View Filing Data

Changes in fair value of financial instruments

785

640

488

Interest income, net

^[1]

^[1]

Income Before Income Taxes

810

672

496

Income tax provision

(381)

(158)

(168)

Net income – including noncontrolling interests

429

514

328

Net income – noncontrolling interests

Net Income – Yum China Holdings, Inc.

$ 403

$ 502

$ 323

Weighted-average common shares outstanding:

Basic

^[2]

386,533,783

367,744,992

363,758,219

Diluted

398,089,606

369,143,838

363,758,219

Basic Earnings Per Common Share

$ 1.04

$ 1.36

$ 0.89

Diluted Earnings Per Common Share

$ 1.01

$ 1.36

$ 0.89

[1]

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

[2]

As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards of either YUM or Yum China in their entirety, to maintain the pre-separation intrinsic value of the awards. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect. See Note 15 for a further discussion of share-based compensation.

Consolidated and Combined Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income - including noncontrolling interests	$ 429	$ 514	$ 328
Other comprehensive income (loss), net of tax of nil
Foreign currency gain (loss) arising during the year	142	(132)	(93)
Comprehensive income - including noncontrolling interests	571	382	235
Comprehensive income (loss) - noncontrolling interests	31	9	(1)
Comprehensive Income - Yum China Holdings, Inc.	$ 540	$ 373	$ 236

Consolidated and Combined Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash Flows – Operating Activities
Net income - including noncontrolling interests	$ 429	$ 514	$ 328
Depreciation and amortization	409	402	425
Closures and impairment expenses	47	78	64
Refranchising gain	(5)	(15)	(13)
Deferred income taxes	64	(40)	29
Equity income from investments in unconsolidated affiliates	(65)	(54)	(41)
Distributions of income received from unconsolidated affiliates	45	35	21
Share-based compensation expense	26	16	14
Changes in fair value of financial instruments		(21)
Changes in accounts receivable	(1)	(54)	(5)
Changes in inventories	(11)	(96)	61
Changes in prepaid expenses and other current assets	(13)	7	(8)
Changes in accounts payable and other current liabilities	(58)	123	31
Changes in income taxes payable	3	6	(14)
Other, net	14	(35)	21
Net Cash Provided by Operating Activities	884	866	913
Cash Flows – Investing Activities
Capital spending	(415)	(436)	(512)
Purchases of short-term investments	(596)	(136)	(40)
Maturities of short-term investments	479	53	40
Proceeds from refranchising of restaurants	7	32	27
Proceeds from disposal of aircraft		19
Acquisition of business, net of cash acquired	(25)
Other, net	(7)	(3)	(8)
Net Cash Used in Investing Activities	(557)	(471)	(493)
Cash Flows – Financing Activities
Net transfers to Parent		(357)	(214)
Payment of capital lease obligations	(2)	(3)	(2)
Repurchase of shares of common stock	(128)
Proceeds from exercise of stock options	5
Dividends paid on common stock	(38)
Proceeds from issuance of common stock and warrants		460
Other, net	(22)	(7)
Net Cash (Used in) Provided by Financing Activities	(185)	93	(216)
Effect of Exchange Rates on Cash and Cash Equivalents	32	(28)	(17)
Net Increase in Cash and Cash Equivalents	174	460	187
Cash and Cash Equivalents – Beginning of Year	885	425	238
Cash and Cash Equivalents – End of Year	1,059	885	425
Supplemental Cash Flow Data
Cash paid for income tax	$ 232	$ 182	$ 143

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 1,059	$ 885
Short-term investments	205	79
Accounts receivable, net	81	74
Inventories, net	297	268
Prepaid expenses and other current assets	160	120
Total Current Assets	1,802	1,426
Property, plant and equipment, net	1,691	1,647
Goodwill	108	79
Intangible assets, net	101	88
Investments in unconsolidated affiliates	89	71
Other assets	373	254
Deferred income taxes	99	162
Total Assets	4,263	3,727
Current Liabilities
Accounts payable and other current liabilities	978	971
Income taxes payable	39	33
Total Current Liabilities	1,017	1,004
Capital lease obligations	28	28
Other liabilities and deferred credits	354	252
Total Liabilities	1,399	1,284
Redeemable Noncontrolling Interest	5
Equity
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 388,860,534.42 shares and 383,344,835.42 shares issued at December 31, 2017 and December 31, 2016, respectively; 384,720,152 shares and 383,344,835.42 shares outstanding at December 31, 2017 and December 31, 2016, respectively	4	4
Treasury stock	(148)	(20)
Additional paid-in capital	2,383	2,352
Retained earnings	405	40
Accumulated other comprehensive income	138	1
Total Equity – Yum China Holdings, Inc.	2,782	2,377
Noncontrolling interests	77	66
Total Equity	2,859	2,443
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$ 4,263	$ 3,727

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016	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
Common stock, shares issued	388,860,534.42	383,344,835.42	363,758,219
Common stock, shares outstanding	384,720,152	383,344,835.42	363,758,219

Consolidated and Combined Statements of Equity - USD ($)
$ in Millions

Total

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

Accumulated Other Comprehensive Income [Member]

Noncontrolling Interests [Member]

Treasury Stock [Member]

Total equity Including Noncontrolling Interest [Member]

Redeemable Noncontrolling Interest [Member]

After Spin-Off [Member]

Retained Earnings [Member]

Parent Company Investment [Member]

Balance at Dec. 31, 2014

$ 217

$ 57

$ 1,945

$ 9

$ 1,671

Net Income (loss)

$ 328

329

(1)

323

Foreign currency translation gain (loss)

(93)

(87)

(4)

(91)

(2)

Comprehensive income - including noncontrolling interests

235

238

(3)

Acquisition of Little Sheep store-level noncontrolling interests

(1)

Net transfers to Parent

(204)

Balance at Dec. 31, 2015

130

1,979

1,791

Net Income (loss)

514

521

$ 40

462

Noncontrolling interest loss upon redemption

(8)

Foreign currency translation gain (loss)

(132)

(129)

(4)

(133)

Comprehensive income - including noncontrolling interests

382

388

(6)

Dividends declared

(7)

Acquisition of Little Sheep store-level noncontrolling interests

(8)

Net transfers to Parent

(360)

Capitalization at separation

$ 4

$ 1,889

$ (1,893)

Capitalization at separation (in shares)

363,758,219.00

Issuance of common stock to Investors

364

Issuance of common stock to Investors (in shares)

19,145,169.42

Reclassification of warrants issued to Investors

Stock repurchased from Investors

^[1]

$ (20)

(20)

Stock repurchased from Investors (in shares)

(784,686.42)

^[1]

Exercise and vesting of share-based awards (in shares)

441,447.00

Share-based compensation

Balance at Dec. 31, 2016

2,443

$ 4

2,352

$ 40

$ (20)

2,443

Balance (in shares) at Dec. 31, 2016

383,344,835.42

(784,686.42)

Net Income (loss)

429

403

429

Foreign currency translation gain (loss)

142

137

142

Comprehensive income - including noncontrolling interests

571

Dividends declared

(38)

(22)

(60)

Acquisition of business

Stock repurchased from Investors

$ (128)

(128)

Stock repurchased from Investors (in shares)

(3,400,000)

(3,355,696.00)

Exercise and vesting of share-based awards

Exercise and vesting of share-based awards (in shares)

5,515,699.00

Share-based compensation

Balance at Dec. 31, 2017

$ 2,859

$ 4

$ 2,383

$ 405

$ 138

$ 77

$ (148)

$ 2,859

$ 5

Balance (in shares) at Dec. 31, 2017

388,860,534.42

(4,140,382.42)

[1]

Pursuant to the investment agreement with the Investors, 19,145,169.42 shares issued on November 1, 2016 were subject to Post-Closing Adjustment on December 30, 2016, and 784,686.42 shares were subsequently repurchased on January 9, 2017. The repurchased shares were treated as treasury stock as of December 31, 2016. See Note 11.

Consolidated and Combined Statements of Equity (Parenthetical) - shares

12 Months Ended

Jan. 09, 2017

Nov. 01, 2016

Dec. 31, 2017

Dec. 31, 2016

Treasury Stock [Member]

Shares repurchased from strategic investors

784,686.42

3,355,696.00

784,686.42

^[1]

Common Stock [Member]

Shares repurchased from strategic investors

3,400,000

Shares issued subject to post-closing adjustment

19,145,169.42

[1]

Description of Business	12 Months Ended
Description of Business	Dec. 31, 2017
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 separated from Yum! Brands, Inc. (“YUM” or the “Parent”) on October 31, 2016 (the “separation”), becoming an independent publicly traded company as a result of a pro rata distribution (the “distribution”) of all outstanding shares of Yum China common stock to shareholders of YUM. On October 31, 2016, YUM’s shareholders of record as of 5:00 p.m. Eastern Time on October 19, 2016 received one share of Yum China common stock for every one share of YUM common stock held as of the record date. Yum China’s common stock began trading “regular way” under the ticker symbol “YUMC” on the New York Stock Exchange on November 1, 2016. The Company owns, franchises or has ownership in entities that own and operate restaurants under the KFC, Pizza Hut, Taco Bell, East Dawning and Little Sheep concepts (collectively, the “concepts”). In connection with the separation of the Company from YUM, Yum! Restaurants Asia Pte. Ltd., a wholly-owned indirect subsidiary of YUM, and Yum Restaurants Consulting (Shanghai) Company Limited (“YCCL”), a wholly-owned indirect subsidiary of the Company, entered into a 50-year master license agreement with automatic renewals for additional consecutive renewal terms of 50 years each, subject only to YCCL being in “good standing” and unless YCCL gives notice of its intent not to renew, for the exclusive right to use and 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, Taiwan and Macau. In exchange, we pay a license fee to YUM equal to 3% of net system sales from both our Company and franchise restaurants. We own the East Dawning and Little Sheep intellectual property and pay no license fee related to these concepts. In 1987, KFC was the first quick-service restaurant brand to enter China. As of December 31, 2017, there are over 5,400 KFCs in China. We maintain a 58% and 70% controlling interest in the entities that own and operate the KFCs in Shanghai and Beijing, respectively. We have a 47% noncontrolling ownership in each of our unconsolidated affiliates that own and operate KFCs in Hangzhou, Suzhou and Wuxi. The first Pizza Hut in China opened in 1990. As of December 31, 2017, there are over 2,100 Pizza Hut restaurants in China. During the quarter ended May 31, 2017, the Company completed the acquisition of a controlling interest in the holding company of DAOJIA.com.cn (“Daojia”), an established online food delivery service provider. The Company agreed to pay cash consideration of $36.7 million to the sellers and made a concurrent capital contribution of $25.0 million to Daojia. As of the completion of the acquisition, the Company held 90% of Daojia’s outstanding shares of common stock, or 80% of its equity interests on a fully-diluted basis. Daojia became an operating segment of the Company. The acquisition was considered immaterial. During the quarter ended May 31, 2017, Pizza Hut Casual Dining and Pizza Hut Home Service were combined and reported together as the Pizza Hut reportable segment. As a result, the Company has two reportable segments: KFC, which remains unchanged, and Pizza Hut. Our remaining operating segments, including the operations of East Dawning, Little Sheep, Taco Bell and Daojia, are combined and referred to as All Other Segments, as those operating segments are insignificant both individually and in the aggregate. Segment financial information for prior years has been recast to align with this change in segment reporting. There was no impact to the consolidated and combined financial statements of the Company as a result of this change. Additional details on our reportable operating segments are included in Note 18.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2 – Summary of Significant Accounting Policies

In connection with our separation from YUM, the direct and indirect equity interests of all of our operating subsidiaries and intermediate holding companies were transferred from YUM to Yum China, when Yum China was still one of YUM’s subsidiaries, through a series of transactions, which were completed in August 2016. The Company separated from YUM on October 31, 2016, becoming an independent publicly traded company as a result of a pro rata distribution of all outstanding shares of Yum China common stock to shareholders of YUM.

The financial statements presented herein represent (i) prior to October 31, 2016, the Combined Financial Statements of YUM’s China businesses and operations when the Company was a wholly-owned subsidiary of YUM and (ii) subsequent to October 31, 2016, the Consolidated Financial Statements of the Company as a separate publicly traded company following its separation from YUM.

Our preparation of the accompanying Consolidated and Combined 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. The accompanying Combined Financial Statements have been prepared on a standalone basis and are derived from YUM’s consolidated financial statements and underlying accounting records. Transactions between the Company and YUM that were not cash settled were considered to be effectively settled at the time the transactions are recorded. The Combined Financial Statements include all revenues, costs, assets and liabilities directly attributable to the Company either through specific identification or allocation. The Consolidated and Combined Statements of Income include allocations for certain of YUM’s Corporate functions which provided a direct benefit to the Company. These costs have been allocated based on Company system sales relative to YUM’s global system sales. System sales include the sales results of all restaurants regardless of ownership. All allocated costs have been deemed to have been paid to YUM in the period in which the costs were recorded. The Company considers the cost allocation methodology and results to be reasonable for the periods prior to October 31, 2016. However, the allocations may not be indicative of the actual expense that would have been incurred had the Company operated as an independent, publicly traded company for the periods prior to October 31, 2016. Upon the separation from YUM, Parent Company Investment was adjusted as a result of settlement of certain assets and liabilities with YUM and formed Yum China’s common stock and additional paid-in capital. See Note 3 for further discussion.

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 for consolidation 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 with the exception of certain entities discussed below. 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, 2017, the Company had future lease payments due from franchisees, on a nominal basis, of approximately $80 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 and Combined Financial Statements since the acquisition date.

We consolidate the entities that operate KFCs in Shanghai and Beijing where we have controlling interests of 58% and 70%, respectively. We report Net income (loss) attributable to noncontrolling interests, which includes the minority shareholders of the entities, separately on the face of our Consolidated and Combined Statements of Income. The portion of equity not attributable to the Company for these entities is reported within equity, separately

from the Company’s equity on the Consolidated Balance Sheets.

We have a noncontrolling 47% interest in each of the entities that operate the KFCs in Hangzhou, Suzhou and Wuxi. These entities are not VIEs and our lack of majority voting rights precludes us from controlling these affiliates. Thus, we do not consolidate these affiliates. Instead, we account for them under the equity method. Our share of the net income or loss of these unconsolidated affiliates is included in Other income, net.

Comparative Information. Certain comparative items in the Consolidated and Combined 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. The Company operates on a fiscal monthly calendar, with two months in the first quarter, three months in the second and third quarters and four months in the fourth quarter.

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. As of December 31, 2017, net cumulative translation adjustment gains of $138 million were recorded in Accumulated other comprehensive income in 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 and Combined 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 internal costs we incur to provide support services to our franchisees are charged to General and Administrative (“G&A”) expenses as incurred. 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 sublease to franchisees, and certain other direct incremental franchise support costs. The 3% license fee we pay to YUM for the right to sublicense the KFC, Pizza Hut and Taco Bell intellectual property is also recorded in Franchise expenses.

License fees due to YUM for our Company-owned stores are included within restaurant margin in Occupancy and other operating expenses in the Consolidated and Combined Statements of Income. License fees due to YUM on franchise sales are included in Franchise Expenses. Total license fees paid to YUM were $245 million, $249 million and $269 million during the years ended December 31, 2017, 2016 and 2015.

Revenue Recognition. Revenues from Company-owned restaurants are recognized when payment is tendered at the time of sale. The Company presents sales net of sales-related taxes. The license fee we pay to YUM as a percentage of these Company sales is included in Occupancy and other operating expenses. We recognize revenues from gift cards when the gift card is redeemed by the customer. We recognize breakage revenue, which is the amount of gift card proceeds that is not expected to be redeemed, when the likelihood of redemption becomes remote.

Income from our franchisees includes initial fees, continuing fees, renewal fees and rental income from restaurants we sublease to them. We recognize initial fees received from a franchisee as revenue when we have performed substantially all initial services required by the franchise agreement, which is generally upon the opening of a store. We recognize continuing fees, which are based upon a percentage of franchisee sales, as those sales occur and rental income is recognized as it is earned. We recognize renewal fees when a renewal agreement with a franchisee becomes effective. We present initial fees collected upon the sale of a Company-owned restaurant to a franchisee in Refranchising gain, net.

Loyalty Programs. The Company’s KFC and Pizza Hut reportable segments each operate a loyalty program which allows registered members to earn points for each qualifying purchase. Points, which generally expire 18 months after being earned, may be redeemed for a coupon that could be used primarily against future purchases of KFC or Pizza Hut branded products for free or at a discounted price. Points cannot be redeemed or exchanged for cash. The value of points earned by the loyalty program members is recorded as a reduction of revenue at the time the points are earned, based on the percentage of points that are projected to be redeemed, with a corresponding deferred revenue liability included in Accounts payable and other current liabilities in the Consolidated Balance Sheets. The Company recognizes revenue when (i) the points are converted to a coupon and the coupon is redeemed by the customer; (ii) the coupon expires; or (iii) the likelihood of the points being converted into a coupon and the coupon being redeemed by a customer is remote (“breakage”).

The recorded liability related to these loyalty programs totaled $16 million as of December 31, 2017. The Company estimates the value of the future redemption obligations using statistical formulas that project timing of future point redemptions based on historical levels, including an estimate of the breakage for points that members will never redeem, and an estimate of the points that members will eventually redeem.

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 were $333 million, $332 million and $327 million in 2017, 2016 and 2015, respectively. We report direct marketing costs in Occupancy and other operating expenses.

Our franchise agreements require our franchisees to fund advertising and marketing expenditures, typically in an amount that is a percentage of sales. Local marketing expenditures are managed by each operator. The Company, as an agent, collects and disburses non-local funds on behalf of the entire system. We record cash received and accounts payable from the administration of such non-local funds in our Consolidated Balance Sheets. Any unused non-local funds are returned to the system.

Research and Development Expenses. Research and development expenses, which are expensed as incurred, are reported in G&A expenses. Research and development expenses were $5 million in each of 2017, 2016 and 2015.

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 Plan (the “2016 Plan”). We recognize all share-based payments to employees and directors, including grants of stock options, restricted stock units (“RSU”) and stock appreciation rights (“SARs”), in the Consolidated and Combined 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 for awards that actually vest. 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. Share-based compensation expense includes an allocation of amounts incurred by YUM for services provided on our behalf prior to the separation. See Note 15 for further discussion of YUM’s share-based compensation plans.

Impairment or Disposal of Property, Plant and Equipment. Property, plant and equipment (“PP&E”) is 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 less 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 PP&E and allocated intangible assets subject to amortization) semi-annually for impairment, or whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. We use two consecutive years of operating losses after a restaurant has been open for three years as our primary indicator of potential impairment for our semi-annual impairment testing of these restaurant assets. We evaluate the recoverability of these restaurant assets by comparing the estimated undiscounted future cash flows, which are based on our entity-specific assumptions, to the carrying value of such assets. Our impairment indicator and recoverability tests did not include a deduction for license fees paid to YUM when we performed impairment test before the separation on October 31, 2016. However, such license fee paid to YUM is included in the impairment indicator and recoverability tests after the separation, as our relationship with YUM changed from the one between a subsidiary and its parent prior to the separation to the one between a licensee and a third-party licensor after the separation. As a result of including license fees paid to YUM, we performed an additional impairment assessment as of November 1, 2016 and recognized incremental restaurant-level impairment of $17 million in 2016. 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 a franchisee would pay for the restaurant and its related assets and is determined by discounting the estimated future after-tax cash flows of the restaurant, which include a deduction for royalties we would receive under a franchise agreement with terms substantially at market. The after-tax cash flows incorporate reasonable assumptions we believe a franchisee would make such as sales growth and margin improvement. 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.

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, and the related initial franchise fees. 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 from previously closed stores are generally expensed as incurred. Additionally, at the date we cease using a property under an operating lease, we record a liability for the net present value of any remaining lease obligations, net of estimated sublease income, if any. Any costs recorded upon store closure as well as any subsequent adjustments to liabilities for remaining lease obligations as a result of lease termination or changes in estimates of sublease income 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, sublease income and refranchising proceeds. Accordingly, actual results could vary significantly from our estimates.

Impairment of Investments in Unconsolidated Affiliates. 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. In addition, we evaluate our investments in unconsolidated affiliates for impairment when they have experienced two consecutive years of operating losses.

Government Subsidies. Government subsidies primarily 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. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is 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 and Combined Statements of Income.

Income Taxes. Prior to October 31, 2016, our operations have historically been included in the U.S. federal and U.S. state income tax returns filed by YUM. Our foreign income tax returns, primarily those filed by our China subsidiaries, are filed on an individual entity basis. Income tax expense and other income tax related information contained in our Consolidated and Combined Financial Statements are presented on a separate return basis as if we filed our own U.S. federal and U.S. state tax returns rather than having been included in these YUM tax returns. The separate return method applies the accounting guidance for income taxes to the standalone financial statements as if we were a separate taxpayer and a standalone enterprise for the periods presented prior to October 31, 2016. The calculation of our income taxes on a separate return basis requires a considerable amount of judgment and the use of both estimates and allocations. Current income tax liabilities related to our operations under the separate return method as of October 31, 2016 are assumed to be immediately settled with YUM and are relieved through the Parent Company Investment account and the net transfers to parent in the Consolidated and Combined Statements of Cash Flows. Subsequent to October 31, 2016, the Company became a separate taxpayer and started preparing its own consolidated U.S. federal income tax return and U.S. state income tax filings.

On December 22, 2017, the Tax Act was signed into law effective for tax years beginning after December 31, 2017. The Tax Act requires complex computations with significant estimates to be performed, significant judgments to be made in interpretation of the provisions, and the preparation and analysis of information not previously relevant or regularly produced. The U.S. Treasury Department, the IRS, the SEC and other standard-setting bodies could interpret or issue guidance on how provisions of the Tax Act will be applied or otherwise administered that is different from our current interpretation. The Company has calculated its best estimate of the impact of the Tax Act in its year-end income tax provision in accordance with its understanding of the Tax Act and guidance available as of the date of this Form 10-K. As we complete our analysis of the Tax Act, collect and prepare necessary data, and interpret any additional guidance, we may make adjustments to provisional amounts that we have recorded that may materially impact our provision for income taxes in the period in which the adjustments are made.

As a matter of course, we are regularly subject to tax audits and examination by federal, state and foreign tax authorities. 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 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 have investments in our foreign subsidiaries where the carrying values for financial reporting exceed the tax basis. 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.

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.

Cash and Cash Equivalents. Cash equivalents represent funds we have temporarily invested (with original maturities not exceeding three months), including short-term, highly liquid debt securities. Cash and overdraft balances that meet the criteria for right to offset are presented net on our Consolidated Balance Sheets.

Short-term Investments. Short-term investments represent time deposits with original maturities of over three months but less than one year when purchased.

Receivables. Receivables consist of trade receivables and royalties from franchisees are generally due within 30 days of the period in which the corresponding sales occur and are classified as Accounts receivable on our Consolidated Balance Sheets. Our provision for uncollectible franchise receivable balances is based upon pre-defined aging criteria or upon the occurrence of other events that indicate that we may not collect the balance due. Additionally, we monitor the financial condition of our franchisees and record provisions for estimated losses on receivables when we believe it probable that our franchisees will be unable to make their required payments. While we use the best information available in making our determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond our control. Trade receivables that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts. Receivables due from unconsolidated affiliates were $69 million and $53 million as of December 31, 2017 and 2016, respectively.

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. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. Receivable balances are written off after all collection efforts have been exhausted. As of December 31, 2017, 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 market.

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: 20 years for buildings, the lesser of 8 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.

Leases and Leasehold Improvements. The Company leases land, buildings or both for its restaurants. The length of our lease terms, which generally do not have renewal options, is an important factor in determining the appropriate accounting for leases including the initial classification of the lease as capital or operating and the timing of recognition of rent expense over the duration of the lease. We include renewal option periods in determining the term of our leases when failure to renew the lease would impose a penalty on the Company in such an amount that a renewal appears to be reasonably assured at the inception of the lease. The primary penalty to which we are subject is the economic detriment associated with the existence of leasehold improvements which might be impaired if we choose not to continue the use of the leased property. Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term. We generally do not receive leasehold improvement incentives upon opening a store that is subject to a lease.

We expense rent associated with leased land or buildings while a restaurant is being constructed whether rent is paid or we are subject to a rent holiday. Additionally, certain of the Company’s operating leases contain predetermined fixed escalations of the minimum rent during the lease term. For leases with fixed escalating payments and/or rent holidays, we record rent expense on a straight-line basis over the lease term, including any option periods considered in the determination of that lease term. Contingent rentals are generally based on sales levels in excess of stipulated amounts, and thus are not considered minimum lease payments and are included in rent expense when attainment of the contingency is considered probable (e.g., when Company sales occur).

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. These land use rights and related buildings are recorded in Other Assets in our Consolidated Balance Sheets as we are purchasing the right and are a legal party to the underlying land grant, and both are amortized to rent expense on a straight-line basis over the term of the land use right.

Internal Development Costs and Abandoned Site Costs. 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.

Goodwill and Intangible Assets. From time to time, the Company acquires restaurants from our existing franchisees or acquires another business. 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 Company-owned restaurant operations and franchise royalties. 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. The fair value of the portion of the reporting unit disposed of in a refranchising is determined by reference to the discounted value of the future cash flows expected to be generated by the restaurant and retained by the franchisee, which includes a deduction for the anticipated, future royalties the franchisee will pay us associated with the franchise agreement entered into simultaneously with the refranchising transition. The fair value of the reporting unit retained is based on the price a willing buyer would pay for the reporting unit and includes the value of franchise agreements. Appropriate adjustments are made if a franchise agreement includes terms that are determined to not be at prevailing market rates. As such, the fair value of the reporting unit retained can include expected cash flows from future royalties from those restaurants currently being refranchised, future royalties from existing franchise businesses and company restaurant operations. As a result, the percentage of a reporting unit’s goodwill that will be written off in a refranchising transaction will be less than the percentage of the reporting unit’s Company-owned restaurants that are refranchised in that transaction.

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. Intangible assets that are deemed to have a definite life are generally amortized on a straight-line basis to their residual value.

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 definite-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 on an undiscounted basis 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 definite-lived intangible asset to reflect our current estimates and assumptions over the asset’s future remaining life.

Financial Instruments. We account for derivative instruments and liability-classified equity contracts (e.g., warrants) 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 and Combined Statements of Income. The estimated fair values of derivative instruments and liability-classified equity contracts are determined at discrete points in time using standard valuation techniques. See Note 13 for further discussion.

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 in 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. For these plans, the Company considers them to be part of multi-employer plans. YUM has allocated expenses related to our employees’ participation in these plans in our Consolidated and Combined Statements of Income. However, our Combined Balance Sheets do not reflect any assets or liabilities related to these plans. We consider the expense allocation methodology and results to be reasonable for the periods prior to October 31, 2016. See Note 3 for additional information. Subsequent to the separation, employees participating in YUM’s plans were enrolled in the Yum China Holdings, Inc. Leadership Retirement Plan (“YCHLRP”), as discussed below.

For executives who were hired or re-hired after September 30, 2001, YUM has implemented the Leadership Retirement Plan (“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 YCHLRP upon the separation, and the terms of the YCHLRP are substantially similar to the terms of the YUM LRP. 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. On January 1, 2012, the Chinese State Council officially launched a retail tax structure reform program (“VAT pilot program” or “VAT reform”), applicable to businesses in selected industries, whereby entities in these industries would pay VAT instead of business tax (“BT”). Since January 1, 2012, the Chinese government has gradually expanded the scope of the VAT reform to cover most service sectors. Effective as of May 1, 2016, the Chinese government extended the VAT reform to all remaining sectors still subject to BT, including the catering sector. Thus, 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 an input VAT credit 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, in the Consolidated Balance Sheets. At each balance sheet date, the Company reviews the outstanding balance of any net VAT credit asset for recoverability assessment. We evaluate the recoverability of the net VAT credit asset based on our estimated operating results and capital spending, which inherently includes significant assumptions subject to change.

As of December 31, 2017, an input VAT credit asset of $176 million and payable of $2 million were recorded in Other assets and Accounts payable and other current liabilities, respectively, in the Consolidated Balance Sheets. The Company has not made an allowance for the recoverability of the input VAT credit asset, as the balance is expected to be utilized to offset against net VAT payables more than one year from December 31, 2017. Any input VAT credit asset would be classified as Prepaid expenses and other current assets if the Company expected to use the credit within one year.

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 4 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 privately negotiated transactions, including 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.

Parent Company Investment. Parent Company Investment in the Consolidated Balance Sheets represents YUM’s historical investment in the Company, the Company’s accumulated net earnings after taxes, and the net effect of transactions with and allocations from YUM. The Consolidated and Combined Statements of Equity include net cash transfers to and from YUM and the Company. All intercompany transactions that are not cash settled through Parent Company Investment in the accompanying Consolidated Balance Sheets are considered to be settled at the time the transaction is recorded. The total net effect of the settlement of these transactions is reflected in financing activities in the accompanying Consolidated and Combined Statements of Cash Flows. Upon the separation, Parent Company Investment was adjusted as a result of settlement of certain assets and liabilities with YUM and formed the Company’s common stock and additional paid-in capital.

Transactions with Parent

12 Months Ended

Dec. 31, 2017

Transactions with Parent

Note 3 – Transactions with Parent

Prior to the separation, there existed a parent-subsidiary relationship between YUM and the Company. We had the following transactions with YUM for the ten months ended October 31, 2016 and the year ended December 31, 2015:

Allocation of Corporate Expenses

YUM historically performed centralized corporate functions on our behalf prior to October 31, 2016. Accordingly, certain YUM costs have been allocated to the Company and reflected as expenses in the Combined Financial Statements. Management considers the allocation methodologies used to be reasonable and appropriate reflections of the historical expenses attributable to the Company. The expenses reflected in the Combined Financial Statements may not be indicative of the actual expenses that would have been incurred during the periods presented if we had operated as a separate, standalone entity.

Corporate expense allocations primarily relate to centralized corporate functions, including finance, accounting, treasury, tax, legal, internal audit and risk management functions. In addition, corporate expense allocations include, among other costs, IT maintenance, professional fees for legal services and expenses related to litigation, investigations, or similar matters. Corporate allocations of $11 million and $12 million were allocated to the Company during the ten months ended October 31, 2016 and the year ended December 31, 2015, respectively, and have been included in G&A expenses in the Consolidated and Combined Statements of Income. All of the corporate allocations of costs are deemed to have been incurred and settled through Parent Company Investment in the Consolidated Balance Sheets in the period where the costs were recorded. Following the separation from YUM, we perform these functions using our own resources or purchased services.

License Fee

The Consolidated and Combined Statements of Income include a fee that was historically paid to YUM comprised of initial fees and continuing fees equal to 3% of our Company and franchise sales prior to October 31, 2016. Total license fees paid to YUM during the ten months ended October 31, 2016 and the year ended December 31, 2015 are reflected in the table below:

	10 months ended		Year ended
	October 31,		December 31,
	2016		2015
Initial fees – Company	$	9	$	18
Initial fees – Franchise		2		3
Continuing fees – Company		163		201
Continuing fees – Franchise		42		47
Total	$	216	$	269

Cash Management and Treasury

The Company funds its operations through cash generated from the operation of its Company-owned stores, franchise operations and dividend payments from unconsolidated affiliates. Prior to October 31, 2016, excess cash has historically been repatriated to YUM through intercompany loans or dividends. Transfers of cash both to and from YUM are included within Parent Company Investment in the Consolidated Balance Sheets. YUM has issued debt for general corporate purposes but in no case has any such debt been guaranteed or assumed by the Company or otherwise secured by the assets of the Company. As YUM’s debt and related interest is not directly attributable to the Company, no such amounts have been allocated to the Consolidated and Combined Financial Statements.

Earnings Per Common Share ("EPS")

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Earning Per Common Share (EPS)

Note 4 – Earnings Per Common Share (“EPS”)

On October 31, 2016, YUM’s shareholders of record as of October 19, 2016 received one share of Yum China common stock for every one share of YUM’s common stock held as of the record date. For periods ended October 31, 2016 and prior, basic and diluted earnings per share, were computed using the number of shares of Yum China common stock outstanding as of October 31, 2016, the date on which the Yum China common stock was distributed to YUM’s shareholders. The same number of shares was used to calculate basic and diluted earnings per share for 2015 since there were no dilutive securities until after the separation.

The following table summarizes the components of basic and diluted earnings per share:

	2017		2016		2015
Net Income – Yum China Holdings, Inc.	$	403	$	502	$	323
Weighted-average common shares outstanding (for basic calculation)^(a)		386,533,783		367,744,992		363,758,219
Effect of dilutive share-based employee compensation^(a)		10,640,875		1,398,846		—
Effect of dilutive warrants ^(b)		914,948		—		—
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		398,089,606		369,143,838		363,758,219
Basic Earnings Per Share	$	1.04	$	1.36	$	0.89
Diluted Earnings Per Share	$	1.01	$	1.36	$	0.89
Employee stock options, stock appreciation rights and warrants excluded from the diluted EPS computation^(c)		9,595,173		16,987,578		—

(a)

(b)

Pursuant to the investment agreements dated September 1, 2016, Yum China issued to strategic investors two tranches of warrants on January 9, 2017, with each tranche providing the right to purchase 8,200,405 shares of Yum China common stock, at an exercise price of $31.40 and $39.25 per share, respectively. The outstanding warrants are included in the computation of diluted EPS, if there is dilutive effect when the average market price of Yum China common stock for the year exceeds the exercise price of the warrants.

(c)	These outstanding employee stock options, stock appreciation rights and warrants were not included in the computation of diluted EPS because to do so would have been antidilutive for the years presented.

Items Affecting Comparability of Net Income and Cash Flows

12 Months Ended

Dec. 31, 2017

Items Affecting Comparability Of Net Income And Cash Flows [Abstract]

Comparability of Prior Year Financial Data

Note 5 – Items Affecting Comparability of Net Income and Cash Flows

Refranchising Gain, net

The Refranchising gain, net by reportable segment and All Other Segments is presented below. We do not allocate such gains and losses to our segments for performance reporting purposes.

	Refranchising gain, net
	2017		2016		2015
KFC	$	4	$	14	$	8
Pizza Hut		1		1		3
All Other Segments		—		—		2
Total Company	$	5	$	15	$	13

Store Closure and Impairment Activity

Store closure income (costs) and Store impairment charges by reportable segment and All Other Segments are presented below. These tables exclude $17 million of incremental restaurant-level impairment upon the separation in 2016, which were not allocated to any segment for performance reporting purposes.

	2017
	Total Company			KFC			Pizza Hut			All Other Segments
Store closure income^(a)	$	11		$	7		$	4		$	—
Store impairment charges		(58	)		(27	)		(31	)		—
Closure and impairment expenses	$	(47	)	$	(20	)	$	(27	)	$	—

	2016
	Total Company			KFC			Pizza Hut			All Other Segments
Store closure income^(a)	$	9		$	7		$	1		$	1
Store impairment charges		(70	)		(48	)		(19	)		(3	)
Closure and impairment expenses	$	(61	)	$	(41	)	$	(18	)	$	(2	)

	2015
	Total Company			KFC			Pizza Hut			All Other Segments
Store closure income (costs)^(a)	$	6		$	7		$	2		$	(3	)
Store impairment charges		(70	)		(57	)		(10	)		(3	)
Closure and impairment expenses	$	(64	)	$	(50	)	$	(8	)	$	(6	)

(a)

Store closure income (costs) include lease reserves established when we cease using a property under an operating lease and subsequent adjustments to those reserves, other facility-related expenses from previously closed stores and proceeds from forced store closures. Remaining lease obligations for the closed stores were insignificant as of December 31, 2017 and 2016.

Incremental Restaurant-Level Impairment upon Separation

Incremental restaurant-level impairment represents additional impairment as a result of including the impact from the license fee paid to YUM on the individual restaurants future cash flow, which is equal to 3% of net system sales. Such license fee did not impact the impairment assessment prior to the separation as it was considered an intercompany charge at the time, whereas it became a charge from a third party after the separation and has been considered in the impairment assessment. See Note 13 for additional information.

Redeemable Noncontrolling Interest

At December 31, 2015, the redeemable noncontrolling interest comprised the 7% ownership interest in Little Sheep held by the Little Sheep founding shareholders, and was classified outside of permanent equity on our Consolidated and Combined Balance Sheets due to redemption rights held by the founding Little Sheep shareholders. During the year ended December 31, 2016, the Little Sheep founding shareholders sold their remaining 7% Little Sheep ownership interest to the Company pursuant to their redemption rights. The difference between the purchase price of less than $1 million, which was determined using a non-fair value based formula pursuant to the agreement governing the redemption rights, and the carrying value of their redeemable noncontrolling interest was recorded as an $8 million loss attributable to noncontrolling interests during the year ended December 31, 2016.

Losses Associated with Sale of Aircraft

During 2015, we made the decision to dispose of a corporate aircraft in China and recognized a loss of $15 million associated with the sale of the aircraft for the year ended December 31, 2015. We completed the sale during 2016. The sale proceeds of $19 million was greater than the net book value of $17 million of the aircraft at the time of disposal, which resulted in a reversal of $2 million of the previously recognized loss.

Investment Agreements with Strategic Investors

In connection with the investment agreement with strategic investors entered into on September 1, 2016, Yum China issued 19,145,169.42 shares of common stock on November 1, 2016, subject to Post-Closing Adjustments by December 30, 2016, and warrants to purchase additional shares of common stock. The Post-Closing Adjustment and the warrants were accounted for as derivative instruments and liability-classified equity contracts, respectively. These financial instruments were initially measured at fair value on the date of issuance, with subsequent changes in fair value of $21 million included in earnings during the year ended December 31, 2016. No subsequent fair value measurements were recognized after December 30, 2016. See Note 11 for additional information.

Income Taxes

During the year ended December 31, 2016, the Company recorded a tax benefit of $26 million as a result of Little Sheep legal entity restructuring completed prior to the separation.

The Company recorded $163.9 million as an additional income tax expense in the fourth quarter of 2017, the period in which the Tax Act was enacted. It includes an estimated one-time transition tax of $129.8 million on the deemed repatriation of accumulated undistributed foreign earnings, $4.5 million primarily related to the remeasurement of certain deferred tax assets based on the rates at which they are expected to reverse in the future, and the valuation allowance of $29.6 million for certain deferred tax assets.

Franchise Fees and Income

12 Months Ended

Dec. 31, 2017

Franchisor Revenue [Abstract]

Franchise Fees and Income

Note 6 – Franchise Fees and Income

	2017			2016			2015
Initial fees, including renewal fees	$	12		$	10		$	9
Initial franchise fees included in Refranchising gain, net		(1	)		(4	)		(3	)
		11			6			6
Continuing fees and rental income		135			124			114
Franchise fees and income	$	146		$	130		$	120

Other Income, Net

12 Months Ended

Dec. 31, 2017

Other Income And Expenses [Abstract]

Other Income, Net

Note 7 – Other Income, net

	2017		2016			2015
Equity income from investments in unconsolidated affiliates	$	65	$	54		$	41
China poultry supply insurance recovery^(a)		—		3			5
Reversal of (provision for) losses associated with sale of aircraft		—		2			(15	)
Foreign exchange net loss and other		—		(3	)		(5	)
Income from the reversal of contingent consideration^(b)		3		—			—
Other income, net	$	68	$	56		$	26

(a)	Recoveries related to lost profits associated with a 2012 poultry supply incident.

(b)	Income recognized from the reversal of contingent consideration previously recorded for a business combination as the likelihood of making payment became remote.

Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2017

Supplemental Balance Sheet Information Disclosure [Abstract]

Supplemental Balance Sheet Information

Note 8 – Supplemental Balance Sheet Information

Accounts Receivables, net	2017			2016
Accounts receivables, gross	$	83		$	76
Allowance for doubtful accounts		(2	)		(2	)
Accounts receivables, net	$	81		$	74

Prepaid Expenses and Other Current Assets	2017		2016
Prepaid rent		41		39
Other prepaid expenses and current assets^(a)		119		81
Prepaid expenses and other current assets	$	160	$	120

(a)	Includes receivables of $38 million and $16 million due from payment processors or aggregators as of December 31, 2017 and 2016, respectively (See Note 2).

Property, Plant and Equipment	2017			2016
Buildings and improvements	$	2,184		$	2,029
Capital leases, primarily buildings		28			29
Machinery and equipment		1,204			1,081
Property, plant and equipment, gross		3,416			3,139
Accumulated depreciation and amortization		(1,725	)		(1,492	)
Property, plant and equipment, net	$	1,691		$	1,647

Depreciation and amortization expense related to property, plant and equipment was $391 million, $385 million and $408 million in 2017, 2016 and 2015, respectively.

Accounts Payable and Other Current Liabilities	2017		2016
Accounts payable	$	424	$	480
Accrued capital expenditures		142		132
Accrued compensation and benefits		233		191
Accrued taxes, other than income taxes		16		14
Other current liabilities		163		154
Accounts payable and other current liabilities	$	978	$	971

Other Liabilities and Deferred Credits	2017		2016
Deferred escalating minimum rent	$	162	$	153
Other noncurrent liabilities and deferred credits		116		99
Transition tax payables		76		—
Other liabilities and deferred credits	$	354	$	252

Noncontrolling Interests

Noncontrolling interests represent the ownership interests of minority shareholders of Daojia and the entities that operate KFC restaurants in Beijing and Shanghai, China. At December 31, 2015, the redeemable noncontrolling interest comprised the 7% ownership interest in Little Sheep held by the Little Sheep founding shareholders, and was classified outside of permanent equity on our Consolidated and Combined Balance Sheets due to redemption rights held by the founding Little Sheep shareholders. During the year ended December 31, 2016, the Little Sheep founding shareholders sold their remaining 7% Little Sheep ownership interest to the Company pursuant to their redemption rights. The difference between the purchase price of less than $1 million, which was determined using a non-fair value based formula pursuant to the agreement governing the redemption rights, and the carrying value of their redeemable noncontrolling interest was recorded as an $8 million loss attributable to noncontrolling interests during the year ended December 31, 2016. During 2017, in connection with acquisition of Daojia, the redeemable noncontrolling interest was initially measured at fair value and classified outside of permanent equity on our Consolidated Balance Sheets due to redemption rights held by the minority shareholder. A reconciliation of the beginning and ending carrying amount of the equity attributable to noncontrolling interests is as follows:

	Noncontrolling Interests			Redeemable Noncontrolling Interest
Balance at December 31, 2015	$	58		$	6
Net income – noncontrolling interests		19			1
Noncontrolling interest loss upon redemption		—			(8	)
Dividends declared		(7	)		—
Currency translation adjustments		(4	)		1
Balance at December 31, 2016	$	66		$	—
Net income – noncontrolling interests		26			—
Acquisition of business		2			5
Dividends declared		(22	)		—
Currency translation adjustments		5			—
Balance at December 31, 2017	$	77		$	5

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

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^(a)
Balance as of December 31, 2015
Goodwill, gross	$	467		$	75		$	10		$	382
Accumulated impairment losses		(382	)		—			—			(382	)
Disposals and other, net^(b)		(6	)		(5	)		(1	)		—
Balance as of December 31, 2016
Goodwill, gross		461			70			9			382
Accumulated impairment losses		(382	)		—			—			(382	)
Goodwill, net		79			70			9			—
Goodwill acquired and allocated		23			5			9			9
Effect of currency translation adjustment		6			5			1			—
Balance as of December 31, 2017
Goodwill, gross		490			80			19			391
Accumulated impairment losses		(382	)		—			—			(382	)
Goodwill, net	$	108		$	80		$	19		$	9

(a)Accumulated impairment losses represent Little Sheep goodwill related impairment.

(b)	Disposals and other, net includes the impact of foreign currency translation on existing balances and goodwill write-offs associated with refranchising.

Intangible assets, net as of December 31, 2017 and 2016 are as follows:

	2017							2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Definite-lived intangible assets
Reacquired franchise rights	$	100	$	(87	)	$	13	$	93	$	(71	)	$	22
Daojia platform		18		(1	)		17		—		—			—
Customer-related assets		12		(6	)		6		7		(4	)		3
Other		19		(10	)		9		19		(9	)		10
	$	149	$	(104	)	$	45	$	119	$	(84	)	$	35
Indefinite-lived intangible assets
Little Sheep trademark	$	56	$	—		$	56	$	53	$	—		$	53

Total intangible assets	$	205	$	(104	)	$	101	$	172	$	(84	)	$	88

Amortization expense for definite-lived intangible assets was $14 million in 2017, $12 million in 2016 and $13 million in 2015. Amortization expense for definite-lived intangible assets will approximate $16 million in 2018, $9 million in 2019, $4 million in 2020, $4 million in 2021 and $3 million in 2022.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Credit Facilities	12 Months Ended
Credit Facilities	Dec. 31, 2017
Debt Disclosure [Abstract]
Credit Facilities	Note 10 – Credit Facilities The Company had credit facilities of RMB1,700 million (approximately $261 million) and RMB2,300 million (approximately $330 million) in the aggregate as of December 31, 2017 and 2016, respectively. The credit facilities have terms ranging from one to three years. Each credit facility bears interest based on the prevailing rate stipulated by the People’s Bank of China and contains financial covenants including, among other things, limitations on certain additional indebtedness and liens, and certain other transactions specified in the respective agreement. Each credit facility contains 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. Interest on any outstanding borrowings is due at least monthly. As of December 31, 2017, the full amount of borrowings was available to us under each credit facility.

Investment Agreements with Strategic Investors	12 Months Ended
Investment Agreements with Strategic Investors	Dec. 31, 2017
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) shares of Yum China common stock representing in the aggregate 5% of Yum China common stock issued and outstanding immediately following the separation subject to Post-Closing Adjustment for a final aggregate ownership of between 4.3% and 5.9% in Yum China and (ii) two tranches of warrants (the “Warrants”), which will be issued to the Investors approximately 70 days after the separation, exercisable by the Investors for an approximate additional 4% ownership, in the aggregate, of Yum China common stock issued and outstanding after the separation, taking into account the shares previously issued to the Investors. Immediately before the closing of the Investment, Yum China had 363,758,219 shares of common stock issued and outstanding, with a par value US$0.01 per share. Pursuant to the Investment Agreements, on November 1, 2016, Yum China issued 17,064,172.74 and 2,080,996.68 shares of common stock (the “Closing Shares”) at US$24.03 per share (“Closing Price”) to Primavera and Ant Financial, respectively, subject to adjustment as described below. Pursuant to the Investment Agreements, the Investors and the Company determined the volume weighted average trading price (“VWAP”) per share of Company common stock over the trading days occurring over the period from December 1, 2016 to December 30, 2016 (the “Measurement Period”), and discounted such VWAP by 8% (the “Adjusted VWAP Price Per Share”). Since the Adjusted VWAP Price Per Share of $25.05 exceeded the Closing Price of US$24.03 paid by the Investors at the Closing Date, on January 9, 2017, the Company repurchased from Primavera and Ant Financial 699,394.74 and 85,291.68 shares of common stock, respectively, at par value of $0.01 per share, based on the Adjusted VWAP Price Per Share as determined on December 30, 2016. The repurchased shares were included in Treasury Stock as of December 31, 2016 in the Consolidated and Combined Financial Statements. In addition, pursuant to the terms of the Investment Agreements, on January 9, 2017, Yum China issued to each of the Investors two tranches of Warrants. Upon exercise, the first tranche of Warrants provide Primavera and Ant Financial with the right to purchase 7,309,057 and 891,348 shares of Yum China common stock, respectively, at an exercise price of $31.40 per share. The second tranche of Warrants provide Primavera and Ant Financial with the right to purchase the same number of shares of Yum China common stock purchasable by Primavera and Ant Financial under the first tranche of Warrants, at an exercise price of $39.25 per share. The exercise price for the Warrants was based on $12 billion and $15 billion for the first tranche and second tranche, respectively, divided by the number of shares of common stock, including the Closing Shares after the Post-Closing Adjustment, issued and outstanding as of the Closing Date. The Warrants may be exercised at any time through October 31, 2021 and contain customary anti-dilution protections. As a result of the issuance of the Closing Shares and the Post-Closing Adjustment (excluding shares issuable upon exercise of the Warrants), Primavera and Ant Financial collectively beneficially owned approximately 4.8% of the outstanding shares of Yum China common stock as of January 9, 2017, or approximately 8.7% of the outstanding shares of Yum China common stock as of January 9, 2017 assuming the full exercise of both tranches of Warrants by each of the Investors. The Post-Closing Adjustment was accounted for as a combination of a purchased call and a written put. In accordance with ASC Topic 480 (“ASC 480”), Distinguishing Liabilities from Equity, the feature should be accounted for as a liability or an asset, as the monetary value of the obligation varies inversely in relation to changes in the fair value of Yum China common stock and Yum China can net share settle the contract. Therefore, the Post-Closing Adjustment was measured as a derivate asset at a fair value of $1.3 million on November 1, 2016, with the subsequent increase in fair value of $19.2 million included in earnings until December 30, 2016. As the Post-Closing Adjustment was effectively settled and included in Treasury Stock on December 30, 2016, no subsequent fair value measurement was required. The Warrants were recorded as liability-classified equity contracts in accordance with ASC Topic 815 (“ASC 815”), Derivatives and Hedging, as the number of Warrants cannot be determined until the Post-Closing Adjustment is made and, therefore, the settlement amount is not fixed. They were measured at fair value of $97.1 million as of November 1, 2016, with subsequent decrease in fair value of $2.1 million included in earnings until December 30, 2016, when the Warrants were reclassified to equity at the then fair value of $95 million. After the Post-Closing Adjustment was resolved, the number of Warrants to be issued became fixed, and the Warrants were considered indexed to the Yum China’s own stock. As share settlement is within Yum China’s control, the Warrants met the equity classification criteria on December 30, 2016 and no subsequent fair value measurement was required. Total cash proceeds of $460 million from the closing of the Investment were first allocated to the Post-Closing Adjustment and Warrants based on their fair value on November 1, 2016, with the residual value of $364 million allocated to the shares of common stock issued. In connection with and at the closing of the Investment, on November 1, 2016, Yum China and the Investors entered into a shareholders agreement, relating to rights and obligations of the Investors as holders of Yum China common stock and Warrants. Under the terms of the shareholders agreement, Primavera is entitled to designate one member of Yum China’s board of directors and has the right to designate one non-voting board observer to Yum China’s board of directors. In addition, Ant Financial also has the right to designate one non-voting board observer to Yum China’s board of directors. If Primavera no longer meets certain shareholding requirements, then three years after such time, Ant Financial will lose its right to designate a board observer (unless such right has been previously terminated pursuant to the terms of the shareholders agreement).

Leases

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

Leases

Note 12 – Leases

At December 31, 2017, we operated more than 6,300 restaurants, leasing the underlying land and/or building, with our commitments expiring within 20 years from the inception of the lease. In addition, the Company subleases approximately 170 properties to franchisees. Most leases require us to pay related executory costs, which include property taxes, maintenance and insurance.

We also lease office space for headquarters, regional offices and support functions, as well as certain office and restaurant equipment.

Future minimum commitments and amounts to be received as lessor or sublessor under non-cancelable leases are set forth below:

	Commitments				Lease Receivables
	Capital		Operating		Operating
2018	$	3	$	481	$	17
2019		3		450		15
2020		3		424		14
2021		4		378		11
2022		4		317		9
Thereafter		28		1,070		14
	$	45	$	3,120	$	80

At December 31, 2017 and 2016, the present value of minimum payments under capital leases was $29 million and $30 million, respectively. The current portion of capital lease obligations was $1 million and $1 million in 2017 and 2016, respectively, and is classified in Accounts payable and other current liabilities.

The details of rental expense and income are set forth below:

	2017		2016		2015
Rental expense
Minimum	$	496	$	470	$	516
Contingent		292		250		260
	$	788	$	720	$	776
Rental income	$	28	$	26	$	24

Fair Value Disclosures

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Note 13 – Fair Value Disclosures

As of December 31, 2017 the carrying values of cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximated their fair values because of the short-term nature of these instruments.

In addition, certain of the Company’s assets, such as property, plant and equipment, goodwill and intangible assets, are measured at fair value on a non-recurring basis, if determined to be impaired. The financial instruments are measured at fair value on a non-recurring basis, as they were issued and reclassified into equity within the same year.

The following table presents expense recognized from all non-recurring fair value measurements during the years ended December 31, 2017, 2016 and 2015. All fair value measurements were based on unobservable inputs (Level 3). These amounts exclude fair value measurements made for restaurants that were subsequently closed or refranchised prior to those respective year-end dates.

	2017		2016			2015
Restaurant-level impairment^(a)	$	41	$	58		$	51
Incremental restaurant-level impairment upon separation^(b)		—		17			—
Changes in fair value of financial instruments^(c)		—		(21	)		—
Income from the reversal of contingent consideration^(d)		3		—			—
Total	$	44	$	54		$	51

(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. The fair value measurements used in these impairment evaluations were based on discounted cash flow estimates using unobservable inputs (Level 3). The remaining net book value of assets measured at fair value during the years ended December 31, 2017, 2016 and 2015 was insignificant.

(b)

Incremental restaurant-level impairment represents additional impairment as a result of including the impact from the license fee paid to YUM on the individual restaurants future cash flow, which is equal to 3% of net system sales. Such license fee did not impact the impairment assessment prior to the separation as it was considered an intercompany charge at the time, whereas it became a charge from a third party after the separation and therefore should be considered in the impairment assessment. The remaining net book value of assets measured at fair value during the year ended December 31, 2017 was insignificant.

(c)

The Post-Closing Adjustment and the Warrants from the investment with strategic investors were accounted for as derivative instruments and liability-classified equity contracts, respectively (see Note 11). These financial instruments were initially measured at fair value as of November 1, 2016, the date when shares of common stock were issued, and subject to subsequent fair value measurement until December 30, 2016. They are classified within Level 3 because their fair values are based on inputs that are unobservable in the market. The Company adopted the Monte-Carlo Simulation model (the “MCS” model) and Black-Scholes option-pricing model (the “BS” model) in deriving the initial fair values of the Post-Closing Adjustment and the Warrants, respectively. On December 30, 2016, when the Adjusted VWAP Price Per Share was determined, the Post-Closing Adjustment was remeasured at fair value of $20.5 million based on 784,686.42 shares of common stock to be repurchased from the Investors at the closing price of $26.12 per share. The Warrants were remeasured at fair value of $95 million using the BS option-pricing model with assumptions as of December 30, 2016. The key assumptions for the MCS model and the BS model as of November 1, 2016 and December 30, 2016, respectively, are as follows:

	November 1, 2016						December 30, 2016
	Post-Closing Adjustment			Warrants			Warrants
Fair market value of common stock	$	26.19		$	26.19		$	26.12
Expected term	60 days			5 years			5 years
Average risk-free rate-of-return		0.27	%		1.31	%		1.93	%
Expected volatility		33	%		34	%		33	%
Expected dividend yield		—	%		—	%		—	%

The Adjusted VWAP Price Per Share for the Post-Closing Adjustment and the exercise price of the Warrants are estimated based on simulated paths. Since we became a publicly traded company after the separation and did not have sufficient historical trading data to estimate the expected volatility, we estimated the expected volatility of our common stock based on the historical price volatility of the publicly traded shares of comparable companies in the same business as the Company over the periods equal to the expected term of these financial instruments. The risk-free interest rate was based on the U.S. Treasury zero-coupon yield in effect with maturity terms equal to the expected term of the financial instruments. The dividend yield was estimated to be zero.

(d)	During 2017, we recognized income of $3 million from the reversal of contingent consideration previously recorded for a business combination (Level 3), as the fair value of such contingent consideration is considered to be nil given the remote likelihood of the payment obligation.

- 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

Retirement Plans	12 Months Ended
Retirement Plans	Dec. 31, 2017
Compensation And Retirement Disclosure [Abstract]
Retirement Plans	Note 14 –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. The Company has considered these plans to be part of multi-employer plans. YUM has allocated expenses related to our employees’ participation in our Consolidated and Combined Statements of Income. However, our Consolidated Balance Sheets do not reflect any assets or the liabilities related to these plans. We consider the expense allocation methodology and results to be reasonable for the periods prior to October 31, 2016. Subsequent to the separation, employees who participated in YUM’s plans were enrolled in YCHLRP, as discussed below. 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 of $4.2 million and $3.4 million attributable to our employees under the YCHLRP as of December 31, 2017 and December 31, 2016, respectively, are included in our Consolidated Balance Sheets. YUM offers certain of the Company’s executives working in China retirement benefits under 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, 2017, 2016 and 2015 was insignificant. 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 10% and 22% 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 and Combined 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 $157 million, $148 million and $150 million to the government-sponsored plan for 2017, 2016 and 2015, respectively.

Share-Based Compensation

12 Months Ended

Dec. 31, 2017

Share-Based Compensation

Note 15 – Share-Based Compensation

Overview

Prior to the separation, certain of the Company’s employees were eligible to participate in YUM’s Long-term Incentive Plan (the “YUM Plan”), pursuant to which they were granted awards of YUM common stock, including stock options, restricted stock units (“RSUs”) and stock appreciation rights (“SARs”). YUM recognized stock-based compensation costs, net of estimated forfeitures, for only those shares expected to vest on a straight-line basis over the requisite service period of the award. Accordingly, certain costs related to the YUM Plan have been allocated to the Company and are reflected in the Consolidated and Combined Statements of Income in G&A expenses prior to the separation.

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 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.

Potential awards to employees and non-employee directors under the 2016 Plan include stock options, incentive options, SARs, restricted stock, stock units, RSUs, performance shares, performance units, and cash incentive awards. We have issued only stock options, SARs and RSUs under the 2016 Plan. While awards under the 2016 Plan can have varying vesting provisions and exercise periods, outstanding awards under the 2016 Plan vest in periods ranging from three to five years. Stock options and SARs expire ten years after grant. The Company recognizes all share-based payments to employees and non-employee directors in the Consolidated and Combined 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. If no substantive service condition exists, the grant-date fair value is fully recognized as expense upon grant. Certain awards are subject to specific retirement conditions, which allow the awards to fully vest as long as the employee is actively employed for at least one year following the grant date, provides at least six months notification of intention to retire, and signs non-solicitation and non-compete agreements. Under such circumstances, the grant-date fair value of the award is recognized as expense on a straight-line basis over the one-year service period from the grant date.

Award Valuation

YUM and 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:

	2017			2016		2015
Risk-free interest rate		1.9	%	1.3% - 1.4	%		1.3	%
Expected term (years)		6.75		6.5 - 6.75			6.5
Expected volatility		34.0	%	27.0% - 35.0	%		27.0	%
Expected dividend yield		0.0	%	0% - 2.6	%		2.2	%

Awards granted to employees typically have a graded vesting schedule of 25% per year over four years and expire 10 years after grant. Both YUM and the Company use a single weighted-average term for awards that have a graded vesting schedule. Based on analysis of the historical exercise and post-vesting termination behavior, YUM and the Company determined that employees exercised the awards on average after 6.75 years. Forfeitures were estimated based on historical experience. Historical data used to estimate the expected term and forfeiture rate were based on data associated with the Company’s employees who were granted share-based awards by YUM prior to the separation.

For those awards granted by YUM prior to the separation, when determining expected volatility, YUM considered both historical volatility of its stock as well as implied volatility associated with its publicly traded options. The expected dividend yield is based on the annual dividend yield at the time of grant. 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. The Company had no plan to pay dividends at the time of the grant in 2017 and 2016. On October 4, 2017, the board of directors approved a regular quarterly cash dividend program, and declared an initial cash dividend of $0.10 per share on Yum China’s common stock.

RSU awards generally vest over a three-year period with a majority of the awards vesting at 100% on the third grant anniversary. The fair values of RSU awards are based on the closing price of YUM stock or the Company’s stock on the date of grant.

On 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 per share of Yum China 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 year ended December 31, 2017 and 2016, a total of 56,763 and 64,209 shares of Yum China common stock, respectively, were granted to non-employee directors and the grant-date fair value of $2.3 million and $1.7 million, respectively, was immediately recognized in full in the Consolidated and Combined 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 2017		24,728				17.88
Granted		2,234				26.56
Exercised		(4,168	)			15.50
Forfeited or expired		(1,199	)			22.90
Outstanding at the end of 2017		21,595		^(a)		18.96		5.55		455
Exercisable at the end of 2017		14,072				16.69		4.24		328

(a)	Outstanding awards include 890,249 stock options and 20,704,787 SARs with weighted average exercise prices of $14.74 and $19.14, 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 2017, 2016 and 2015 was $10.19, $12.78 and $16.11, respectively. The total intrinsic value of stock options and SARs exercised by the Company’s employees during the years ended December 31, 2017, 2016 and 2015, was $44 million, $25 million and $33 million, respectively.

As of December 31, 2017, $24 million of unrecognized compensation cost related to unvested stock options and SARs, which will be reduced by any forfeitures that occur, is expected to be recognized over a remaining weighted-average vesting period of approximately 1.73 years. This reflects unrecognized cost for both Yum China awards and YUM awards held by the Company’s employees. The total fair value at grant date or modification date of awards held by the Company’s employees that vested during 2017, 2016 and 2015 was $11 million, $11 million and $6 million, respectively.

RSUs

	Shares (in thousands)			Weighted- Average Grant Date Fair Value
Unvested at the beginning of 2017		546			23.81
Granted		563			28.46
Vested		(79	)		22.02
Forfeited or expired		(81	)		25.68
Unvested at the end of 2017		949			26.56

As of December 31, 2017, there was $16 million of unrecognized compensation cost related to 949,300 unvested RSUs.

Impact on Net Income

Share-based compensation expense was $26 million, $16 million and $14 million for 2017, 2016 and 2015, respectively. Deferred tax benefits recognized totaled $3 million in each of 2017, 2016 and 2015.

Equity	12 Months Ended
Equity	Dec. 31, 2017
Stockholders Equity Note [Abstract]
Equity	Note 16 – Equity On September 23, 2016, YUM’s board of directors approved the distribution of its shares of Yum China common stock to YUM’s stockholders on a pro rata basis. On October 31, 2016, YUM’s shareholders of record as of October 19, 2016 received one share of Yum China common stock for every one share of YUM’s common stock held as of the record date. On October 31, 2016, we completed the legal separation from YUM, and we began trading “regular way” under the ticker symbol “YUMC” on the New York Stock Exchange on November 1, 2016. Following the separation, YUM does not own any equity interest in us. Immediately after the separation on October 31, 2016, Yum China authorized capital stock consisted of 1,000,000,000 shares of common stock, par value $0.01 per share, and 363,758,219 shares of Yum China common stock were issued and outstanding. As of December 31, 2017, 388,860,534.42 shares of Yum China common stock were issued and 384,720,152 shares were outstanding. On October 27, 2016, a duly authorized committee of Yum China’s board of directors adopted a stockholder rights plan (the “Rights Plan”), pursuant to which the board declared a dividend, to Yum China’s sole stockholder of record as of October 27, 2016, of one preferred stock purchase right (a “Right”) for each of share of Yum China common stock. Before the Rights Plan expired on October 27, 2017, the Rights would trade with, and would be inseparable from, Yum China common stock. The original dividend of the Rights to the existing shareholder was recorded at fair value, which was insignificant given the contingent nature of the Rights. The embedded Rights were considered clearly and closely related to the underlying equity host and, therefore, did not require separate accounting. Share Repurchase Program The Company repurchased 3.4 million shares of common stock at a total cost of $128 million for the year ended December 31, 2017. No shares were repurchased for the year ended December 31, 2016. As of December 31, 2017, $422 million remained available for repurchase under current authorization. Cash Dividend On October 4, 2017, the board of directors approved a regular quarterly cash dividend program, and declared an initial cash dividend of $0.10 per share on Yum China’s common stock. The cash dividend totaling $38 million was paid to shareholders in December 2017. Accumulated Other Comprehensive Income (“AOCI”) The Company’s other comprehensive income (loss) for the years ended December 31, 2017, 2016, and 2015 and AOCI balances as of December 31, 2017 and 2016 were comprised solely of foreign currency translation adjustments. Other comprehensive gain was $142 million for the year ended December 31, 2017 and other comprehensive loss was $132 million and $93 million for the years ended December 31, 2016 and 2015, respectively. The accumulated balances reported in AOCI on the Consolidated Balance Sheets for currency translation adjustments were $138 million and $1 million as of December 31, 2017 and 2016, respectively. 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 and Combined 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 is approximately $612 million as of December 31, 2017. 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.

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Note 17 – Income Taxes

Prior to October 31, 2016, our operations have historically been included in the U.S. federal and U.S. state income tax returns filed by YUM. Our foreign income tax returns, primarily those filed by our China subsidiaries, are filed on an individual entity basis. The Company has calculated its provision using the separate return method in these Consolidated and Combined Financial Statements. Under this method, the Company is assumed to have filed hypothetical tax returns on a standalone basis separate from YUM in the relevant tax jurisdictions.

Subsequent to October 31, 2016, the Company became a separate taxpayer and started preparing its own consolidated U.S. federal income tax return and U.S. state income tax filings. As of December 31, 2017 and 2016, the current and deferred taxes, including carryforwards and tax credits, are reflective of the Company’s actual balances subsequent to the separation.

In December 2017, the U.S. enacted the Tax Act, which included a broad range of tax reforms, including, but not limited to, the establishment of a flat corporate income tax rate of 21%, the elimination or reduction of certain business deductions, and the imposition of tax on deemed repatriation of accumulated undistributed foreign earnings. The Tax Act has impacted Yum China in two material aspects: all of the foreign-source dividends received by Yum China from its foreign subsidiaries will be exempted from taxation starting from tax year beginning after December 31, 2017 and Yum China recorded additional income tax expense in the fourth quarter of 2017, including an estimated one-time transition tax on its deemed repatriation of accumulated undistributed foreign earnings and additional tax related to revaluation of certain deferred tax assets.

Based on the information currently available, we have made a reasonable estimate of the effects and recorded the provisional amount of $163.9 million as an additional income tax expense in the fourth quarter of 2017. This amount includes an estimated one-time transition tax of $129.8 million on the deemed repatriation of accumulated undistributed foreign earnings, $4.5 million primarily related to the remeasurement of certain deferred tax assets based on the rates at which they are expected to reverse in the future, and the valuation allowance of $29.6 million for certain deferred tax assets. After utilizing existing qualified foreign tax credits, the total payable of the estimated one-time transition tax was $83.0 million as of December 31, 2017 of which $6.6 million was included in Income taxes payable and $76.4 million was included in Other liabilities and deferred credits.

The Tax Act requires complex computations with significant estimates to be performed, significant judgments to be made in interpretation of the provisions, and the preparation and analysis of information not previously relevant or regularly produced. The U.S. Treasury Department, the IRS, the SEC and other standard-setting bodies could interpret or issue guidance on how provisions of the Tax Act will be applied or otherwise administered that is different from our current interpretation. As we complete our analysis of the Tax Act, collect and prepare necessary data, and interpret any additional guidance, we may make adjustments to provisional amounts that we have recorded that may materially impact our provision for income taxes in the period in which the adjustments are made. We expect to complete our analysis within the measurement period not exceeding one year from the enactment date.

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

	2017			2016		2015
U.S.	$	(13	)	$	5	$	(7	)
China		818			659		502
Other Foreign		5			8		1
	$	810		$	672	$	496

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

		2017			2016			2015
Current:	Federal	$	85		$	(2	)	$	7
	Foreign		232			200			132
		$	317		$	198		$	139

Deferred:	Federal	$	77		$	(36	)	$	(7	)
	Foreign		(13	)		(4	)		36
		$	64		$	(40	)	$	29
		$	381		$	158		$	168

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

	2017					2016					2015
U.S. federal statutory rate	$	284		35.0	%	$	235		35.0	%	$	173		35.0	%
Impact from the Tax Act		164		20.2			—		—			—		—
Statutory rate differential attributable to foreign operations		(61	)	(7.5	)		(55	)	(8.4	)		(15	)	(3.1	)
Adjustments to reserves and prior years		(1	)	(0.2	)		16		2.4			3		0.6
Change in valuation allowances		2		0.2			—		—			12		2.4
Tax benefit from Little Sheep restructuring		—		—			(26	)	(3.8	)		—		—
Other, net		(7	)	(0.8	)		(12	)	(1.7	)		(5	)	(1.0	)
Effective income tax rate	$	381		46.9	%	$	158		23.5	%	$	168		33.9	%

Statutory rate differential attributable to foreign operations. This item includes local taxes, withholding taxes, and shareholder-level taxes, net of foreign tax credits. The favorable impact is primarily attributable to a majority of our income being earned in China where it is subject to a 25% tax rate, which is lower than the historical U.S. federal statutory rate of 35%.

In 2017, 2016 and 2015, this benefit was negatively impacted by the actual and deemed repatriation of current year foreign earnings to the U.S. as we recognized additional tax expense, resulting from the related effective tax rate being lower than the U.S. federal statutory 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 and Combined 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 offset items reflected in the ‘Statutory rate differential attributable to foreign operations’ line.

In 2016, this item was negatively impacted by the additional amount recorded for uncertain tax positions in China.

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 change in valuation allowance as a result of the Tax Act in the amount of $29.6 million was included in ‘Impact from the Tax Act’. The impact of certain changes may offset items reflected in ‘Statutory rate differential attributable to foreign operations’.

In 2015, $12 million of net tax expense was driven by valuation allowances recorded against deferred tax assets generated during the current year.

Tax benefit from Little Sheep restructuring. In 2016, we recognized tax benefit of $26 million as a result of Little Sheep legal entity restructuring completed prior to the separation. The cash tax savings associated with this benefit will be realized as we recognize future U.S. taxable income. In 2017, this tax benefit was remeasured as a result of the Tax Act, and a valuation allowance of $19.5 million was recognized as part of valuation allowance recorded and reflected in ‘Impact from the Tax Act’.

Other. This item primarily includes the impact of permanent differences related to current year earnings as well as U.S. tax credits and deductions.

In 2016, this item was favorably impacted by non-taxable gain from changes in fair value of financial instruments associated with the Investors’ strategic investment in Yum China. See Note 13.

The details of 2017 and 2016 deferred tax assets (liabilities) are set forth below:

	2017			2016
Operating losses and tax credit carryforwards	$	43		$	86
Tax benefit from Little Sheep restructuring		20			26
Employee benefits		5			4
Share-based compensation		6			8
Deferred escalating minimum rent		45			42
Other liabilities		10			8
Deferred income and other		43			35
Gross deferred tax assets		172			209
Deferred tax asset valuation allowances		(68	)		(41	)
Net deferred tax assets	$	104		$	168
Intangible assets		(25	)	$	(22	)
Property, plant and equipment		(2	)		(1	)
Other		(10	)		(9	)
Gross deferred tax liabilities	$	(37	)	$	(32	)
Net deferred tax assets	$	67		$	136
Reported in Consolidated Balance Sheets as:
Deferred income taxes		99		$	162
Other liabilities and deferred credits		(32	)		(26	)
	$	67		$	136

We have investments in our foreign subsidiaries where the carrying values for financial reporting exceed the tax basis. 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 $2.0 billion at December 31, 2017. However, it is not practicable to determine the deferred tax liability on this amount due to uncertainty with regard to the timing or manner of repatriation and the related impact on foreign taxes.

At December 31, 2017, the Company had operating loss carryforwards of $165 million, primarily related to our Little Sheep business, all of which will expire by 2022. These losses are being carried forward in jurisdictions where we are permitted to use tax losses from prior periods to reduce future taxable income.

As of December 31, 2016, the Company had U.S. tax credit carryforwards of $46 million, which represents Yum China’s foreign tax credit carryforwards as a result of the separation. This was attributable to the distributions from the Company’s China business to YUM after Yum China was incorporated and became the parent of the Company’s operating entities in China. The tax credit of $47 million at the end of 2017 was fully utilized to offset the one-time transition tax.

Cash payments for tax liabilities on income tax returns filed in China were $232 million, $182 million and $143 million in 2017, 2016 and 2015, 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:

	2017			2016
Beginning of Year	$	26		$	15
Additions on tax positions		8			14
Reductions due to statute expiration		(6	)		(3	)
End of Year	$	28		$	26

In 2017 and 2016, we increased our unrecognized tax benefits by $8 million and $14 million, respectively, related to uncertainty with regard to the deductibility of certain business expenses incurred during the year. The unrecognized tax benefits balance as of December 31, 2017 was $28 million, 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 may decrease by approximately $8 million in the next twelve months, if recognized, would affect the 2018 effective tax rate.

The accrued interest and penalties related to income taxes at December 31, 2017 and 2016 are set forth below:

		2017				2016
Accrued interest and penalties		$	7			$	5

During 2017, 2016 and 2015, a net expense of $2 million, $3 million and $1 million, respectively, for interest and penalties was recognized in our Consolidated and Combined Statements of Income as components of our income tax provision.

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.

The Company’s operations in foreign jurisdictions generally remain subject to examination for tax years as far back as 2006, and some of which years are currently under audit by local tax authorities. Currently we are under a national audit on transfer pricing by the Chinese State Administration of Taxation (“SAT”) regarding our related party transactions for the period from 2006 to 2015. A few meetings with the SAT took place to discuss the progress of the audit, and it is reasonably possible that there could be significant development within the next 12 months. The ultimate assessment will depend upon further review of the information provided and ongoing discussions with the SAT and in-charge local tax authorities, and therefore it is not possible to estimate the potential impact. We will continue to defend our transfer pricing position. However, if the SAT 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.

Reportable Operating Segments

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Reportable Operating Segments

Note 18 – Reportable Operating Segments

During the second quarter of 2017, we integrated the businesses of Pizza Hut Casual Dining and Pizza Hut Home Service and began reporting them together as the Pizza Hut reportable segment. As a result, the Company has two reportable segments: KFC, which remains unchanged, and Pizza Hut. We also have four non-reportable operating segments, East Dawning, Little Sheep, Taco Bell and Daojia, which are combined and referred to as All Other Segments, as these operating segments are insignificant both individually and in the aggregate. Segment financial information for prior years has been recast to align with this change in segment reporting. See Note 1.

	Revenues
	2017		2016		2015
KFC	$	4,998	$	4,696	$	4,768
Pizza Hut		2,092		1,995		2,041
All Other Segments		54		61		100
	$	7,144	$	6,752	$	6,909

	Operating Profit; Interest Income, Net; and Income Before Income Taxes
	2017			2016			2015
KFC^(a)	$	807		$	644		$	499
Pizza Hut		157			149			139
All Other Segments		(5	)		(4	)		(8	)
Unallocated and corporate expenses^(b)		(185	)		(153	)		(144	)
Unallocated Closures and impairment expense^(b)(c)		—			(17	)	—
Unallocated Refranchising gain^(b)		5			15			13
Unallocated Other income (expense)^(b)		6			6			(11	)
Operating Profit		785			640			488
Interest income, net^(b)		25			11			8
Changes in fair value of financial instruments^(b)		—			21			—
Income Before Income Taxes	$	810		$	672		$	496

	Depreciation and Amortization
	2017		2016		2015
KFC	$	265	$	266	$	283
Pizza Hut		126		120		118
All Other Segments		4		5		11
Corporate		14		11		13
	$	409	$	402	$	425

	Capital Spending
	2017		2016		2015
KFC	$	227	$	221	$	259
Pizza Hut		93		129		192
All Other Segments		2		1		—
Corporate		93		85		61
	$	415	$	436	$	512

	Identifiable Assets
	2017		2016
KFC^(d)	$	1,526	$	1,411
Pizza Hut		668		679
All Other Segments		144		109
Corporate^(e)		1,925		1,528
	$	4,263	$	3,727

	Long-Lived Assets^(f)
	2017		2016
KFC	$	1,152	$	1,099
Pizza Hut		580		599
All Other Segments		114		82
Corporate		54		33
	$	1,900	$	1,813

(a)	Includes equity income from investments in unconsolidated affiliates of $65 million, $54 million and $41 million in 2017, 2016 and 2015, respectively.

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

(d)	Includes investments in unconsolidated affiliates totaling $89 million and $71 million for 2017 and 2016, respectively.

(e)	Primarily includes cash and inventories that are centrally managed.

(f)	Includes property, plant and equipment, net, goodwill, and intangible assets, net.

Contingencies	12 Months Ended
Contingencies	Dec. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Contingencies	Note 19 – Contingencies Indemnification of China Tax on Indirect Transfers of Assets In February 2015, the SAT issued Bulletin 7 on Income arising from Indirect Transfers of Assets by Non-Resident Enterprises. Pursuant to Bulletin 7, an “indirect transfer” of Chinese taxable assets, including equity interests in a Chinese resident enterprise (“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 thirty 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 and Unconsolidated Affiliates From time to time we have guaranteed certain lines of credit and loans of franchisees and unconsolidated affiliates. As of December 31, 2017, we have provided guarantees of approximately $2 million on behalf of franchisees and there are no guarantees outstanding for unconsolidated affiliates. 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, 2017. 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 and Combined 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.

Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2017

Selected Quarterly Financial Data Unaudited [Abstract]

Selected Quarterly Financial Data (Unaudited)

Note 20 – Selected Quarterly Financial Data (Unaudited; in millions, except per share amounts)

	2017
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter			Total
Revenues:
Company sales	$	1,257	$	1,563	$	1,998	$	2,180		$	6,998
Franchise fees and income		27		31		40		48			146
Total revenues		1,284		1,594		2,038		2,228			7,144
Restaurant profit		289		239		399		246			1,173
Operating Profit		254		143		317		71			785
Net Income (Loss) – Yum China Holdings, Inc.		175		107		211		(90	)		403
Basic earnings (loss) per common share	$	0.45	$	0.28	$	0.55	$	(0.23	)	$	1.04
Diluted earnings (loss) per common share	$	0.44	$	0.27	$	0.53	$	(0.23	)	$	1.01

	2016
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total
Revenues:
Company sales	$	1,278	$	1,558	$	1,848	$	1,938	$	6,622
Franchise fees and income		25		30		35		40		130
Total revenues		1,303		1,588		1,883		1,978		6,752
Restaurant profit		246		196		356		214		1,012
Operating Profit		209		87		286		58		640
Net Income – Yum China Holdings, Inc.		145		77		192		88		502
Basic earnings per common share	$	0.40	$	0.21	$	0.53	$	0.23	$	1.36
Diluted earnings per common share	$	0.40	$	0.21	$	0.53	$	0.23	$	1.36

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 21 – Subsequent Events Cash Dividend On February 6, 2018, the Company announced that the board of directors declared a cash dividend of $0.10 per share on Yum China’s common stock, payable as of the close of business on March 21, 2018, to stockholders of record as of the close of business on February 28, 2018. Total estimated cash dividend payable is approximately $39 million. Share-Based Compensation On February 9, 2018, the Company’s board of directors approved grants of 89,290 RSUs and 1,179,215 SARs to the employees under the 2016 Plan. The estimated total grant-date fair value of these awards is $19.5 million, which will be recognized on a straight-line basis over the vesting periods. The Company also granted performance share units for a total fair value of $2.5 million which will be earned subject to certain performance-based conditions. Acquisition of Additional Interest in Unconsolidated Affiliate On February 14, 2018, the Company completed the acquisition of an additional 36% interest in Wuxi KFC joint venture company (“Wuxi JV”), for approximately RMB620 million (approximately $95 million). Upon acquisition, Yum China holds an 83% interest in Wuxi JV allowing the Company to consolidate the entity. The acquisition was considered immaterial. As of the date of this filing, the Company has not yet completed the fair value assessment on the equity method investment previously held in Wuxi JV or the determination of identifiable assets and liabilities assumed.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Basis of Preparation and Principles of Consolidation

from the Company’s equity on the Consolidated Balance Sheets.

Comparative Information

Fiscal Calendar

Foreign Currency

Franchise and License Operations

Revenue Recognition

Loyalty Programs

Direct Marketing Costs

Research and Development Expenses

Share-Based Compensation

Impairment or Disposal of Property, Plant and Equipment

Impairment Of Investments In Unconsolidated Affiliates

Government Subsidies

Income Taxes

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

Short-term Investments. Short-term investments represent time deposits with original maturities of over three months but less than one year when purchased.

Receivables

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 market.

Property, Plant and Equipment

Leases and Leasehold Improvements

Internal Development Costs and Abandoned Sites Costs

Goodwill and Intangible Assets

Financial Instruments

Guarantees

Asset Retirement Obligations

Common Stock Repurchases

Parent Company Investment

Transactions with Parent (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of License Fees Paid

Total license fees paid to YUM during the ten months ended October 31, 2016 and the year ended December 31, 2015 are reflected in the table below:

	10 months ended		Year ended
	October 31,		December 31,
	2016		2015
Initial fees – Company	$	9	$	18
Initial fees – Franchise		2		3
Continuing fees – Company		163		201
Continuing fees – Franchise		42		47
Total	$	216	$	269

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

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Earnings Per Common Share

The following table summarizes the components of basic and diluted earnings per share:

	2017		2016		2015
Net Income – Yum China Holdings, Inc.	$	403	$	502	$	323
Weighted-average common shares outstanding (for basic calculation)^(a)		386,533,783		367,744,992		363,758,219
Effect of dilutive share-based employee compensation^(a)		10,640,875		1,398,846		—
Effect of dilutive warrants ^(b)		914,948		—		—
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		398,089,606		369,143,838		363,758,219
Basic Earnings Per Share	$	1.04	$	1.36	$	0.89
Diluted Earnings Per Share	$	1.01	$	1.36	$	0.89
Employee stock options, stock appreciation rights and warrants excluded from the diluted EPS computation^(c)		9,595,173		16,987,578		—

(a)

(b)

(c)	These outstanding employee stock options, stock appreciation rights and warrants were not included in the computation of diluted EPS because to do so would have been antidilutive for the years presented.

Items Affecting Comparability of Net Income and Cash Flows (Tables)

12 Months Ended

Dec. 31, 2017

Refranchising Gain, Net [Member]

Closures and Impairment (Income) Expenses [Member]

Facility Actions

Refranchising Gain, net

The Refranchising gain, net by reportable segment and All Other Segments is presented below. We do not allocate such gains and losses to our segments for performance reporting purposes.

	Refranchising gain, net
	2017		2016		2015
KFC	$	4	$	14	$	8
Pizza Hut		1		1		3
All Other Segments		—		—		2
Total Company	$	5	$	15	$	13

Franchise Fees and Income

Facility Actions

Store Closure and Impairment Activity

	2017
	Total Company			KFC			Pizza Hut			All Other Segments
Store closure income^(a)	$	11		$	7		$	4		$	—
Store impairment charges		(58	)		(27	)		(31	)		—
Closure and impairment expenses	$	(47	)	$	(20	)	$	(27	)	$	—

	2016
	Total Company			KFC			Pizza Hut			All Other Segments
Store closure income^(a)	$	9		$	7		$	1		$	1
Store impairment charges		(70	)		(48	)		(19	)		(3	)
Closure and impairment expenses	$	(61	)	$	(41	)	$	(18	)	$	(2	)

	2015
	Total Company			KFC			Pizza Hut			All Other Segments
Store closure income (costs)^(a)	$	6		$	7		$	2		$	(3	)
Store impairment charges		(70	)		(57	)		(10	)		(3	)
Closure and impairment expenses	$	(64	)	$	(50	)	$	(8	)	$	(6	)

(a)

Franchise Fees and Income (Tables)

12 Months Ended

Dec. 31, 2016

Franchisor Revenue [Abstract]

	2017			2016			2015
Initial fees, including renewal fees	$	12		$	10		$	9
Initial franchise fees included in Refranchising gain, net		(1	)		(4	)		(3	)
		11			6			6
Continuing fees and rental income		135			124			114
Franchise fees and income	$	146		$	130		$	120

Other Income, Net (Tables)

12 Months Ended

Dec. 31, 2017

Other Income And Expenses [Abstract]

Other Income, Net Table

	2017		2016			2015
Equity income from investments in unconsolidated affiliates	$	65	$	54		$	41
China poultry supply insurance recovery^(a)		—		3			5
Reversal of (provision for) losses associated with sale of aircraft		—		2			(15	)
Foreign exchange net loss and other		—		(3	)		(5	)
Income from the reversal of contingent consideration^(b)		3		—			—
Other income, net	$	68	$	56		$	26

(a)	Recoveries related to lost profits associated with a 2012 poultry supply incident.

(b)	Income recognized from the reversal of contingent consideration previously recorded for a business combination as the likelihood of making payment became remote.

Supplemental Balance Sheet Information (Tables)

12 Months Ended

Dec. 31, 2017

Supplemental Balance Sheet Information Disclosure [Abstract]

Accounts Receivable, Net

Accounts Receivables, net	2017			2016
Accounts receivables, gross	$	83		$	76
Allowance for doubtful accounts		(2	)		(2	)
Accounts receivables, net	$	81		$	74

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets	2017		2016
Prepaid rent		41		39
Other prepaid expenses and current assets^(a)		119		81
Prepaid expenses and other current assets	$	160	$	120

(a)	Includes receivables of $38 million and $16 million due from payment processors or aggregators as of December 31, 2017 and 2016, respectively (See Note 2).

Property, Plant and Equipment

Property, Plant and Equipment	2017			2016
Buildings and improvements	$	2,184		$	2,029
Capital leases, primarily buildings		28			29
Machinery and equipment		1,204			1,081
Property, plant and equipment, gross		3,416			3,139
Accumulated depreciation and amortization		(1,725	)		(1,492	)
Property, plant and equipment, net	$	1,691		$	1,647

Accounts Payable and Other Current Liabilities

Accounts Payable and Other Current Liabilities	2017		2016
Accounts payable	$	424	$	480
Accrued capital expenditures		142		132
Accrued compensation and benefits		233		191
Accrued taxes, other than income taxes		16		14
Other current liabilities		163		154
Accounts payable and other current liabilities	$	978	$	971

Other Liabilities and Deferred Credits

Other Liabilities and Deferred Credits	2017		2016
Deferred escalating minimum rent	$	162	$	153
Other noncurrent liabilities and deferred credits		116		99
Transition tax payables		76		—
Other liabilities and deferred credits	$	354	$	252

Equity Attributable to Noncontrolling Interests, rollforward

A reconciliation of the beginning and ending carrying amount of the equity attributable to noncontrolling interests is as follows:

	Noncontrolling Interests			Redeemable Noncontrolling Interest
Balance at December 31, 2015	$	58		$	6
Net income – noncontrolling interests		19			1
Noncontrolling interest loss upon redemption		—			(8	)
Dividends declared		(7	)		—
Currency translation adjustments		(4	)		1
Balance at December 31, 2016	$	66		$	—
Net income – noncontrolling interests		26			—
Acquisition of business		2			5
Dividends declared		(22	)		—
Currency translation adjustments		5			—
Balance at December 31, 2017	$	77		$	5

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

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^(a)
Balance as of December 31, 2015
Goodwill, gross	$	467		$	75		$	10		$	382
Accumulated impairment losses		(382	)		—			—			(382	)
Disposals and other, net^(b)		(6	)		(5	)		(1	)		—
Balance as of December 31, 2016
Goodwill, gross		461			70			9			382
Accumulated impairment losses		(382	)		—			—			(382	)
Goodwill, net		79			70			9			—
Goodwill acquired and allocated		23			5			9			9
Effect of currency translation adjustment		6			5			1			—
Balance as of December 31, 2017
Goodwill, gross		490			80			19			391
Accumulated impairment losses		(382	)		—			—			(382	)
Goodwill, net	$	108		$	80		$	19		$	9

(a)Accumulated impairment losses represent Little Sheep goodwill related impairment.

(b)	Disposals and other, net includes the impact of foreign currency translation on existing balances and goodwill write-offs associated with refranchising.

Schedule of Finite and Indefinite Lived Intangible Assets by Major Class

Intangible assets, net as of December 31, 2017 and 2016 are as follows:

	2017							2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Definite-lived intangible assets
Reacquired franchise rights	$	100	$	(87	)	$	13	$	93	$	(71	)	$	22
Daojia platform		18		(1	)		17		—		—			—
Customer-related assets		12		(6	)		6		7		(4	)		3
Other		19		(10	)		9		19		(9	)		10
	$	149	$	(104	)	$	45	$	119	$	(84	)	$	35
Indefinite-lived intangible assets
Little Sheep trademark	$	56	$	—		$	56	$	53	$	—		$	53

Total intangible assets	$	205	$	(104	)	$	101	$	172	$	(84	)	$	88

Leases (Tables)

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

Future minimum commitments and amounts to be received as lessor or sublessor under non-cancelable leases

Future minimum commitments and amounts to be received as lessor or sublessor under non-cancelable leases are set forth below:

	Commitments				Lease Receivables
	Capital		Operating		Operating
2018	$	3	$	481	$	17
2019		3		450		15
2020		3		424		14
2021		4		378		11
2022		4		317		9
Thereafter		28		1,070		14
	$	45	$	3,120	$	80

Details of rental expense and income

The details of rental expense and income are set forth below:

	2017		2016		2015
Rental expense
Minimum	$	496	$	470	$	516
Contingent		292		250		260
	$	788	$	720	$	776
Rental income	$	28	$	26	$	24

Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Schedule of Expense Recognized From Non-recurring Fair Value Measurements

	2017		2016			2015
Restaurant-level impairment^(a)	$	41	$	58		$	51
Incremental restaurant-level impairment upon separation^(b)		—		17			—
Changes in fair value of financial instruments^(c)		—		(21	)		—
Income from the reversal of contingent consideration^(d)		3		—			—
Total	$	44	$	54		$	51

(a)

(b)

Incremental restaurant-level impairment represents additional impairment as a result of including the impact from the license fee paid to YUM on the individual restaurants future cash flow, which is equal to 3% of net system sales. Such license fee did not impact the impairment assessment prior to the separation as it was considered an intercompany charge at the time, whereas it became a charge from a third party after the separation and therefore should be considered in the impairment assessment. The remaining net book value of assets measured at fair value during the year ended December 31, 2017 was insignificant.

(c)

	November 1, 2016						December 30, 2016
	Post-Closing Adjustment			Warrants			Warrants
Fair market value of common stock	$	26.19		$	26.19		$	26.12
Expected term	60 days			5 years			5 years
Average risk-free rate-of-return		0.27	%		1.31	%		1.93	%
Expected volatility		33	%		34	%		33	%
Expected dividend yield		—	%		—	%		—	%

(d)	During 2017, we recognized income of $3 million from the reversal of contingent consideration previously recorded for a business combination (Level 3), as the fair value of such contingent consideration is considered to be nil given the remote likelihood of the payment obligation.

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

Assumptions Used in the BS Model

YUM and 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:

	2017			2016		2015
Risk-free interest rate		1.9	%	1.3% - 1.4	%		1.3	%
Expected term (years)		6.75		6.5 - 6.75			6.5
Expected volatility		34.0	%	27.0% - 35.0	%		27.0	%
Expected dividend yield		0.0	%	0% - 2.6	%		2.2	%

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 2017		24,728				17.88
Granted		2,234				26.56
Exercised		(4,168	)			15.50
Forfeited or expired		(1,199	)			22.90
Outstanding at the end of 2017		21,595		^(a)		18.96		5.55		455
Exercisable at the end of 2017		14,072				16.69		4.24		328

(a)	Outstanding awards include 890,249 stock options and 20,704,787 SARs with weighted average exercise prices of $14.74 and $19.14, respectively. Outstanding awards represent Yum China awards held by employees of both the Company and YUM.

Summary of Restricted Stock Units

	Shares (in thousands)			Weighted- Average Grant Date Fair Value
Unvested at the beginning of 2017		546			23.81
Granted		563			28.46
Vested		(79	)		22.02
Forfeited or expired		(81	)		25.68
Unvested at the end of 2017		949			26.56

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Before Income Taxes

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

	2017			2016		2015
U.S.	$	(13	)	$	5	$	(7	)
China		818			659		502
Other Foreign		5			8		1
	$	810		$	672	$	496

Details of Income Tax Provision (Benefit)

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

		2017			2016			2015
Current:	Federal	$	85		$	(2	)	$	7
	Foreign		232			200			132
		$	317		$	198		$	139

Deferred:	Federal	$	77		$	(36	)	$	(7	)
	Foreign		(13	)		(4	)		36
		$	64		$	(40	)	$	29
		$	381		$	158		$	168

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:

	2017					2016					2015
U.S. federal statutory rate	$	284		35.0	%	$	235		35.0	%	$	173		35.0	%
Impact from the Tax Act		164		20.2			—		—			—		—
Statutory rate differential attributable to foreign operations		(61	)	(7.5	)		(55	)	(8.4	)		(15	)	(3.1	)
Adjustments to reserves and prior years		(1	)	(0.2	)		16		2.4			3		0.6
Change in valuation allowances		2		0.2			—		—			12		2.4
Tax benefit from Little Sheep restructuring		—		—			(26	)	(3.8	)		—		—
Other, net		(7	)	(0.8	)		(12	)	(1.7	)		(5	)	(1.0	)
Effective income tax rate	$	381		46.9	%	$	158		23.5	%	$	168		33.9	%

Details of Deferred Tax Assets (Liabilities)

The details of 2017 and 2016 deferred tax assets (liabilities) are set forth below:

	2017			2016
Operating losses and tax credit carryforwards	$	43		$	86
Tax benefit from Little Sheep restructuring		20			26
Employee benefits		5			4
Share-based compensation		6			8
Deferred escalating minimum rent		45			42
Other liabilities		10			8
Deferred income and other		43			35
Gross deferred tax assets		172			209
Deferred tax asset valuation allowances		(68	)		(41	)
Net deferred tax assets	$	104		$	168
Intangible assets		(25	)	$	(22	)
Property, plant and equipment		(2	)		(1	)
Other		(10	)		(9	)
Gross deferred tax liabilities	$	(37	)	$	(32	)
Net deferred tax assets	$	67		$	136
Reported in Consolidated Balance Sheets as:
Deferred income taxes		99		$	162
Other liabilities and deferred credits		(32	)		(26	)
	$	67		$	136

Unrecognized Tax Benefits Reconciliation

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

	2017			2016
Beginning of Year	$	26		$	15
Additions on tax positions		8			14
Reductions due to statute expiration		(6	)		(3	)
End of Year	$	28		$	26

Summary of Income Tax Examinations

		2017				2016
Accrued interest and penalties		$	7			$	5

Reportable Operating Segments (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

	Revenues
	2017		2016		2015
KFC	$	4,998	$	4,696	$	4,768
Pizza Hut		2,092		1,995		2,041
All Other Segments		54		61		100
	$	7,144	$	6,752	$	6,909

	Operating Profit; Interest Income, Net; and Income Before Income Taxes
	2017			2016			2015
KFC^(a)	$	807		$	644		$	499
Pizza Hut		157			149			139
All Other Segments		(5	)		(4	)		(8	)
Unallocated and corporate expenses^(b)		(185	)		(153	)		(144	)
Unallocated Closures and impairment expense^(b)(c)		—			(17	)	—
Unallocated Refranchising gain^(b)		5			15			13
Unallocated Other income (expense)^(b)		6			6			(11	)
Operating Profit		785			640			488
Interest income, net^(b)		25			11			8
Changes in fair value of financial instruments^(b)		—			21			—
Income Before Income Taxes	$	810		$	672		$	496

	Depreciation and Amortization
	2017		2016		2015
KFC	$	265	$	266	$	283
Pizza Hut		126		120		118
All Other Segments		4		5		11
Corporate		14		11		13
	$	409	$	402	$	425

	Capital Spending
	2017		2016		2015
KFC	$	227	$	221	$	259
Pizza Hut		93		129		192
All Other Segments		2		1		—
Corporate		93		85		61
	$	415	$	436	$	512

	Identifiable Assets
	2017		2016
KFC^(d)	$	1,526	$	1,411
Pizza Hut		668		679
All Other Segments		144		109
Corporate^(e)		1,925		1,528
	$	4,263	$	3,727

	Long-Lived Assets^(f)
	2017		2016
KFC	$	1,152	$	1,099
Pizza Hut		580		599
All Other Segments		114		82
Corporate		54		33
	$	1,900	$	1,813

(a)	Includes equity income from investments in unconsolidated affiliates of $65 million, $54 million and $41 million in 2017, 2016 and 2015, respectively.

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

(d)	Includes investments in unconsolidated affiliates totaling $89 million and $71 million for 2017 and 2016, respectively.

(e)	Primarily includes cash and inventories that are centrally managed.

(f)	Includes property, plant and equipment, net, goodwill, and intangible assets, net.

Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Scheduleof Quarterly Financial Information [Abstract]

Schedule of Quarterly Financial Information

	2017
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter			Total
Revenues:
Company sales	$	1,257	$	1,563	$	1,998	$	2,180		$	6,998
Franchise fees and income		27		31		40		48			146
Total revenues		1,284		1,594		2,038		2,228			7,144
Restaurant profit		289		239		399		246			1,173
Operating Profit		254		143		317		71			785
Net Income (Loss) – Yum China Holdings, Inc.		175		107		211		(90	)		403
Basic earnings (loss) per common share	$	0.45	$	0.28	$	0.55	$	(0.23	)	$	1.04
Diluted earnings (loss) per common share	$	0.44	$	0.27	$	0.53	$	(0.23	)	$	1.01

	2016
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total
Revenues:
Company sales	$	1,278	$	1,558	$	1,848	$	1,938	$	6,622
Franchise fees and income		25		30		35		40		130
Total revenues		1,303		1,588		1,883		1,978		6,752
Restaurant profit		246		196		356		214		1,012
Operating Profit		209		87		286		58		640
Net Income – Yum China Holdings, Inc.		145		77		192		88		502
Basic earnings per common share	$	0.40	$	0.21	$	0.53	$	0.23	$	1.36
Diluted earnings per common share	$	0.40	$	0.21	$	0.53	$	0.23	$	1.36

Description of Business - Narrative (Details) $ in Millions		3 Months Ended	12 Months Ended
Description of Business - Narrative (Details) $ in Millions	Oct. 31, 2016	May 31, 2017 USD ($) Segment	Dec. 31, 2017 Restaurant Segment	Dec. 31, 2016
Segment Reporting Information [Line Items]
Entity, date of incorporation			Apr. 01, 2016
Entity incorporation, state name			Delaware
Expiration term of master license agreement			50 years
Additional consecutive renewal terms of license agreement			50 years
Percentage of license fees on net sales			3.00%	3.00%
Number of restaurants			6,300
Number of reportable segments \| Segment		2	2
Daojia [Member]
Segment Reporting Information [Line Items]
Amount of cash consideration paid for the acquisition \| $		$ 36.7
Percentage of outstanding shares of common stock acquired		90.00%
Percentage of equity interest acquired on a fully-diluted basis		80.00%
Additional capital \| $		$ 25.0
KFC [Member] \| Minimum [Member]
Segment Reporting Information [Line Items]
Number of restaurants			5,400
KFC [Member] \| Shanghai [Member]
Segment Reporting Information [Line Items]
Controlling ownership percentage maintained			58.00%
KFC [Member] \| Beijing [Member]
Segment Reporting Information [Line Items]
Controlling ownership percentage maintained			70.00%
KFC [Member] \| Hangzhou [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned			47.00%
KFC [Member] \| Suzhou [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned			47.00%
KFC [Member] \| Wuxi [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned			47.00%
KFC [Member] \| Unconsolidated affiliates [Member] \| Hangzhou [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned			47.00%
KFC [Member] \| Unconsolidated affiliates [Member] \| Suzhou [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned			47.00%
KFC [Member] \| Unconsolidated affiliates [Member] \| Wuxi [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned			47.00%
Pizza Hut [Member] \| Minimum [Member]
Segment Reporting Information [Line Items]
Number of restaurants			2,100
Parent Company Investment [Member]
Segment Reporting Information [Line Items]
Exchange ratio of shares	1

Summary of Significant Accounting Policies - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Future lease payments due from franchisees on a nominal basis	$ 80
Points expiration period	18 months
Customer loyalty programs	$ 16
Other Assets [Member]
Summary Of Significant Accounting Policies [Line Items]
Input VAT credit asset	176
Accounts Payable And Other Current Liabilities [Member]
Summary Of Significant Accounting Policies [Line Items]
VAT payable	$ 2
Shanghai [Member] \| KFC [Member]
Summary Of Significant Accounting Policies [Line Items]
Controlling ownership percentage maintained	58.00%
Beijing [Member] \| KFC [Member]
Summary Of Significant Accounting Policies [Line Items]
Controlling ownership percentage maintained	70.00%
Hangzhou [Member] \| KFC [Member]
Summary Of Significant Accounting Policies [Line Items]
Non-controlling equity ownership interest owned	47.00%
Suzhou [Member] \| KFC [Member]
Summary Of Significant Accounting Policies [Line Items]
Non-controlling equity ownership interest owned	47.00%
Wuxi [Member] \| KFC [Member]
Summary Of Significant Accounting Policies [Line Items]
Non-controlling equity ownership interest owned	47.00%
KFC [Member] \| Shanghai [Member]
Summary Of Significant Accounting Policies [Line Items]
Controlling ownership percentage maintained	58.00%
KFC [Member] \| Beijing [Member]
Summary Of Significant Accounting Policies [Line Items]
Controlling ownership percentage maintained	70.00%

Summary of Significant Accounting Policies - Narrative (Details 1) - USD ($)		10 Months Ended	12 Months Ended
	Nov. 01, 2016	Oct. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Foreign Currency [Abstract]
Foreign currency translation adjustment			$ 138,000,000
License fee percentage			3.00%
Total license fees paid		$ 216,000,000	$ 245,000,000	$ 249,000,000	$ 269,000,000
Direct Marketing Costs [Abstract]
Direct marketing expenses			333,000,000	332,000,000	327,000,000
Research and Development Expenses [Abstract]
Research and development expenses			$ 5,000,000	5,000,000	$ 5,000,000
Impairment or Disposal of Property, Plant and Equipment [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
Additional impairment charges				17,000,000
Impairment of Investments in Unconsolidated Affiliates [Abstract]
Number Of Consecutive Years Used As Indicator Of Impairment Of Investment In Unconsolidated Affiliates			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%
Receivables [Abstract]
Number of days from the period in which the corresponding sales occur that trade receivables are generally due			30 days
Receivables due from unconsolidated affiliates			$ 69,000,000	$ 53,000,000
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
Buildings [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
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)			8 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)			5 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
Incremental Impairment Spin-off [Member]
Impairment or Disposal of Property, Plant and Equipment [Abstract]
Additional impairment charges	$ 17,000,000

Transactions With Parent (Details) - USD ($) $ in Millions	10 Months Ended	12 Months Ended
Transactions With Parent (Details) - USD ($) $ in Millions	Oct. 31, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Percentage of initial fees and continuing fees to company and franchise sales	3.00%
General and administrative expenses [Member]
Related Party Transaction [Line Items]
Corporate expense allocations	$ 11	$ 12

Transactions With Parent (Details 2) - USD ($) $ in Millions	10 Months Ended	12 Months Ended
	Oct. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Transactions With Parent [Abstract]
Initial fees – Company	$ 9			$ 18
Initial fees – Franchise	2			3
Continuing fees – Company	163			201
Continuing fees – Franchise	42			47
Total	$ 216	$ 245	$ 249	$ 269

Earnings Per Common Share ("EPS") - Narrative (Details)	Oct. 31, 2016
Parent Company Investment [Member]
Earnings Per Share [Line Items]
Exchange ratio of shares	1

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

2 Months Ended

3 Months Ended

4 Months Ended

12 Months Ended

Feb. 28, 2017

Feb. 29, 2016

Aug. 31, 2017

May 31, 2017

Aug. 31, 2016

May 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Earnings Per Share [Abstract]

Net Income – Yum China Holdings, Inc.

$ 175

$ 145

$ 211

$ 107

$ 192

$ 77

$ (90)

$ 88

$ 403

$ 502

$ 323

Weighted-average common shares outstanding (for basic calculation)

^[1]

386,533,783

367,744,992

363,758,219

Effect of dilutive share-based employee compensation

^[1]

10,640,875

1,398,846

Effect of dilutive warrants

^[2]

914,948

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

398,089,606

369,143,838

363,758,219

Basic Earnings Per Share

$ 0.45

$ 0.40

$ 0.55

$ 0.28

$ 0.53

$ 0.21

$ (0.23)

$ 0.23

$ 1.04

$ 1.36

$ 0.89

Diluted Earnings Per Share

$ 0.44

$ 0.40

$ 0.53

$ 0.27

$ 0.53

$ 0.21

$ (0.23)

$ 0.23

$ 1.01

$ 1.36

$ 0.89

Employee stock options, stock appreciation rights and warrants excluded from the diluted EPS computation

^[3]

9,595,173

16,987,578

[1]	As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards of either YUM or Yum China in their entirety, to maintain the pre-separation intrinsic value of the awards. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect. See Note 15 for a further discussion of share-based compensation.
[2]	Pursuant to the investment agreements dated September 1, 2016, Yum China issued to strategic investors two tranches of warrants on January 9, 2017, with each tranche providing the right to purchase 8,200,405 shares of Yum China common stock, at an exercise price of $31.40 and $39.25 per share, respectively. The outstanding warrants are included in the computation of diluted EPS, if there is dilutive effect when the average market price of Yum China common stock for the year exceeds the exercise price of the warrants
[3]	These outstanding employee stock options, stock appreciation rights and warrants were not included in the computation of diluted EPS because to do so would have been antidilutive for the years presented.

Earnings Per Common Share ("EPS") (Parenthitical) (Details)		12 Months Ended
	Jan. 09, 2017 Tranche $ / shares shares	Dec. 31, 2017 Tranche
Class Of Warrant Or Right [Line Items]
Number of tranches of warrants \| Tranche	2	2
Tranche One Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants to purchase shares of common stock \| shares	8,200,405
Exercise price of warrants \| $ / shares	$ 31.40
Tranche Two Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants to purchase shares of common stock \| shares	8,200,405
Exercise price of warrants \| $ / shares	$ 39.25

Items Affecting Comparability of Net Income and Cash Flows (Details 1) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Refranchising gain, net	$ 5	$ 15	$ 13
KFC [Member]
Refranchising gain, net	4	14	8
Pizza Hut [Member]
Refranchising gain, net	$ 1	$ 1	3
All Other Segments [Member]
Refranchising gain, net			$ 2

Items Affecting Comparability of Net Income and Cash Flows - Narrative (Details) - USD ($)

4 Months Ended

12 Months Ended

Nov. 01, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Additional impairment charges

$ 17,000,000

Percentage of license fees on net sales

3.00%

Reversal of the previous loss recognized

$ 2,000,000

Proceeds from disposal of aircraft

19,000,000

Net book value of aircraft

17,000,000

Loss on sale of aircraft

2,000,000

$ (15,000,000)

Changes in fair value of financial instruments

^[1]

21,000,000

Tax benefit

$ 381,000,000

158,000,000

$ 168,000,000

Additional income tax expense

$ 163,900,000

One-time transition tax on deemed repatriation of accumulated undistributed foreign earnings

129,800,000

Remeasurement of deferred tax assets

4,500,000

Deferred tax assets valuation allowance

$ 29,600,000

Redeemable Noncontrolling Interest [Member]

Noncontrolling interest loss upon redemption

$ (8,000,000)

Common Stock [Member]

Issuance of common stock to Investors (in shares)

19,145,169.42

Little Sheep Group Limited [Member]

Tax benefit

$ 26,000,000

Little Sheep Group Limited [Member] | Redeemable Noncontrolling Interest [Member]

Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners

7.00%

Noncontrolling interest loss upon redemption

$ 8,000,000

Little Sheep Group Limited [Member] | Redeemable Noncontrolling Interest [Member] | Maximum [Member]

Redeemable Noncontrolling Interest, Purchase Price

$ 1,000,000

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

Items Affecting Comparability of Net Income and Cash Flows (Details 2) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Exclude Incremental Restaurant-Level Impairment upon Spin-Off the Separation in Twenty Sixteen [Member]

$ (47)

$ (78)

$ (64)

^[1]

(58)

(70)

KFC [Member] | Exclude Incremental Restaurant-Level Impairment upon Spin-Off the Separation in Twenty Sixteen [Member]

(47)

(61)

(64)

^[1]

(27)

(48)

(57)

Pizza Hut [Member] | Exclude Incremental Restaurant-Level Impairment upon Spin-Off the Separation in Twenty Sixteen [Member]

(20)

(41)

(50)

^[1]

(31)

(19)

(10)

All Other Segments [Member] | Exclude Incremental Restaurant-Level Impairment upon Spin-Off the Separation in Twenty Sixteen [Member]

$ (27)

(18)

(8)

^[1]

(3)

(3)

Other Income And Expenses [Abstract]

$ (2)

$ (6)

[1]

Franchise Fees and Income (Details) - USD ($) $ in Millions	2 Months Ended		3 Months Ended				4 Months Ended		12 Months Ended
Franchise Fees and Income (Details) - USD ($) $ in Millions	Feb. 28, 2017	Feb. 29, 2016	Aug. 31, 2017	May 31, 2017	Aug. 31, 2016	May 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Franchisor Revenue [Abstract]
Initial fees, including renewal fees									$ 12	$ 10	$ 9
Initial franchise fees included in Refranchising gain, net									(1)	(4)	(3)
Initial fees, net									11	6	6
Continuing fees and rental income									135	124	114
Franchise fees and income	$ 27	$ 25	$ 40	$ 31	$ 35	$ 30	$ 48	$ 40	$ 146	$ 130	$ 120

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

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Equity income from investments in unconsolidated affiliates

$ 65

$ 54

$ 41

China poultry supply insurance recovery

^[1]

Reversal of (provision for) losses associated with sale of aircraft

(15)

Foreign exchange net loss and other

(3)

(5)

Income from the reversal of contingent consideration

^[2]

Other income, net

$ 68

$ 56

$ 26

[1]	Recoveries related to lost profits associated with a 2012 poultry supply incident.
[2]	Income recognized from the reversal of contingent consideration previously recorded for a business combination as the likelihood of making payment became remote.

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

Dec. 31, 2017

Dec. 31, 2016

Accounts Receivables, net

Accounts receivables, gross

$ 83,000,000

$ 76,000,000

Allowance for doubtful accounts

(2,000,000)

Accounts receivables, net

81,000,000

74,000,000

Prepaid Expenses and Other Current Assets

Prepaid rent

41,000,000

39,000,000

Other prepaid expenses and current assets

^[1]

119,000,000

81,000,000

Prepaid expenses and other current assets

160,000,000

120,000,000

Accounts Payable and Other Current Liabilities

Accounts payable

424,000,000

480,000,000

Accrued capital expenditures

142,000,000

132,000,000

Accrued compensation and benefits

233,000,000

191,000,000

Accrued taxes, other than income taxes

16,000,000

14,000,000

Other current liabilities

163,000,000

154,000,000

Accounts payable and other current liabilities

978,000,000

971,000,000

Other Liabilities and Deferred Credits

Deferred escalating minimum rent

162,000,000

153,000,000

Other noncurrent liabilities and deferred credits

116,000,000

99,000,000

Transition tax payables

76,000,000

Other liabilities and deferred credits

$ 354,000,000

$ 252,000,000

[1]	Includes receivables of $38 million and $16 million due from payment processors or aggregators as of December 31, 2017 and 2016, respectively (See Note 2).

Supplemental Balance Sheet Information (Parenthetical) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Payment Processors or Aggregators [Member]
Supplemental Balance Sheet Information [Line Items]
Receivables due from third parties	$ 38	$ 16

Supplemental Balance Sheet Information (Details 1) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 3,416	$ 3,139
Accumulated depreciation and amortization	(1,725)	(1,492)
Property, plant and equipment, net	1,691	1,647
Buildings and Improvements [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	2,184	2,029
Capital Leases, Primarily Buildings [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	28	29
Machinery and Equipment [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 1,204	$ 1,081

Supplemental Balance Sheet Information - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Supplemental Balance Sheet Information [Line Items]
Depreciation and amortization expense related to property, plant and equipment	$ 391,000,000	$ 385,000,000	$ 408,000,000
Redeemable Noncontrolling Interest [Member]
Supplemental Balance Sheet Information [Line Items]
Noncontrolling interest loss upon redemption		$ (8,000,000)
Little Sheep [Member] \| Redeemable Noncontrolling Interest [Member]
Supplemental Balance Sheet Information [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners		7.00%	7.00%
Noncontrolling interest loss upon redemption		$ 8,000,000
Little Sheep [Member] \| Maximum [Member] \| Redeemable Noncontrolling Interest [Member]
Supplemental Balance Sheet Information [Line Items]
Redeemable Noncontrolling Interest, Purchase Price		$ 1,000,000

Supplemental Balance Sheet Information (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Minority Interest [Line Items]
Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance	$ 66
Net income – noncontrolling interests	26	$ 12	$ 5
Acquisition of business	25
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance	77	66
Noncontrolling Interests [Member]
Minority Interest [Line Items]
Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance	66	58
Net income – noncontrolling interests	26	19
Acquisition of business	2
Noncontrolling interest loss upon redemption			(1)
Dividends declared	(22)	(7)
Currency translation adjustments	5	(4)
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance	77	66	58
Redeemable Noncontrolling Interest [Member]
Minority Interest [Line Items]
Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance		6
Net income – noncontrolling interests		1
Acquisition of business	5
Noncontrolling interest loss upon redemption		(8)
Currency translation adjustments		$ 1
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance	$ 5		$ 6

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

12 Months Ended

Dec. 31, 2016

Dec. 31, 2017

Dec. 31, 2015

Accumulated impairment losses

$ 461

$ 490

$ 467

(382)

Disposals and other, net

^[1]

(6)

108

Effect of currency translation adjustment

KFC [Member]

Disposals and other, net

^[1]

(5)

Effect of currency translation adjustment

Pizza Hut [Member]

Disposals and other, net

^[1]

(1)

Effect of currency translation adjustment

All Other Segments [Member]

Accumulated impairment losses

^[2]

382

391

382

^[2]

(382)

$ (382)

^[2]

$ 9

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

^[2]

$ 9

[1]	Disposals and other, net includes the impact of foreign currency translation on existing balances and goodwill write-offs associated with refranchising.
[2]	Accumulated impairment losses represent Little Sheep goodwill related impairment.

Goodwill and Intangible Assets (Details 1) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Definite-lived intangible assets
Gross Carrying Amount	$ 149	$ 119
Accumulated Amortization	(104)	(84)
Net Carrying Amount	45	35
Total intangible assets
Gross Carrying Amount	205	172
Intangible assets, net	101	88
Little Sheep trademark [Member]
Indefinite-lived intangible assets
Net Carrying Amount	56	53
Reacquired franchise rights [Member]
Definite-lived intangible assets
Gross Carrying Amount	100	93
Accumulated Amortization	(87)	(71)
Net Carrying Amount	13	22
Daojia platform [Member]
Definite-lived intangible assets
Gross Carrying Amount	18
Accumulated Amortization	(1)
Net Carrying Amount	17
Customer-related assets [Member]
Definite-lived intangible assets
Gross Carrying Amount	12	7
Accumulated Amortization	(6)	(4)
Net Carrying Amount	6	3
Other [Member]
Definite-lived intangible assets
Gross Carrying Amount	19	19
Accumulated Amortization	(10)	(9)
Net Carrying Amount	$ 9	$ 10

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Definite-lived intangible assets
Definite-lived intangible assets, amortization expense	$ 14	$ 12	$ 13
Approximate amortization expense for definite-lived intangible assets - 2018	16
Approximate amortization expense for definite-lived intangible assets - 2019	9
Approximate amortization expense for definite-lived intangible assets - 2020	4
Approximate amortization expense for definite-lived intangible assets - 2021	4
Approximate amortization expense for definite-lived intangible assets - 2022	$ 3

Credit Facilities - Narrative (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount	$ 261	$ 330	¥ 1,700	¥ 2,300
Revolving Credit Facility [Member]
Line Of Credit Facility [Line Items]
Credit facility terms	The credit facilities have terms ranging from one to three years. Each credit facility bears interest based on the prevailing rate stipulated by the People’s Bank of China and contains financial covenants including, among other things, limitations on certain additional indebtedness and liens, and certain other transactions specified in the respective agreement. Each credit facility contains 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. Interest on any outstanding borrowings is due at least monthly.
Revolving Credit Facility [Member] \| Minimum [Member]
Line Of Credit Facility [Line Items]
Credit facility expiration period	1 year	1 year
Revolving Credit Facility [Member] \| Maximum [Member]
Line Of Credit Facility [Line Items]
Credit facility expiration period	3 years	3 years

Investment Agreements with Strategic Investors - Narrative (Details) $ / shares in Units, $ in Millions				12 Months Ended
	Jan. 09, 2017 Tranche $ / shares shares	Dec. 30, 2016 USD ($) $ / shares	Nov. 01, 2016 USD ($) Tranche $ / shares shares	Dec. 31, 2017 USD ($) Tranche $ / shares shares	Dec. 31, 2016 $ / shares shares	Oct. 31, 2016 $ / shares shares
Subsidiary Sale Of Stock [Line Items]
Investment agreements, consideration received			$ 460.0
Number of tranches of warrants \| Tranche	2			2
Common stock, shares issued \| shares				388,860,534.42	383,344,835.42	363,758,219
Common stock, shares outstanding \| shares				384,720,152	383,344,835.42	363,758,219
Common stock, par value \| $ / shares				$ 0.01	$ 0.01	$ 0.01
Discount percentage on volume weighted average trading price per share		8.00%
Warrants exercisable period				Oct. 31, 2021
Residual amounts allocated to common stock			364.0
Warrants [Member]
Subsidiary Sale Of Stock [Line Items]
Fair value of liabilities			97.1
Decrease in fair value of liability included in earnings		$ (2.1)
Liability post-closing adjustment reclassified to equity		95.0
Call and Written Put Option [Member]
Subsidiary Sale Of Stock [Line Items]
Fair value of asset			1.3
Increase in fair value included in earnings		$ 19.2
Warrants First Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Amount on which exercise price of warrants based				$ 12,000.0
Warrants Second Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Amount on which exercise price of warrants based				$ 15,000.0
Minimum [Member]
Subsidiary Sale Of Stock [Line Items]
VWAP measurement period				Dec. 01, 2016
Maximum [Member]
Subsidiary Sale Of Stock [Line Items]
VWAP measurement period				Dec. 30, 2016
Primavera [Member]
Subsidiary Sale Of Stock [Line Items]
Investment agreements, consideration received			$ 410.0
Shares issued subject to post-closing adjustment \| shares			17,064,172.74
Shares repurchased from investors \| shares	699,394.74
Primavera [Member] \| Warrants First Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock \| shares	7,309,057
Primavera [Member] \| Warrants Second Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock \| shares	7,309,057
Ant Financial [Member]
Subsidiary Sale Of Stock [Line Items]
Investment agreements, consideration received			$ 50.0
Shares issued subject to post-closing adjustment \| shares			2,080,996.68
Shares repurchased from investors \| shares	85,291.68
Ant Financial [Member] \| Warrants First Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock \| shares	891,348
Ant Financial [Member] \| Warrants Second Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock \| shares	891,348
Primavera & Ant Financial [Member]
Subsidiary Sale Of Stock [Line Items]
Ownership percentage of new common stock issued, subject to potential adjustment			5.00%
Number of tranches of warrants \| Tranche			2
Warrants issuable minimum period after separation			70 days
Warrants additional ownership percentage exercisable by investors			4.00%
Common stock, par value \| $ / shares	$ 0.01
Common stock, price per share \| $ / shares			$ 24.03
Shares repurchased price per share \| $ / shares		$ 25.05
Outstanding shares of common stock owned	4.80%
Outstanding shares of common stock owned, subject to post-closing adjustment	8.70%
Primavera & Ant Financial [Member] \| Warrants First Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Warrant exercise price \| $ / shares	$ 31.40
Primavera & Ant Financial [Member] \| Warrants Second Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Warrant exercise price \| $ / shares	$ 39.25
Primavera & Ant Financial [Member] \| Minimum [Member]
Subsidiary Sale Of Stock [Line Items]
Expected ownership percentage of new common stock issued, final			4.30%
Primavera & Ant Financial [Member] \| Maximum [Member]
Subsidiary Sale Of Stock [Line Items]
Expected ownership percentage of new common stock issued, final			5.90%

Leases - Narrative (Details) $ in Millions	12 Months Ended
Leases - Narrative (Details) $ in Millions	Dec. 31, 2017 USD ($) Restaurant Property	Dec. 31, 2016 USD ($)
Capital Leased Assets [Line Items]
Number of restaurants operated \| Restaurant	6,300
Maximum duration of lease commitments from inception for the vast majority of our lease commitments (in years)	20 years
Number of properties sublease subject to franchisees \| Property	170
Present value of minimum payments under capital leases	$ 29	$ 30
Accounts Payable And Other Current Liabilities [Member]
Capital Leased Assets [Line Items]
Current portion of capital lease obligations	$ 1	$ 1

Leases (Details) $ in Millions	Dec. 31, 2017 USD ($)
Capital leases, future minimum commitments [Abstract]
2018	$ 3
2019	3
2020	3
2021	4
2022	4
Thereafter	28
Capital leases, total future minimum commitments	45
Operating leases, future minimum commitments [Abstract]
2018	481
2019	450
2020	424
2021	378
2022	317
Thereafter	1,070
Operating leases, total future minimum commitments	3,120
Operating leases, lease receivables [Abstract]
2018	17
2019	15
2020	14
2021	11
2022	9
Thereafter	14
Operating leases, total lease receivables	$ 80

Leases (Details 1) - USD ($) $ in Millions	12 Months Ended
Leases (Details 1) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Rental expense
Minimum	$ 496	$ 470	$ 516
Contingent	292	250	260
Total rental expense	788	720	776
Rental income	$ 28	$ 26	$ 24

- Definition

The increases or decreases in lease payments that result from changes occurring after the inception of the lease in the factors (other than the passage of time) on which lease payments are based, except that any escalation of minimum lease payments relating to increases in construction or acquisition cost of the leased property or for increases in some measure of cost or value during the construction or preconstruction period, are excluded from contingent rentals. Contingent rentals also may include amounts for which the triggering events have not yet occurred or the specified targets for which have not yet been achieved (such as sales based percentage rent), but which events are considered probable of occurring or which specified targets are considered probable of being achieved.

+ References + Details

Fair Value Disclosures (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Total expense recognized from non-recurring fair value measurements

$ 17

Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3

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

Total expense recognized from non-recurring fair value measurements

$ 44

$ 51

Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | 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

^[1]

$ 51

Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | Incremental Restaurant-level Impairment Upon Separation [Member]

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

Total expense recognized from non-recurring fair value measurements

^[2]

Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | Changes in fair value of financial instruments [Member]

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

Total expense recognized from non-recurring fair value measurements

^[3]

$ (21)

Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | Income From Reversal of Contingent Consideration [Member]

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

Total expense recognized from non-recurring fair value measurements

^[4]

$ 3

[1]	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. The fair value measurements used in these impairment evaluations were based on discounted cash flow estimates using unobservable inputs (Level 3). The remaining net book value of assets measured at fair value during the years ended December 31, 2017, 2016 and 2015 was insignificant.
[2]	Incremental restaurant-level impairment represents additional impairment as a result of including the impact from the license fee paid to YUM on the individual restaurants future cash flow, which is equal to 3% of net system sales. Such license fee did not impact the impairment assessment prior to the separation as it was considered an intercompany charge at the time, whereas it became a charge from a third party after the separation and therefore should be considered in the impairment assessment. The remaining net book value of assets measured at fair value during the year ended December 31, 2017 was insignificant.
[3]	(c)The Post-Closing Adjustment and the Warrants from the investment with strategic investors were accounted for as derivative instruments and liability-classified equity contracts, respectively (see Note 11). These financial instruments were initially measured at fair value as of November 1, 2016, the date when shares of common stock were issued, and subject to subsequent fair value measurement until December 30, 2016. They are classified within Level 3 because their fair values are based on inputs that are unobservable in the market. The Company adopted the Monte-Carlo Simulation model (the “MCS” model) and Black-Scholes option-pricing model (the “BS” model) in deriving the initial fair values of the Post-Closing Adjustment and the Warrants, respectively. On December 30, 2016, when the Adjusted VWAP Price Per Share was determined, the Post-Closing Adjustment was remeasured at fair value of $20.5 million based on 784,686.42 shares of common stock to be repurchased from the Investors at the closing price of $26.12 per share. The Warrants were remeasured at fair value of $95 million using the BS option-pricing model with assumptions as of December 30, 2016. The key assumptions for the MCS model and the BS model as of November 1, 2016 and December 30, 2016, respectively, are as follows: November 1, 2016 December 30, 2016 Post-Closing Adjustment Warrants Warrants Fair market value of common stock $26.19 $26.19 $26.12 Expected term 60 days 5 years 5 years Average risk-free rate-of-return 0.27% 1.31% 1.93% Expected volatility 33% 34% 33% Expected dividend yield —% —% —% The Adjusted VWAP Price Per Share for the Post-Closing Adjustment and the exercise price of the Warrants are estimated based on simulated paths. Since we became a publicly traded company after the separation and did not have sufficient historical trading data to estimate the expected volatility, we estimated the expected volatility of our common stock based on the historical price volatility of the publicly traded shares of comparable companies in the same business as the Company over the periods equal to the expected term of these financial instruments. The risk-free interest rate was based on the U.S. Treasury zero-coupon yield in effect with maturity terms equal to the expected term of the financial instruments. The dividend yield was estimated to be zero.
[4]	During 2017, we recognized income of $3 million from the reversal of contingent consideration previously recorded for a business combination (Level 3), as the fair value of such contingent consideration is considered to be nil given the remote likelihood of the payment obligation.

Fair Value Disclosures (Parenthetical) (Details) - USD ($)
$ / shares in Units, $ in Millions

12 Months Ended

Dec. 30, 2016

Nov. 01, 2016

Dec. 31, 2017

Dec. 31, 2016

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

Percentage of license fees on net sales

3.00%

Dividend yield

0.00%

Income from the reversal of contingent consideration

^[1]

$ 3.0

Common Stock [Member] | Post-closing Adjustment [Member]

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

Fair value of stock to be repurchased, shares

784,686.42

Shares repurchased price per share

$ 26.12

Fair Value, Inputs, Level 3

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

Income from the reversal of contingent consideration

$ 3.0

Fair Value, Inputs, Level 3 | Common Stock [Member] | Post-closing Adjustment [Member]

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

Fair value of stock to be repurchased calculated based on weighted average trading price

$ 20.5

Fair Value, Inputs, Level 3 | Warrants [Member] | BS Option Pricing Model [Member]

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

Fair value of stock to be repurchased calculated based on weighted average trading price

$ 95.0

[1]	Income recognized from the reversal of contingent consideration previously recorded for a business combination as the likelihood of making payment became remote.

Fair Value Disclosures (Details 1) - $ / shares	Dec. 30, 2016	Nov. 01, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Expected dividend yield	0.00%	0.00%
Fair Value, Inputs, Level 3 \| Post-closing Adjustment [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair market value of common stock		$ 26.19
Expected term		60 days
Average risk-free rate-of-return		0.27%
Expected volatility		33.00%
Warrants [Member] \| Fair Value, Inputs, Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair market value of common stock	$ 26.12	$ 26.19
Expected term	5 years	5 years
Average risk-free rate-of-return	1.93%	1.31%
Expected volatility	33.00%	34.00%

Retirement Plans - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
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	$ 157.0	$ 148.0	$ 150.0
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	10.00%
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	22.00%
Account Payable [Member] \| Yum China Holdings, Inc. Leadership Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Liabilities attributable to employees	$ 4.2	$ 3.4

Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
	Oct. 04, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Oct. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, vesting terms		Certain awards are subject to specific retirement conditions, which allow the awards to fully vest as long as the employee is actively employed for at least one year following the grant date, provides at least six months notification of intention to retire, and signs non-solicitation and non-compete agreements. Under such circumstances, the grant-date fair value of the award is recognized as expense on a straight-line basis over the one-year service period from the grant date.
Dividends approved date	Oct. 04, 2017
Dividends payable, amount per share	$ 0.10
Share-based compensation expense		$ 26.0	$ 16.0	$ 14.0
Deferred tax benefit recognized		$ 3.0	$ 3.0	$ 3.0
Non-Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock granted		56,763	64,209
Grant date fair value		$ 2.3	$ 1.7
Stock Options and Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Weighted-average grant-date fair value of awards granted (in dollars per share)		$ 10.19	$ 12.78	$ 16.11
Total intrinsic value of stock options and SARs exercised		$ 44.0	$ 25.0	$ 33.0
Unrecognized compensation cost		$ 24.0
Remaining weighted-average vesting period		1 year 8 months 23 days
Total fair value at grant date or modification date of awards vested		$ 11.0	$ 11.0	$ 6.0
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		3 years
Unrecognized compensation cost		$ 16.0
Unvested RSUs		949,300	546,000
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%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		1 year
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					45,000,000
Long Term Incentive Plan (the "2016" Plan) [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		3 years
Long Term Incentive Plan (the "2016" Plan) [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		5 years
Executive stock plans [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%
Share-based Compensation Arrangement by Share-based Payment Award, Average Exercise Period		6 years 9 months

Share-Based Compensation (Details)	12 Months Ended
Share-Based Compensation (Details)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Award Valuation
Risk-free interest rate	1.90%		1.30%
Expected term (years)	6 years 9 months		6 years 6 months
Expected volatility	34.00%		27.00%
Expected dividend yield	0.00%		2.20%
Minimum [Member]
Award Valuation
Risk-free interest rate		1.30%
Expected term (years)		6 years 6 months
Expected volatility		27.00%
Expected dividend yield		0.00%
Maximum [Member]
Award Valuation
Risk-free interest rate		1.40%
Expected term (years)		6 years 9 months
Expected volatility		35.00%
Expected dividend yield		2.60%

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, 2017

USD ($)

$ / shares

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

Outstanding at the beginning of 2017 (in shares) | shares

24,728

Granted (in shares) | shares

2,234

Exercised (in shares) | shares

(4,168)

Forfeited or expired (in shares) | shares

(1,199)

Outstanding at the end of 2017 (in shares) | shares

21,595

^[1]

Exercisable at the end of 2017 (in shares) | shares

14,072

Outstanding at the beginning 2017, Weighted-average exercise price (in dollars per share) | $ / shares

$ 17.88

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

26.56

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

15.50

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

22.90

Outstanding at the end of 2017, Weighted-average exercise price (in dollars per share) | $ / shares

18.96

Exercisable at the end of 2017, Weighted-average exercise price (in dollars per share) | $ / shares

$ 16.69

Outstanding at the end of 2017, Weighted-average remaining contractual term (in years)

5 years 6 months 18 days

Exercisable at the end of 2017, Weighted-average remaining contractual term (in years)

4 years 2 months 26 days

Outstanding at the end of 2017, Aggregate intrinsic value (in dollars) | $

$ 455

Exercisable at the end of 2017, Aggregate intrinsic value (in dollars) | $

$ 328

[1]	Outstanding awards include 890,249 stock options and 20,704,787 SARs with weighted average exercise prices of $14.74 and $19.14, respectively. Outstanding awards represent Yum China awards held by employees of both the Company and YUM.

Share-Based Compensation (Parenthetical) (Details 1)	Dec. 31, 2017 $ / shares shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock options outstanding at the end of 2017 (in shares) \| shares	890,249
SARs outstanding at the end of 2017 (in shares) \| shares	20,704,787
Stock options outstanding at the end of 2017, Weighted-average exercise price (in dollars per share) \| $ / shares	$ 14.74
SARs outstanding at the end of 2017, Weighted-average exercise price (in dollars per share) \| $ / shares	$ 19.14

Share-Based Compensation (Details 2) - RSUs [Member]	12 Months Ended
Share-Based Compensation (Details 2) - RSUs [Member]	Dec. 31, 2017 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of 2017 (in shares) \| shares	546,000
Granted (in shares) \| shares	563,000
Vested (in shares) \| shares	(79,000)
Forfeited or expired (in shares) \| shares	(81,000)
Unvested at the end of 2017 (in shares) \| shares	949,300
Unvested at the beginning of 2017 \| $ / shares	$ 23.81
Granted \| $ / shares	28.46
Vested \| $ / shares	22.02
Forfeited or expired \| $ / shares	25.68
Unvested at the end of 2017 \| $ / shares	$ 26.56

Equity - Narrative (Details) - USD ($)		12 Months Ended
Equity - Narrative (Details) - USD ($)	Oct. 04, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Oct. 31, 2016	Oct. 27, 2016
Class Of Stock [Line Items]
Percentage of shares distribution for each share held by parent stockholders					100.00%
Common stock, shares authorized		1,000,000,000	1,000,000,000
Common stock, par value		$ 0.01	$ 0.01		$ 0.01
Common stock, shares issued		388,860,534.42	383,344,835.42		363,758,219
Common stock, shares outstanding		384,720,152	383,344,835.42		363,758,219
Dividends declared date	Oct. 04, 2017
Dividends payable, amount per share	$ 0.10
Cash dividend paid	$ 38,000,000
Cash dividend paid date	2017-12
Other comprehensive Income (loss)		$ 142,000,000	$ (132,000,000)	$ (93,000,000)
Accumulated other comprehensive income		138,000,000	1,000,000
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		$ 612,000,000
Common Stock [Member]
Class Of Stock [Line Items]
Shares repurchased		3,400,000	0
Shares repurchased at cost		$ 128,000,000
Remaining amount available for repurchase		$ 422,000,000
Rights Plan [Member]
Class Of Stock [Line Items]
Percentage of preferred stock purchase of share						100.00%
Dividend record date		Oct. 27, 2016
Rights plan expiration date		Oct. 27, 2017
Spin-Off [Member]
Class Of Stock [Line Items]
Common stock, shares authorized					1,000,000,000
Common stock, par value					$ 0.01
Common stock, shares issued		388,860,534.42			363,758,219
Common stock, shares outstanding		384,720,152			363,758,219

Income Taxes - Narrative (Details) - USD ($) $ in Millions	4 Months Ended	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Taxes Disclosure [Line Items]
U.S. federal statutory rate, percent			35.00%	35.00%	35.00%
Estimated additional income tax expense	$ 163.9
Estimated transition tax on deemed repatriation of accumulated undistributed foreign earnings	129.8
Estimated remeasurement of deferred tax assets based on revising rate	4.5
Estimated valuation allowance for deferred assets as a result of Tax Act	29.6
One time transition tax payable	83.0		$ 83.0
Transition tax included in income tax payable	6.6		6.6
Transition tax included in other liabilities and deferred credits	76.4		$ 76.4
Effective income tax rate			46.90%	23.50%	33.90%
Net tax expense due to change in valuation allowances			$ 2.0		$ 12.0
Recognized tax benefit			381.0	$ 158.0	168.0
Foreign withholding taxes not recognized, cumulative amount of temporary differences	2,000.0		2,000.0
Cash payments for tax liabilities on income tax returns			$ 232.0	182.0	143.0
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%
Increase (decrease) in unrecognized tax benefits			$ 8.0	14.0
Amount of unrecognized tax benefits balance	28.0		28.0
Total interest and penalties recorded during the period			2.0	3.0	$ 1.0
Tax Expire by 2026 [Member] \| Foreign [Member]
Income Taxes Disclosure [Line Items]
Tax credit carryforwards	47.0		47.0	46.0
Little Sheep Group Limited [Member]
Income Taxes Disclosure [Line Items]
Recognized tax benefit				$ 26.0
Valuation allowance recorded			19.5
Operating loss carryforwards	$ 165.0		$ 165.0
Operating loss carryforwards expiration year			2022
China [Member]
Income Taxes Disclosure [Line Items]
Effective income tax rate			25.00%
Scenario Forecast [Member]
Income Taxes Disclosure [Line Items]
U.S. federal statutory rate, percent		21.00%
Increase (decrease) in unrecognized tax benefits		$ (8.0)

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
U.S. and foreign income before income taxes [Abstract]
U.S.	$ (13)	$ 5	$ (7)
China	818	659	502
Other Foreign	5	8	1
Income Before Income Taxes	$ 810	$ 672	$ 496

Income Taxes (Details 1) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 1) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Details of income tax provision (benefit) [Abstract]
Current: Federal	$ 85	$ (2)	$ 7
Current: Foreign	232	200	132
Total current income tax provision (benefit)	317	198	139
Deferred: Federal	77	(36)	(7)
Deferred: Foreign	(13)	(4)	36
Total deferred income tax provision (benefit)	64	(40)	29
Effective income tax rate	$ 381	$ 158	$ 168

Income Taxes (Details 2) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 2) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
U.S. federal statutory rate	$ 284	$ 235	$ 173
Impact from the Tax Act	164
Statutory rate differential attributable to foreign operations	(61)	(55)	(15)
Adjustments to reserves and prior years	(1)	16	3
Change in valuation allowances	2		12
Other, net	(7)	(12)	(5)
Effective income tax rate	$ 381	$ 158	$ 168
Effective income tax rate reconciliation [Abstract]
U.S. federal statutory rate, percent	35.00%	35.00%	35.00%
Impact from the Tax Act, percent	20.20%
Statutory rate differential attributable to foreign operations, percent	(7.50%)	(8.40%)	(3.10%)
Adjustments to reserves and prior years, percent	(0.20%)	2.40%	0.60%
Change in valuation allowances, percent	0.20%		2.40%
Other, net, percent	(0.80%)	(1.70%)	(1.00%)
Effective income tax rate, percent	46.90%	23.50%	33.90%
Little Sheep Group Limited [Member]
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
Tax benefit from Little Sheep restructuring		$ (26)
Effective income tax rate reconciliation [Abstract]
Tax benefit from Little Sheep restructuring, percent		(3.80%)

Income Taxes (Details 3) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Net deferred tax assets (liabilities) [Abstract]
Operating losses and tax credit carryforwards	$ 43	$ 86
Employee benefits	5	4
Share-based compensation	6	8
Deferred escalating minimum rent	45	42
Other liabilities	10	8
Deferred income and other	43	35
Gross deferred tax assets	172	209
Deferred tax asset valuation allowances	(68)	(41)
Net deferred tax assets	104	168
Intangible assets	(25)	(22)
Property, plant and equipment	(2)	(1)
Other	(10)	(9)
Gross deferred tax liabilities	(37)	(32)
Net deferred tax assets	67	136
Reported in Consolidated Balance Sheets as:
Deferred income taxes	99	162
Other liabilities and deferred credits	(32)	(26)
Net deferred tax assets	67	136
Little Sheep Group Limited [Member]
Net deferred tax assets (liabilities) [Abstract]
Tax benefit from Little Sheep restructuring	$ 20	$ 26

Income Taxes (Details 4) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 4) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Beginning of Year	$ 26	$ 15
Additions for tax positions of prior years	8	14
Reductions due to statute expiration	(6)	(3)
End of Year	$ 28	$ 26

Income Taxes (Details 5) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Accrued interest and penalties	$ 7	$ 5

Reportable Operating Segments - Narrative (Details) - Segment	3 Months Ended	12 Months Ended
	May 31, 2017	Dec. 31, 2017
Segment Reporting [Abstract]
Number of reportable segments	2	2
Number of non-reportable operating segments		4

Reportable Operating Segments (Details) - USD ($)
$ in Millions

2 Months Ended

3 Months Ended

4 Months Ended

12 Months Ended

Feb. 28, 2017

Feb. 29, 2016

Aug. 31, 2017

May 31, 2017

Aug. 31, 2016

May 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

$ 1,284

$ 1,303

$ 2,038

$ 1,594

$ 1,883

$ 1,588

$ 2,228

$ 1,978

$ 7,144

$ 6,752

$ 6,909

Unallocated and corporate expenses

$ 254

$ 209

$ 317

$ 143

$ 286

$ 87

785

640

488

^[1]

(185)

(153)

(144)

Unallocated Closures and impairment expense

^[1],[2]

(17)

Unallocated Refranchising gain

^[1]

Unallocated Other income (expense)

^[1]

(11)

Interest income, net

^[1]

Changes in fair value of financial instruments

^[1]

Income Before Income Taxes

810

672

496

409

402

425

415

436

512

4,263

3,727

4,263

3,727

^[3]

1,900

1,813

1,900

1,813

KFC [Member]

4,998

4,696

4,768

^[4]

807

644

499

265

266

283

227

221

259

^[5]

1,526

1,411

1,526

1,411

^[3]

1,152

1,099

1,152

1,099

Pizza Hut [Member]

2,092

1,995

2,041

157

149

139

126

120

118

129

192

668

679

668

679

All Other Segments [Member]

^[3]

580

599

580

599

100

(5)

(4)

(8)

144

109

144

109

^[3]

114

Corporate [Member]

$ 61

^[6]

1,925

1,528

1,925

1,528