Compensation

Impairment or Disposal of Long-Lived Assets

Government Subsidies

Government subsidies in the form of cash were recognized as reduction in following expense line items in our Consolidated Statements of Income as follows:


Costs and Expenses, Net	2022		2021		2020
Company restaurant
Payroll and employee benefits(a)	$	15	$	14	$	19
Occupancy and other operating expenses		3		3		2
Company restaurant expenses		18		17		21
General and administrative expenses		26		28		30
Total	$	44	$	45	$	51

(a)

Income Taxes

We have investments in our foreign subsidiaries where the carrying values for financial reporting exceed the tax basis. Except for the planned but yet to be distributed earnings, we have not provided deferred tax on the portion of the excess that we believe is indefinitely reinvested, as we have the ability and intent to indefinitely postpone the basis differences from reversing with a tax consequence. The Company’s separation from YUM was intended to qualify as a tax-free reorganization for U.S. income tax purposes resulting in the excess of financial reporting basis over tax basis in our investment in the China business continuing to be indefinitely reinvested. The excess of financial reporting basis over tax basis as of December 31, 2017 was subject to the one-time transition tax under the Tax Cuts and Jobs Act (“Tax Act”) as a deemed repatriation of accumulated undistributed earnings from the foreign subsidiaries. However, we continue to believe that the portion of the excess of financial reporting basis over tax basis (including earnings and profits subject to the one-time transition tax) is indefinitely reinvested in our foreign subsidiaries for foreign withholding tax purposes.

See Note 17 for a further discussion of our income taxes.

Fair Value Measurements


Level 1		Inputs based upon quoted prices in active markets for identical assets.

Level 2		Inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly.

Level 3		Inputs that are unobservable for the asset.

Cash and Cash Equivalents

Short-term Investments

Long-term Time Deposits

Accounts Receivable

Receivables from Payment Processors or Aggregators

Inventories

Inventories. We value our inventories at the lower of cost (computed on the first-in, first-out method) or net realizable value.

Property, Plant and Equipment

Leases

See Note 12 for further discussions on our leases.

Goodwill and Intangible Assets


Reacquired franchise rights		1 to 10 years
Huang Ji Huang franchise related assets		19 years
Daojia platform		8 years
Customer-related assets		2 to 15 years
Others		up to 20 years

Equity Investments

Equity Investments. The Company’s equity investments include investments in unconsolidated affiliates and investments in equity securities with readily determinable fair value.

See Note 3 for further discussions on our equity investments.

Financial Instruments

Noncontrolling Interests

Guarantees

Asset Retirement Obligations

Contingencies

Retirement Plans

PRC Value-Added Tax

PRC Value-Added Tax. The Company has been subject to VAT within the normal course of its restaurant business nationwide since May 1, 2016.

Earnings Per Share

Common Stock Repurchases

Recently Adopted Accounting Pronouncements

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income (Loss) Before Income Taxes

U.S. and foreign income (loss) before taxes are set forth below:


	2022			2021			2020
U.S.	$	7		$	(1	)	$	(10	)
Mainland China		686			1,424			1,014
Other Foreign		(6	)		(31	)		104
	$	687		$	1,392		$	1,108

Details of Income Tax Provision

The details of our income tax provision are set forth below:


		2022			2021			2020
Current:	Federal	$	5		$	—		$	1
	Foreign		222			209			183
		$	227		$	209		$	184

Deferred:	Federal	$	(6	)	$	(8	)	$	26
	Foreign		(14	)		168			85
		$	(20	)	$	160		$	111
		$	207		$	369		$	295

Effective Income Tax and Tax Rate Reconciliation

The reconciliation of income taxes calculated at the U.S. federal statutory rate to our effective tax rate is set forth below:


	2022					2021					2020
U.S. federal statutory rate	$	144		21.0	%	$	292		21.0	%	$	233		21.0	%
Statutory rate differential attributable to foreign operations		54		7.9			73		5.2			63		5.7
Adjustments to reserves and prior years		(3	)	(0.6	)		(4	)	(0.3	)		(6	)	(0.6	)
Change in valuation allowances		9		1.3			9		0.7			1		0.1
Other, net		3		0.5			(1	)	(0.1	)		4		0.4
Effective income tax rate	$	207		30.1	%	$	369		26.5	%	$	295		26.6	%

Details of Deferred Tax Assets (Liabilities)

The details of 2022 and 2021 deferred tax assets (liabilities) are set forth below:


	2022			2021
Operating losses and tax credit carryforwards	$	47		$	43
Tax benefit from Little Sheep restructuring		15			17
Employee benefits		6			3
Share-based compensation		6			5
Lease		49			64
Other liabilities		11			15
Deferred income and other		94			89
Gross deferred tax assets		228			236
Deferred tax asset valuation allowances		(57	)		(53	)
Net deferred tax assets	$	171		$	183
Intangible assets		(40	)		(69	)
Property, plant and equipment		(136	)		(138	)
Gain from re-measurement of equity interest upon acquisition		(226	)		(245	)
Unrealized gains from equity securities		(12	)		(18	)
Withholding tax on distributable earnings		(34	)		(32	)
Gross deferred tax (liabilities)	$	(448	)	$	(502	)
Net deferred tax (liabilities)	$	(277	)	$	(319	)
Reported in Consolidated Balance Sheets as:
Deferred income tax assets		113			106
Deferred income tax liabilities		(390	)		(425	)
	$	(277	)	$	(319	)

Unrecognized Tax Benefits Reconciliation

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	2022			2021
Beginning of Year	$	20		$	21
Additions on tax positions		6			5
Reductions due to statute expiration		(5	)		(6	)
End of Year	$	21		$	20

Summary of Income Tax Examinations


	2022		2021
Accrued interest and penalties	$	4	$	5

Earnings Per Common Share ("EPS") (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Earnings Per Share [Abstract]

Net Income - Yum China Holdings, Inc.

$ 442

$ 990

$ 784

Weighted-average common shares outstanding (for basic calculation)

^[1]

421

422

390

Effect of dilutive share-based awards

^[1]

Effect of dilutive warrants

^[2]

Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)

425

434

402

Basic Earnings Per Share

$ 1.05

$ 2.34

$ 2.01

Diluted Earnings Per Share

$ 1.04

$ 2.28

$ 1.95

Share-based awards excluded from the diluted EPS computation

^[3]

[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 were 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 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 incremental shares arising from outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect. See Note 15 for a further discussion of share-based compensation. In September 2020, 41,910,700 common shares were issued as a result of the Company’s global offering and secondary listing on the HKEX and they were included in the calculated weighted-average common shares outstanding.
[2]	Pursuant to the investment agreements dated September 1, 2016 (Note 11), Yum China issued to strategic investors two tranches of warrants on January 9, 2017, with each tranche initially providing the right to purchase 8,200,405 shares of Yum China common stock, at an initial exercise price of $31.40 and $39.25 per share, respectively, subject to customary anti-dilution adjustments. The warrants were exercisable at any time through October 31, 2021. The incremental shares arising from outstanding warrants were included in the computation of diluted EPS, if there is dilutive effect when the average market price of Yum China common stock for the year exceeds the applicable exercise price of the warrants. During 2021, an aggregate of 7,534,316 common shares were issued as a result of the cashless exercise of all warrants outstanding, which upon exercise were excluded from the calculation of dilutive warrants and included in the weighted-average common shares outstanding.
[3]	These outstanding SARs, RSUs and PSUs were excluded from the computation of diluted EPS because to do so would have been antidilutive for the years presented, or because certain PSUs are contingently issuable based on the achievement of performance and market conditions, which have not been met as of December 31, 2022, 2021 and 2020.

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Consolidated Statements of Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]
Cash dividends declared, per common share	$ 0.48	$ 0.48	$ 0.24

Equity - Narrative (Details) - USD ($)		12 Months Ended
Equity - Narrative (Details) - USD ($)	Oct. 04, 2017	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Oct. 31, 2016
Equity [Abstract]
Common stock, shares authorized		1,000,000,000	1,000,000,000		1,000,000,000
Common stock, par value		$ 0.01	$ 0.01		$ 0.01
Common stock, shares issued		419,000,000	449,000,000		364,000,000
Common stock, shares outstanding		419,000,000	428,000,000		364,000,000
Treasury stock repurchased, shares		10,500,000	1,300,000	200,000
Treasury stock repurchased, value		$ 466,000,000	$ 75,000,000	$ 7,000,000
Stock repurchase program, remaining authorized repurchase amount		1,200,000,000
Dividends declared date	Oct. 04, 2017
Total cash dividend paid		202,000,000	203,000,000	95,000,000
Other comprehensive Income (loss)		(431,000,000)	108,000,000	230,000,000
Accumulated other comprehensive Income (loss)		(103,000,000)	268,000,000
Tax effect related to components of other comprehensive income		$ 0	$ 0	$ 0
Percentage of annual after tax profit required to be allocated to general reserve		10.00%
Maximum percentage of annual after tax profit to be allocated to general reserve based on registered capital		50.00%
Restricted net assets		$ 1,000,000,000

Income Taxes (Details 5) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Accrued interest and penalties	$ 4	$ 5

Leases - Summary of Lease Cost (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Lease, Cost [Abstract]

Operating lease cost

$ 564

$ 496

Finance lease cost

Amortization of leased assets

Interest on lease liabilities

Variable lease cost

^[1]

303

346

262

Short-term lease cost

Sublease income

(23)

(26)

(24)

Total lease cost

$ 862

$ 898

$ 748

[1]

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 07, 2023	Oct. 04, 2017
Subsequent Event [Line Items]
Dividends declared date		Oct. 04, 2017
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends declared date	Feb. 07, 2023
Dividends payable, amount per share	$ 0.13
Dividends payable date	Mar. 28, 2023
Dividends payable, date of record	Mar. 07, 2023
Estimated cash dividend payable	$ 54

Subsequent Events

12 Months Ended

Dec. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Note 20 – Subsequent Events

Cash Dividend

On February 7, 2023, the Company announced that the board of directors declared a cash dividend of $0.13 per share on Yum China’s common stock, payable as of the close of business on March 28, 2023, to stockholders of record as of the close of business on March 7, 2023. Total estimated cash dividend payable is approximately $54 million.

Fair Value Measurements and Disclosures - Assets Measured on Recurring Basis or Disclosed at Fair Value (Details) - Recurring Fair Value Measurements [Member] - USD ($)
$ in Millions

Dec. 31, 2022

Dec. 31, 2021

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

$ 543

$ 529

Investments, Fair Value Measurement or Disclosure

2,022

2,860

Total assets, Fair Value Measurement or Disclosure

3,340

3,601

Level 1 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

108

Investments, Fair Value Measurement or Disclosure

Total assets, Fair Value Measurement or Disclosure

183

309

Level 2 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

455

421

Investments, Fair Value Measurement or Disclosure

2,022

2,781

Total assets, Fair Value Measurement or Disclosure

3,157

3,292

Time Deposits [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

355

321

Investments, Fair Value Measurement or Disclosure

1,434

1,726

Time Deposits [Member] | Level 2 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

355

321

Investments, Fair Value Measurement or Disclosure

1,434

1,726

Money Market Funds [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

Money Market Funds [Member] | Level 1 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

Fixed Income Debt Securities [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

^[1]

129

163

Investments, Fair Value Measurement or Disclosure

^[1]

500

1,055

Fixed Income Debt Securities [Member] | Level 1 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

^[1]

Fixed Income Debt Securities [Member] | Level 2 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

^[1]

100

Investments, Fair Value Measurement or Disclosure

^[1]

500

1,055

Investment in Equity Securities [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Other assets, Fair Value Measurement or Disclosure

122

Investment in Equity Securities [Member] | Level 1 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Other assets, Fair Value Measurement or Disclosure

122

Structured Deposits [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Investments, Fair Value Measurement or Disclosure

Structured Deposits [Member] | Level 2 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Investments, Fair Value Measurement or Disclosure

Variable Return Investments [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Investments, Fair Value Measurement or Disclosure

Variable Return Investments [Member] | Level 1 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Investments, Fair Value Measurement or Disclosure

Long-term Time Deposits [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Investments, Fair Value Measurement or Disclosure

^[2]

680

Long-term Time Deposits [Member] | Level 2 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Investments, Fair Value Measurement or Disclosure

^[2]

$ 680

$ 90

[1]	Classified as held-to-maturity investments and measured at amortized cost.
[2]	As of December 31, 2022 and 2021, long-term time deposits balance included $81 million and $90 million deposits, respectively, which is restricted for use in order to secure the balance of prepaid stored-value cards issued by the Company pursuant to regulatory requirements.

Revenue - Schedule of Disaggregation of Revenue by Types of Arrangements and Segments (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Disaggregation Of Revenue [Line Items]

Total revenues

$ 9,569

$ 9,853

$ 8,263

Corporate and Unallocated [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

^[1]

253

520

528

Combined [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

10,103

10,105

8,321

Elimination [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

(534)

(252)

(58)

Elimination [Member] | All Other Segments [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

516

246

Operating Segments [Member] | KFC [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

7,219

7,003

5,821

Operating Segments [Member] | Pizza Hut [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

1,960

2,109

1,730

Operating Segments [Member] | All Other Segments [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

671

473

242

Company Sales [Member]

Disaggregation Of Revenue [Line Items]

Revenues

9,110

8,961

7,396

Company Sales [Member] | KFC [Member]

Disaggregation Of Revenue [Line Items]

Revenues

7,120

6,816

5,633

Company Sales [Member] | Pizza Hut [Member]

Disaggregation Of Revenue [Line Items]

Revenues

1,939

2,092

1,721

Company Sales [Member] | All Other Segments [Member]

Disaggregation Of Revenue [Line Items]

Revenues

Company Sales [Member] | Combined [Member]

Disaggregation Of Revenue [Line Items]

Revenues

9,110

8,961

7,396

Franchise [Member]

Disaggregation Of Revenue [Line Items]

Revenues

153

148

Franchise [Member] | KFC [Member]

Disaggregation Of Revenue [Line Items]

Revenues

120

125

Franchise [Member] | Pizza Hut [Member]

Disaggregation Of Revenue [Line Items]

Revenues

Franchise [Member] | All Other Segments [Member]

Disaggregation Of Revenue [Line Items]

Revenues

Franchise [Member] | Combined [Member]

Disaggregation Of Revenue [Line Items]

Revenues

153

148

Transactions With Franchisees and Unconsolidated Affiliates [Member]

Disaggregation Of Revenue [Line Items]

Revenues

287

663

647

Transactions With Franchisees and Unconsolidated Affiliates [Member] | KFC [Member]

Disaggregation Of Revenue [Line Items]

Revenues

Transactions With Franchisees and Unconsolidated Affiliates [Member] | Pizza Hut [Member]

Disaggregation Of Revenue [Line Items]

Revenues

Transactions With Franchisees and Unconsolidated Affiliates [Member] | All Other Segments [Member]

Disaggregation Of Revenue [Line Items]

Revenues

Transactions With Franchisees and Unconsolidated Affiliates [Member] | Corporate and Unallocated [Member]

Disaggregation Of Revenue [Line Items]

Revenues

211

500

522

Transactions With Franchisees and Unconsolidated Affiliates [Member] | Combined [Member]

Disaggregation Of Revenue [Line Items]

Revenues

287

663

647

Other Revenues [Member]

Disaggregation Of Revenue [Line Items]

Revenues

Other Revenues [Member] | KFC [Member]

Disaggregation Of Revenue [Line Items]

Revenues

Other Revenues [Member] | Pizza Hut [Member]

Disaggregation Of Revenue [Line Items]

Revenues

Other Revenues [Member] | All Other Segments [Member]

Disaggregation Of Revenue [Line Items]

Revenues

563

297

122

Other Revenues [Member] | Corporate and Unallocated [Member]

Disaggregation Of Revenue [Line Items]

Revenues

Other Revenues [Member] | Combined [Member]

Disaggregation Of Revenue [Line Items]

Revenues

625

328

130

Other Revenues [Member] | Elimination [Member]

Disaggregation Of Revenue [Line Items]

Revenues

$ (534)

$ (252)

$ (58)

[1]	Amounts have not been allocated to any segment for performance reporting purposes.

Revenue (Tables)

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue by Types of Arrangements and Segments

The following table presents revenue disaggregated by types of arrangements and segments:


	2022
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	7,120	$	1,939	$	51	$	—	$	9,110	$	—		$	9,110
Franchise fees and income		56		7		18		—		81		—			81
Revenues from transactions with franchisees and unconsolidated affiliates		33		4		39		211		287		—			287
Other revenues		10		10		563		42		625		(534	)		91
Total revenues	$	7,219	$	1,960	$	671	$	253	$	10,103	$	(534	)	$	9,569


	2021
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	6,816	$	2,092	$	53	$	—	$	8,961	$	—		$	8,961
Franchise fees and income		120		8		25		—		153		—			153
Revenues from transactions with franchisees and unconsolidated affiliates		59		6		98		500		663		—			663
Other revenues		8		3		297		20		328		(252	)		76
Total revenues	$	7,003	$	2,109	$	473	$	520	$	10,105	$	(252	)	$	9,853


	2020
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	5,633	$	1,721	$	42	$	—	$	7,396	$	—		$	7,396
Franchise fees and income		125		5		18		—		148		—			148
Revenues from transactions with franchisees and unconsolidated affiliates		61		4		60		522		647		—			647
Other revenues		2		—		122		6		130		(58	)		72
Total revenues	$	5,821	$	1,730	$	242	$	528	$	8,321	$	(58	)	$	8,263

Franchise Fees and Income


	2022		2021		2020
Initial fees, including renewal fees	$	6	$	8	$	8
Continuing fees and rental income		75		145		140
Franchise fees and income	$	81	$	153	$	148

Contract Liabilities

Contract liabilities at December 31, 2022 and 2021 were as follows:


	2022		2021
Contract liabilities
- Deferred revenue related to prepaid stored-value products	$	139	$	134
- Deferred revenue related to upfront franchise fees		32		30
- Deferred revenue related to customer loyalty programs		23		25
- Deferred revenue related to privilege membership programs		16		18
- Others		—		1
Total	$	210	$	208

Investment Agreements with Strategic Investors - Narrative (Details) $ / shares in Units, $ in Millions			12 Months Ended
	Jan. 09, 2017 Tranche	Nov. 01, 2016 USD ($) $ / shares shares	Dec. 31, 2022 Tranche	Dec. 31, 2021 shares
Subsidiary Sale Of Stock [Line Items]
Investment agreements, consideration received \| $		$ 460
Common stock shares		18,000,000
Number of tranches of warrants \| Tranche	2		2
Warrants exercisable period			Oct. 31, 2021
Number of common shares issued as result of cashless exercise				7,534,316
Percentage of common stock shares issued upon cashless exercise of warrants				1.80%
Percentage of common stock shares outstanding upon cashless exercise of warrants				1.80%
Primavera [Member]
Subsidiary Sale Of Stock [Line Items]
Investment agreements, consideration received \| $		$ 410
Ant Financial [Member]
Subsidiary Sale Of Stock [Line Items]
Investment agreements, consideration received \| $		$ 50
Warrants First Tranche [Member] \| Primavera & Ant Financial [Member]
Subsidiary Sale Of Stock [Line Items]
Warrant exercise price \| $ / shares		$ 31.40
Warrants First Tranche [Member] \| Primavera [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock		7,309,057
Warrants First Tranche [Member] \| Ant Financial [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock		891,348
Warrants Second Tranche [Member] \| Primavera & Ant Financial [Member]
Subsidiary Sale Of Stock [Line Items]
Warrant exercise price \| $ / shares		$ 39.25
Warrants Second Tranche [Member] \| Primavera [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock		7,309,057
Warrants Second Tranche [Member] \| Ant Financial [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock		891,348

Investment Agreements with Strategic Investors

12 Months Ended

Dec. 31, 2022

Stockholders' Equity Note [Abstract]

Investment Agreements with Strategic Investors

Note 11 – Investment Agreements with Strategic Investors

On September 1, 2016, YUM and the Company entered into investment agreements (the “Investment Agreements”) with each of Pollos Investment L.P., an affiliate of Primavera Capital Group (“Primavera”), and API (Hong Kong) Investment Limited, an affiliate of Zhejiang Ant Small and Micro Financial Services Group Co., Ltd. (“Ant Financial” and, together with Primavera, the “Investors”). Pursuant to the Investment Agreements, on November 1, 2016 (“Closing Date”), Primavera and Ant Financial invested $410 million and $50 million, respectively, for a collective $460 million investment (the “Investment”) in the Company in exchange for: (i) over 18 million shares of Yum China common stock and (ii) two tranches of warrants (the “Warrants”). Upon exercise, the first tranche of Warrants initially provided Primavera and Ant Financial with the right to purchase 7,309,057 and 891,348 shares of Yum China common stock, respectively, at an initial exercise price of $31.40 per share. The second tranche of Warrants initially provided Primavera and Ant Financial with the right to purchase the same number of shares of Yum China common stock under the first tranche of Warrants, at an initial exercise price of $39.25 per share. The Warrants were exercisable at any time through October 31, 2021 and contain customary anti-dilution protections, which were equity-classified and recorded in Additional paid in capital in the Consolidated balance sheet presented since December 2016, when the number of Warrants to be issued became fixed.

As of December 31, 2020, Primavera and Ant Financial had separately entered into pre-paid forward sale transactions with respect to all of their Warrants with several financial institutions, pursuant to which Primavera and Ant Financial would deliver their respective Warrants on the applicable settlement date.

In 2021, 7,534,316 shares of Yum China common stock were issued as a result of the cashless exercise of all Warrants, representing approximately 1.8% of Yum China common stock issued and outstanding as of December 31, 2021.

Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Revenues

Total revenues

$ 9,569

$ 9,853

$ 8,263

Costs and Expenses, Net

General and administrative expenses

594

564

479

Other operating costs and expenses

Closures and impairment expenses, net

Other expenses (income), net

(643)

(285)

Total costs and expenses, net

8,940

8,467

7,302

Operating Profit

629

1,386

961

Interest income, net

Investment (loss) gain

(26)

(54)

104

Income Before Income Taxes and Equity in Net Earnings (Losses) from Equity Method Investments

687

1,392

1,108

Income tax provision

(207)

(369)

(295)

Equity in net earnings (losses) from equity method investments

(2)

Net income – including noncontrolling interests

478

1,023

813

Net income – noncontrolling interests

Net Income – Yum China Holdings, Inc.

$ 442

$ 990

$ 784

Weighted-average common shares outstanding (in millions):

Basic

^[1]

421

422

390

Diluted

425

434

402

Basic Earnings Per Common Share

$ 1.05

$ 2.34

$ 2.01

Diluted Earnings Per Common Share

$ 1.04

$ 2.28

$ 1.95

Company Sales [Member]

Revenues

Revenues

$ 9,110

$ 8,961

$ 7,396

Franchise [Member]

Revenues

Revenues

153

148

Costs and Expenses, Net

Cost of goods and services sold

Transactions With Franchisees and Unconsolidated Affiliates [Member]

Revenues

Revenues

287

663

647

Costs and Expenses, Net

Cost of goods and services sold

279

649

633

Other Revenues [Member]

Revenues

Revenues

Company Restaurant Expenses [Member]

Costs and Expenses, Net

Food and paper

2,836

2,812

2,342

Payroll and employee benefits

2,389

2,258

1,730

Occupancy and other operating expenses

2,604

2,664

2,226

Cost of goods and services sold

$ 7,829

$ 7,734

$ 6,298

[1]

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finite-lived intangible assets
Finite-lived intangible assets, amortization expense	$ 99	$ 45	$ 24
Approximate amortization expense for finite-lived intangible assets - 2023	4
Approximate amortization expense for finite-lived intangible assets - 2024	2
Approximate amortization expense for finite-lived intangible assets - 2025	2
Approximate amortization expense for finite-lived intangible assets - 2026	2
Approximate amortization expense for finite-lived intangible assets - 2027	$ 2

Leases - Schedule of Lease Term and Discount Rate (Details)	Dec. 31, 2022	Dec. 31, 2021
Weighted-average remaining lease term (years)
Operating leases	7 years 1 month 6 days	7 years 2 months 12 days
Finance leases	11 years 2 months 12 days	11 years 3 months 18 days
Weighted-average discount rate
Operating leases	5.10%	5.50%
Finance leases	5.10%	5.50%

Business Acquisitions and Equity Investments (Tables)

12 Months Ended

Dec. 31, 2022

Meituan Dianping [Member]

Schedule Of Trading Securities And Other Trading Assets [Line Items]

Summary of Pre-tax Gains or Losses on Investment in Equity Securities

A summary of pre-tax gains or losses on investment in equity securities of Meituan recognized, which was included in Investment gain or loss in our Consolidated Statements of Income, is as follows:


	2022			2021			2020
Unrealized (losses) gains recorded on equity securities still held as of the end of the year	$	(27	)	$	(38	)	$	105
Losses recorded on equity securities sold during the year		—			—			(1	)
(Losses) gains recorded on equity securities	$	(27	)	$	(38	)	$	104

Goodwill and Intangible Assets (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2022

Goodwill [Line Items]

Goodwill, gross

$ 2,533

$ 1,223

$ 2,379

Accumulated impairment losses

^[1]

(391)

Goodwill, net

2,142

832

1,988

Goodwill acquired

^[2]

1,288

Effect of currency translation adjustments

(170)

KFC [Member]

Goodwill [Line Items]

Goodwill, gross

2,040

748

1,893

Goodwill, net

2,040

748

1,893

Goodwill acquired

^[2]

1,272

Effect of currency translation adjustments

(162)

Pizza Hut [Member]

Goodwill [Line Items]

Goodwill, gross

Goodwill, net

Goodwill acquired

^[2]

Effect of currency translation adjustments

(2)

All Other Segments [Member]

Goodwill [Line Items]

Goodwill, gross

473

455

467

Accumulated impairment losses

^[1]

(391)

Goodwill, net

$ 76

Goodwill acquired

^[2]

Effect of currency translation adjustments

$ (6)

$ 2

[1]	Accumulated impairment losses represent goodwill impairment attributable to the reporting units of Little Sheep and Daojia.
[2]	Goodwill acquired resulted from the acquisitions of Hangzhou KFC and the Lavazza joint venture during 2021 (Note 3), as well as the acquisition of restaurants from our existing franchisees during 2022, which was immaterial.

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Business Acquisitions and Equity Investments - Summary of Pre-tax Gains or Losses in Investment in Equity Securities (Details) - Meituan Dianping [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Schedule Of Trading Securities And Other Trading Assets [Line Items]
Unrealized (losses) gains recorded on equity securities still held as of the end of the year	$ (27)	$ (38)	$ 105
Losses recorded on equity securities sold during the year			(1)
(Losses) gains recorded on equity securities	$ (27)	$ (38)	$ 104

Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Note 12 – Leases

As of December 31, 2022, we leased over 10,000 properties in China for our Company-owned restaurants. We generally enter into lease agreements for our restaurants with initial terms of 10 to 20 years. Most of our lease agreements contain termination options that permit us to terminate the lease agreement early if the restaurant’s unit contribution is negative for a specified period of time. We generally do not have renewal options for our leases. Such options are accounted for only when it is reasonably certain that we will exercise the options. The rent under the majority of our current restaurant lease agreements is generally payable in one of three ways: (i) fixed rent; (ii) the higher of a fixed base rent or a percentage of the restaurant’s sales; or (iii) a percentage of the restaurant’s sales. Most leases require us to pay common area maintenance fees for the leased property. In addition to restaurants leases, we also lease office spaces, logistics centers and equipment. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

In limited cases, we sub-lease certain restaurants to franchisees in connection with refranchising transactions or lease our properties to other third parties. The lease payments under these leases are generally based on the higher of a fixed base rent or a percentage of the restaurant’s annual sales. Income from sub-lease agreements with franchisees or lease agreements with other third parties are included in Franchise fees and income and Other revenue, respectively, within our Consolidated Statements of Income. The impact of ASC 842 on our accounting as a lessor was not significant.


Supplemental Balance Sheet
	2022/12/31		2021/12/31		Account Classification
Assets
Operating lease right-of-use assets	$	2,219	$	2,612	Operating lease right-of-use assets
Finance lease right-of-use assets		38		33	Property, plant and equipment, net
Total leased assets	$	2,257	$	2,645

Liabilities
Current
Operating lease liabilities	$	448	$	508	Accounts payable and other current liabilities
Finance lease liabilities		5		3	Accounts payable and other current liabilities
Non-current
Operating lease liabilities		1,906		2,286	Non-current operating lease liabilities
Finance lease liabilities		42		40	Non-current finance lease liabilities
Total lease liabilities	$	2,401	$	2,837


Summary of Lease Cost										Account Classification
	2022			2021			2020

Operating lease cost	$	564		$	564		$	496		Occupancy and other operating expenses, G&A or Franchise expenses
Finance lease cost
Amortization of leased assets		4			3			2		Occupancy and other operating expenses
Interest on lease liabilities		2			2			2		Interest expense, net
Variable lease cost(a)		303			346			262		Occupancy and other operating expenses or Franchise expenses
Short-term lease cost		12			9			10		Occupancy and other operating expenses or G&A
Sublease income		(23	)		(26	)		(24	)	Franchise fees and income or Other revenues
Total lease cost	$	862		$	898		$	748

(a)


Supplemental Cash Flow Information
	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	549	$	573	$	493
Operating cash flows from finance leases		2		2		2
Financing cash flows from finance leases		4		2		2
Right-of-use assets obtained in exchange for new lease liabilities(b):
Operating leases	$	191	$	541	$	337
Finance leases		10		11		2

(b)


Lease Term and Discount Rate	2022			2021
Weighted-average remaining lease term (years)
Operating leases		7.1			7.2
Finance leases		11.2			11.3

Weighted-average discount rate
Operating leases		5.1	%		5.5	%
Finance leases		5.1	%		5.5	%

Summary of Future Lease Payments and Lease Liabilities

Maturities of lease liabilities as of December 31, 2022 were as follows:


	Amount of Operating Leases		Amount of Finance Leases		Total
2023	$	552	$	7	$	559
2024		450		6		456
2025		387		6		393
2026		338		6		344
2027		279		5		284
Thereafter		808		32		840
Total undiscounted lease payment		2,814		62		2,876
Less: imputed interest(c)		460		15		475
Present value of lease liabilities	$	2,354	$	47	$	2,401

(c)

As of December 31, 2022, we have additional lease agreements that have been signed but not yet commenced, with total undiscounted minimum lease payments of $107 million. These leases will commence between 2023 and 2026 with lease terms of 1 year to 20 years.

Summary of Significant Accounting Policies - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Future lease payments due from franchisees on a nominal basis	$ 29
Prepaid gift cards expiration period	36 months
Product vouchers maximum expiration period	12 months
Points expiration period	18 months
KFC [Member]
Summary Of Significant Accounting Policies [Line Items]
Franchisee agreement term	10 years
Pizza Hut [Member]
Summary Of Significant Accounting Policies [Line Items]
Franchisee agreement term	10 years
Little Sheep [Member]
Summary Of Significant Accounting Policies [Line Items]
Franchisee agreement term	5 years
Huang Ji Huang [Member] \| Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Franchisee agreement term	3 years
Huang Ji Huang [Member] \| Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Franchisee agreement term	10 years

Fair Value Measurements and Disclosures - Schedule of Amounts Recognized From Non-recurring Fair Value Measurements (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration]	Closure And Impairment Income Expenses Net	Closure And Impairment Income Expenses Net	Closure And Impairment Income Expenses Net
Fair Value, Measurements, Nonrecurring [Member] \| Level 3 [Member] \| Restaurant-level impairment [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total expense recognized from non-recurring fair value measurements	$ 24	$ 32	$ 52

Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Note 19 – Contingencies

Indemnification of China Tax on Indirect Transfers of Assets

In February 2015, the STA 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 (“Chinese interests”), 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 a 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 for Franchisees

From time to time we have guaranteed certain lines of credit and loans of franchisees. As of December 31, 2022, no guarantees were outstanding for franchisees.

Indemnification of Officers and Directors

The Company’s amended and restated certificate of incorporation and amended and restated bylaws include provisions that require the Company to indemnify directors or officers for monetary damages for actions taken as a director or officer of the Company or while serving at the Company’s request as a director or officer or another position at another corporation or enterprise, as the case may be. The Company purchases standard directors and officers insurance to cover claims or a portion of the claims made against its directors and officers. Since a maximum obligation is not explicitly stated in the Company’s bylaws or in the indemnification agreements and will depend on the facts and circumstances that arise out of any future claims, the overall maximum amount of the obligations cannot be reasonably estimated. The Company has not been required to make payments related to these obligations, and the fair value for these obligations is zero as of December 31, 2022.

Legal Proceedings

The Company is subject to various lawsuits covering a variety of allegations from time to time. The Company believes that the ultimate liability, if any, in excess of amounts already provided for these matters in the Consolidated Financial Statements, is not likely to have a material adverse effect on the Company’s annual 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.

Consolidated Statements of Cash Flows - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Cash Flows – Operating Activities

Net income - including noncontrolling interests

$ 478

$ 1,023

$ 813

Depreciation and amortization

602

516

450

Non-cash operating lease cost

435

424

368

Closures and impairment expenses

Gain from re-measurement of equity interest upon acquisition

^[1]

(628)

(239)

Investment loss (gain)

(104)

Equity income from investments in unconsolidated affiliates

(44)

(62)

Distributions of income received from unconsolidated affiliates

Deferred income taxes

(20)

160

111

Share-based compensation expense

Changes in accounts receivable

(1)

(5)

(15)

Changes in inventories

(19)

(16)

Changes in prepaid expenses and other current assets and VAT assets

207

(72)

(17)

Changes in accounts payable and other current liabilities

118

Changes in income taxes payable

(26)

Changes in non-current operating lease liabilities

(396)

(461)

(394)

Other, net

(21)

(18)

(42)

Net Cash Provided by Operating Activities

1,413

1,131

1,114

Cash Flows – Investing Activities

Capital spending

(679)

(689)

(419)

Purchases of short-term investments and long-term time deposits

(5,189)

(6,139)

(4,556)

Maturities of short-term investments and long-term time deposits

5,365

6,383

2,061

Contributions to unconsolidated affiliates

(17)

Acquisition of business, net of cash acquired

(23)

(115)

(288)

(Acquisitions) disposal of equity investments

(300)

Other, net

Net Cash Used in Investing Activities

(522)

(855)

(3,109)

Cash Flows – Financing Activities

Common stock issuance proceeds, net of issuance costs

2,195

Repurchase of shares of common stock

(466)

(75)

(8)

Cash dividends paid on common stock

(202)

(203)

(95)

Dividends paid to noncontrolling interests

(72)

(57)

(33)

Acquisitions of noncontrolling interests

(113)

Contributions from noncontrolling interests

Payment of acquisition related holdback

(7)

(8)

Other, net

(2)

(7)

(1)

Net Cash (Used in) Provided by Financing Activities

(844)

(313)

2,058

Effect of Exchange Rates on Cash, Cash Equivalents and Restricted Cash

(53)

Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash

(6)

(22)

103

Cash, Cash Equivalents and Restricted Cash - Beginning of Year

1,136

1,158

1,055

Cash, Cash Equivalents and Restricted Cash - End of Year

1,130

1,136

1,158

Supplemental Cash Flow Data

Cash paid for income tax

204

255

170

Non-cash Investing and Financing Activities

Capital expenditures included in accounts payable and other current liabilities

$ 181

$ 269

$ 203

[1]

Credit Facilities - Narrative (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount	¥ 4,518	$ 655
Short-term investments		2,022	$ 2,860
Onshore Credit Facility [Member]
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount	3,000	435
Bank guarantees outstanding	¥ 209	30
Borrowings outstanding		2
Short-term investments		1
Offshore Credit Facility [Member]
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount		$ 220
Revolving Credit Facility [Member]
Line Of Credit Facility [Line Items]
Credit facility terms	The credit facilities had remaining terms ranging from less than one year to two years as of December 31, 2022. Each credit facility bears interest based on the prevailing rate stipulated by the People’s Bank of China, Loan Prime Rate (“LPR”) published by the National Interbank Funding Centre of the PRC, London Interbank Offered Rate (“LIBOR”) administered by the ICE Benchmark Administration, or Secured Overnight Financing Rate (“SOFR”) published by the Federal Reserve Bank of New York. Each credit facility contains a cross-default provision whereby our failure to make any payment on a principal amount from any credit facility will constitute a default on other credit facilities. Some of the credit facilities contain covenants limiting, among other things, certain additional indebtedness and liens, and certain other transactions specified in the respective agreement. Interest on any outstanding borrowings is due at least monthly
Credit facility expiration start period	less than one year
Revolving Credit Facility [Member] \| Maximum [Member]
Line Of Credit Facility [Line Items]
Credit facility expiration period	2 years

Revenue - Schedule of Franchise Fees and Income (Details) - Franchise [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue From Contract With Customer [Line Items]
Franchise fees and income	$ 81	$ 153	$ 148
Transferred at Point in Time [Member]
Revenue From Contract With Customer [Line Items]
Franchise fees and income	6	8	8
Transferred over Time [Member]
Revenue From Contract With Customer [Line Items]
Franchise fees and income	$ 75	$ 145	$ 140

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment


	2022
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	7,219	$	1,960	$	155	$	235	$	9,569	$	—		$	9,569
Inter-segment revenue		—		—		516		18		534		(534	)		—
Total	$	7,219	$	1,960	$	671	$	253	$	10,103	$	(534	)	$	9,569


	2021
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	7,003	$	2,109	$	227	$	514	$	9,853	$	—		$	9,853
Inter-segment revenue		—		—		246		6		252		(252	)		—
Total	$	7,003	$	2,109	$	473	$	520	$	10,105	$	(252	)	$	9,853


	2020
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	5,821	$	1,730	$	184	$	528	$	8,263	$	—		$	8,263
Inter-segment revenue		—		—		58		—		58		(58	)		—
Total	$	5,821	$	1,730	$	242	$	528	$	8,321	$	(58	)	$	8,263


Operating Profit (Loss)	2022			2021			2020
KFC(b)	$	787		$	827		$	801
Pizza Hut		70			111			62
All Other Segments		(50	)		(29	)		(7	)
Unallocated revenues from transactions with franchisees and unconsolidated affiliates(c)		211			500			533
Unallocated Other revenues		42			20			32
Unallocated expenses for transactions with franchisees and unconsolidated affiliates(c)		(211	)		(497	)		(531	)
Unallocated Other operating costs and expenses		(39	)		(17	)		(30	)
Unallocated and corporate G&A expenses		(184	)		(171	)		(144	)
Unallocated Other income(d)		3			642			245
Operating Profit	$	629		$	1,386		$	961
Interest income, net(a)		84			60			43
Investment (loss) gain(a)		(26	)		(54	)		104
Income Before Income Taxes and Equity in Net Earnings (Losses) from Equity Method Investments	$	687		$	1,392		$	1,108


	Depreciation and Amortization
	2022		2021		2020
KFC	$	460	$	378	$	315
Pizza Hut		108		111		113
All Other Segments		10		9		8
Corporate and Unallocated		24		18		14
	$	602	$	516	$	450


	Impairment Charges
	2022		2021		2020
KFC(e)	$	31	$	30	$	32
Pizza Hut(e)		9		13		29
All Other Segments(e)		11		5		5
	$	51	$	48	$	66


	Capital Spending
	2022		2021		2020
KFC	$	327	$	398	$	257
Pizza Hut		116		98		61
All Other Segments		16		16		5
Corporate and Unallocated		220		177		96
	$	679	$	689	$	419


	Total Assets
	2022		2021
KFC	$	5,296	$	6,072
Pizza Hut		880		972
All Other Segments		381		454
Corporate and Unallocated(f)		5,269		5,725
	$	11,826	$	13,223

(a)

Amounts have not been allocated to any segment for performance reporting purposes.

(b)

Includes equity income from investments in unconsolidated affiliates that operate our concepts of nil, $50 million and $63 million in 2022, 2021 and 2020, respectively.

(c)

(d)

(e)

(f)

Revenue - Contract Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Contract liabilities
Contract liabilities	$ 210	$ 208
Deferred Revenue Related To Prepaid Stored Value Products [Member]
Contract liabilities
Contract liabilities	139	134
Deferred Revenue Related To Upfront Franchise Fees [Member]
Contract liabilities
Contract liabilities	32	30
Deferred Revenue Related To Customer Loyalty Programs [Member]
Contract liabilities
Contract liabilities	23	25
Deferred Revenue Related To Privilege Membership Programs [Member]
Contract liabilities
Contract liabilities	$ 16	18
Others [Member]
Contract liabilities
Contract liabilities		$ 1