View Filing Data

$ 2,319

$ 2,212

$ 6,747

$ 6,501

General and administrative expenses

117

119

340

334

Other operating costs and expenses

Closures and impairment (income) expenses, net

(1)

Total costs and expenses, net

(17)

(10)

(48)

(143)

2,019

1,943

5,940

5,644

300

269

807

857

Net income – including noncontrolling interests

322

279

875

885

Income tax provision

(87)

(67)

(226)

(227)

235

212

649

658

Net income – noncontrolling interests

Weighted-average common shares outstanding (in millions):

$ 223

$ 203

$ 623

$ 634

Basic

^[1]

377

384

378

386

Diluted

388

394

389

398

$ 0.59

$ 0.53

$ 1.65

$ 1.64

$ 0.58

$ 0.51

$ 1.60

$ 1.59

Revenues

$ 2,097

$ 2,008

$ 6,112

$ 5,912

Revenues

113

110

Transactions With Franchisees and Unconsolidated Affiliates [Member]

Revenues

172

159

496

461

167

156

488

454

Revenues

Company Restaurant Expenses [Member]

Payroll and employee benefits

Food and paper

651

610

1,896

1,775

455

430

1,371

1,296

Occupancy and other operating expenses

619

615

1,804

1,841

$ 1,725

$ 1,655

$ 5,071

$ 4,912

[1]

As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards on shares of common stock of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The incremental shares arising from outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect.

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income - including noncontrolling interests	$ 235	$ 212	$ 649	$ 658
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustments	(96)	(98)	(95)	(156)
Comprehensive income - including noncontrolling interests	139	114	554	502
Comprehensive income - noncontrolling interests	8	6	23	19
Comprehensive Income - Yum China Holdings, Inc.	$ 131	$ 108	$ 531	$ 483

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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/exampleRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
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Net income - including noncontrolling interests

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

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Cash Flows – Operating Activities

$ 649

$ 658

Depreciation and amortization

322

343

Amortization of operating lease right-of-use assets

251

Closures and impairment expenses

Gain from re-measurement of equity interest upon acquisition

^[1]

(98)

Equity income from investments in unconsolidated affiliates

(39)

(56)

(52)

Distributions of income received from unconsolidated affiliates

Share-based compensation expense

Changes in accounts receivable

(2)

Changes in inventories

(22)

Changes in prepaid expenses and other current assets

(13)

Changes in accounts payable and other current liabilities

118

184

Changes in income taxes payable

Changes in non-current operating lease liabilities

(280)

Net Cash Provided by Operating Activities

(32)

(36)

1,045

1,173

Cash Flows – Investing Activities

Capital spending

(310)

(359)

Purchases of short-term investments

(619)

(513)

Maturities of short-term investments

366

513

Acquisition of business, net of cash acquired

(91)

Net Cash Used in Investing Activities

(3)

(553)

(527)

Cash Flows – Financing Activities

Repayment of short-term borrowings assumed from acquisition

(10)

Repurchase of shares of common stock

(207)

(161)

Cash dividends paid on common stock

(136)

(115)

Dividends paid to noncontrolling interests

(25)

(29)

Net Cash Used in Financing Activities

(3)

(368)

(318)

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

(26)

(53)

Net Increase in Cash, Cash Equivalents and Restricted Cash

275

Cash, Cash Equivalents and Restricted Cash - Beginning of Period

1,266

1,059

Cash, Cash Equivalents and Restricted Cash - End of Period

1,364

1,334

Supplemental Cash Flow Data

Cash paid for income tax

$ 185

$ 157

[1]	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 1,355		$ 1,266
Short-term investments	364		122
Accounts receivable, net	79		80
Inventories, net	317		307
Prepaid expenses and other current assets	141		177
Total Current Assets	2,256		1,952
Property, plant and equipment, net	1,506		1,615
Operating lease right-of-use assets	1,893
Goodwill	256		266
Intangible assets, net	97		116
Deferred income taxes	89		89
Investments in unconsolidated affiliates	74		81
Other assets	539		491
Total Assets	6,710		4,610
Current Liabilities
Accounts payable and other current liabilities	1,566		1,199
Income taxes payable	82		54
Total Current Liabilities	1,648		1,253
Non-current operating lease liabilities	1,729
Non-current finance lease liabilities	23		25
Other liabilities	195		355
Total Liabilities	3,595		1,633
Redeemable Noncontrolling Interest	1		1
Equity
Common stock, $0.01 par value; 1,000 million shares authorized; 394 million shares and 392 million shares issued at September 30, 2019 and December 31, 2018, respectively; 376 million shares and 379 million shares outstanding at September 30, 2019 and December 31, 2018, respectively	4		4
Treasury stock	(664)		(460)
Additional paid-in capital	2,423		2,402
Retained earnings	1,371		944
Accumulated other comprehensive loss	(109)		(17)
Total Equity – Yum China Holdings, Inc.	3,025		2,873
Noncontrolling interests	89		103
Total Equity	3,114	$ 3,078	2,976	$ 3,083	$ 3,096	$ 2,842
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$ 6,710		$ 4,610

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	394,000,000	392,000,000
Common stock, shares outstanding	376,000,000	379,000,000

Description of the Business

9 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of the Business

Note 1 – Description of the Business

Yum China Holdings, Inc. (“Yum China” and, together with its subsidiaries, the “Company,” “we,” “us” and “our”) was incorporated in Delaware on April 1, 2016. The Company separated from Yum! Brands, Inc. (“YUM” or the “Parent”) on October 31, 2016 (the “separation”), becoming an independent publicly traded company as a result of a pro rata distribution (the “distribution”) of all outstanding shares of Yum China common stock to shareholders of YUM. On October 31, 2016, YUM’s shareholders of record as of 5:00 p.m. Eastern Time on October 19, 2016 received one share of Yum China common stock for every one share of YUM common stock held as of the record date. Yum China’s common stock began trading “regular way” under the ticker symbol “YUMC” on the New York Stock Exchange on November 1, 2016.

The Company owns, franchises or has an ownership in entities that own and operate restaurants under the KFC, Pizza Hut, East Dawning, Little Sheep, Taco Bell and COFFii & JOY concepts (collectively, the “Concepts”). In connection with the separation of the Company from YUM, Yum! Restaurants Asia Pte. Ltd., a wholly-owned indirect subsidiary of YUM, and Yum Restaurants Consulting (Shanghai) Company Limited (“YCCL”), a wholly-owned indirect subsidiary of Yum China, entered into a 50-year master license agreement with automatic renewals for additional consecutive renewal terms of 50 years each, subject only to YCCL being in “good standing” and unless YCCL gives notice of its intent not to renew, for the exclusive right to use and sub-license the use of intellectual property owned by YUM and its subsidiaries for the development and operation of the KFC, Pizza Hut and, subject to achieving certain agreed-upon milestones, Taco Bell brands and their related marks and other intellectual property rights for restaurant services in the People’s Republic of China (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 intellectual property of East Dawning, Little Sheep and COFFii & JOY and pay no license fee related to these Concepts.

The Company also owns a controlling interest in the holding company of DAOJIA.com.cn (“Daojia”), an established online food delivery service provider in China.

In addition, the Company started a new e-commerce business in 2017, offering a wide selection of products including electronics, home and kitchen accessories, and other general merchandise to customers directly through the Company’s e-commerce platform.

Basis of Presentation

9 Months Ended

Sep. 30, 2019

Note 2 – Basis of Presentation

Our preparation of the accompanying Condensed Consolidated Financial Statements in conformity with Generally Accepted Accounting Principles in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

We have prepared the Condensed Consolidated Financial Statements in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The Condensed Consolidated Financial Statements include all normal and recurring adjustments considered necessary to present fairly our financial position as of September 30, 2019, results of our operations and comprehensive income for the quarters and years to date ended September 30, 2019 and 2018, and cash flows for the years to date ended September 30, 2019 and 2018. Our results of operations, comprehensive income and cash flows for these interim periods are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with the consolidated financial statements and notes thereto defined and included in the Company’s Annual Report on Form 10-K as filed with the SEC on February 27, 2019.

Through the acquisition of Daojia in 2017, the Company also acquired a variable interest entity (“VIE”) and subsidiaries of the VIE effectively controlled by Daojia. There exists a parent-subsidiary relationship between Daojia and its VIE as a result of certain exclusive agreements that require Daojia to consolidate its VIE and subsidiaries of the VIE because Daojia is the primary beneficiary that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb substantially all of the profits and all of the expected losses of the VIE. 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 Condensed Consolidated Financial Statements since the acquisition date.

During the first quarter of 2018, the Company completed the acquisition of an additional 36% equity interest in an unconsolidated affiliate that operates KFC stores in Wuxi, China (“Wuxi KFC”), for cash consideration of approximately $98 million, increasing the Company’s equity interest to 83%, allowing the Company to consolidate the entity. The acquisition was considered immaterial. We began consolidating Wuxi KFC upon the completion of acquisition.

Recently Adopted Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02” or “ASC 842”), which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The FASB subsequently issued amendments to clarify the implementation guidance. The Company adopted these standards on January 1, 2019, using a modified retrospective method for leases that exist at, or are entered into after, January 1, 2019, and has not recast the comparative periods presented in the Condensed Consolidated Financial Statements. Additionally, we elected the package of practical expedients that allowed us to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. We also elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases.

Upon the adoption of ASC 842, the Company recognized right-of-use (“ROU”) assets and lease liabilities of approximately $2.0 billion and $2.2 billion, respectively, for operating leases of the land and/or building of our restaurants and office spaces based on the present value of lease payments over the lease term. In addition, an impairment charge of $60 million (net of related impact on deferred taxes and noncontrolling interests) on ROU assets arising from existing operating leases as of January 1, 2019 was recorded as an adjustment to retained earnings, as the additional impairment charge would have been recorded before adoption had the operating lease ROU assets been recognized at the time of impairment.

The following table summarizes the effect on the Consolidated Balance Sheet as a result of adopting ASC 842.

	December 31, 2018			Effect of adoption				January 1, 2019

ASSETS
Current Assets
Cash and cash equivalents	$	1,266						$	1,266
Short-term investments		122							122
Accounts receivable, net		80							80
Inventories, net		307							307
Prepaid expenses and other current assets		177			(39	)	^(a)		138
Total Current Assets		1,952			(39	)			1,913
Property, plant and equipment, net		1,615			(1	)			1,614
Operating lease right-of-use assets		—			1,997		^(b)		1,997
Goodwill		266							266
Intangible assets, net		116			(2	)	^(c)		114
Deferred income taxes		89			19		^(d)		108
Investments in unconsolidated affiliates		81			(1	)			80
Other assets		491			(4	)	^(c)		487
Total Assets	$	4,610		$	1,969			$	6,579
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
Current Liabilities
Accounts payable and other current liabilities	$	1,199		$	320		^(e)	$	1,519
Income taxes payable		54							54
Total Current Liabilities		1,253			320				1,573
Non-current operating lease liabilities		—			1,860		^(f)		1,860
Non-current finance lease liabilities		25			—				25
Other liabilities		355			(148	)	^(g)		207
Total Liabilities		1,633			2,032				3,665
Redeemable Noncontrolling Interest		1							1
Equity
Common stock		4							4
Treasury stock		(460	)						(460	)
Additional paid-in capital		2,402							2,402
Retained earnings		944			(60	)	^(h)		884
Accumulated other comprehensive loss		(17	)						(17	)
Total Equity – Yum China Holdings, Inc.		2,873			(60	)			2,813
Noncontrolling interests		103			(3	)	⁽ⁱ⁾		100
Total Equity		2,976			(63	)			2,913
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$	4,610		$	1,969			$	6,579

(a)	Represents the current portion of prepaid rent reclassified to operating lease ROU assets.

(b)	Represents the net result of capitalization of operating lease payments and reclassification of prepaid rent, initial direct cost, deferred rent accrual and lease incentives, and offset by impairment of operating lease ROU assets that existed prior to the date of adoption.

(c)	Represents initial direct cost, favorable lease and non-current prepaid rent reclassified to operating lease ROU assets.

(d)	Represents the deferred tax impact related to impairment of operating lease ROU assets.

(e)	Represents recognition of the current portion of operating lease liabilities, offset by the reclassification of accrued rental payments and the current portion of deferred rent accrual to operating lease ROU assets.

(f)	Represents recognition of the non-current operating lease liabilities.

(g)	Represents reclassification of the non-current portion of deferred rent accrual and lease incentives to operating lease ROU assets.

(h)

Represents an impairment charge on operating lease ROU assets arising from existing operating leases as of January 1, 2019, net of related impact on deferred taxes and noncontrolling interests, with a corresponding reduction to the carrying amount of operating lease ROU assets. The impairment charge was recorded for those restaurants under operating leases with full impairment on the long-lived assets before January 1, 2019, as the additional impairment charge would have been recorded before January 1, 2019 had the operating lease ROU assets been recognized at the time of impairment.

(i)	Represents impairment of operating lease ROU assets attributable to noncontrolling interests.

In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) and will improve the usefulness of information reported to financial statement users. ASU 2018-02 is effective for the Company from January 1, 2019, with early adoption permitted. We adopted the standard on January 1, 2019, and such adoption did not have a material impact on our financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). The new guidance largely aligns the accounting for share-based awards issued to employees and non-employees. Existing guidance for employee awards will apply to nonemployee share-based transactions with limited exceptions. The new guidance also clarifies that any share-based payment awards issued to customers should be evaluated under ASC 606, Revenue from Contracts with Customers. ASU 2018-07 is effective for the Company from January 1, 2019, with early adoption permitted. We adopted the standard on January 1, 2019, and such adoption did not have a material impact on our financial statements.

Certain prior period items in the Condensed Consolidated Financial Statements have been reclassified to conform to the current period’s presentation to facilitate comparison.

Revenue Recognition

9 Months Ended

Sep. 30, 2019

Revenue Recognition

Note 3 – Revenue Recognition

The Company’s revenues primarily include Company sales, Franchise fees and income and Revenues from transactions with franchisees and unconsolidated affiliates.

Company Sales

Revenues from Company-owned restaurants are recognized when a customer takes possession of the food and tenders payment, which is when our obligation to perform is satisfied. The Company presents sales net of sales-related taxes. We also offer our customers delivery through both our own mobile applications and third-party aggregators’ platforms. For delivery orders placed through our mobile applications, we use our dedicated riders, while for orders placed through third-party aggregators’ platforms, we use our dedicated riders, or, in limited cases, third-party aggregators’ delivery staff. With respect to delivery orders delivered by our dedicated riders, we control and determine the price for the delivery service and generally recognize revenue, including delivery fees, when a customer takes possession of the food. When orders are fulfilled by the delivery staff of third-party aggregators, who control and determine the price for the delivery service, we recognize revenue, excluding delivery fees, when control of the food is transferred to the third-party aggregators’ delivery staff. The payment terms with respect to these sales are short-term in nature.

We recognize revenues from prepaid stored-value products, including gift cards and product vouchers, when they are redeemed by the customer. Prepaid gift cards sold at any given point generally expire over the next 36 months, and product vouchers generally expire over a period up to 12 months. We recognize breakage revenue, which is the amount of prepaid stored-value products that is not expected to be redeemed, either (1) proportionally in earnings as redemptions occur, in situations where the Company expects to be entitled to a breakage amount, or (2) when the likelihood of redemption is remote, in situations where the Company does not expect to be entitled to breakage, provided that there is no requirement for remitting balances to government agencies under unclaimed property laws. The Company reviews its breakage estimates at least annually based upon the latest available information regarding redemption and expiration patterns.

Our privilege membership programs offer privilege members rights to multiple benefits, such as free delivery and discounts on certain products. For certain KFC and Pizza Hut privilege membership programs offering a pre-defined amount of benefits that can be redeemed ratably over the membership period, revenue is ratably recognized over the period based on the elapse of time. With respect to Pizza Hut family privilege membership program offering members a mix of distinct benefits, including a welcome gift and assorted discount coupons with pre-defined quantities, consideration collected is allocated to the benefits provided based on their relative standalone selling price and revenue is recognized when food or services are delivered or the benefits expire.

Franchise Fees and Income

Franchise fees and income primarily include upfront fees, such as initial fees and renewal fees, and continuing fees. We have determined that the services we provide in exchange for upfront fees and continuing fees are highly interrelated with the franchise right. We recognize upfront fees received from a franchisee as revenue over the term of the franchise agreement or the renewal agreement because the franchise rights are accounted for as rights to access our symbolic intellectual property in accordance with ASC 606. The franchise agreement term is generally 10 years for KFC and Pizza Hut, and five or 10 years for Little Sheep. We recognize continuing fees, which are based upon a percentage of franchisee sales, as those sales occur.

Revenues from Transactions with Franchisees and Unconsolidated Affiliates

Revenues from transactions with franchisees and unconsolidated affiliates consist primarily of sales of food and paper products, advertising services and other services provided to franchisees and unconsolidated affiliates.

The Company centrally purchases substantially all food and paper products from suppliers for substantially all of our restaurants, including franchisees and unconsolidated affiliates, and then sells and delivers them to the restaurants. The performance obligation arising from such transactions is considered distinct from the franchise agreement as it is not highly dependent on the franchise agreement and the customer can benefit from the procurement service on its own. We consider ourselves the principal in this arrangement as we have the ability to control a promised good or service before transferring that good or service to the franchisees and unconsolidated affiliates. Revenue is recognized upon transfer of control over ordered items, generally upon delivery to the franchisees and unconsolidated affiliates.

For advertising services, the Company often engages third parties to provide services and acts as a principal in the transaction based on our responsibilities of defining the nature of the services and administering and directing all marketing and advertising programs in accordance with the provisions of our franchise agreements. The Company collects advertising contributions, which are generally based on a certain percentage of sales from substantially all of our restaurants, including franchisees and unconsolidated affiliates. Other services provided to franchisees and unconsolidated affiliates consist primarily of customer support and technology support services. Advertising services and other services provided are highly interrelated to franchise right, and are not considered individually distinct. We recognize revenue when the related sales occur.

Loyalty Programs

Each of the Company’s KFC and Pizza Hut reportable segments operates a loyalty program that allows registered members to earn points for each qualifying purchase. Points, which generally expire 18 months after being earned, may be redeemed for future purchases of KFC or Pizza Hut branded products or other products for free or at a discounted price. Points cannot be redeemed or exchanged for cash. The estimated value of points earned by the loyalty program members is recorded as a reduction of revenue at the time the points are earned, based on the percentage of points that are projected to be redeemed, with a corresponding deferred revenue liability included in Accounts payable and other current liabilities on the Condensed Consolidated Balance Sheets and subsequently recognized into revenue when the points are redeemed or expire. The Company estimates the value of the future redemption obligations based on the estimated value of the product for which points are expected to be redeemed and historical redemption patterns, including an estimate of the breakage for points that members will never redeem. The Company reviews its breakage estimates periodically based upon the latest available information regarding redemption and expiration patterns.

Disaggregation of Revenue

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

	Quarter Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	1,546	$	540	$	11	$	—	$	2,097	$	—		$	2,097
Franchise fees and income		35		1		2		—		38		—			38
Revenues from transactions with franchisees and unconsolidated affiliates		16		1		8		147		172		—			172
Other revenues		1		—		19		1		21		(9	)		12
Total revenues	$	1,598	$	542	$	40	$	148	$	2,328	$	(9	)	$	2,319

	Quarter Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	1,452	$	548	$	8	$	—	$	2,008	$	—		$	2,008
Franchise fees and income		34		1		1		—		36		—			36
Revenues from transactions with franchisees and unconsolidated affiliates		15		1		7		136		159		—			159
Other revenues		—		—		14		1		15		(6	)		9
Total revenues	$	1,501	$	550	$	30	$	137	$	2,218	$	(6	)	$	2,212

	Year to Date Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	4,495	$	1,588	$	29	$	—	$	6,112	$	—		$	6,112
Franchise fees and income		104		3		6		—		113		—			113
Revenues from transactions with franchisees and unconsolidated affiliates		48		3		20		425		496		—			496
Other revenues		1		1		49		3		54		(28	)		26
Total revenues	$	4,648	$	1,595	$	104	$	428	$	6,775	$	(28	)	$	6,747

	Year to Date Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	4,248	$	1,640	$	24	$	—	$	5,912	$	—		$	5,912
Franchise fees and income		104		2		4		—		110		—			110
Revenues from transactions with franchisees and unconsolidated affiliates		47		1		18		395		461		—			461
Other revenues		—		—		25		2		27		(9	)		18
Total revenues	$	4,399	$	1,643	$	71	$	397	$	6,510	$	(9	)	$	6,501

(a)	As COFFii & JOY and our e-commerce business became operating segments starting from the first quarter of 2019, revenue by segment information for prior quarters has been recast to align with the change in segment reporting. Additional details on our reportable segments are included in Note 13.

Accounts Receivable

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

Costs to Obtain Contracts

Costs to obtain contracts consist of upfront license fees that we paid to YUM prior to the separation in relation to initial fees or renewal fees we received from franchisees and unconsolidated affiliates, as well as license fees that are payable to YUM in relation to our deferred revenue of prepaid stored-value products and customer loyalty programs. They meet the requirements to be capitalized as they are incremental costs of obtaining contracts with customers and the Company expects to generate future economic benefits from such costs incurred. Such costs to obtain contracts are included in Other assets on the Condensed Consolidated Balance Sheets and are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the assets relate. Subsequent to the separation, we are no longer required to pay YUM initial or renewal fees that we receive from franchisees and unconsolidated affiliates. The Company did not incur any impairment losses related to costs to obtain contracts during any of the periods presented. Costs to obtain contracts were $9 million and $8 million at September 30, 2019 and December 31, 2018, respectively.

Contract Liabilities

Contract liabilities at September 30, 2019 and December 31, 2018 were as follows:

Contract liabilities	9/30/2019		12/31/2018
Deferred revenue related to prepaid stored-value products	$	80	$	73
Deferred revenue related to customer loyalty programs		24		17
Deferred revenue related to upfront fees		36		37
Total	$	140	$	127

Contract liabilities consist of deferred revenue related to prepaid stored-value products, customer loyalty programs and upfront fees. Deferred revenue related to prepaid stored-value products and customer loyalty programs is included in Accounts payable and other current liabilities on the Condensed Consolidated Balance Sheets. Deferred revenue related to upfront fees that we expect to recognize as revenue in the next 12 months is included in Accounts payable and other current liabilities, and the remaining balance is included in Other liabilities on the Condensed Consolidated Balance Sheets. Revenue recognized that was included in the contract liability balance at the beginning of each period amounted to $35 million and $21 million for the quarter ended September 30, 2019 and 2018, respectively, and $56 million and $39 million for the years to date ended September 30, 2019 and 2018, respectively. Changes in contract liability balances were not materially impacted by business acquisition, change in estimate of transaction price or any other factors during any of the periods presented.

The Company has elected, as a practical expedient, not to disclose the value of remaining performance obligations associated with sales-based royalty promised to franchisees in exchange for franchise right and other related services. The remaining duration of the performance obligation is the remaining contractual term of each franchise agreement. We recognize continuing franchisee fees and revenues from advertising services and other services provided to franchisees and unconsolidated affiliates based on a certain percentage of sales, as those sales occur.

Earnings Per Common Share ("EPS")

9 Months Ended

Sep. 30, 2019

Earning Per Common Share (EPS)

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

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

	Quarter Ended				Year to Date Ended
	9/30/2019		9/30/2018		9/30/2019		9/30/2018
Net Income – Yum China Holdings, Inc.	$	223	$	203	$	623	$	634
Weighted-average common shares outstanding (for basic calculation) ^(a)		377		384		378		386
Effect of dilutive share-based awards ^(a)		7		9		8		10
Effect of dilutive warrants ^(b)		4		1		3		2
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		388		394		389		398
Basic Earnings Per Common Share	$	0.59	$	0.53	$	1.65	$	1.64
Diluted Earnings Per Common Share	$	0.58	$	0.51	$	1.60	$	1.59
Share-based awards excluded from the diluted EPS computation ^(c)		2		10		2		4

(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 initially providing the right to purchase 8,200,405 shares of Yum China common stock, at an exercise price of $31.40 and $39.25 per share, respectively, subject to customary anti-dilution adjustments. The warrants may be exercised at any time through October 31, 2021. The incremental shares arising from outstanding warrants are included in the computation of diluted EPS, if there is dilutive effect when the average market price of Yum China common stock for the period exceeds the exercise price of the warrants.

(c)	These outstanding stock appreciation rights, restricted stock units and performance share units were not included in the computation of diluted EPS because to do so would have been antidilutive for the quarters and years to date presented.

Equity

9 Months Ended

Sep. 30, 2019

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

Equity

Note 5 – Equity

Changes in Equity and Redeemable Noncontrolling Interest (in millions)

	Yum China Holdings, Inc.
										Accumulated
	Common				Additional					Other															Redeemable
	Stock				Paid-in		Retained			Comprehensive			Treasury Stock						Noncontrolling			Total			Noncontrolling
	Shares		Amount		Capital		Earnings			Income (Loss)			Shares			Amount			Interests			Equity			Interest
Balance at June 30, 2019		394	$	4	$	2,417	$	1,193		$	(17	)		(17	)	$	(600	)	$	81		$	3,078		$	1
Net Income								223												12			235
Foreign currency translation adjustments											(92	)								(4	)		(96	)
Comprehensive income																							139
Cash dividends declared ($0.12 per common share)								(45	)														(45	)
Repurchase of shares of common stock														(1	)		(64	)					(64	)
Exercise and vesting of share-based awards		—		—		—																	—
Share-based compensation						6																	6
Balance at September 30, 2019		394	$	4	$	2,423	$	1,371		$	(109	)		(18	)	$	(664	)	$	89		$	3,114		$	1

Balance at June 30, 2018		391	$	4	$	2,388	$	751		$	81			(6	)	$	(221	)	$	93		$	3,096		$	5
Net Income								203												9			212
Foreign currency translation adjustments											(95	)								(3	)		(98	)
Comprehensive income																							114
Cash dividends declared ($0.1 per common share)								(38	)														(38	)
Repurchase of shares of common stock														(3	)		(94	)					(94	)
Exercise and vesting of share-based awards		—		—		—																	—
Share-based compensation					5																		5
Balance at September 30, 2018		391	$	4	$	2,393	$	916		$	(14	)		(9	)	$	(315	)	$	99		$	3,083		$	5

	Yum China Holdings, Inc.
										Accumulated
	Common				Additional					Other															Redeemable
	Stock				Paid-in		Retained			Comprehensive			Treasury Stock						Noncontrolling			Total			Noncontrolling
	Shares		Amount		Capital		Earnings			(Loss) Income			Shares			Amount			Interests			Equity			Interest
Balance at December 31, 2018		392	$	4	$	2,402	$	944		$	(17	)		(13	)	$	(460	)	$	103		$	2,976		$	1
Net Income								623												26			649
Foreign currency translation adjustments											(92	)								(3	)		(95	)
Comprehensive income																							554
Cash dividends declared ($0.36 per common share)								(136	)														(136	)
Dividends declared																				(34	)		(34	)
Repurchase of shares of common stock														(5	)		(204	)					(204	)
Exercise and vesting of share-based awards		2		—		—																	—
Share-based compensation						21																	21
Cumulative effect of accounting change								(60	)											(3	)		(63	)
Balance at September 30, 2019		394	$	4	$	2,423	$	1,371		$	(109	)		(18	)	$	(664	)	$	89		$	3,114		$	1

Balance at December 31, 2017		389	$	4	$	2,375	$	397		$	137			(4	)	$	(148	)	$	77		$	2,842		$	5
Net Income								634												24			658
Foreign currency translation adjustments											(151	)								(5	)		(156	)
Comprehensive income																							502
Acquisition of business																				36			36
Cash dividends declared ($0.3 per common share)								(115	)														(115	)
Dividends declared																				(33	)		(33	)
Repurchase of shares of common stock														(5	)		(167	)					(167	)
Exercise and vesting of share-based awards		2		—		—																	—
Share-based compensation					18																		18
Balance at September 30, 2018		391	$	4	$	2,393	$	916		$	(14	)		(9	)	$	(315	)	$	99		$	3,083		$	5

Share Repurchase Program

On February 7, 2017, we announced that our Board of Directors authorized a $300 million share repurchase program. On October 4, 2017, the Board of Directors increased Yum China’s existing share repurchase authorization from $300 million to an aggregate of $550 million. On October 30, 2018, the Board of Directors further increased the share repurchase authorization to an aggregate of $1.4 billion. The Company repurchased 4.9 million and 4.6 million shares of Yum China common stock at a total cost of $204 million and $167 million for the years to date ended September 30, 2019 and 2018, respectively. The total cost includes $2 million and $6 million to be settled subsequent to September 30, 2019 and 2018, respectively, for shares repurchased with trade dates on or prior to September 30, 2019 and 2018, respectively. As of September 30, 2019, $756 million remained available for future share repurchases under the authorization.

Items Affecting Comparability of Net Income and Cash Flows

9 Months Ended

Sep. 30, 2019

Items Affecting Comparability of Net Income and Cash Flows

Note 6 – Items Affecting Comparability of Net Income and Cash Flows

Gain from Re-Measurement of Equity Interest Upon Acquisition

In the first quarter of 2018, the Company completed the acquisition of Wuxi KFC. In connection with the acquisition, the Company also recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value using discounted cash flow valuation approach and incorporating assumptions and estimates that were not observable in the market. Key assumptions used in estimating future cash flows included projected revenue growth and operating expenses, which were based on internal projections, historical performance of stores and the business environment, as well as the selection of an appropriate discount rate based on weighted-average cost of capital and company-specific risk premium. The gain was not allocated to any segment for performance reporting purposes.

Meituan Dianping (“Meituan”) Investment

In the third quarter of 2018, the Company subscribed for 8.4 million, or less than 1%, of the ordinary shares of Meituan, an e-commerce platform for services in China, for a total consideration of approximately $74 million, when it launched its initial public offering on the Hong Kong Stock Exchange in September 2018. The Company accounted for the equity securities at fair value with subsequent fair value changes recorded in our Condensed Consolidated Statements of Income. The fair value of the investment in Meituan is determined based on the closing market price for the shares at the end of each reporting period. As of September 30, 2019, the fair value of the investment was $86 million. The unrealized gain of $12 million and $39 million was included in Investment gain in our Condensed Consolidated Statements of Income during the quarter and year to date ended September 30, 2019, respectively.

Transition Tax

We completed the evaluation of the impact on our transition tax computation based on the final regulations that were released by the U.S. Treasury Department and the Internal Revenue Service (“IRS”) and became effective in the first quarter of 2019, and recorded an additional amount of $8 million for the transition tax accordingly. See Note 12 for additional information.

Other Income, Net

9 Months Ended

Sep. 30, 2019

Note 7 – Other Income, net

	Quarter Ended						Year to Date Ended
	9/30/2019			9/30/2018			9/30/2019			9/30/2018
Equity income from investments in unconsolidated affiliates	$	19		$	17		$	56		$	52
Gain from re-measurement of equity interest upon acquisition^(a)		—			—			—			98
Foreign exchange impact and other		(2	)		(7	)		(8	)		(7	)
Other income, net	$	17		$	10		$	48		$	143

(a)	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

Supplemental Balance Sheet Information

9 Months Ended

Sep. 30, 2019

Supplemental Balance Sheet Information

Note 8 – Supplemental Balance Sheet Information

Accounts Receivable, net	9/30/2019			12/31/2018
Accounts receivable, gross	$	80		$	81
Allowance for doubtful accounts		(1	)		(1	)
Accounts receivable, net	$	79		$	80

Prepaid Expenses and Other Current Assets	9/30/2019		12/31/2018
Receivables from payment processors and aggregators	$	32	$	49
Dividends receivable from unconsolidated affiliates		32		20
Prepaid rent		1		42
Other prepaid expenses and current assets		76		66
Prepaid expenses and other current assets	$	141	$	177

Property, Plant and Equipment	9/30/2019			12/31/2018
Buildings and improvements	$	2,099		$	2,121
Finance leases, primarily buildings		26			26
Machinery, equipment and construction in progress		1,191			1,201
Property, plant and equipment, gross		3,316			3,348
Accumulated depreciation		(1,810	)		(1,733	)
Property, plant and equipment, net	$	1,506		$	1,615

Other Assets	9/30/2019		12/31/2018
VAT assets	$	232	$	226
Land use right		130		138
Investment in equity securities		86		47
Long-term deposits		69		64
Costs to obtain contracts		9		8
Restricted cash		9		—
Others		4		8
Other Assets	$	539	$	491

Accounts Payable and Other Current Liabilities	9/30/2019		12/31/2018
Accounts payable	$	563	$	619
Operating leases liabilities		360		—
Accrued compensation and benefits		199		200
Accrued capital expenditures		112		137
Contract liabilities		110		96
Accrued marketing expenses		94		32
Other current liabilities		128		115
Accounts payable and other current liabilities	$	1,566	$	1,199

Other Liabilities	9/30/2019		12/31/2018
Accrued income tax payable	$	67	$	71
Deferred income tax liabilities		58		65
Contract liabilities		30		31
Deferred rental accrual		—		144
Other non-current liabilities		40		44
Other liabilities	$	195	$	355

Reconciliation of Cash, Cash equivalents, and Restricted Cash for Condensed Consolidated Statements of Cash Flows

	9/30/2019		12/31/2018
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets	$	1,355	$	1,266
Restricted cash included in Other assets ^(a)		9		—
Cash, Cash Equivalents and Restricted Cash as presented in Condensed Consolidated Statements of Cash Flows	$	1,364	$	1,266

(a)

Restricted cash included in Other assets within our Condensed Consolidated Balance Sheet represents amounts deposited into an escrow account pursuant to a definitive agreement entered in August 2019 to acquire a controlling interest in the Huang Ji Huang group, a leading Chinese-style casual dining franchise business. Subject to the satisfaction of closing conditions, the acquisition is expected to close in early 2020. The acquisition is considered immaterial.

Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 9 – Goodwill and Intangible Assets

The changes in the carrying amount of goodwill are as follows:

	Total Company			KFC			Pizza Hut			All Other Segments
Balance as of December 31, 2018
Goodwill, gross	$	648		$	238		$	19		$	391
Accumulated impairment losses^(a)		(382	)		—			—			(382	)
Goodwill, net		266			238			19			9
Effect of currency translation adjustment		(10	)		(9	)		(1	)		—
Balance as of September 30, 2019
Goodwill, gross		638			229			18			391
Accumulated impairment losses^(a)		(382	)		—			—			(382	)
Goodwill, net	$	256		$	229		$	18		$	9

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

Intangible assets, net as of September 30, 2019 and December 31, 2018 are as follows:

	9/30/2019										12/31/2018
	Gross Carrying Amount^(a)		Accumulated Amortization			Accumulated impairment losses			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Accumulated impairment losses			Net Carrying Amount
Definite-lived intangible assets
Reacquired franchise rights	$	144	$	(108	)	$	—		$	36	$	150	$	(100	)	$	—		$	50
Daojia platform		16		(3	)		(10	)		3		16		(3	)		(10	)		3
Customer-related assets		11		(8	)		(2	)		1		12		(8	)		(2	)		2
Others^(b)		9		(3	)		—			6		17		(9	)		—			8
	$	180	$	(122	)	$	(12	)	$	46	$	195	$	(120	)	$	(12	)	$	63
Indefinite-lived intangible assets
Little Sheep trademark	$	51	$	—		$	—		$	51	$	53	$	—		$	—		$	53

Total intangible assets	$	231	$	(122	)	$	(12	)	$	97	$	248	$	(120	)	$	(12	)	$	116

(a)	Changes in gross carrying amount include the effect of currency translation adjustment.

(b)	Decrease in Others during year to date ended September 30, 2019 is primarily due to the reclassification of favorable lease assets, with a gross carrying amount of $7 million and accumulated amortization of $5 million, to right-of-use assets upon adoption of ASC 842.

Amortization expense of definite-lived intangible assets was $3 million and $7 million for the quarters ended September 30, 2019 and 2018, respectively, and $13 million and $20 million for the years to date ended September 30, 2019 and 2018, respectively. As of September 30, 2019, expected amortization expense for the unamortized definite-lived intangible assets is approximately $3 million for the remainder of 2019, $12 million in 2020, $12 million in 2021, $12 million in 2022 and $3 million in 2023.

Leases

9 Months Ended

Sep. 30, 2019

Leases

Note 10 – Leases

As of September 30, 2019, we operated more than 8,900 restaurants, leasing the underlying land and/or building. We generally enter into lease agreements with initial terms of 10 to 20 years. Most of our lease agreements contain termination options that permit us to terminate the lease agreement early if the restaurant’s unit contribution is negative for a specified period of time. We generally do not have renewal options for our leases. Such options are accounted for only when it is reasonably certain that we will exercise the options. The rent under the majority of our current restaurant lease agreements is generally payable in one of three ways: (i) fixed rent; (ii) the higher of a fixed base rent or a percentage of the restaurant’s sales revenue; or (iii) a percentage of the restaurant’s sales revenue. Most leases require us to pay common area maintenance fees for the leased property. In addition to restaurants leases, we also lease office spaces, logistics centers and equipment. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Prior to the adoption of ASC 842, operating leases were not recognized on the balance sheet of the Company, but rent expenses were recognized on a straight-line basis over the lease term. Upon adoption, right-of-use assets and lease liabilities are recognized upon lease commencement for operating leases based on the present value of lease payments over the lease term. This is consistent with the historical recognition of finance leases, which was unchanged upon adoption of ASC 842. Variable lease payments that do not depend on a rate or index are expensed as incurred. The Company has elected not to recognize right-of-use assets or lease liabilities for leases with an initial term of 12 months or less; we recognize lease expense for these leases on a straight-line basis over the lease term. In addition, the Company has elected not to separate non-lease components (e.g., common area maintenance fees) from the lease components.

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

Supplemental Balance Sheet
	9/30/2019		Account Classification
Assets
Operating lease right-of-use assets	$	1,893	Operating lease right-of-use assets
Finance lease right-of-use assets		14	Property, plant and equipment, net
Total leased assets	$	1,907

Liabilities
Current
Operating lease liabilities	$	360	Accounts payable and other current liabilities
Finance lease liabilities		1	Accounts payable and other current liabilities
Non-current
Operating lease liabilities		1,729	Non-current operating lease liabilities
Finance lease liabilities		23	Non-current finance lease liabilities
Total lease liabilities	$	2,113

Summary of Lease Cost	Quarter Ended			Year to Date Ended			Account Classification
	9/30/2019			9/30/2019

Operating lease cost	$	117		$	351		Occupancy and other operating expenses, G&A or Franchise expenses
Finance lease cost
Amortization of leased assets		—			1		Occupancy and other operating expenses
Interest on lease liabilities		—			1		Interest expense, net
Variable lease cost		94			265		Occupancy and other operating expenses or Franchise expenses
Short-term lease cost		3			8		Occupancy and other operating expenses or G&A
Sublease income		(7	)		(21	)	Franchise fees and income or Other revenues
Total lease cost	$	207		$	605

Supplemental Cash Flow Information	Quarter Ended		Year to Date Ended
	9/30/2019		9/30/2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	120	$	361
Operating cash flows from finance leases		—		1
Financing cash flows from finance leases		—		1
Right-of-use assets obtained in exchange for new lease liabilities^(a):
Operating leases	$	98	$	217
Finance leases		—		—

(a)	This also includes noncash transactions resulting in adjustments to the lease liability or ROU asset due to modification or other reassessment events.

Lease Term and Discount Rate	9/30/2019
Weighted-average remaining lease term (years)
Operating leases		7.1
Finance leases		12.0

Weighted-average discount rate
Operating leases		6.1	%
Finance leases		5.8	%

Summary of Future Lease Payments and Lease Liabilities

Maturities of lease liabilities as of September 30, 2019 were as follows:

	Amount of Operating Leases		Amount of Finance Leases		Total
Remainder of 2019	$	133	$	1	$	134
2020		458		3		461
2021		416		3		419
2022		358		3		361
2023		295		3		298
Thereafter		931		21		952
Total undiscounted lease payment		2,591		34		2,625
Less: imputed interest ^(b)		502		10		512
Present value of lease liabilities	$	2,089	$	24	$	2,113

(b)

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

As of September 30, 2019, we have additional lease agreements that have been signed but not yet commenced, with total undiscounted minimum lease payments of $121 million. These leases will commence between the fourth quarter of 2019 and 2023 with lease terms of 1 year to 20 years.

Future minimum lease payments under non-cancellable leases as of December 31, 2018 were as follows:

	Commitments
	Amount of Operating Leases		Amount of Finance Leases		Total
2019	$	466	$	3	$	469
2020		440		3		443
2021		394		3		397
2022		336		3		339
2023		275		3		278
Thereafter		864		22		886
	$	2,775	$	37	$	2,812

At December 31, 2018, the present value of minimum payments under finance leases was $27 million, after deducting imputed interest of $10 million. The current portion of finance lease obligations was $2 million as of December 31, 2018, and was classified in Accounts payable and other current liabilities.

Fair Value Measurements

9 Months Ended

Sep. 30, 2019

Fair Value Measurements

Note 11 – Fair Value Measurements

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

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

The following table is a summary of our financial assets measured on a recurring basis or disclosed at fair value and the level within the fair value hierarchy in which the measurement falls. The Company classifies its cash equivalents, short-term investments and investment in equity securities within Level 1 or Level 2 in the fair value hierarchy because it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. No transfers among the levels within the fair value hierarchy occurred during the quarter ended September 30, 2019.

			Fair Value Measurement or Disclosure at September 30, 2019
	Balance at September 30, 2019		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	658	$	—	$	658	$	—
Money market funds		284		284
Total cash equivalents		942		284		658		—
Short-term investments:
Time deposits		364				364
Total short-term investments		364		—		364		—
Other assets:
Investment in equity securities		86		86
Total	$	1,392	$	370	$	1,022	$	—

			Fair Value Measurement or Disclosure at December 31, 2018
	Balance at December 31, 2018		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	570	$	—	$	570	$	—
Money market funds		226		226
Fixed rate debt securities^(a)		153		153
Total cash equivalents		949		379		570		—
Short-term investments:
Time deposits		122				122
Total short-term investments		122		—		122		—
Other assets:
Investment in equity securities		47		47
Total	$	1,118	$	426	$	692	$	—

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

Non-Recurring Fair Value Measurements

In addition, certain of the Company’s restaurant-level assets (including operating lease ROU assets, property, plant and equipment), goodwill and intangible assets, are measured at fair value based on Level 3 on a non-recurring basis, if determined to be impaired. In the determination of fair value of restaurant level assets, the Company considered the highest and best use of the assets and used unobservable inputs (Level 3), such as reasonable sales growth and margin improvement assumptions in generating after-tax cash flows or the price market participants would pay to sublease the ROU assets for other use.

The following table presents amounts recognized from all non-recurring fair value measurements using Level 3 inputs during the quarters and years to date ended September 30, 2019 and 2018. These amounts exclude fair value measurements made for restaurants that were closed or refranchised prior to those respective period-end dates.

	Quarter Ended				Year to Date Ended
	9/30/2019		9/30/2018		9/30/2019		9/30/2018		Account Classification

ROU impairment prior to the adoption of ASC 842^(a)	$	—	$	—	$	82	$	—	Retained Earnings
Incremental restaurant-level impairment upon adoption of ASC 842^(b)		—		—	12			—	Closure and impairment expenses, net
Restaurant-level impairment^(c)		—		—		7	13		Closure and impairment expenses, net
Total	$	—	$	—	$	101	$	13

(a)

ROU impairment prior to the adoption of ASC 842 represents an impairment charge on operating lease ROU assets arising from existing operating leases as of January 1, 2019. After netting with the related impact on deferred taxes of $19 million and the impact on noncontrolling interests of $3 million, we recorded a cumulative adjustment of $60 million to retained earnings in accordance with the transition guidance for the new lease standard. For those restaurants under operating leases with full impairment on their long-lived assets (primarily property, plant and equipment) before January 1, 2019, an additional impairment charge would have been recorded before January 1, 2019 had the operating lease ROU assets been recognized at the time of impairment.

(b)	Reflect incremental restaurant-level impairment upon adoption of ASC 842 in the first quarter of 2019. We performed an additional impairment evaluation of long-lived assets of restaurants, which includes operating lease ROU assets, and property, plant and equipment.

(c)	Restaurant-level impairment changes 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 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.

Income Taxes

9 Months Ended

Sep. 30, 2019

Income Taxes

Note 12 – Income Taxes

	Quarter Ended						Year to Date Ended
	9/30/2019			9/30/2018			9/30/2019			9/30/2018
Income tax provision	$	87		$	67		$	226		$	227
Effective tax rate		26.9	%		24.2	%		25.8	%		25.7	%

The higher effective tax rate for the quarter ended September 30, 2019 was primarily due to additional accrued tax on Global Intangible Low Taxed Income (“GILTI”). The higher year to date effective tax rate was primarily due to an additional adjustment of $8 million on transition tax pursuant to the Tax Act recorded in the first quarter of 2019 and additional accrued tax on GILTI, offset by non-taxable gain related to the investment in equity securities of Meituan.

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 impacted Yum China in two material aspects: (1) in general, all of the foreign-source dividends received by Yum China from its foreign subsidiaries are exempted from taxation starting from the tax year beginning after December 31, 2017 and (2) Yum China recorded additional income tax expense in the fourth quarter of 2017, including an estimated one-time transition tax on its deemed repatriation of accumulated undistributed foreign earnings and additional tax related to the revaluation of certain deferred tax assets.

We completed our analysis of the Tax Act in the fourth quarter of 2018 according to guidance released by the U.S. Treasury Department and the IRS as of December 2018 and made a reversal to provisional amount in the amount of $36 million for the transition tax recorded in 2017 accordingly. The U.S. Treasury Department and the IRS released the final transition tax regulations on January 15, 2019, which were published in the Federal Register and became effective on February 5, 2019. We completed the evaluation of the impact on our transition tax computation based on the final regulations released in the first quarter of 2019 and recorded an additional amount of $8 million for the transition tax accordingly.

The Tax Act requires a U.S. shareholder to be subject to tax on GILTI earned by certain foreign subsidiaries. We have elected the option to account for current year GILTI tax as a period cost as incurred, and therefore included it in estimating the annual effective tax rate.

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

Segment Reporting

9 Months Ended

Sep. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Segment Reporting

Note 13 –Segment Reporting

We have two reportable segments: KFC and Pizza Hut. Starting from the first quarter of 2019, our newly developed COFFii & JOY concept and e-commerce business became operating segments, as their financial results started being regularly reviewed by the Company’s chief operating decision maker. Accordingly, our six non-reportable operating segments, reflecting the operations of East Dawning, Little Sheep, Taco Bell, Daojia, COFFii & JOY and our e-commerce business, are combined and referred to as All Other Segments, as those operating segments are insignificant both individually and in aggregate. Segment financial information for prior quarters has been recast to align with this change in segment reporting. There was no impact on the consolidated financial statements of the Company as a result of this change.

	Quarter Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	1,597	$	542	$	32	$	148		2,319	$	—		$	2,319
Inter-segment revenue		1		—		8		—		9		(9	)		—
Total	$	1,598	$	542	$	40	$	148	$	2,328	$	(9	)	$	2,319

	Quarter Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	1,501	$	550	$	24	$	137		2,212	$	—		$	2,212
Inter-segment revenue		—		—		6		—		6		(6	)		—
Total	$	1,501	$	550	$	30	$	137	$	2,218	$	(6	)	$	2,212

	Year to Date Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	4,647	$	1,595	$	77	$	428		6,747	$	—		$	6,747
Inter-segment revenue		1		—		27		—		28		(28	)		—
Total	$	4,648	$	1,595	$	104	$	428	$	6,775	$	(28	)	$	6,747

	Year to Date Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	4,399	$	1,643	$	62	$	397		6,501	$	—		$	6,501
Inter-segment revenue		—		—		9		—		9		(9	)		—
Total	$	4,399	$	1,643	$	71	$	397	$	6,510	$	(9	)	$	6,501

	Quarter Ended						Year to Date Ended
Operating Profit	9/30/2019			9/30/2018			9/30/2019			9/30/2018
KFC^(b)	$	295		$	264		$	788		$	759
Pizza Hut		38			53			117			106
All Other Segments		(2	)		(6	)		(12	)		(16	)
Unallocated revenues from transactions with franchisees and unconsolidated affiliates^(c)		147			136			425			395
Unallocated Other revenues		1			1			3			2
Unallocated expenses from transactions with franchisees and unconsolidated affiliates^(c)		(145	)		(135	)		(421	)		(392	)
Unallocated Other operating costs and expenses		(1	)		—			(3	)		(1	)
Unallocated and corporate G&A expenses		(34	)		(42	)		(92	)		(94	)
Unallocated Other income (loss)^(d)		1			(2	)		2			98
Operating Profit	$	300		$	269		$	807		$	857
Interest income, net^(a)		10			10			29			28
Investment gain^(a)		12			—			39			—
Income Before Income Taxes	$	322		$	279		$	875		$	885

	Quarter Ended				Year to Date Ended
Impairment Charges	9/30/2019		9/30/2018		9/30/2019		9/30/2018
KFC^(e)	$	1	$	1	$	13	$	9
Pizza Hut^(e)		1		1		12		14
All Other Segments		—	$	—	$	2	$	—
	$	2	$	2	$	27	$	23

	Total Assets
	9/30/2019		12/31/2018
KFC^(f)	$	2,992	$	1,745
Pizza Hut		939		558
All Other Segments		164		132
Corporate and Unallocated^(g)		2,615		2,175
	$	6,710	$	4,610

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

(b)	Includes equity income from investments in unconsolidated affiliates of $19 million and $17 million for the quarters ended September 30, 2019 and 2018, respectively, and $56 million and $52 million for the years to date ended September 30, 2019 and 2018, respectively.

(c)

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

(d)	The amount for the year to date ended September 30, 2018 primarily includes gain from re-measurement of the previously held equity interest in connection with the acquisition of Wuxi KFC (See Note 2).

(e)	Primarily includes store closure impairment charges, incremental restaurant-level impairment charges as a result of adopting ASC 842 and restaurant-level impairment charges resulting from our semi-annual impairment evaluation (See Note 11).

(f)	Includes investments in unconsolidated affiliates.

(g)	Primarily includes cash and cash equivalents, short-term investments, investment in equity securities, and inventories that are centrally managed.

Contingencies

9 Months Ended

Sep. 30, 2019

Contingencies

Note 14 – Contingencies

Indemnification of China Tax on Indirect Transfers of Assets

In February 2015, the Chinese State Taxation Administration (“STA”) issued Bulletin 7 on Income arising from Indirect Transfers of Assets by Non-Resident Enterprises. Pursuant to Bulletin 7, an “indirect transfer” of Chinese taxable assets, including equity interests in a Chinese resident enterprise, 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, there are significant uncertainties regarding what constitutes a reasonable commercial purpose, how the safe harbor provisions for group restructurings are to be interpreted and how the taxing authorities will ultimately view the distribution. As a result, YUM’s position could be challenged by Chinese tax authorities resulting in a 10% tax assessed on the difference between the fair market value and the tax basis of the separated China business. As YUM’s tax basis in the China business is minimal, the amount of such tax could be significant.

Any tax liability arising from the application of Bulletin 7 to the distribution is expected to be settled in accordance with the tax matters agreement between the Company and YUM. Pursuant to the tax matters agreement, to the extent any Chinese indirect transfer tax pursuant to Bulletin 7 is imposed, such tax and related losses will be allocated between YUM and the Company in proportion to their respective share of the combined market capitalization of YUM and the Company during the 30 trading days after the separation. Such a settlement could be significant and have a material adverse effect on our results of operations and our financial condition. At the inception of the tax indemnity being provided to YUM, the fair value of the non-contingent obligation to stand ready to perform was insignificant and the liability for the contingent obligation to make payment was not probable or estimable.

Guarantees

From time to time we have guaranteed certain lines of credit and loans of franchisees and unconsolidated affiliates. As of September 30, 2019, guarantees on behalf of franchisees were immaterial and no guarantees were outstanding for unconsolidated affiliates.

Legal Proceedings

From time to time, the Company is subject to various lawsuits covering a variety of allegations. The Company believes that the ultimate liability, if any, in excess of amounts already provided for these matters in the Condensed Consolidated Financial Statements, is not likely to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. Matters faced by the Company from time to time include, but are not limited to, claims from landlords, employees, customers and others related to operational, contractual or employment issues.

Subsequent Events

9 Months Ended

Sep. 30, 2019

Subsequent Events [Abstract]

Subsequent Events

Note 15 – Subsequent Events

On October 29, 2019, the Company announced that the Board of Directors declared a cash dividend of $0.12 per share, payable as of the close of business on December 17, 2019 to stockholders of record as of the close of business on November 26, 2019. The total estimated cash dividend payable is approximately $45 million.

Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2019

Recently Adopted Accounting Pronouncements

Note 2 – Basis of Presentation

The following table summarizes the effect on the Consolidated Balance Sheet as a result of adopting ASC 842.

	December 31, 2018			Effect of adoption				January 1, 2019

ASSETS
Current Assets
Cash and cash equivalents	$	1,266						$	1,266
Short-term investments		122							122
Accounts receivable, net		80							80
Inventories, net		307							307
Prepaid expenses and other current assets		177			(39	)	^(a)		138
Total Current Assets		1,952			(39	)			1,913
Property, plant and equipment, net		1,615			(1	)			1,614
Operating lease right-of-use assets		—			1,997		^(b)		1,997
Goodwill		266							266
Intangible assets, net		116			(2	)	^(c)		114
Deferred income taxes		89			19		^(d)		108
Investments in unconsolidated affiliates		81			(1	)			80
Other assets		491			(4	)	^(c)		487
Total Assets	$	4,610		$	1,969			$	6,579
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
Current Liabilities
Accounts payable and other current liabilities	$	1,199		$	320		^(e)	$	1,519
Income taxes payable		54							54
Total Current Liabilities		1,253			320				1,573
Non-current operating lease liabilities		—			1,860		^(f)		1,860
Non-current finance lease liabilities		25			—				25
Other liabilities		355			(148	)	^(g)		207
Total Liabilities		1,633			2,032				3,665
Redeemable Noncontrolling Interest		1							1
Equity
Common stock		4							4
Treasury stock		(460	)						(460	)
Additional paid-in capital		2,402							2,402
Retained earnings		944			(60	)	^(h)		884
Accumulated other comprehensive loss		(17	)						(17	)
Total Equity – Yum China Holdings, Inc.		2,873			(60	)			2,813
Noncontrolling interests		103			(3	)	⁽ⁱ⁾		100
Total Equity		2,976			(63	)			2,913
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$	4,610		$	1,969			$	6,579

(a)	Represents the current portion of prepaid rent reclassified to operating lease ROU assets.

(b)	Represents the net result of capitalization of operating lease payments and reclassification of prepaid rent, initial direct cost, deferred rent accrual and lease incentives, and offset by impairment of operating lease ROU assets that existed prior to the date of adoption.

(c)	Represents initial direct cost, favorable lease and non-current prepaid rent reclassified to operating lease ROU assets.

(d)	Represents the deferred tax impact related to impairment of operating lease ROU assets.

(e)	Represents recognition of the current portion of operating lease liabilities, offset by the reclassification of accrued rental payments and the current portion of deferred rent accrual to operating lease ROU assets.

(f)	Represents recognition of the non-current operating lease liabilities.

(g)	Represents reclassification of the non-current portion of deferred rent accrual and lease incentives to operating lease ROU assets.

(h)

(i)	Represents impairment of operating lease ROU assets attributable to noncontrolling interests.

Certain prior period items in the Condensed Consolidated Financial Statements have been reclassified to conform to the current period’s presentation to facilitate comparison.

Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2019

Summary of Effect on Consolidated Balance Sheets as Result of Adopting ASU 2016-02

The following table summarizes the effect on the Consolidated Balance Sheet as a result of adopting ASC 842.

	December 31, 2018			Effect of adoption				January 1, 2019

ASSETS
Current Assets
Cash and cash equivalents	$	1,266						$	1,266
Short-term investments		122							122
Accounts receivable, net		80							80
Inventories, net		307							307
Prepaid expenses and other current assets		177			(39	)	^(a)		138
Total Current Assets		1,952			(39	)			1,913
Property, plant and equipment, net		1,615			(1	)			1,614
Operating lease right-of-use assets		—			1,997		^(b)		1,997
Goodwill		266							266
Intangible assets, net		116			(2	)	^(c)		114
Deferred income taxes		89			19		^(d)		108
Investments in unconsolidated affiliates		81			(1	)			80
Other assets		491			(4	)	^(c)		487
Total Assets	$	4,610		$	1,969			$	6,579
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
Current Liabilities
Accounts payable and other current liabilities	$	1,199		$	320		^(e)	$	1,519
Income taxes payable		54							54
Total Current Liabilities		1,253			320				1,573
Non-current operating lease liabilities		—			1,860		^(f)		1,860
Non-current finance lease liabilities		25			—				25
Other liabilities		355			(148	)	^(g)		207
Total Liabilities		1,633			2,032				3,665
Redeemable Noncontrolling Interest		1							1
Equity
Common stock		4							4
Treasury stock		(460	)						(460	)
Additional paid-in capital		2,402							2,402
Retained earnings		944			(60	)	^(h)		884
Accumulated other comprehensive loss		(17	)						(17	)
Total Equity – Yum China Holdings, Inc.		2,873			(60	)			2,813
Noncontrolling interests		103			(3	)	⁽ⁱ⁾		100
Total Equity		2,976			(63	)			2,913
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$	4,610		$	1,969			$	6,579

(a)	Represents the current portion of prepaid rent reclassified to operating lease ROU assets.

(b)	Represents the net result of capitalization of operating lease payments and reclassification of prepaid rent, initial direct cost, deferred rent accrual and lease incentives, and offset by impairment of operating lease ROU assets that existed prior to the date of adoption.

(c)	Represents initial direct cost, favorable lease and non-current prepaid rent reclassified to operating lease ROU assets.

(d)	Represents the deferred tax impact related to impairment of operating lease ROU assets.

(e)	Represents recognition of the current portion of operating lease liabilities, offset by the reclassification of accrued rental payments and the current portion of deferred rent accrual to operating lease ROU assets.

(f)	Represents recognition of the non-current operating lease liabilities.

(g)	Represents reclassification of the non-current portion of deferred rent accrual and lease incentives to operating lease ROU assets.

(h)

(i)	Represents impairment of operating lease ROU assets attributable to noncontrolling interests.

Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Disaggregation of Revenue by Types of Arrangements and Segments

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

	Quarter Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	1,546	$	540	$	11	$	—	$	2,097	$	—		$	2,097
Franchise fees and income		35		1		2		—		38		—			38
Revenues from transactions with franchisees and unconsolidated affiliates		16		1		8		147		172		—			172
Other revenues		1		—		19		1		21		(9	)		12
Total revenues	$	1,598	$	542	$	40	$	148	$	2,328	$	(9	)	$	2,319

	Quarter Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	1,452	$	548	$	8	$	—	$	2,008	$	—		$	2,008
Franchise fees and income		34		1		1		—		36		—			36
Revenues from transactions with franchisees and unconsolidated affiliates		15		1		7		136		159		—			159
Other revenues		—		—		14		1		15		(6	)		9
Total revenues	$	1,501	$	550	$	30	$	137	$	2,218	$	(6	)	$	2,212

	Year to Date Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	4,495	$	1,588	$	29	$	—	$	6,112	$	—		$	6,112
Franchise fees and income		104		3		6		—		113		—			113
Revenues from transactions with franchisees and unconsolidated affiliates		48		3		20		425		496		—			496
Other revenues		1		1		49		3		54		(28	)		26
Total revenues	$	4,648	$	1,595	$	104	$	428	$	6,775	$	(28	)	$	6,747

	Year to Date Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	4,248	$	1,640	$	24	$	—	$	5,912	$	—		$	5,912
Franchise fees and income		104		2		4		—		110		—			110
Revenues from transactions with franchisees and unconsolidated affiliates		47		1		18		395		461		—			461
Other revenues		—		—		25		2		27		(9	)		18
Total revenues	$	4,399	$	1,643	$	71	$	397	$	6,510	$	(9	)	$	6,501

(a)	As COFFii & JOY and our e-commerce business became operating segments starting from the first quarter of 2019, revenue by segment information for prior quarters has been recast to align with the change in segment reporting. Additional details on our reportable segments are included in Note 13.

Contract Liabilities

Contract liabilities at September 30, 2019 and December 31, 2018 were as follows:

Contract liabilities	9/30/2019		12/31/2018
Deferred revenue related to prepaid stored-value products	$	80	$	73
Deferred revenue related to customer loyalty programs		24		17
Deferred revenue related to upfront fees		36		37
Total	$	140	$	127

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

9 Months Ended

Sep. 30, 2019

Earnings Per Common Share

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

	Quarter Ended				Year to Date Ended
	9/30/2019		9/30/2018		9/30/2019		9/30/2018
Net Income – Yum China Holdings, Inc.	$	223	$	203	$	623	$	634
Weighted-average common shares outstanding (for basic calculation) ^(a)		377		384		378		386
Effect of dilutive share-based awards ^(a)		7		9		8		10
Effect of dilutive warrants ^(b)		4		1		3		2
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		388		394		389		398
Basic Earnings Per Common Share	$	0.59	$	0.53	$	1.65	$	1.64
Diluted Earnings Per Common Share	$	0.58	$	0.51	$	1.60	$	1.59
Share-based awards excluded from the diluted EPS computation ^(c)		2		10		2		4

(a)

(b)

(c)	These outstanding stock appreciation rights, restricted stock units and performance share units were not included in the computation of diluted EPS because to do so would have been antidilutive for the quarters and years to date presented.

Equity (Tables)

9 Months Ended

Sep. 30, 2019

Changes in Equity and Redeemable Noncontrolling Interest

	Yum China Holdings, Inc.
										Accumulated
	Common				Additional					Other															Redeemable
	Stock				Paid-in		Retained			Comprehensive			Treasury Stock						Noncontrolling			Total			Noncontrolling
	Shares		Amount		Capital		Earnings			Income (Loss)			Shares			Amount			Interests			Equity			Interest
Balance at June 30, 2019		394	$	4	$	2,417	$	1,193		$	(17	)		(17	)	$	(600	)	$	81		$	3,078		$	1
Net Income								223												12			235
Foreign currency translation adjustments											(92	)								(4	)		(96	)
Comprehensive income																							139
Cash dividends declared ($0.12 per common share)								(45	)														(45	)
Repurchase of shares of common stock														(1	)		(64	)					(64	)
Exercise and vesting of share-based awards		—		—		—																	—
Share-based compensation						6																	6
Balance at September 30, 2019		394	$	4	$	2,423	$	1,371		$	(109	)		(18	)	$	(664	)	$	89		$	3,114		$	1

Balance at June 30, 2018		391	$	4	$	2,388	$	751		$	81			(6	)	$	(221	)	$	93		$	3,096		$	5
Net Income								203												9			212
Foreign currency translation adjustments											(95	)								(3	)		(98	)
Comprehensive income																							114
Cash dividends declared ($0.1 per common share)								(38	)														(38	)
Repurchase of shares of common stock														(3	)		(94	)					(94	)
Exercise and vesting of share-based awards		—		—		—																	—
Share-based compensation					5																		5
Balance at September 30, 2018		391	$	4	$	2,393	$	916		$	(14	)		(9	)	$	(315	)	$	99		$	3,083		$	5

	Yum China Holdings, Inc.
										Accumulated
	Common				Additional					Other															Redeemable
	Stock				Paid-in		Retained			Comprehensive			Treasury Stock						Noncontrolling			Total			Noncontrolling
	Shares		Amount		Capital		Earnings			(Loss) Income			Shares			Amount			Interests			Equity			Interest
Balance at December 31, 2018		392	$	4	$	2,402	$	944		$	(17	)		(13	)	$	(460	)	$	103		$	2,976		$	1
Net Income								623												26			649
Foreign currency translation adjustments											(92	)								(3	)		(95	)
Comprehensive income																							554
Cash dividends declared ($0.36 per common share)								(136	)														(136	)
Dividends declared																				(34	)		(34	)
Repurchase of shares of common stock														(5	)		(204	)					(204	)
Exercise and vesting of share-based awards		2		—		—																	—
Share-based compensation						21																	21
Cumulative effect of accounting change								(60	)											(3	)		(63	)
Balance at September 30, 2019		394	$	4	$	2,423	$	1,371		$	(109	)		(18	)	$	(664	)	$	89		$	3,114		$	1

Balance at December 31, 2017		389	$	4	$	2,375	$	397		$	137			(4	)	$	(148	)	$	77		$	2,842		$	5
Net Income								634												24			658
Foreign currency translation adjustments											(151	)								(5	)		(156	)
Comprehensive income																							502
Acquisition of business																				36			36
Cash dividends declared ($0.3 per common share)								(115	)														(115	)
Dividends declared																				(33	)		(33	)
Repurchase of shares of common stock														(5	)		(167	)					(167	)
Exercise and vesting of share-based awards		2		—		—																	—
Share-based compensation					18																		18
Balance at September 30, 2018		391	$	4	$	2,393	$	916		$	(14	)		(9	)	$	(315	)	$	99		$	3,083		$	5

Other Income, Net (Tables)

9 Months Ended

Sep. 30, 2019

	Quarter Ended						Year to Date Ended
	9/30/2019			9/30/2018			9/30/2019			9/30/2018
Equity income from investments in unconsolidated affiliates	$	19		$	17		$	56		$	52
Gain from re-measurement of equity interest upon acquisition^(a)		—			—			—			98
Foreign exchange impact and other		(2	)		(7	)		(8	)		(7	)
Other income, net	$	17		$	10		$	48		$	143

(a)	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

Supplemental Balance Sheet Information (Tables)

9 Months Ended

Sep. 30, 2019

Prepaid Expenses and Other Current Assets

Accounts Receivable, Net

Accounts Receivable, net	9/30/2019			12/31/2018
Accounts receivable, gross	$	80		$	81
Allowance for doubtful accounts		(1	)		(1	)
Accounts receivable, net	$	79		$	80

Prepaid Expenses and Other Current Assets	9/30/2019		12/31/2018
Receivables from payment processors and aggregators	$	32	$	49
Dividends receivable from unconsolidated affiliates		32		20
Prepaid rent		1		42
Other prepaid expenses and current assets		76		66
Prepaid expenses and other current assets	$	141	$	177

Property, Plant and Equipment

Property, Plant and Equipment	9/30/2019			12/31/2018
Buildings and improvements	$	2,099		$	2,121
Finance leases, primarily buildings		26			26
Machinery, equipment and construction in progress		1,191			1,201
Property, plant and equipment, gross		3,316			3,348
Accumulated depreciation		(1,810	)		(1,733	)
Property, plant and equipment, net	$	1,506		$	1,615

Accounts Payable and Other Current Liabilities

Other Assets	9/30/2019		12/31/2018
VAT assets	$	232	$	226
Land use right		130		138
Investment in equity securities		86		47
Long-term deposits		69		64
Costs to obtain contracts		9		8
Restricted cash		9		—
Others		4		8
Other Assets	$	539	$	491

Accounts Payable and Other Current Liabilities	9/30/2019		12/31/2018
Accounts payable	$	563	$	619
Operating leases liabilities		360		—
Accrued compensation and benefits		199		200
Accrued capital expenditures		112		137
Contract liabilities		110		96
Accrued marketing expenses		94		32
Other current liabilities		128		115
Accounts payable and other current liabilities	$	1,566	$	1,199

Other Liabilities and Deferred Credits

Other Liabilities	9/30/2019		12/31/2018
Accrued income tax payable	$	67	$	71
Deferred income tax liabilities		58		65
Contract liabilities		30		31
Deferred rental accrual		—		144
Other non-current liabilities		40		44
Other liabilities	$	195	$	355

Reconciliation of Cash, Cash Equivalents, and Restricted Cash

Reconciliation of Cash, Cash equivalents, and Restricted Cash for Condensed Consolidated Statements of Cash Flows

	9/30/2019		12/31/2018
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets	$	1,355	$	1,266
Restricted cash included in Other assets ^(a)		9		—
Cash, Cash Equivalents and Restricted Cash as presented in Condensed Consolidated Statements of Cash Flows	$	1,364	$	1,266

(a)

Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Changes in the Carrying Amount of Goodwill

The changes in the carrying amount of goodwill are as follows:

	Total Company			KFC			Pizza Hut			All Other Segments
Balance as of December 31, 2018
Goodwill, gross	$	648		$	238		$	19		$	391
Accumulated impairment losses^(a)		(382	)		—			—			(382	)
Goodwill, net		266			238			19			9
Effect of currency translation adjustment		(10	)		(9	)		(1	)		—
Balance as of September 30, 2019
Goodwill, gross		638			229			18			391
Accumulated impairment losses^(a)		(382	)		—			—			(382	)
Goodwill, net	$	256		$	229		$	18		$	9

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

Schedule of Finite and Indefinite Lived Intangible Assets by Major Class

Intangible assets, net as of September 30, 2019 and December 31, 2018 are as follows:

	9/30/2019										12/31/2018
	Gross Carrying Amount^(a)		Accumulated Amortization			Accumulated impairment losses			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Accumulated impairment losses			Net Carrying Amount
Definite-lived intangible assets
Reacquired franchise rights	$	144	$	(108	)	$	—		$	36	$	150	$	(100	)	$	—		$	50
Daojia platform		16		(3	)		(10	)		3		16		(3	)		(10	)		3
Customer-related assets		11		(8	)		(2	)		1		12		(8	)		(2	)		2
Others^(b)		9		(3	)		—			6		17		(9	)		—			8
	$	180	$	(122	)	$	(12	)	$	46	$	195	$	(120	)	$	(12	)	$	63
Indefinite-lived intangible assets
Little Sheep trademark	$	51	$	—		$	—		$	51	$	53	$	—		$	—		$	53

Total intangible assets	$	231	$	(122	)	$	(12	)	$	97	$	248	$	(120	)	$	(12	)	$	116

(a)	Changes in gross carrying amount include the effect of currency translation adjustment.

(b)	Decrease in Others during year to date ended September 30, 2019 is primarily due to the reclassification of favorable lease assets, with a gross carrying amount of $7 million and accumulated amortization of $5 million, to right-of-use assets upon adoption of ASC 842.

Leases (Tables)

9 Months Ended

Sep. 30, 2019

Summary of Supplemental Balance Sheet

Supplemental Balance Sheet
	9/30/2019		Account Classification
Assets
Operating lease right-of-use assets	$	1,893	Operating lease right-of-use assets
Finance lease right-of-use assets		14	Property, plant and equipment, net
Total leased assets	$	1,907

Liabilities
Current
Operating lease liabilities	$	360	Accounts payable and other current liabilities
Finance lease liabilities		1	Accounts payable and other current liabilities
Non-current
Operating lease liabilities		1,729	Non-current operating lease liabilities
Finance lease liabilities		23	Non-current finance lease liabilities
Total lease liabilities	$	2,113

Summary of Lease Cost

Summary of Lease Cost	Quarter Ended			Year to Date Ended			Account Classification
	9/30/2019			9/30/2019

Operating lease cost	$	117		$	351		Occupancy and other operating expenses, G&A or Franchise expenses
Finance lease cost
Amortization of leased assets		—			1		Occupancy and other operating expenses
Interest on lease liabilities		—			1		Interest expense, net
Variable lease cost		94			265		Occupancy and other operating expenses or Franchise expenses
Short-term lease cost		3			8		Occupancy and other operating expenses or G&A
Sublease income		(7	)		(21	)	Franchise fees and income or Other revenues
Total lease cost	$	207		$	605

Schedule of Supplemental Cash Flow Information

Supplemental Cash Flow Information	Quarter Ended		Year to Date Ended
	9/30/2019		9/30/2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	120	$	361
Operating cash flows from finance leases		—		1
Financing cash flows from finance leases		—		1
Right-of-use assets obtained in exchange for new lease liabilities^(a):
Operating leases	$	98	$	217
Finance leases		—		—

(a)	This also includes noncash transactions resulting in adjustments to the lease liability or ROU asset due to modification or other reassessment events.

Schedule of Lease Terms and Discount Rate

Lease Term and Discount Rate	9/30/2019
Weighted-average remaining lease term (years)
Operating leases		7.1
Finance leases		12.0

Weighted-average discount rate
Operating leases		6.1	%
Finance leases		5.8	%

Summary of Maturities of Lease Liabilities

Maturities of lease liabilities as of September 30, 2019 were as follows:

	Amount of Operating Leases		Amount of Finance Leases		Total
Remainder of 2019	$	133	$	1	$	134
2020		458		3		461
2021		416		3		419
2022		358		3		361
2023		295		3		298
Thereafter		931		21		952
Total undiscounted lease payment		2,591		34		2,625
Less: imputed interest ^(b)		502		10		512
Present value of lease liabilities	$	2,089	$	24	$	2,113

(b)

Summary of Future Minimum Lease Payments under Non-Cancellable Leases

Future minimum lease payments under non-cancellable leases as of December 31, 2018 were as follows:

	Commitments
	Amount of Operating Leases		Amount of Finance Leases		Total
2019	$	466	$	3	$	469
2020		440		3		443
2021		394		3		397
2022		336		3		339
2023		275		3		278
Thereafter		864		22		886
	$	2,775	$	37	$	2,812

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

Assets Measured on Recurring Basis or Disclosed at Fair Value

			Fair Value Measurement or Disclosure at September 30, 2019
	Balance at September 30, 2019		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	658	$	—	$	658	$	—
Money market funds		284		284
Total cash equivalents		942		284		658		—
Short-term investments:
Time deposits		364				364
Total short-term investments		364		—		364		—
Other assets:
Investment in equity securities		86		86
Total	$	1,392	$	370	$	1,022	$	—

			Fair Value Measurement or Disclosure at December 31, 2018
	Balance at December 31, 2018		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	570	$	—	$	570	$	—
Money market funds		226		226
Fixed rate debt securities^(a)		153		153
Total cash equivalents		949		379		570		—
Short-term investments:
Time deposits		122				122
Total short-term investments		122		—		122		—
Other assets:
Investment in equity securities		47		47
Total	$	1,118	$	426	$	692	$	—

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

Schedule of Amounts Recognized From Non-recurring Fair Value Measurements

	Quarter Ended				Year to Date Ended
	9/30/2019		9/30/2018		9/30/2019		9/30/2018		Account Classification

ROU impairment prior to the adoption of ASC 842^(a)	$	—	$	—	$	82	$	—	Retained Earnings
Incremental restaurant-level impairment upon adoption of ASC 842^(b)		—		—	12			—	Closure and impairment expenses, net
Restaurant-level impairment^(c)		—		—		7	13		Closure and impairment expenses, net
Total	$	—	$	—	$	101	$	13

(a)

(b)	Reflect incremental restaurant-level impairment upon adoption of ASC 842 in the first quarter of 2019. We performed an additional impairment evaluation of long-lived assets of restaurants, which includes operating lease ROU assets, and property, plant and equipment.

(c)	Restaurant-level impairment changes 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.

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2019

Income Tax And Effective Tax Rate

	Quarter Ended						Year to Date Ended
	9/30/2019			9/30/2018			9/30/2019			9/30/2018
Income tax provision	$	87		$	67		$	226		$	227
Effective tax rate		26.9	%		24.2	%		25.8	%		25.7	%

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Segment Reporting Information, by Segment

	Quarter Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	1,597	$	542	$	32	$	148		2,319	$	—		$	2,319
Inter-segment revenue		1		—		8		—		9		(9	)		—
Total	$	1,598	$	542	$	40	$	148	$	2,328	$	(9	)	$	2,319

	Quarter Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	1,501	$	550	$	24	$	137		2,212	$	—		$	2,212
Inter-segment revenue		—		—		6		—		6		(6	)		—
Total	$	1,501	$	550	$	30	$	137	$	2,218	$	(6	)	$	2,212

	Year to Date Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	4,647	$	1,595	$	77	$	428		6,747	$	—		$	6,747
Inter-segment revenue		1		—		27		—		28		(28	)		—
Total	$	4,648	$	1,595	$	104	$	428	$	6,775	$	(28	)	$	6,747

	Year to Date Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	4,399	$	1,643	$	62	$	397		6,501	$	—		$	6,501
Inter-segment revenue		—		—		9		—		9		(9	)		—
Total	$	4,399	$	1,643	$	71	$	397	$	6,510	$	(9	)	$	6,501

	Quarter Ended						Year to Date Ended
Operating Profit	9/30/2019			9/30/2018			9/30/2019			9/30/2018
KFC^(b)	$	295		$	264		$	788		$	759
Pizza Hut		38			53			117			106
All Other Segments		(2	)		(6	)		(12	)		(16	)
Unallocated revenues from transactions with franchisees and unconsolidated affiliates^(c)		147			136			425			395
Unallocated Other revenues		1			1			3			2
Unallocated expenses from transactions with franchisees and unconsolidated affiliates^(c)		(145	)		(135	)		(421	)		(392	)
Unallocated Other operating costs and expenses		(1	)		—			(3	)		(1	)
Unallocated and corporate G&A expenses		(34	)		(42	)		(92	)		(94	)
Unallocated Other income (loss)^(d)		1			(2	)		2			98
Operating Profit	$	300		$	269		$	807		$	857
Interest income, net^(a)		10			10			29			28
Investment gain^(a)		12			—			39			—
Income Before Income Taxes	$	322		$	279		$	875		$	885

	Quarter Ended				Year to Date Ended
Impairment Charges	9/30/2019		9/30/2018		9/30/2019		9/30/2018
KFC^(e)	$	1	$	1	$	13	$	9
Pizza Hut^(e)		1		1		12		14
All Other Segments		—	$	—	$	2	$	—
	$	2	$	2	$	27	$	23

	Total Assets
	9/30/2019		12/31/2018
KFC^(f)	$	2,992	$	1,745
Pizza Hut		939		558
All Other Segments		164		132
Corporate and Unallocated^(g)		2,615		2,175
	$	6,710	$	4,610

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

(b)	Includes equity income from investments in unconsolidated affiliates of $19 million and $17 million for the quarters ended September 30, 2019 and 2018, respectively, and $56 million and $52 million for the years to date ended September 30, 2019 and 2018, respectively.

(c)

(d)	The amount for the year to date ended September 30, 2018 primarily includes gain from re-measurement of the previously held equity interest in connection with the acquisition of Wuxi KFC (See Note 2).

(e)	Primarily includes store closure impairment charges, incremental restaurant-level impairment charges as a result of adopting ASC 842 and restaurant-level impairment charges resulting from our semi-annual impairment evaluation (See Note 11).

(f)	Includes investments in unconsolidated affiliates.

(g)	Primarily includes cash and cash equivalents, short-term investments, investment in equity securities, and inventories that are centrally managed.

Description of the Business - Narrative (Details)		9 Months Ended
Description of the Business - Narrative (Details)	Oct. 31, 2016	Sep. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Entity, date of incorporation		Apr. 01, 2016
Entity incorporation, state name		DE
Exchange ratio of shares	1
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%

Basis of Presentation - Narrative (Details) - USD ($)
$ in Millions

3 Months Ended

Jan. 01, 2019

Mar. 31, 2018

Sep. 30, 2019

Dec. 31, 2018

^[1]

Summary Of Significant Accounting Policies [Line Items]

$ 1,893

Summary Of Significant Accounting Policies [Line Items]

$ 2,089

ASU 2016-02 [Member]

$ 2,000

$ 1,997

Asset impairment charge net of related impact on deferred taxes and noncontrolling interests

2,200

$ 60

Summary Of Significant Accounting Policies [Line Items]

Percentage of additional equity interest acquired

36.00%

Cash consideration paid to acquire interest

$ 98

Equity interest in acquiree, including subsequent acquisition, percentage

83.00%

[1]	Represents the net result of capitalization of operating lease payments and reclassification of prepaid rent, initial direct cost, deferred rent accrual and lease incentives, and offset by impairment of operating lease ROU assets that existed prior to the date of adoption.

Basis of Presentation - Summary of Effect on Consolidated Balance Sheets as Result of Adopting ASU 2016-02 (Details) - USD ($)
$ in Millions

Sep. 30, 2019

Jun. 30, 2019

Jan. 01, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Dec. 31, 2017

$ 1,355

$ 1,266

364

122

317

307

141

177

2,256

1,952

1,506

1,615

1,893

256

266

116

539

491

6,710

4,610

1,566

1,199

1,648

1,253

1,729

195

355

3,595

1,633

Equity

(664)

(460)

2,423

2,402

1,371

944

(109)

(17)

3,025

2,873

103

Total Liabilities, Redeemable Noncontrolling Interest and Equity

3,114

$ 3,078

2,976

$ 3,083

$ 3,096

$ 2,842

$ 6,710

4,610

As Adjusted [Member]

$ 1,266

122

307

138

1,913

1,614

1,997

266

114

108

487

6,579

1,519

1,573

1,860

207

3,665

Equity

(460)

2,402

884

(17)

2,813

100

Total Liabilities, Redeemable Noncontrolling Interest and Equity

2,913

6,579

Effect of Adoption [Member]

^[1]

(39)

(39)

(1)

$ 2,000

1,997

^[2]

^[3]

(2)

^[4]

(1)

^[3]

(4)

1,969

^[5]

320

320

^[6]

1,860

^[7]

(148)

2,032

Equity

^[8]

(60)

(60)

^[9]

(3)

Total Liabilities, Redeemable Noncontrolling Interest and Equity

(63)

$ 1,969

[1]	Represents the current portion of prepaid rent reclassified to operating lease ROU assets.
[2]	Represents the net result of capitalization of operating lease payments and reclassification of prepaid rent, initial direct cost, deferred rent accrual and lease incentives, and offset by impairment of operating lease ROU assets that existed prior to the date of adoption.
[3]	Represents initial direct cost, favorable lease and non-current prepaid rent reclassified to operating lease ROU assets.
[4]	Represents the deferred tax impact related to impairment of operating lease ROU assets.
[5]	Represents recognition of the current portion of operating lease liabilities, offset by the reclassification of accrued rental payments and the current portion of deferred rent accrual to operating lease ROU assets.
[6]	Represents recognition of the non-current operating lease liabilities.
[7]	Represents reclassification of the non-current portion of deferred rent accrual and lease incentives to operating lease ROU assets.
[8]	Represents an impairment charge on operating lease ROU assets arising from existing operating leases as of January 1, 2019, net of related impact on deferred taxes and noncontrolling interests, with a corresponding reduction to the carrying amount of operating lease ROU assets. The impairment charge was recorded for those restaurants under operating leases with full impairment on the long-lived assets before January 1, 2019, as the additional impairment charge would have been recorded before January 1, 2019 had the operating lease ROU assets been recognized at the time of impairment.
[9]	Represents impairment of operating lease ROU assets attributable to noncontrolling interests.

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Revenue From Contract With Customer [Line Items]
Prepaid gift cards expiration period			36 months
Product vouchers maximum expiration period			12 months
Points expiration period			18 months
Number of days from the period in which the corresponding sales occur that trade receivables are generally due
Impairment losses related to costs to obtain contracts			$ 0		$ 0
Costs to obtain contracts	$ 9		9		$ 8
Revenue recognized	$ 35	$ 21	$ 56	$ 39
KFC [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term			10 years
Pizza Hut [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term			10 years
Little Sheep [Member] \| Minimum [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term			5 years
Little Sheep [Member] \| Maximum [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term			10 years

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

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

$ 2,319

$ 2,212

$ 6,747

$ 6,501

1,597

1,501

4,647

4,399

542

550

1,595

1,643

^[1]

148

137

428

397

2,328

2,218

6,775

6,510

(9)

(6)

(28)

(9)

2,319

2,212

6,747

6,501

1,598

1,501

4,648

4,399

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

542

550

1,595

1,643

104

Company Sales [Member] | KFC [Member]

2,097

2,008

6,112

5,912

Company Sales [Member] | Pizza Hut [Member]

1,546

1,452

4,495

4,248

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

540

548

1,588

1,640

Company Sales [Member] | Combined [Member]

2,097

2,008

6,112

5,912

Franchise [Member] | KFC [Member]

113

110

Franchise [Member] | Pizza Hut [Member]

104

Franchise [Member] | All Other Segments [Member]

Franchise [Member] | Combined [Member]

Transactions With Franchisees and Unconsolidated Affiliates [Member]

113

110

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

172

159

496

461

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

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

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

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

147

136

425

395

172

159

496

461

Other Revenues [Member] | KFC [Member]

Other Revenues [Member] | Pizza Hut [Member]

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

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

Other Revenues [Member] | Combined [Member]

Other Revenues [Member] | Elimination [Member]

$ (9)

$ (6)

$ (28)

$ (9)

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

Revenue Recognition (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Contract liabilities
Deferred revenue related to prepaid stored-value products	$ 80	$ 73
Deferred revenue related to customer loyalty programs	24	17
Deferred revenue related to upfront fees	36	37
Total	$ 140	$ 127

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

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Weighted-average common shares outstanding (for basic calculation)

$ 223

$ 203

$ 623

$ 634

^[1]

377

384

378

386

Effect of dilutive share-based awards

^[1]

Effect of dilutive warrants

^[2]

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

388

394

389

398

$ 0.59

$ 0.53

$ 1.65

$ 1.64

Share-based awards excluded from the diluted EPS computation

$ 0.58

$ 0.51

$ 1.60

$ 1.59

^[3]

[1]	As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards on shares of common stock of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The incremental shares arising from outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect.
[2]	Pursuant to the investment agreements dated September 1, 2016, Yum China issued to strategic investors two tranches of warrants on January 9, 2017, with each tranche initially providing the right to purchase 8,200,405 shares of Yum China common stock, at an exercise price of $31.40 and $39.25 per share, respectively, subject to customary anti-dilution adjustments. The warrants may be exercised at any time through October 31, 2021. The incremental shares arising from outstanding warrants are included in the computation of diluted EPS, if there is dilutive effect when the average market price of Yum China common stock for the period exceeds the exercise price of the warrants.
[3]	These outstanding stock appreciation rights, restricted stock units and performance share units were not included in the computation of diluted EPS because to do so would have been antidilutive for the quarters and years to date presented.

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

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

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

Gain from re-measurement of previously held ownership interest at fair value

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

Equity (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Class Of Stock [Line Items]
Beginning balance	$ 3,078	$ 3,096	$ 2,976	$ 2,842
Net Income	235	212	649	658
Foreign currency translation adjustments	(96)	(98)	(95)	(156)
Comprehensive income - including noncontrolling interests	139	114	554	502
Acquisition of business				36
Cash dividends declared	(45)	(38)	(136)	(115)
Dividends declared			(34)	(33)
Repurchase of shares of common stock	(64)	(94)	$ (204)	$ (167)
Repurchase of shares of common stock, shares			(4.9)	(4.6)
Share-based compensation	6	5	$ 21	$ 18
Cumulative effect of accounting change			(63)
Ending balance	3,114	3,083	3,114	3,083
Common Stock [Member]
Class Of Stock [Line Items]
Beginning balance	$ 4	$ 4	$ 4	$ 4
Beginning balance (in shares)	394.0	391.0	392.0	389.0
Exercise and vesting of share-based awards, shares			2.0	2.0
Ending balance	$ 4	$ 4	$ 4	$ 4
Ending balance (in shares)	394.0	391.0	394.0	391.0
Additional Paid-in Capital [Member]
Class Of Stock [Line Items]
Beginning balance	$ 2,417	$ 2,388	$ 2,402	$ 2,375
Share-based compensation	6	5	21	18
Ending balance	2,423	2,393	2,423	2,393
Retained Earnings [Member]
Class Of Stock [Line Items]
Beginning balance	1,193	751	944	397
Net Income	223	203	623	634
Cash dividends declared	(45)	(38)	(136)	(115)
Cumulative effect of accounting change			(60)
Ending balance	1,371	916	1,371	916
Accumulated Other Comprehensive Income (Loss) [Member]
Class Of Stock [Line Items]
Beginning balance	(17)	81	(17)	137
Foreign currency translation adjustments	(92)	(95)	(92)	(151)
Ending balance	(109)	(14)	(109)	(14)
Treasury Stock [Member]
Class Of Stock [Line Items]
Beginning balance	$ (600)	$ (221)	$ (460)	$ (148)
Beginning balance (in shares)	(17.0)	(6.0)	(13.0)	(4.0)
Repurchase of shares of common stock	$ (64)	$ (94)	$ (204)	$ (167)
Repurchase of shares of common stock, shares	(1.0)	(3.0)	(5.0)	(5.0)
Ending balance	$ (664)	$ (315)	$ (664)	$ (315)
Ending balance (in shares)	(18.0)	(9.0)	(18.0)	(9.0)
Noncontrolling Interests [Member]
Class Of Stock [Line Items]
Beginning balance	$ 81	$ 93	$ 103	$ 77
Net Income	12	9	26	24
Foreign currency translation adjustments	(4)	(3)	(3)	(5)
Acquisition of business				36
Dividends declared			(34)	(33)
Cumulative effect of accounting change			(3)
Ending balance	89	99	89	99
Redeemable Noncontrolling Interest [Member]
Class Of Stock [Line Items]
Beginning balance	1	5	1	5
Ending balance	$ 1	$ 5	$ 1	$ 5

Equity (Parenthetical) (Details) - $ / shares	3 Months Ended		9 Months Ended
Equity (Parenthetical) (Details) - $ / shares	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Equity [Abstract]
Cash dividends declared, per common share	$ 0.12	$ 0.1	$ 0.36	$ 0.3

Equity - Narrative (Details) - USD ($) shares in Millions	3 Months Ended		9 Months Ended
Equity - Narrative (Details) - USD ($) shares in Millions	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Oct. 30, 2018	Oct. 04, 2017	Feb. 07, 2017
Equity [Abstract]
Stock repurchase program, authorized amount					$ 1,400,000,000	$ 550,000,000	$ 300,000,000
Treasury stock repurchased, shares			4.9	4.6
Treasury stock repurchased, value	$ 64,000,000	$ 94,000,000	$ 204,000,000	$ 167,000,000
Cost of shares repurchased with trade dates in the current reporting quarter, but settlement dates subsequent to the current quarter			2,000,000	$ 6,000,000
Stock repurchase program, remaining authorized repurchase amount	$ 756,000,000		$ 756,000,000

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

3 Months Ended

9 Months Ended

Sep. 30, 2019

Mar. 31, 2019

Mar. 31, 2018

Sep. 30, 2019

Sep. 30, 2018

^[1]

$ 98

Meituan Dianping [Member]

$ 12

$ 39

Transaction tax

$ 8

Number of ordinary shares subscribed

8.4

Maximum percentage of ordinary shares subscribed

1.00%

Fair value of Investment in Meituan's ordinary shares

$ 74

$ 12

$ 39

Gain from re-measurement of previously held ownership interest at fair value

$ 98

47.00%

[1]	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

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

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Equity income from investments in unconsolidated affiliates

$ 19

$ 17

$ 56

$ 52

Gain from re-measurement of equity interest upon acquisition

^[1]

Foreign exchange impact and other

(2)

(7)

(8)

(7)

$ 17

$ 10

$ 48

$ 143

[1]	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

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

3 Months Ended

9 Months Ended

Mar. 31, 2018

Sep. 30, 2018

Gain from re-measurement of previously held ownership interest at fair value

^[1]

$ 98

Gain from re-measurement of previously held ownership interest at fair value

$ 98

Accounts receivable, gross

47.00%

[1]	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

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

Sep. 30, 2019

Dec. 31, 2018

Sep. 30, 2018

Dec. 31, 2017

Accounts Receivable, net

$ 80

$ 81

Allowance for doubtful accounts

(1)

Prepaid Expenses and Other Current Assets

Receivables from payment processors and aggregators

Dividends receivable from unconsolidated affiliates

Prepaid rent

Other prepaid expenses and current assets

141

177

Other Assets

VAT assets

232

226

Land use right

130

138

Costs to obtain contracts

Long-term deposits

Restricted cash

^[1]

Others

Other Assets

539

491

Accounts Payable and Other Current Liabilities

Accounts payable

563

619

Operating leases liabilities

360

Accrued compensation and benefits

199

200

Accrued capital expenditures

112

137

Accrued marketing expenses

110

Other current liabilities

128

115

Accrued income tax payable

1,566

1,199

Other Liabilities

Deferred income tax liabilities

Other non-current liabilities

Deferred rental accrual

144

195

355

Restricted cash included in Other assets

1,355

1,266

^[1]

Cash, Cash Equivalents and Restricted Cash as presented in Condensed Consolidated Statements of Cash Flows

$ 1,364

$ 1,266

$ 1,334

$ 1,059

[1]

Supplemental Balance Sheet Information (Details 1) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 3,316	$ 3,348
Accumulated depreciation	(1,810)	(1,733)
Property, plant and equipment, net	1,506	1,615
Buildings and Improvements [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	2,099	2,121
Finance Leases, Primarily Buildings [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	26	26
Machinery, Equipment and Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 1,191	$ 1,201

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

9 Months Ended

Sep. 30, 2019

Dec. 31, 2018

$ 638

$ 648

^[1]

(382)

256

266

(10)

229

238

229

238

(9)

(1)

391

^[1]

(382)

$ 9

[1]	Accumulated impairment losses represent Little Sheep goodwill impairment.

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

Sep. 30, 2019

Dec. 31, 2018

$ 180

^[1]

$ 195

(122)

(120)

(12)

Total intangible assets

231

^[1]

248

Little Sheep [Member] | Trademark [Member]

116

Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract]

Reacquired franchise rights [Member]

144

^[1]

150

(108)

(100)

Daojia platform [Member]

^[1]

(3)

(10)

Customer-related assets [Member]

^[1]

(8)

(2)

Others [Member]

^[2]

^[1]

^[2]

(3)

(9)

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

^[2]

$ 6

$ 8

[1]	Changes in gross carrying amount include the effect of currency translation adjustment.
[2]	Decrease in Others during year to date ended September 30, 2019 is primarily due to the reclassification of favorable lease assets, with a gross carrying amount of $7 million and accumulated amortization of $5 million, to right-of-use assets upon adoption of ASC 842.

Goodwill and Intangible Assets (Parenthetical) (Details 1) $ in Millions	Sep. 30, 2019 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Reclassification of favourable lease assets gross carrying amount to right of use assets upon adoption of ASU842	$ 7
Reclassification of accumulative amortization of favorable lease assets to right of use assets upon adoption of ASU842	$ 5

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Definite-lived intangible assets
Definite-lived intangible assets, amortization expense	$ 3	$ 7	$ 13	$ 20
Expected amortization expense for the unamortized definite-lived intangible assets - remainder of 2019	3		3
Expected amortization expense for the unamortized definite-lived intangible assets - 2020	12		12
Expected amortization expense for the unamortized definite-lived intangible assets - 2021	12		12
Expected amortization expense for the unamortized definite-lived intangible assets - 2022	12		12
Expected amortization expense for the unamortized definite-lived intangible assets - 2023	$ 3		$ 3

Leases - Narrative (Details) $ in Millions	9 Months Ended
Leases - Narrative (Details) $ in Millions	Sep. 30, 2019 USD ($) Restaurant	Dec. 31, 2018 USD ($)
Schedule Of Lease Assets And Liabilities [Line Items]
Number of restaurants operated \| Restaurant	8,900
Additional lease signed but not commenced with total undiscounted minimum lease payments	$ 121
Present value of lease liabilities	24	$ 27
Finance lease imputed interest	10	10
Finance lease liabilities, Current	$ 1
Accounts Payable and Other Current Liabilities [Member]
Schedule Of Lease Assets And Liabilities [Line Items]
Finance lease liabilities, Current		$ 2
Maximum [Member]
Schedule Of Lease Assets And Liabilities [Line Items]
Lease agreements initial terms	20 years
Lease terms	20 years
Minimum [Member]
Schedule Of Lease Assets And Liabilities [Line Items]
Lease agreements initial terms	10 years
Lease terms	1 year

Leases - Summary of Supplemental Balance Sheet (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Schedule Of Lease Assets And Liabilities [Abstract]
Operating lease right-of-use assets	$ 1,893
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	yumc:OperatingLeaseRightOfUseAssetsMember
Finance lease right-of-use assets	$ 14
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentMember
Total leased assets	$ 1,907
Operating leases liabilities	360
Finance lease liabilities, Current	$ 1
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	yumc:AccountsPayableAndOtherCurrentLiabilitiesMember
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	yumc:AccountsPayableAndOtherCurrentLiabilitiesMember
Non-current operating lease liabilities	$ 1,729
Non-current finance lease liabilities	$ 23	$ 25
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	yumc:NonCurrentOperatingLeaseLiabilitiesMember
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	yumc:NonCurrentFinancingLeaseLiabilitiesMember
Total lease liabilities	$ 2,113

Leases - Summary of Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Lease Cost [Abstract]
Operating lease cost	$ 117	$ 351
Finance lease cost
Amortization of leased assets		1
Interest on lease liabilities		1
Variable lease cost	94	265
Short-term lease cost	3	8
Sublease income	(7)	(21)
Total lease cost	$ 207	$ 605

Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 120	$ 361
Operating cash flows from finance leases		1
Financing cash flows from finance leases		1
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$ 98	$ 217

Leases - Schedule of Lease Term and Discount Rate (Details)	Sep. 30, 2019
Weighted-average remaining lease term (years)
Operating leases	7 years 1 month 6 days
Finance leases	12 years
Weighted-average discount rate
Operating leases	6.10%
Finance leases	5.80%

Leases - Summary of Maturities of Lease Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Amount of Operating Leases
Remainder of 2019	$ 133
2020	458
2021	416
2022	358
2023	295
Thereafter	931
Total undiscounted lease payment	2,591
Less: imputed interest	502
Present value of lease liabilities	2,089
Amount of Finance Leases
Remainder of 2019	1
2020	3
2021	3
2022	3
2023	3
Thereafter	21
Total undiscounted lease payment	34
Less: imputed interest	10	$ 10
Present value of lease liabilities	24	$ 27
Amount of Operating And Finance Leases, Total
Remainder of 2019	134
2020	461
2021	419
2022	361
2023	298
Thereafter	952
Total undiscounted lease payment	2,625
Less: imputed interest	512
Present value of lease liabilities	$ 2,113

Leases - Summary of Future Minimum Lease Payments under Non-Cancellable Leases (Details) $ in Millions	Dec. 31, 2018 USD ($)
Operating leases, future minimum commitments [Abstract]
2019	$ 466
2020	440
2021	394
2022	336
2023	275
Thereafter	864
Operating leases, future minimum payments due	2,775
Finance leases, future minimum commitments [Abstract]
2019	3
2020	3
2021	3
2022	3
2023	3
Thereafter	22
Finance leases, total future minimum commitments	37
Operating and Finance leases, future minimum commitments [Abstract]
2019	469
2020	443
2021	397
2022	339
2023	278
Thereafter	886
Operating and finance leases, future minimum commitments	$ 2,812

Fair Value Measurements - Narrative (Details)	Sep. 30, 2019 USD ($)
Fair Value Disclosures [Abstract]
Transfer from Level 1 to Level 2	$ 0
Transfer from Level 2 to Level 1	$ 0

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

Sep. 30, 2019

Dec. 31, 2018

Cash equivalents, Fair Value Measurement or Disclosure

$ 942

$ 949

Short-term investments, Fair Value Measurement or Disclosure

364

122

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

1,392

1,118

Level 1 [Member]

Cash equivalents, Fair Value Measurement or Disclosure

284

379

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

370

426

Level 2 [Member]

Cash equivalents, Fair Value Measurement or Disclosure

658

570

Short-term investments, Fair Value Measurement or Disclosure

364

122

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

1,022

692

Time Deposits [Member]

Cash equivalents, Fair Value Measurement or Disclosure

658

570

Short-term investments, Fair Value Measurement or Disclosure

364

122

Time Deposits [Member] | Level 2 [Member]

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

Cash equivalents, Fair Value Measurement or Disclosure

658

570

Short-term investments, Fair Value Measurement or Disclosure

364

122

Money Market Funds [Member]

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

Cash equivalents, Fair Value Measurement or Disclosure

284

226

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

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

Cash equivalents, Fair Value Measurement or Disclosure

284

226

Investment in Equity Securities [Member]

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

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

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

Fixed Rate Debt Securities [Member]

$ 86

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

Cash equivalents, Fair Value Measurement or Disclosure

^[1]

153

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

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

Cash equivalents, Fair Value Measurement or Disclosure

^[1]

$ 153

[1]

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

Fair Value Measurements - Schedule of Amounts Recognized From Non-recurring Fair Value Measurements (Details) - Fair Value, Measurements, Nonrecurring [Member] - Level 3 [Member] - USD ($)
$ in Millions

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

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

Total accumulated impairment charges on ROU assets

$ 101

$ 13

Closure and Impairment Expense [Member] | Restaurant-level impairment [Member]

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

ASU 2016-02 [Member] | Closure and Impairment Expense [Member]

^[1]

$ 13

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

ASU 2016-02 [Member] | Cumulative Adjustment to Impairment on ROU Due to Adoption of New Accounting Pronouncement [Member]

^[2]

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

ROU impairment prior to the adoption of ASC 842

^[3]

$ 82

[1]	Restaurant-level impairment changes 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.
[2]	Reflect incremental restaurant-level impairment upon adoption of ASC 842 in the first quarter of 2019. We performed an additional impairment evaluation of long-lived assets of restaurants, which includes operating lease ROU assets, and property, plant and equipment.
[3]	ROU impairment prior to the adoption of ASC 842 represents an impairment charge on operating lease ROU assets arising from existing operating leases as of January 1, 2019. After netting with the related impact on deferred taxes of $19 million and the impact on noncontrolling interests of $3 million, we recorded a cumulative adjustment of $60 million to retained earnings in accordance with the transition guidance for the new lease standard. For those restaurants under operating leases with full impairment on their long-lived assets (primarily property, plant and equipment) before January 1, 2019, an additional impairment charge would have been recorded before January 1, 2019 had the operating lease ROU assets been recognized at the time of impairment.

Fair Value Measurements - Schedule of Amounts Recognized From Non-recurring Fair Value Measurements (Parenthetical) (Details) - ASU 2016-02 [Member] $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cumulative adjustment to retained earnings	$ 60
Cumulative Adjustment to Deferred Income Tax Expenses Due to Adoption of New Accounting Pronouncement [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cumulative adjustment to opening retained earnings due to adoption of new accounting pronouncement	19
Cumulative Adjustment to Net Income (Loss) Attributable to Noncontrolling Interest Due to Adoption of New Accounting Pronouncement [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cumulative adjustment to opening retained earnings due to adoption of new accounting pronouncement	$ 3

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income tax provision	$ 87	$ 67	$ 226	$ 227
Effective tax rate	26.90%	24.20%	25.80%	25.70%

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Adjustment to tax expense	$ 8	$ 8	$ 36
U.S. federal statutory rate, percent		21.00%

Segment Reporting - Narrative (Details)	9 Months Ended
Segment Reporting - Narrative (Details)	Sep. 30, 2019 Segment
Segment Reporting [Abstract]
Number of reportable segments	2
Number of non-reportable operating segments	6

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

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Dec. 31, 2018

$ 2,319

$ 2,212

$ 6,747

$ 6,501

300

269

807

857

322

279

875

885

6,710

$ 4,610

1,597

1,501

4,647

4,399

542

550

1,595

1,643

Unallocated revenues from transactions with franchisees and unconsolidated affiliates

^[1]

148

137

428

397

^[2]

147

136

425

395

Unallocated Other revenues

Unallocated expenses from transactions with franchisees and unconsolidated affiliates

^[2]

(145)

(135)

(421)

(392)

Unallocated Other operating costs and expenses

(1)

(3)

(1)

Unallocated and corporate G&A expenses

(34)

(42)

(92)

(94)

Unallocated Other income (loss)

^[3]

(2)

^[1]

^[1]

^[4]

2,615

2,175

2,319

2,212

6,747

6,501

1,598

1,501

4,648

4,399

^[5]

295

264

788

759

^[6]

^[7]

2,992

1,745

542

550

1,595

1,643

117

106

^[6]

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

939

558

104

(2)

(6)

(12)

(16)

164

$ 132

(9)

(6)

(28)

(9)

$ 2,328

$ 2,218

$ 6,775

$ 6,510

[1]	Amounts have not been allocated to any segment for performance reporting purposes.
[2]	Primarily includes revenues and associated expenses of transactions with franchisee and unconsolidated affiliates derived from the Company’s central procurement model whereby the Company centrally purchases substantially all food and paper products from suppliers and then sells and delivers to restaurants, including franchisees and unconsolidated affiliates. Amounts have not been allocated to any segment for purposes of making operating decisions or assessing financial performance as the transactions are deemed corporate revenues and expenses in nature.
[3]	The amount for the year to date ended September 30, 2018 primarily includes gain from re-measurement of the previously held equity interest in connection with the acquisition of Wuxi KFC (See Note 2).
[4]	Primarily includes cash and cash equivalents, short-term investments, investment in equity securities, and inventories that are centrally managed.
[5]	Includes equity income from investments in unconsolidated affiliates of $19 million and $17 million for the quarters ended September 30, 2019 and 2018, respectively, and $56 million and $52 million for the years to date ended September 30, 2019 and 2018, respectively.
[6]	Primarily includes store closure impairment charges, incremental restaurant-level impairment charges as a result of adopting ASC 842 and restaurant-level impairment charges resulting from our semi-annual impairment evaluation (See Note 11).
[7]	Includes investments in unconsolidated affiliates.

Segment Reporting (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting [Abstract]
Equity income from investments in unconsolidated affiliates	$ 19	$ 17	$ 56	$ 52

Contingencies - Narrative (Details) - USD ($)	1 Months Ended
Contingencies - Narrative (Details) - USD ($)	Feb. 28, 2015	Sep. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Income tax rate on gains derived from indirect transfer of assets	10.00%
Percentage of tax assessed on difference between fair market value and tax basis	10.00%
Guarantees outstanding of unconsolidated affiliates		$ 0

Subsequent Events (Details) - Subsequent Event [Member] $ / shares in Units, $ in Millions	Oct. 29, 2019 USD ($) $ / shares
Subsequent Event [Line Items]
Dividends declared date	Oct. 29, 2019
Dividends payable, amount per share \| $ / shares	$ 0.12
Dividends payable date	Dec. 17, 2019
Dividends payable, date of record	Nov. 26, 2019
Estimated cash dividend payable \| $	$ 45

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Oct. 30, 2019
Document And Entity Information [Line Items]
Entity Registrant Name	Yum China Holdings, Inc.
Entity Central Index Key	0001673358
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Document Type	10-Q
Trading Symbol	YUMC
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Document Period End Date	Sep. 30, 2019
Entity Common Stock Shares Outstanding		375,908,592
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, par value $0.01 per share
Entity Incorporation, State or Country Code	DE
Security Exchange Name	NYSE
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-37762
Entity Tax Identification Number	81-2421743
Entity Address, Address Line One	7100 Corporate Drive
Entity Address, City or Town	Plano
Entity Address, Country	US
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75024
City Area Code	469
Local Phone Number	980-2898
Other Address [Member]
Document And Entity Information [Line Items]
Entity Address, Address Line One	Yum China Building
Entity Address, Address Line Two	20 Tian Yao Qiao Road
Entity Address, City or Town	Shanghai
Entity Address, Country	CN
Entity Address, Postal Zip Code	200030

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

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Revenues

$ 2,319

$ 2,212

$ 6,747

$ 6,501

General and administrative expenses

117

119

340

334

Other operating costs and expenses

Closures and impairment (income) expenses, net

(1)

Total costs and expenses, net

(17)

(10)

(48)

(143)

2,019

1,943

5,940

5,644

300

269

807

857

Net income – including noncontrolling interests

322

279

875

885

Income tax provision

(87)

(67)

(226)

(227)

235

212

649

658

Net income – noncontrolling interests

Weighted-average common shares outstanding (in millions):

$ 223

$ 203

$ 623

$ 634

Basic

^[1]

377

384

378

386

Diluted

388

394

389

398

$ 0.59

$ 0.53

$ 1.65

$ 1.64

$ 0.58

$ 0.51

$ 1.60

$ 1.59

Revenues

$ 2,097

$ 2,008

$ 6,112

$ 5,912

Revenues

113

110

Transactions With Franchisees and Unconsolidated Affiliates [Member]

Revenues

172

159

496

461

167

156

488

454

Revenues

Company Restaurant Expenses [Member]

Payroll and employee benefits

Food and paper

651

610

1,896

1,775

455

430

1,371

1,296

Occupancy and other operating expenses

619

615

1,804

1,841

$ 1,725

$ 1,655

$ 5,071

$ 4,912

[1]

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income - including noncontrolling interests	$ 235	$ 212	$ 649	$ 658
Other comprehensive income, net of tax of nil:
Foreign currency translation adjustments	(96)	(98)	(95)	(156)
Comprehensive income - including noncontrolling interests	139	114	554	502
Comprehensive income - noncontrolling interests	8	6	23	19
Comprehensive Income - Yum China Holdings, Inc.	$ 131	$ 108	$ 531	$ 483

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

Net income - including noncontrolling interests

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

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Cash Flows – Operating Activities

$ 649

$ 658

Depreciation and amortization

322

343

Amortization of operating lease right-of-use assets

251

Closures and impairment expenses

Gain from re-measurement of equity interest upon acquisition

^[1]

(98)

Equity income from investments in unconsolidated affiliates

(39)

(56)

(52)

Distributions of income received from unconsolidated affiliates

Share-based compensation expense

Changes in accounts receivable

(2)

Changes in inventories

(22)

Changes in prepaid expenses and other current assets

(13)

Changes in accounts payable and other current liabilities

118

184

Changes in income taxes payable

Changes in non-current operating lease liabilities

(280)

Net Cash Provided by Operating Activities

(32)

(36)

1,045

1,173

Cash Flows – Investing Activities

Capital spending

(310)

(359)

Purchases of short-term investments

(619)

(513)

Maturities of short-term investments

366

513

Acquisition of business, net of cash acquired

(91)

Net Cash Used in Investing Activities

(3)

(553)

(527)

Cash Flows – Financing Activities

Repayment of short-term borrowings assumed from acquisition

(10)

Repurchase of shares of common stock

(207)

(161)

Cash dividends paid on common stock

(136)

(115)

Dividends paid to noncontrolling interests

(25)

(29)

Net Cash Used in Financing Activities

(3)

(368)

(318)

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

(26)

(53)

Net Increase in Cash, Cash Equivalents and Restricted Cash

275

Cash, Cash Equivalents and Restricted Cash - Beginning of Period

1,266

1,059

Cash, Cash Equivalents and Restricted Cash - End of Period

1,364

1,334

Supplemental Cash Flow Data

Cash paid for income tax

$ 185

$ 157

[1]	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 1,355		$ 1,266
Short-term investments	364		122
Accounts receivable, net	79		80
Inventories, net	317		307
Prepaid expenses and other current assets	141		177
Total Current Assets	2,256		1,952
Property, plant and equipment, net	1,506		1,615
Operating lease right-of-use assets	1,893
Goodwill	256		266
Intangible assets, net	97		116
Deferred income taxes	89		89
Investments in unconsolidated affiliates	74		81
Other assets	539		491
Total Assets	6,710		4,610
Current Liabilities
Accounts payable and other current liabilities	1,566		1,199
Income taxes payable	82		54
Total Current Liabilities	1,648		1,253
Non-current operating lease liabilities	1,729
Non-current finance lease liabilities	23		25
Other liabilities	195		355
Total Liabilities	3,595		1,633
Redeemable Noncontrolling Interest	1		1
Equity
Common stock, $0.01 par value; 1,000 million shares authorized; 394 million shares and 392 million shares issued at September 30, 2019 and December 31, 2018, respectively; 376 million shares and 379 million shares outstanding at September 30, 2019 and December 31, 2018, respectively	4		4
Treasury stock	(664)		(460)
Additional paid-in capital	2,423		2,402
Retained earnings	1,371		944
Accumulated other comprehensive loss	(109)		(17)
Total Equity – Yum China Holdings, Inc.	3,025		2,873
Noncontrolling interests	89		103
Total Equity	3,114	$ 3,078	2,976	$ 3,083	$ 3,096	$ 2,842
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$ 6,710		$ 4,610

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	394,000,000	392,000,000
Common stock, shares outstanding	376,000,000	379,000,000

Description of the Business

9 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of the Business

Note 1 – Description of the Business

We own the intellectual property of East Dawning, Little Sheep and COFFii & JOY and pay no license fee related to these Concepts.

The Company also owns a controlling interest in the holding company of DAOJIA.com.cn (“Daojia”), an established online food delivery service provider in China.

Basis of Presentation

9 Months Ended

Sep. 30, 2019

Note 2 – Basis of Presentation

Recently Adopted Accounting Pronouncements

The following table summarizes the effect on the Consolidated Balance Sheet as a result of adopting ASC 842.

	December 31, 2018			Effect of adoption				January 1, 2019

ASSETS
Current Assets
Cash and cash equivalents	$	1,266						$	1,266
Short-term investments		122							122
Accounts receivable, net		80							80
Inventories, net		307							307
Prepaid expenses and other current assets		177			(39	)	^(a)		138
Total Current Assets		1,952			(39	)			1,913
Property, plant and equipment, net		1,615			(1	)			1,614
Operating lease right-of-use assets		—			1,997		^(b)		1,997
Goodwill		266							266
Intangible assets, net		116			(2	)	^(c)		114
Deferred income taxes		89			19		^(d)		108
Investments in unconsolidated affiliates		81			(1	)			80
Other assets		491			(4	)	^(c)		487
Total Assets	$	4,610		$	1,969			$	6,579
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
Current Liabilities
Accounts payable and other current liabilities	$	1,199		$	320		^(e)	$	1,519
Income taxes payable		54							54
Total Current Liabilities		1,253			320				1,573
Non-current operating lease liabilities		—			1,860		^(f)		1,860
Non-current finance lease liabilities		25			—				25
Other liabilities		355			(148	)	^(g)		207
Total Liabilities		1,633			2,032				3,665
Redeemable Noncontrolling Interest		1							1
Equity
Common stock		4							4
Treasury stock		(460	)						(460	)
Additional paid-in capital		2,402							2,402
Retained earnings		944			(60	)	^(h)		884
Accumulated other comprehensive loss		(17	)						(17	)
Total Equity – Yum China Holdings, Inc.		2,873			(60	)			2,813
Noncontrolling interests		103			(3	)	⁽ⁱ⁾		100
Total Equity		2,976			(63	)			2,913
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$	4,610		$	1,969			$	6,579

(a)	Represents the current portion of prepaid rent reclassified to operating lease ROU assets.

(b)	Represents the net result of capitalization of operating lease payments and reclassification of prepaid rent, initial direct cost, deferred rent accrual and lease incentives, and offset by impairment of operating lease ROU assets that existed prior to the date of adoption.

(c)	Represents initial direct cost, favorable lease and non-current prepaid rent reclassified to operating lease ROU assets.

(d)	Represents the deferred tax impact related to impairment of operating lease ROU assets.

(e)	Represents recognition of the current portion of operating lease liabilities, offset by the reclassification of accrued rental payments and the current portion of deferred rent accrual to operating lease ROU assets.

(f)	Represents recognition of the non-current operating lease liabilities.

(g)	Represents reclassification of the non-current portion of deferred rent accrual and lease incentives to operating lease ROU assets.

(h)

(i)	Represents impairment of operating lease ROU assets attributable to noncontrolling interests.

Certain prior period items in the Condensed Consolidated Financial Statements have been reclassified to conform to the current period’s presentation to facilitate comparison.

Revenue Recognition

9 Months Ended

Sep. 30, 2019

Revenue Recognition

Note 3 – Revenue Recognition

The Company’s revenues primarily include Company sales, Franchise fees and income and Revenues from transactions with franchisees and unconsolidated affiliates.

Company Sales

Franchise Fees and Income

Revenues from Transactions with Franchisees and Unconsolidated Affiliates

Loyalty Programs

Disaggregation of Revenue

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

	Quarter Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	1,546	$	540	$	11	$	—	$	2,097	$	—		$	2,097
Franchise fees and income		35		1		2		—		38		—			38
Revenues from transactions with franchisees and unconsolidated affiliates		16		1		8		147		172		—			172
Other revenues		1		—		19		1		21		(9	)		12
Total revenues	$	1,598	$	542	$	40	$	148	$	2,328	$	(9	)	$	2,319

	Quarter Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	1,452	$	548	$	8	$	—	$	2,008	$	—		$	2,008
Franchise fees and income		34		1		1		—		36		—			36
Revenues from transactions with franchisees and unconsolidated affiliates		15		1		7		136		159		—			159
Other revenues		—		—		14		1		15		(6	)		9
Total revenues	$	1,501	$	550	$	30	$	137	$	2,218	$	(6	)	$	2,212

	Year to Date Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	4,495	$	1,588	$	29	$	—	$	6,112	$	—		$	6,112
Franchise fees and income		104		3		6		—		113		—			113
Revenues from transactions with franchisees and unconsolidated affiliates		48		3		20		425		496		—			496
Other revenues		1		1		49		3		54		(28	)		26
Total revenues	$	4,648	$	1,595	$	104	$	428	$	6,775	$	(28	)	$	6,747

	Year to Date Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	4,248	$	1,640	$	24	$	—	$	5,912	$	—		$	5,912
Franchise fees and income		104		2		4		—		110		—			110
Revenues from transactions with franchisees and unconsolidated affiliates		47		1		18		395		461		—			461
Other revenues		—		—		25		2		27		(9	)		18
Total revenues	$	4,399	$	1,643	$	71	$	397	$	6,510	$	(9	)	$	6,501

(a)	As COFFii & JOY and our e-commerce business became operating segments starting from the first quarter of 2019, revenue by segment information for prior quarters has been recast to align with the change in segment reporting. Additional details on our reportable segments are included in Note 13.

Accounts Receivable

Costs to Obtain Contracts

Contract Liabilities

Contract liabilities at September 30, 2019 and December 31, 2018 were as follows:

Contract liabilities	9/30/2019		12/31/2018
Deferred revenue related to prepaid stored-value products	$	80	$	73
Deferred revenue related to customer loyalty programs		24		17
Deferred revenue related to upfront fees		36		37
Total	$	140	$	127

Earnings Per Common Share ("EPS")

9 Months Ended

Sep. 30, 2019

Earning Per Common Share (EPS)

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

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

	Quarter Ended				Year to Date Ended
	9/30/2019		9/30/2018		9/30/2019		9/30/2018
Net Income – Yum China Holdings, Inc.	$	223	$	203	$	623	$	634
Weighted-average common shares outstanding (for basic calculation) ^(a)		377		384		378		386
Effect of dilutive share-based awards ^(a)		7		9		8		10
Effect of dilutive warrants ^(b)		4		1		3		2
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		388		394		389		398
Basic Earnings Per Common Share	$	0.59	$	0.53	$	1.65	$	1.64
Diluted Earnings Per Common Share	$	0.58	$	0.51	$	1.60	$	1.59
Share-based awards excluded from the diluted EPS computation ^(c)		2		10		2		4

(a)

(b)

(c)	These outstanding stock appreciation rights, restricted stock units and performance share units were not included in the computation of diluted EPS because to do so would have been antidilutive for the quarters and years to date presented.

Equity

9 Months Ended

Sep. 30, 2019

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

Equity

Note 5 – Equity

Changes in Equity and Redeemable Noncontrolling Interest (in millions)

	Yum China Holdings, Inc.
										Accumulated
	Common				Additional					Other															Redeemable
	Stock				Paid-in		Retained			Comprehensive			Treasury Stock						Noncontrolling			Total			Noncontrolling
	Shares		Amount		Capital		Earnings			Income (Loss)			Shares			Amount			Interests			Equity			Interest
Balance at June 30, 2019		394	$	4	$	2,417	$	1,193		$	(17	)		(17	)	$	(600	)	$	81		$	3,078		$	1
Net Income								223												12			235
Foreign currency translation adjustments											(92	)								(4	)		(96	)
Comprehensive income																							139
Cash dividends declared ($0.12 per common share)								(45	)														(45	)
Repurchase of shares of common stock														(1	)		(64	)					(64	)
Exercise and vesting of share-based awards		—		—		—																	—
Share-based compensation						6																	6
Balance at September 30, 2019		394	$	4	$	2,423	$	1,371		$	(109	)		(18	)	$	(664	)	$	89		$	3,114		$	1

Balance at June 30, 2018		391	$	4	$	2,388	$	751		$	81			(6	)	$	(221	)	$	93		$	3,096		$	5
Net Income								203												9			212
Foreign currency translation adjustments											(95	)								(3	)		(98	)
Comprehensive income																							114
Cash dividends declared ($0.1 per common share)								(38	)														(38	)
Repurchase of shares of common stock														(3	)		(94	)					(94	)
Exercise and vesting of share-based awards		—		—		—																	—
Share-based compensation					5																		5
Balance at September 30, 2018		391	$	4	$	2,393	$	916		$	(14	)		(9	)	$	(315	)	$	99		$	3,083		$	5

	Yum China Holdings, Inc.
										Accumulated
	Common				Additional					Other															Redeemable
	Stock				Paid-in		Retained			Comprehensive			Treasury Stock						Noncontrolling			Total			Noncontrolling
	Shares		Amount		Capital		Earnings			(Loss) Income			Shares			Amount			Interests			Equity			Interest
Balance at December 31, 2018		392	$	4	$	2,402	$	944		$	(17	)		(13	)	$	(460	)	$	103		$	2,976		$	1
Net Income								623												26			649
Foreign currency translation adjustments											(92	)								(3	)		(95	)
Comprehensive income																							554
Cash dividends declared ($0.36 per common share)								(136	)														(136	)
Dividends declared																				(34	)		(34	)
Repurchase of shares of common stock														(5	)		(204	)					(204	)
Exercise and vesting of share-based awards		2		—		—																	—
Share-based compensation						21																	21
Cumulative effect of accounting change								(60	)											(3	)		(63	)
Balance at September 30, 2019		394	$	4	$	2,423	$	1,371		$	(109	)		(18	)	$	(664	)	$	89		$	3,114		$	1

Balance at December 31, 2017		389	$	4	$	2,375	$	397		$	137			(4	)	$	(148	)	$	77		$	2,842		$	5
Net Income								634												24			658
Foreign currency translation adjustments											(151	)								(5	)		(156	)
Comprehensive income																							502
Acquisition of business																				36			36
Cash dividends declared ($0.3 per common share)								(115	)														(115	)
Dividends declared																				(33	)		(33	)
Repurchase of shares of common stock														(5	)		(167	)					(167	)
Exercise and vesting of share-based awards		2		—		—																	—
Share-based compensation					18																		18
Balance at September 30, 2018		391	$	4	$	2,393	$	916		$	(14	)		(9	)	$	(315	)	$	99		$	3,083		$	5

Share Repurchase Program

Items Affecting Comparability of Net Income and Cash Flows

9 Months Ended

Sep. 30, 2019

Items Affecting Comparability of Net Income and Cash Flows

Note 6 – Items Affecting Comparability of Net Income and Cash Flows

Gain from Re-Measurement of Equity Interest Upon Acquisition

Meituan Dianping (“Meituan”) Investment

Transition Tax

Other Income, Net

9 Months Ended

Sep. 30, 2019

Note 7 – Other Income, net

	Quarter Ended						Year to Date Ended
	9/30/2019			9/30/2018			9/30/2019			9/30/2018
Equity income from investments in unconsolidated affiliates	$	19		$	17		$	56		$	52
Gain from re-measurement of equity interest upon acquisition^(a)		—			—			—			98
Foreign exchange impact and other		(2	)		(7	)		(8	)		(7	)
Other income, net	$	17		$	10		$	48		$	143

(a)	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

Supplemental Balance Sheet Information

9 Months Ended

Sep. 30, 2019

Supplemental Balance Sheet Information

Note 8 – Supplemental Balance Sheet Information

Accounts Receivable, net	9/30/2019			12/31/2018
Accounts receivable, gross	$	80		$	81
Allowance for doubtful accounts		(1	)		(1	)
Accounts receivable, net	$	79		$	80

Prepaid Expenses and Other Current Assets	9/30/2019		12/31/2018
Receivables from payment processors and aggregators	$	32	$	49
Dividends receivable from unconsolidated affiliates		32		20
Prepaid rent		1		42
Other prepaid expenses and current assets		76		66
Prepaid expenses and other current assets	$	141	$	177

Property, Plant and Equipment	9/30/2019			12/31/2018
Buildings and improvements	$	2,099		$	2,121
Finance leases, primarily buildings		26			26
Machinery, equipment and construction in progress		1,191			1,201
Property, plant and equipment, gross		3,316			3,348
Accumulated depreciation		(1,810	)		(1,733	)
Property, plant and equipment, net	$	1,506		$	1,615

Other Assets	9/30/2019		12/31/2018
VAT assets	$	232	$	226
Land use right		130		138
Investment in equity securities		86		47
Long-term deposits		69		64
Costs to obtain contracts		9		8
Restricted cash		9		—
Others		4		8
Other Assets	$	539	$	491

Accounts Payable and Other Current Liabilities	9/30/2019		12/31/2018
Accounts payable	$	563	$	619
Operating leases liabilities		360		—
Accrued compensation and benefits		199		200
Accrued capital expenditures		112		137
Contract liabilities		110		96
Accrued marketing expenses		94		32
Other current liabilities		128		115
Accounts payable and other current liabilities	$	1,566	$	1,199

Other Liabilities	9/30/2019		12/31/2018
Accrued income tax payable	$	67	$	71
Deferred income tax liabilities		58		65
Contract liabilities		30		31
Deferred rental accrual		—		144
Other non-current liabilities		40		44
Other liabilities	$	195	$	355

Reconciliation of Cash, Cash equivalents, and Restricted Cash for Condensed Consolidated Statements of Cash Flows

	9/30/2019		12/31/2018
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets	$	1,355	$	1,266
Restricted cash included in Other assets ^(a)		9		—
Cash, Cash Equivalents and Restricted Cash as presented in Condensed Consolidated Statements of Cash Flows	$	1,364	$	1,266

(a)

Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 9 – Goodwill and Intangible Assets

The changes in the carrying amount of goodwill are as follows:

	Total Company			KFC			Pizza Hut			All Other Segments
Balance as of December 31, 2018
Goodwill, gross	$	648		$	238		$	19		$	391
Accumulated impairment losses^(a)		(382	)		—			—			(382	)
Goodwill, net		266			238			19			9
Effect of currency translation adjustment		(10	)		(9	)		(1	)		—
Balance as of September 30, 2019
Goodwill, gross		638			229			18			391
Accumulated impairment losses^(a)		(382	)		—			—			(382	)
Goodwill, net	$	256		$	229		$	18		$	9

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

Intangible assets, net as of September 30, 2019 and December 31, 2018 are as follows:

	9/30/2019										12/31/2018
	Gross Carrying Amount^(a)		Accumulated Amortization			Accumulated impairment losses			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Accumulated impairment losses			Net Carrying Amount
Definite-lived intangible assets
Reacquired franchise rights	$	144	$	(108	)	$	—		$	36	$	150	$	(100	)	$	—		$	50
Daojia platform		16		(3	)		(10	)		3		16		(3	)		(10	)		3
Customer-related assets		11		(8	)		(2	)		1		12		(8	)		(2	)		2
Others^(b)		9		(3	)		—			6		17		(9	)		—			8
	$	180	$	(122	)	$	(12	)	$	46	$	195	$	(120	)	$	(12	)	$	63
Indefinite-lived intangible assets
Little Sheep trademark	$	51	$	—		$	—		$	51	$	53	$	—		$	—		$	53

Total intangible assets	$	231	$	(122	)	$	(12	)	$	97	$	248	$	(120	)	$	(12	)	$	116

(a)	Changes in gross carrying amount include the effect of currency translation adjustment.

(b)	Decrease in Others during year to date ended September 30, 2019 is primarily due to the reclassification of favorable lease assets, with a gross carrying amount of $7 million and accumulated amortization of $5 million, to right-of-use assets upon adoption of ASC 842.

Leases

9 Months Ended

Sep. 30, 2019

Leases

Note 10 – Leases

Supplemental Balance Sheet
	9/30/2019		Account Classification
Assets
Operating lease right-of-use assets	$	1,893	Operating lease right-of-use assets
Finance lease right-of-use assets		14	Property, plant and equipment, net
Total leased assets	$	1,907

Liabilities
Current
Operating lease liabilities	$	360	Accounts payable and other current liabilities
Finance lease liabilities		1	Accounts payable and other current liabilities
Non-current
Operating lease liabilities		1,729	Non-current operating lease liabilities
Finance lease liabilities		23	Non-current finance lease liabilities
Total lease liabilities	$	2,113

Summary of Lease Cost	Quarter Ended			Year to Date Ended			Account Classification
	9/30/2019			9/30/2019

Operating lease cost	$	117		$	351		Occupancy and other operating expenses, G&A or Franchise expenses
Finance lease cost
Amortization of leased assets		—			1		Occupancy and other operating expenses
Interest on lease liabilities		—			1		Interest expense, net
Variable lease cost		94			265		Occupancy and other operating expenses or Franchise expenses
Short-term lease cost		3			8		Occupancy and other operating expenses or G&A
Sublease income		(7	)		(21	)	Franchise fees and income or Other revenues
Total lease cost	$	207		$	605

Supplemental Cash Flow Information	Quarter Ended		Year to Date Ended
	9/30/2019		9/30/2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	120	$	361
Operating cash flows from finance leases		—		1
Financing cash flows from finance leases		—		1
Right-of-use assets obtained in exchange for new lease liabilities^(a):
Operating leases	$	98	$	217
Finance leases		—		—

(a)	This also includes noncash transactions resulting in adjustments to the lease liability or ROU asset due to modification or other reassessment events.

Lease Term and Discount Rate	9/30/2019
Weighted-average remaining lease term (years)
Operating leases		7.1
Finance leases		12.0

Weighted-average discount rate
Operating leases		6.1	%
Finance leases		5.8	%

Summary of Future Lease Payments and Lease Liabilities

Maturities of lease liabilities as of September 30, 2019 were as follows:

	Amount of Operating Leases		Amount of Finance Leases		Total
Remainder of 2019	$	133	$	1	$	134
2020		458		3		461
2021		416		3		419
2022		358		3		361
2023		295		3		298
Thereafter		931		21		952
Total undiscounted lease payment		2,591		34		2,625
Less: imputed interest ^(b)		502		10		512
Present value of lease liabilities	$	2,089	$	24	$	2,113

(b)

Future minimum lease payments under non-cancellable leases as of December 31, 2018 were as follows:

	Commitments
	Amount of Operating Leases		Amount of Finance Leases		Total
2019	$	466	$	3	$	469
2020		440		3		443
2021		394		3		397
2022		336		3		339
2023		275		3		278
Thereafter		864		22		886
	$	2,775	$	37	$	2,812

Fair Value Measurements

9 Months Ended

Sep. 30, 2019

Fair Value Measurements

Note 11 – Fair Value Measurements

			Fair Value Measurement or Disclosure at September 30, 2019
	Balance at September 30, 2019		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	658	$	—	$	658	$	—
Money market funds		284		284
Total cash equivalents		942		284		658		—
Short-term investments:
Time deposits		364				364
Total short-term investments		364		—		364		—
Other assets:
Investment in equity securities		86		86
Total	$	1,392	$	370	$	1,022	$	—

			Fair Value Measurement or Disclosure at December 31, 2018
	Balance at December 31, 2018		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	570	$	—	$	570	$	—
Money market funds		226		226
Fixed rate debt securities^(a)		153		153
Total cash equivalents		949		379		570		—
Short-term investments:
Time deposits		122				122
Total short-term investments		122		—		122		—
Other assets:
Investment in equity securities		47		47
Total	$	1,118	$	426	$	692	$	—

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

Non-Recurring Fair Value Measurements

	Quarter Ended				Year to Date Ended
	9/30/2019		9/30/2018		9/30/2019		9/30/2018		Account Classification

ROU impairment prior to the adoption of ASC 842^(a)	$	—	$	—	$	82	$	—	Retained Earnings
Incremental restaurant-level impairment upon adoption of ASC 842^(b)		—		—	12			—	Closure and impairment expenses, net
Restaurant-level impairment^(c)		—		—		7	13		Closure and impairment expenses, net
Total	$	—	$	—	$	101	$	13

(a)

(b)	Reflect incremental restaurant-level impairment upon adoption of ASC 842 in the first quarter of 2019. We performed an additional impairment evaluation of long-lived assets of restaurants, which includes operating lease ROU assets, and property, plant and equipment.

(c)	Restaurant-level impairment changes 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.

Income Taxes

9 Months Ended

Sep. 30, 2019

Income Taxes

Note 12 – Income Taxes

	Quarter Ended						Year to Date Ended
	9/30/2019			9/30/2018			9/30/2019			9/30/2018
Income tax provision	$	87		$	67		$	226		$	227
Effective tax rate		26.9	%		24.2	%		25.8	%		25.7	%

Segment Reporting

9 Months Ended

Sep. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Segment Reporting

Note 13 –Segment Reporting

	Quarter Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	1,597	$	542	$	32	$	148		2,319	$	—		$	2,319
Inter-segment revenue		1		—		8		—		9		(9	)		—
Total	$	1,598	$	542	$	40	$	148	$	2,328	$	(9	)	$	2,319

	Quarter Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	1,501	$	550	$	24	$	137		2,212	$	—		$	2,212
Inter-segment revenue		—		—		6		—		6		(6	)		—
Total	$	1,501	$	550	$	30	$	137	$	2,218	$	(6	)	$	2,212

	Year to Date Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	4,647	$	1,595	$	77	$	428		6,747	$	—		$	6,747
Inter-segment revenue		1		—		27		—		28		(28	)		—
Total	$	4,648	$	1,595	$	104	$	428	$	6,775	$	(28	)	$	6,747

	Year to Date Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	4,399	$	1,643	$	62	$	397		6,501	$	—		$	6,501
Inter-segment revenue		—		—		9		—		9		(9	)		—
Total	$	4,399	$	1,643	$	71	$	397	$	6,510	$	(9	)	$	6,501

	Quarter Ended						Year to Date Ended
Operating Profit	9/30/2019			9/30/2018			9/30/2019			9/30/2018
KFC^(b)	$	295		$	264		$	788		$	759
Pizza Hut		38			53			117			106
All Other Segments		(2	)		(6	)		(12	)		(16	)
Unallocated revenues from transactions with franchisees and unconsolidated affiliates^(c)		147			136			425			395
Unallocated Other revenues		1			1			3			2
Unallocated expenses from transactions with franchisees and unconsolidated affiliates^(c)		(145	)		(135	)		(421	)		(392	)
Unallocated Other operating costs and expenses		(1	)		—			(3	)		(1	)
Unallocated and corporate G&A expenses		(34	)		(42	)		(92	)		(94	)
Unallocated Other income (loss)^(d)		1			(2	)		2			98
Operating Profit	$	300		$	269		$	807		$	857
Interest income, net^(a)		10			10			29			28
Investment gain^(a)		12			—			39			—
Income Before Income Taxes	$	322		$	279		$	875		$	885

	Quarter Ended				Year to Date Ended
Impairment Charges	9/30/2019		9/30/2018		9/30/2019		9/30/2018
KFC^(e)	$	1	$	1	$	13	$	9
Pizza Hut^(e)		1		1		12		14
All Other Segments		—	$	—	$	2	$	—
	$	2	$	2	$	27	$	23

	Total Assets
	9/30/2019		12/31/2018
KFC^(f)	$	2,992	$	1,745
Pizza Hut		939		558
All Other Segments		164		132
Corporate and Unallocated^(g)		2,615		2,175
	$	6,710	$	4,610

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

(b)	Includes equity income from investments in unconsolidated affiliates of $19 million and $17 million for the quarters ended September 30, 2019 and 2018, respectively, and $56 million and $52 million for the years to date ended September 30, 2019 and 2018, respectively.

(c)

(d)	The amount for the year to date ended September 30, 2018 primarily includes gain from re-measurement of the previously held equity interest in connection with the acquisition of Wuxi KFC (See Note 2).

(e)	Primarily includes store closure impairment charges, incremental restaurant-level impairment charges as a result of adopting ASC 842 and restaurant-level impairment charges resulting from our semi-annual impairment evaluation (See Note 11).

(f)	Includes investments in unconsolidated affiliates.

(g)	Primarily includes cash and cash equivalents, short-term investments, investment in equity securities, and inventories that are centrally managed.

Contingencies

9 Months Ended

Sep. 30, 2019

Contingencies

Note 14 – Contingencies

Indemnification of China Tax on Indirect Transfers of Assets

Guarantees

Legal Proceedings

Subsequent Events

9 Months Ended

Sep. 30, 2019

Subsequent Events [Abstract]

Subsequent Events

Note 15 – Subsequent Events

Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2019

Recently Adopted Accounting Pronouncements

Note 2 – Basis of Presentation

The following table summarizes the effect on the Consolidated Balance Sheet as a result of adopting ASC 842.

	December 31, 2018			Effect of adoption				January 1, 2019

ASSETS
Current Assets
Cash and cash equivalents	$	1,266						$	1,266
Short-term investments		122							122
Accounts receivable, net		80							80
Inventories, net		307							307
Prepaid expenses and other current assets		177			(39	)	^(a)		138
Total Current Assets		1,952			(39	)			1,913
Property, plant and equipment, net		1,615			(1	)			1,614
Operating lease right-of-use assets		—			1,997		^(b)		1,997
Goodwill		266							266
Intangible assets, net		116			(2	)	^(c)		114
Deferred income taxes		89			19		^(d)		108
Investments in unconsolidated affiliates		81			(1	)			80
Other assets		491			(4	)	^(c)		487
Total Assets	$	4,610		$	1,969			$	6,579
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
Current Liabilities
Accounts payable and other current liabilities	$	1,199		$	320		^(e)	$	1,519
Income taxes payable		54							54
Total Current Liabilities		1,253			320				1,573
Non-current operating lease liabilities		—			1,860		^(f)		1,860
Non-current finance lease liabilities		25			—				25
Other liabilities		355			(148	)	^(g)		207
Total Liabilities		1,633			2,032				3,665
Redeemable Noncontrolling Interest		1							1
Equity
Common stock		4							4
Treasury stock		(460	)						(460	)
Additional paid-in capital		2,402							2,402
Retained earnings		944			(60	)	^(h)		884
Accumulated other comprehensive loss		(17	)						(17	)
Total Equity – Yum China Holdings, Inc.		2,873			(60	)			2,813
Noncontrolling interests		103			(3	)	⁽ⁱ⁾		100
Total Equity		2,976			(63	)			2,913
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$	4,610		$	1,969			$	6,579

(a)	Represents the current portion of prepaid rent reclassified to operating lease ROU assets.

(b)	Represents the net result of capitalization of operating lease payments and reclassification of prepaid rent, initial direct cost, deferred rent accrual and lease incentives, and offset by impairment of operating lease ROU assets that existed prior to the date of adoption.

(c)	Represents initial direct cost, favorable lease and non-current prepaid rent reclassified to operating lease ROU assets.

(d)	Represents the deferred tax impact related to impairment of operating lease ROU assets.

(e)	Represents recognition of the current portion of operating lease liabilities, offset by the reclassification of accrued rental payments and the current portion of deferred rent accrual to operating lease ROU assets.

(f)	Represents recognition of the non-current operating lease liabilities.

(g)	Represents reclassification of the non-current portion of deferred rent accrual and lease incentives to operating lease ROU assets.

(h)

(i)	Represents impairment of operating lease ROU assets attributable to noncontrolling interests.

Certain prior period items in the Condensed Consolidated Financial Statements have been reclassified to conform to the current period’s presentation to facilitate comparison.

Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2019

Summary of Effect on Consolidated Balance Sheets as Result of Adopting ASU 2016-02

The following table summarizes the effect on the Consolidated Balance Sheet as a result of adopting ASC 842.

	December 31, 2018			Effect of adoption				January 1, 2019

ASSETS
Current Assets
Cash and cash equivalents	$	1,266						$	1,266
Short-term investments		122							122
Accounts receivable, net		80							80
Inventories, net		307							307
Prepaid expenses and other current assets		177			(39	)	^(a)		138
Total Current Assets		1,952			(39	)			1,913
Property, plant and equipment, net		1,615			(1	)			1,614
Operating lease right-of-use assets		—			1,997		^(b)		1,997
Goodwill		266							266
Intangible assets, net		116			(2	)	^(c)		114
Deferred income taxes		89			19		^(d)		108
Investments in unconsolidated affiliates		81			(1	)			80
Other assets		491			(4	)	^(c)		487
Total Assets	$	4,610		$	1,969			$	6,579
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY
Current Liabilities
Accounts payable and other current liabilities	$	1,199		$	320		^(e)	$	1,519
Income taxes payable		54							54
Total Current Liabilities		1,253			320				1,573
Non-current operating lease liabilities		—			1,860		^(f)		1,860
Non-current finance lease liabilities		25			—				25
Other liabilities		355			(148	)	^(g)		207
Total Liabilities		1,633			2,032				3,665
Redeemable Noncontrolling Interest		1							1
Equity
Common stock		4							4
Treasury stock		(460	)						(460	)
Additional paid-in capital		2,402							2,402
Retained earnings		944			(60	)	^(h)		884
Accumulated other comprehensive loss		(17	)						(17	)
Total Equity – Yum China Holdings, Inc.		2,873			(60	)			2,813
Noncontrolling interests		103			(3	)	⁽ⁱ⁾		100
Total Equity		2,976			(63	)			2,913
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$	4,610		$	1,969			$	6,579

(a)	Represents the current portion of prepaid rent reclassified to operating lease ROU assets.

(b)	Represents the net result of capitalization of operating lease payments and reclassification of prepaid rent, initial direct cost, deferred rent accrual and lease incentives, and offset by impairment of operating lease ROU assets that existed prior to the date of adoption.

(c)	Represents initial direct cost, favorable lease and non-current prepaid rent reclassified to operating lease ROU assets.

(d)	Represents the deferred tax impact related to impairment of operating lease ROU assets.

(e)	Represents recognition of the current portion of operating lease liabilities, offset by the reclassification of accrued rental payments and the current portion of deferred rent accrual to operating lease ROU assets.

(f)	Represents recognition of the non-current operating lease liabilities.

(g)	Represents reclassification of the non-current portion of deferred rent accrual and lease incentives to operating lease ROU assets.

(h)

(i)	Represents impairment of operating lease ROU assets attributable to noncontrolling interests.

Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Disaggregation of Revenue by Types of Arrangements and Segments

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

	Quarter Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	1,546	$	540	$	11	$	—	$	2,097	$	—		$	2,097
Franchise fees and income		35		1		2		—		38		—			38
Revenues from transactions with franchisees and unconsolidated affiliates		16		1		8		147		172		—			172
Other revenues		1		—		19		1		21		(9	)		12
Total revenues	$	1,598	$	542	$	40	$	148	$	2,328	$	(9	)	$	2,319

	Quarter Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	1,452	$	548	$	8	$	—	$	2,008	$	—		$	2,008
Franchise fees and income		34		1		1		—		36		—			36
Revenues from transactions with franchisees and unconsolidated affiliates		15		1		7		136		159		—			159
Other revenues		—		—		14		1		15		(6	)		9
Total revenues	$	1,501	$	550	$	30	$	137	$	2,218	$	(6	)	$	2,212

	Year to Date Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	4,495	$	1,588	$	29	$	—	$	6,112	$	—		$	6,112
Franchise fees and income		104		3		6		—		113		—			113
Revenues from transactions with franchisees and unconsolidated affiliates		48		3		20		425		496		—			496
Other revenues		1		1		49		3		54		(28	)		26
Total revenues	$	4,648	$	1,595	$	104	$	428	$	6,775	$	(28	)	$	6,747

	Year to Date Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments^(a)		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	4,248	$	1,640	$	24	$	—	$	5,912	$	—		$	5,912
Franchise fees and income		104		2		4		—		110		—			110
Revenues from transactions with franchisees and unconsolidated affiliates		47		1		18		395		461		—			461
Other revenues		—		—		25		2		27		(9	)		18
Total revenues	$	4,399	$	1,643	$	71	$	397	$	6,510	$	(9	)	$	6,501

(a)	As COFFii & JOY and our e-commerce business became operating segments starting from the first quarter of 2019, revenue by segment information for prior quarters has been recast to align with the change in segment reporting. Additional details on our reportable segments are included in Note 13.

Contract Liabilities

Contract liabilities at September 30, 2019 and December 31, 2018 were as follows:

Contract liabilities	9/30/2019		12/31/2018
Deferred revenue related to prepaid stored-value products	$	80	$	73
Deferred revenue related to customer loyalty programs		24		17
Deferred revenue related to upfront fees		36		37
Total	$	140	$	127

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

9 Months Ended

Sep. 30, 2019

Earnings Per Common Share

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

	Quarter Ended				Year to Date Ended
	9/30/2019		9/30/2018		9/30/2019		9/30/2018
Net Income – Yum China Holdings, Inc.	$	223	$	203	$	623	$	634
Weighted-average common shares outstanding (for basic calculation) ^(a)		377		384		378		386
Effect of dilutive share-based awards ^(a)		7		9		8		10
Effect of dilutive warrants ^(b)		4		1		3		2
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		388		394		389		398
Basic Earnings Per Common Share	$	0.59	$	0.53	$	1.65	$	1.64
Diluted Earnings Per Common Share	$	0.58	$	0.51	$	1.60	$	1.59
Share-based awards excluded from the diluted EPS computation ^(c)		2		10		2		4

(a)

(b)

(c)	These outstanding stock appreciation rights, restricted stock units and performance share units were not included in the computation of diluted EPS because to do so would have been antidilutive for the quarters and years to date presented.

Equity (Tables)

9 Months Ended

Sep. 30, 2019

Changes in Equity and Redeemable Noncontrolling Interest

	Yum China Holdings, Inc.
										Accumulated
	Common				Additional					Other															Redeemable
	Stock				Paid-in		Retained			Comprehensive			Treasury Stock						Noncontrolling			Total			Noncontrolling
	Shares		Amount		Capital		Earnings			Income (Loss)			Shares			Amount			Interests			Equity			Interest
Balance at June 30, 2019		394	$	4	$	2,417	$	1,193		$	(17	)		(17	)	$	(600	)	$	81		$	3,078		$	1
Net Income								223												12			235
Foreign currency translation adjustments											(92	)								(4	)		(96	)
Comprehensive income																							139
Cash dividends declared ($0.12 per common share)								(45	)														(45	)
Repurchase of shares of common stock														(1	)		(64	)					(64	)
Exercise and vesting of share-based awards		—		—		—																	—
Share-based compensation						6																	6
Balance at September 30, 2019		394	$	4	$	2,423	$	1,371		$	(109	)		(18	)	$	(664	)	$	89		$	3,114		$	1

Balance at June 30, 2018		391	$	4	$	2,388	$	751		$	81			(6	)	$	(221	)	$	93		$	3,096		$	5
Net Income								203												9			212
Foreign currency translation adjustments											(95	)								(3	)		(98	)
Comprehensive income																							114
Cash dividends declared ($0.1 per common share)								(38	)														(38	)
Repurchase of shares of common stock														(3	)		(94	)					(94	)
Exercise and vesting of share-based awards		—		—		—																	—
Share-based compensation					5																		5
Balance at September 30, 2018		391	$	4	$	2,393	$	916		$	(14	)		(9	)	$	(315	)	$	99		$	3,083		$	5

	Yum China Holdings, Inc.
										Accumulated
	Common				Additional					Other															Redeemable
	Stock				Paid-in		Retained			Comprehensive			Treasury Stock						Noncontrolling			Total			Noncontrolling
	Shares		Amount		Capital		Earnings			(Loss) Income			Shares			Amount			Interests			Equity			Interest
Balance at December 31, 2018		392	$	4	$	2,402	$	944		$	(17	)		(13	)	$	(460	)	$	103		$	2,976		$	1
Net Income								623												26			649
Foreign currency translation adjustments											(92	)								(3	)		(95	)
Comprehensive income																							554
Cash dividends declared ($0.36 per common share)								(136	)														(136	)
Dividends declared																				(34	)		(34	)
Repurchase of shares of common stock														(5	)		(204	)					(204	)
Exercise and vesting of share-based awards		2		—		—																	—
Share-based compensation						21																	21
Cumulative effect of accounting change								(60	)											(3	)		(63	)
Balance at September 30, 2019		394	$	4	$	2,423	$	1,371		$	(109	)		(18	)	$	(664	)	$	89		$	3,114		$	1

Balance at December 31, 2017		389	$	4	$	2,375	$	397		$	137			(4	)	$	(148	)	$	77		$	2,842		$	5
Net Income								634												24			658
Foreign currency translation adjustments											(151	)								(5	)		(156	)
Comprehensive income																							502
Acquisition of business																				36			36
Cash dividends declared ($0.3 per common share)								(115	)														(115	)
Dividends declared																				(33	)		(33	)
Repurchase of shares of common stock														(5	)		(167	)					(167	)
Exercise and vesting of share-based awards		2		—		—																	—
Share-based compensation					18																		18
Balance at September 30, 2018		391	$	4	$	2,393	$	916		$	(14	)		(9	)	$	(315	)	$	99		$	3,083		$	5

Other Income, Net (Tables)

9 Months Ended

Sep. 30, 2019

	Quarter Ended						Year to Date Ended
	9/30/2019			9/30/2018			9/30/2019			9/30/2018
Equity income from investments in unconsolidated affiliates	$	19		$	17		$	56		$	52
Gain from re-measurement of equity interest upon acquisition^(a)		—			—			—			98
Foreign exchange impact and other		(2	)		(7	)		(8	)		(7	)
Other income, net	$	17		$	10		$	48		$	143

(a)	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

Supplemental Balance Sheet Information (Tables)

9 Months Ended

Sep. 30, 2019

Prepaid Expenses and Other Current Assets

Accounts Receivable, Net

Accounts Receivable, net	9/30/2019			12/31/2018
Accounts receivable, gross	$	80		$	81
Allowance for doubtful accounts		(1	)		(1	)
Accounts receivable, net	$	79		$	80

Prepaid Expenses and Other Current Assets	9/30/2019		12/31/2018
Receivables from payment processors and aggregators	$	32	$	49
Dividends receivable from unconsolidated affiliates		32		20
Prepaid rent		1		42
Other prepaid expenses and current assets		76		66
Prepaid expenses and other current assets	$	141	$	177

Property, Plant and Equipment

Property, Plant and Equipment	9/30/2019			12/31/2018
Buildings and improvements	$	2,099		$	2,121
Finance leases, primarily buildings		26			26
Machinery, equipment and construction in progress		1,191			1,201
Property, plant and equipment, gross		3,316			3,348
Accumulated depreciation		(1,810	)		(1,733	)
Property, plant and equipment, net	$	1,506		$	1,615

Accounts Payable and Other Current Liabilities

Other Assets	9/30/2019		12/31/2018
VAT assets	$	232	$	226
Land use right		130		138
Investment in equity securities		86		47
Long-term deposits		69		64
Costs to obtain contracts		9		8
Restricted cash		9		—
Others		4		8
Other Assets	$	539	$	491

Accounts Payable and Other Current Liabilities	9/30/2019		12/31/2018
Accounts payable	$	563	$	619
Operating leases liabilities		360		—
Accrued compensation and benefits		199		200
Accrued capital expenditures		112		137
Contract liabilities		110		96
Accrued marketing expenses		94		32
Other current liabilities		128		115
Accounts payable and other current liabilities	$	1,566	$	1,199

Other Liabilities and Deferred Credits

Other Liabilities	9/30/2019		12/31/2018
Accrued income tax payable	$	67	$	71
Deferred income tax liabilities		58		65
Contract liabilities		30		31
Deferred rental accrual		—		144
Other non-current liabilities		40		44
Other liabilities	$	195	$	355

Reconciliation of Cash, Cash Equivalents, and Restricted Cash

Reconciliation of Cash, Cash equivalents, and Restricted Cash for Condensed Consolidated Statements of Cash Flows

	9/30/2019		12/31/2018
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets	$	1,355	$	1,266
Restricted cash included in Other assets ^(a)		9		—
Cash, Cash Equivalents and Restricted Cash as presented in Condensed Consolidated Statements of Cash Flows	$	1,364	$	1,266

(a)

Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Changes in the Carrying Amount of Goodwill

The changes in the carrying amount of goodwill are as follows:

	Total Company			KFC			Pizza Hut			All Other Segments
Balance as of December 31, 2018
Goodwill, gross	$	648		$	238		$	19		$	391
Accumulated impairment losses^(a)		(382	)		—			—			(382	)
Goodwill, net		266			238			19			9
Effect of currency translation adjustment		(10	)		(9	)		(1	)		—
Balance as of September 30, 2019
Goodwill, gross		638			229			18			391
Accumulated impairment losses^(a)		(382	)		—			—			(382	)
Goodwill, net	$	256		$	229		$	18		$	9

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

Schedule of Finite and Indefinite Lived Intangible Assets by Major Class

Intangible assets, net as of September 30, 2019 and December 31, 2018 are as follows:

	9/30/2019										12/31/2018
	Gross Carrying Amount^(a)		Accumulated Amortization			Accumulated impairment losses			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Accumulated impairment losses			Net Carrying Amount
Definite-lived intangible assets
Reacquired franchise rights	$	144	$	(108	)	$	—		$	36	$	150	$	(100	)	$	—		$	50
Daojia platform		16		(3	)		(10	)		3		16		(3	)		(10	)		3
Customer-related assets		11		(8	)		(2	)		1		12		(8	)		(2	)		2
Others^(b)		9		(3	)		—			6		17		(9	)		—			8
	$	180	$	(122	)	$	(12	)	$	46	$	195	$	(120	)	$	(12	)	$	63
Indefinite-lived intangible assets
Little Sheep trademark	$	51	$	—		$	—		$	51	$	53	$	—		$	—		$	53

Total intangible assets	$	231	$	(122	)	$	(12	)	$	97	$	248	$	(120	)	$	(12	)	$	116

(a)	Changes in gross carrying amount include the effect of currency translation adjustment.

(b)	Decrease in Others during year to date ended September 30, 2019 is primarily due to the reclassification of favorable lease assets, with a gross carrying amount of $7 million and accumulated amortization of $5 million, to right-of-use assets upon adoption of ASC 842.

Leases (Tables)

9 Months Ended

Sep. 30, 2019

Summary of Supplemental Balance Sheet

Supplemental Balance Sheet
	9/30/2019		Account Classification
Assets
Operating lease right-of-use assets	$	1,893	Operating lease right-of-use assets
Finance lease right-of-use assets		14	Property, plant and equipment, net
Total leased assets	$	1,907

Liabilities
Current
Operating lease liabilities	$	360	Accounts payable and other current liabilities
Finance lease liabilities		1	Accounts payable and other current liabilities
Non-current
Operating lease liabilities		1,729	Non-current operating lease liabilities
Finance lease liabilities		23	Non-current finance lease liabilities
Total lease liabilities	$	2,113

Summary of Lease Cost

Summary of Lease Cost	Quarter Ended			Year to Date Ended			Account Classification
	9/30/2019			9/30/2019

Operating lease cost	$	117		$	351		Occupancy and other operating expenses, G&A or Franchise expenses
Finance lease cost
Amortization of leased assets		—			1		Occupancy and other operating expenses
Interest on lease liabilities		—			1		Interest expense, net
Variable lease cost		94			265		Occupancy and other operating expenses or Franchise expenses
Short-term lease cost		3			8		Occupancy and other operating expenses or G&A
Sublease income		(7	)		(21	)	Franchise fees and income or Other revenues
Total lease cost	$	207		$	605

Schedule of Supplemental Cash Flow Information

Supplemental Cash Flow Information	Quarter Ended		Year to Date Ended
	9/30/2019		9/30/2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	120	$	361
Operating cash flows from finance leases		—		1
Financing cash flows from finance leases		—		1
Right-of-use assets obtained in exchange for new lease liabilities^(a):
Operating leases	$	98	$	217
Finance leases		—		—

(a)	This also includes noncash transactions resulting in adjustments to the lease liability or ROU asset due to modification or other reassessment events.

Schedule of Lease Terms and Discount Rate

Lease Term and Discount Rate	9/30/2019
Weighted-average remaining lease term (years)
Operating leases		7.1
Finance leases		12.0

Weighted-average discount rate
Operating leases		6.1	%
Finance leases		5.8	%

Summary of Maturities of Lease Liabilities

Maturities of lease liabilities as of September 30, 2019 were as follows:

	Amount of Operating Leases		Amount of Finance Leases		Total
Remainder of 2019	$	133	$	1	$	134
2020		458		3		461
2021		416		3		419
2022		358		3		361
2023		295		3		298
Thereafter		931		21		952
Total undiscounted lease payment		2,591		34		2,625
Less: imputed interest ^(b)		502		10		512
Present value of lease liabilities	$	2,089	$	24	$	2,113

(b)

Summary of Future Minimum Lease Payments under Non-Cancellable Leases

Future minimum lease payments under non-cancellable leases as of December 31, 2018 were as follows:

	Commitments
	Amount of Operating Leases		Amount of Finance Leases		Total
2019	$	466	$	3	$	469
2020		440		3		443
2021		394		3		397
2022		336		3		339
2023		275		3		278
Thereafter		864		22		886
	$	2,775	$	37	$	2,812

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

Assets Measured on Recurring Basis or Disclosed at Fair Value

			Fair Value Measurement or Disclosure at September 30, 2019
	Balance at September 30, 2019		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	658	$	—	$	658	$	—
Money market funds		284		284
Total cash equivalents		942		284		658		—
Short-term investments:
Time deposits		364				364
Total short-term investments		364		—		364		—
Other assets:
Investment in equity securities		86		86
Total	$	1,392	$	370	$	1,022	$	—

			Fair Value Measurement or Disclosure at December 31, 2018
	Balance at December 31, 2018		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	570	$	—	$	570	$	—
Money market funds		226		226
Fixed rate debt securities^(a)		153		153
Total cash equivalents		949		379		570		—
Short-term investments:
Time deposits		122				122
Total short-term investments		122		—		122		—
Other assets:
Investment in equity securities		47		47
Total	$	1,118	$	426	$	692	$	—

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

Schedule of Amounts Recognized From Non-recurring Fair Value Measurements

	Quarter Ended				Year to Date Ended
	9/30/2019		9/30/2018		9/30/2019		9/30/2018		Account Classification

ROU impairment prior to the adoption of ASC 842^(a)	$	—	$	—	$	82	$	—	Retained Earnings
Incremental restaurant-level impairment upon adoption of ASC 842^(b)		—		—	12			—	Closure and impairment expenses, net
Restaurant-level impairment^(c)		—		—		7	13		Closure and impairment expenses, net
Total	$	—	$	—	$	101	$	13

(a)

(b)	Reflect incremental restaurant-level impairment upon adoption of ASC 842 in the first quarter of 2019. We performed an additional impairment evaluation of long-lived assets of restaurants, which includes operating lease ROU assets, and property, plant and equipment.

(c)	Restaurant-level impairment changes 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.

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2019

Income Tax And Effective Tax Rate

	Quarter Ended						Year to Date Ended
	9/30/2019			9/30/2018			9/30/2019			9/30/2018
Income tax provision	$	87		$	67		$	226		$	227
Effective tax rate		26.9	%		24.2	%		25.8	%		25.7	%

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Segment Reporting Information, by Segment

	Quarter Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	1,597	$	542	$	32	$	148		2,319	$	—		$	2,319
Inter-segment revenue		1		—		8		—		9		(9	)		—
Total	$	1,598	$	542	$	40	$	148	$	2,328	$	(9	)	$	2,319

	Quarter Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	1,501	$	550	$	24	$	137		2,212	$	—		$	2,212
Inter-segment revenue		—		—		6		—		6		(6	)		—
Total	$	1,501	$	550	$	30	$	137	$	2,218	$	(6	)	$	2,212

	Year to Date Ended 9/30/2019
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	4,647	$	1,595	$	77	$	428		6,747	$	—		$	6,747
Inter-segment revenue		1		—		27		—		28		(28	)		—
Total	$	4,648	$	1,595	$	104	$	428	$	6,775	$	(28	)	$	6,747

	Year to Date Ended 9/30/2018
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	4,399	$	1,643	$	62	$	397		6,501	$	—		$	6,501
Inter-segment revenue		—		—		9		—		9		(9	)		—
Total	$	4,399	$	1,643	$	71	$	397	$	6,510	$	(9	)	$	6,501

	Quarter Ended						Year to Date Ended
Operating Profit	9/30/2019			9/30/2018			9/30/2019			9/30/2018
KFC^(b)	$	295		$	264		$	788		$	759
Pizza Hut		38			53			117			106
All Other Segments		(2	)		(6	)		(12	)		(16	)
Unallocated revenues from transactions with franchisees and unconsolidated affiliates^(c)		147			136			425			395
Unallocated Other revenues		1			1			3			2
Unallocated expenses from transactions with franchisees and unconsolidated affiliates^(c)		(145	)		(135	)		(421	)		(392	)
Unallocated Other operating costs and expenses		(1	)		—			(3	)		(1	)
Unallocated and corporate G&A expenses		(34	)		(42	)		(92	)		(94	)
Unallocated Other income (loss)^(d)		1			(2	)		2			98
Operating Profit	$	300		$	269		$	807		$	857
Interest income, net^(a)		10			10			29			28
Investment gain^(a)		12			—			39			—
Income Before Income Taxes	$	322		$	279		$	875		$	885

	Quarter Ended				Year to Date Ended
Impairment Charges	9/30/2019		9/30/2018		9/30/2019		9/30/2018
KFC^(e)	$	1	$	1	$	13	$	9
Pizza Hut^(e)		1		1		12		14
All Other Segments		—	$	—	$	2	$	—
	$	2	$	2	$	27	$	23

	Total Assets
	9/30/2019		12/31/2018
KFC^(f)	$	2,992	$	1,745
Pizza Hut		939		558
All Other Segments		164		132
Corporate and Unallocated^(g)		2,615		2,175
	$	6,710	$	4,610

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

(b)	Includes equity income from investments in unconsolidated affiliates of $19 million and $17 million for the quarters ended September 30, 2019 and 2018, respectively, and $56 million and $52 million for the years to date ended September 30, 2019 and 2018, respectively.

(c)

(d)	The amount for the year to date ended September 30, 2018 primarily includes gain from re-measurement of the previously held equity interest in connection with the acquisition of Wuxi KFC (See Note 2).

(e)	Primarily includes store closure impairment charges, incremental restaurant-level impairment charges as a result of adopting ASC 842 and restaurant-level impairment charges resulting from our semi-annual impairment evaluation (See Note 11).

(f)	Includes investments in unconsolidated affiliates.

(g)	Primarily includes cash and cash equivalents, short-term investments, investment in equity securities, and inventories that are centrally managed.

Description of the Business - Narrative (Details)		9 Months Ended
Description of the Business - Narrative (Details)	Oct. 31, 2016	Sep. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Entity, date of incorporation		Apr. 01, 2016
Entity incorporation, state name		DE
Exchange ratio of shares	1
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%

Basis of Presentation - Narrative (Details) - USD ($)
$ in Millions

3 Months Ended

Jan. 01, 2019

Mar. 31, 2018

Sep. 30, 2019

Dec. 31, 2018

^[1]

Summary Of Significant Accounting Policies [Line Items]

$ 1,893

Summary Of Significant Accounting Policies [Line Items]

$ 2,089

ASU 2016-02 [Member]

$ 2,000

$ 1,997

Asset impairment charge net of related impact on deferred taxes and noncontrolling interests

2,200

$ 60

Summary Of Significant Accounting Policies [Line Items]

Percentage of additional equity interest acquired

36.00%

Cash consideration paid to acquire interest

$ 98

Equity interest in acquiree, including subsequent acquisition, percentage

83.00%

[1]	Represents the net result of capitalization of operating lease payments and reclassification of prepaid rent, initial direct cost, deferred rent accrual and lease incentives, and offset by impairment of operating lease ROU assets that existed prior to the date of adoption.

Basis of Presentation - Summary of Effect on Consolidated Balance Sheets as Result of Adopting ASU 2016-02 (Details) - USD ($)
$ in Millions

Sep. 30, 2019

Jun. 30, 2019

Jan. 01, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Dec. 31, 2017

$ 1,355

$ 1,266

364

122

317

307

141

177

2,256

1,952

1,506

1,615

1,893

256

266

116

539

491

6,710

4,610

1,566

1,199

1,648

1,253

1,729

195

355

3,595

1,633

Equity

(664)

(460)

2,423

2,402

1,371

944

(109)

(17)

3,025

2,873

103

Total Liabilities, Redeemable Noncontrolling Interest and Equity

3,114

$ 3,078

2,976

$ 3,083

$ 3,096

$ 2,842

$ 6,710

4,610

As Adjusted [Member]

$ 1,266

122

307

138

1,913

1,614

1,997

266

114

108

487

6,579

1,519

1,573

1,860

207

3,665

Equity

(460)

2,402

884

(17)

2,813

100

Total Liabilities, Redeemable Noncontrolling Interest and Equity

2,913

6,579

Effect of Adoption [Member]

^[1]

(39)

(39)

(1)

$ 2,000

1,997

^[2]

^[3]

(2)

^[4]

(1)

^[3]

(4)

1,969

^[5]

320

320

^[6]

1,860

^[7]

(148)

2,032

Equity

^[8]

(60)

(60)

^[9]

(3)

Total Liabilities, Redeemable Noncontrolling Interest and Equity

(63)

$ 1,969

[1]	Represents the current portion of prepaid rent reclassified to operating lease ROU assets.
[2]	Represents the net result of capitalization of operating lease payments and reclassification of prepaid rent, initial direct cost, deferred rent accrual and lease incentives, and offset by impairment of operating lease ROU assets that existed prior to the date of adoption.
[3]	Represents initial direct cost, favorable lease and non-current prepaid rent reclassified to operating lease ROU assets.
[4]	Represents the deferred tax impact related to impairment of operating lease ROU assets.
[5]	Represents recognition of the current portion of operating lease liabilities, offset by the reclassification of accrued rental payments and the current portion of deferred rent accrual to operating lease ROU assets.
[6]	Represents recognition of the non-current operating lease liabilities.
[7]	Represents reclassification of the non-current portion of deferred rent accrual and lease incentives to operating lease ROU assets.
[8]	Represents an impairment charge on operating lease ROU assets arising from existing operating leases as of January 1, 2019, net of related impact on deferred taxes and noncontrolling interests, with a corresponding reduction to the carrying amount of operating lease ROU assets. The impairment charge was recorded for those restaurants under operating leases with full impairment on the long-lived assets before January 1, 2019, as the additional impairment charge would have been recorded before January 1, 2019 had the operating lease ROU assets been recognized at the time of impairment.
[9]	Represents impairment of operating lease ROU assets attributable to noncontrolling interests.

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Revenue From Contract With Customer [Line Items]
Prepaid gift cards expiration period			36 months
Product vouchers maximum expiration period			12 months
Points expiration period			18 months
Number of days from the period in which the corresponding sales occur that trade receivables are generally due
Impairment losses related to costs to obtain contracts			$ 0		$ 0
Costs to obtain contracts	$ 9		9		$ 8
Revenue recognized	$ 35	$ 21	$ 56	$ 39
KFC [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term			10 years
Pizza Hut [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term			10 years
Little Sheep [Member] \| Minimum [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term			5 years
Little Sheep [Member] \| Maximum [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term			10 years

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

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

$ 2,319

$ 2,212

$ 6,747

$ 6,501

1,597

1,501

4,647

4,399

542

550

1,595

1,643

^[1]

148

137

428

397

2,328

2,218

6,775

6,510

(9)

(6)

(28)

(9)

2,319

2,212

6,747

6,501

1,598

1,501

4,648

4,399

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

542

550

1,595

1,643

104

Company Sales [Member] | KFC [Member]

2,097

2,008

6,112

5,912

Company Sales [Member] | Pizza Hut [Member]

1,546

1,452

4,495

4,248

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

540

548

1,588

1,640

Company Sales [Member] | Combined [Member]

2,097

2,008

6,112

5,912

Franchise [Member] | KFC [Member]

113

110

Franchise [Member] | Pizza Hut [Member]

104

Franchise [Member] | All Other Segments [Member]

Franchise [Member] | Combined [Member]

Transactions With Franchisees and Unconsolidated Affiliates [Member]

113

110

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

172

159

496

461

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

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

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

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

147

136

425

395

172

159

496

461

Other Revenues [Member] | KFC [Member]

Other Revenues [Member] | Pizza Hut [Member]

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

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

Other Revenues [Member] | Combined [Member]

Other Revenues [Member] | Elimination [Member]

$ (9)

$ (6)

$ (28)

$ (9)

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

Revenue Recognition (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Contract liabilities
Deferred revenue related to prepaid stored-value products	$ 80	$ 73
Deferred revenue related to customer loyalty programs	24	17
Deferred revenue related to upfront fees	36	37
Total	$ 140	$ 127

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

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Weighted-average common shares outstanding (for basic calculation)

$ 223

$ 203

$ 623

$ 634

^[1]

377

384

378

386

Effect of dilutive share-based awards

^[1]

Effect of dilutive warrants

^[2]

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

388

394

389

398

$ 0.59

$ 0.53

$ 1.65

$ 1.64

Share-based awards excluded from the diluted EPS computation

$ 0.58

$ 0.51

$ 1.60

$ 1.59

^[3]

[1]	As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards on shares of common stock of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The incremental shares arising from outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect.
[2]	Pursuant to the investment agreements dated September 1, 2016, Yum China issued to strategic investors two tranches of warrants on January 9, 2017, with each tranche initially providing the right to purchase 8,200,405 shares of Yum China common stock, at an exercise price of $31.40 and $39.25 per share, respectively, subject to customary anti-dilution adjustments. The warrants may be exercised at any time through October 31, 2021. The incremental shares arising from outstanding warrants are included in the computation of diluted EPS, if there is dilutive effect when the average market price of Yum China common stock for the period exceeds the exercise price of the warrants.
[3]	These outstanding stock appreciation rights, restricted stock units and performance share units were not included in the computation of diluted EPS because to do so would have been antidilutive for the quarters and years to date presented.

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

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

Gain from re-measurement of previously held ownership interest at fair value

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

Equity (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Class Of Stock [Line Items]
Beginning balance	$ 3,078	$ 3,096	$ 2,976	$ 2,842
Net Income	235	212	649	658
Foreign currency translation adjustments	(96)	(98)	(95)	(156)
Comprehensive income - including noncontrolling interests	139	114	554	502
Acquisition of business				36
Cash dividends declared	(45)	(38)	(136)	(115)
Dividends declared			(34)	(33)
Repurchase of shares of common stock	(64)	(94)	$ (204)	$ (167)
Repurchase of shares of common stock, shares			(4.9)	(4.6)
Share-based compensation	6	5	$ 21	$ 18
Cumulative effect of accounting change			(63)
Ending balance	3,114	3,083	3,114	3,083
Common Stock [Member]
Class Of Stock [Line Items]
Beginning balance	$ 4	$ 4	$ 4	$ 4
Beginning balance (in shares)	394.0	391.0	392.0	389.0
Exercise and vesting of share-based awards, shares			2.0	2.0
Ending balance	$ 4	$ 4	$ 4	$ 4
Ending balance (in shares)	394.0	391.0	394.0	391.0
Additional Paid-in Capital [Member]
Class Of Stock [Line Items]
Beginning balance	$ 2,417	$ 2,388	$ 2,402	$ 2,375
Share-based compensation	6	5	21	18
Ending balance	2,423	2,393	2,423	2,393
Retained Earnings [Member]
Class Of Stock [Line Items]
Beginning balance	1,193	751	944	397
Net Income	223	203	623	634
Cash dividends declared	(45)	(38)	(136)	(115)
Cumulative effect of accounting change			(60)
Ending balance	1,371	916	1,371	916
Accumulated Other Comprehensive Income (Loss) [Member]
Class Of Stock [Line Items]
Beginning balance	(17)	81	(17)	137
Foreign currency translation adjustments	(92)	(95)	(92)	(151)
Ending balance	(109)	(14)	(109)	(14)
Treasury Stock [Member]
Class Of Stock [Line Items]
Beginning balance	$ (600)	$ (221)	$ (460)	$ (148)
Beginning balance (in shares)	(17.0)	(6.0)	(13.0)	(4.0)
Repurchase of shares of common stock	$ (64)	$ (94)	$ (204)	$ (167)
Repurchase of shares of common stock, shares	(1.0)	(3.0)	(5.0)	(5.0)
Ending balance	$ (664)	$ (315)	$ (664)	$ (315)
Ending balance (in shares)	(18.0)	(9.0)	(18.0)	(9.0)
Noncontrolling Interests [Member]
Class Of Stock [Line Items]
Beginning balance	$ 81	$ 93	$ 103	$ 77
Net Income	12	9	26	24
Foreign currency translation adjustments	(4)	(3)	(3)	(5)
Acquisition of business				36
Dividends declared			(34)	(33)
Cumulative effect of accounting change			(3)
Ending balance	89	99	89	99
Redeemable Noncontrolling Interest [Member]
Class Of Stock [Line Items]
Beginning balance	1	5	1	5
Ending balance	$ 1	$ 5	$ 1	$ 5

Equity (Parenthetical) (Details) - $ / shares	3 Months Ended		9 Months Ended
Equity (Parenthetical) (Details) - $ / shares	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Equity [Abstract]
Cash dividends declared, per common share	$ 0.12	$ 0.1	$ 0.36	$ 0.3

Equity - Narrative (Details) - USD ($) shares in Millions	3 Months Ended		9 Months Ended
Equity - Narrative (Details) - USD ($) shares in Millions	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Oct. 30, 2018	Oct. 04, 2017	Feb. 07, 2017
Equity [Abstract]
Stock repurchase program, authorized amount					$ 1,400,000,000	$ 550,000,000	$ 300,000,000
Treasury stock repurchased, shares			4.9	4.6
Treasury stock repurchased, value	$ 64,000,000	$ 94,000,000	$ 204,000,000	$ 167,000,000
Cost of shares repurchased with trade dates in the current reporting quarter, but settlement dates subsequent to the current quarter			2,000,000	$ 6,000,000
Stock repurchase program, remaining authorized repurchase amount	$ 756,000,000		$ 756,000,000

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

3 Months Ended

9 Months Ended

Sep. 30, 2019

Mar. 31, 2019

Mar. 31, 2018

Sep. 30, 2019

Sep. 30, 2018

^[1]

$ 98

Meituan Dianping [Member]

$ 12

$ 39

Transaction tax

$ 8

Number of ordinary shares subscribed

8.4

Maximum percentage of ordinary shares subscribed

1.00%

Fair value of Investment in Meituan's ordinary shares

$ 74

$ 12

$ 39

Gain from re-measurement of previously held ownership interest at fair value

$ 98

47.00%

[1]	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

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

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Equity income from investments in unconsolidated affiliates

$ 19

$ 17

$ 56

$ 52

Gain from re-measurement of equity interest upon acquisition

^[1]

Foreign exchange impact and other

(2)

(7)

(8)

(7)

$ 17

$ 10

$ 48

$ 143

[1]	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

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

3 Months Ended

9 Months Ended

Mar. 31, 2018

Sep. 30, 2018

Gain from re-measurement of previously held ownership interest at fair value

^[1]

$ 98

Gain from re-measurement of previously held ownership interest at fair value

$ 98

Accounts receivable, gross

47.00%

[1]	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 2, the Company recognized a gain of $98 million from the re-measurement of our previously held 47% equity interest at fair value, which was not allocated to any segment for performance reporting purposes.

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

Sep. 30, 2019

Dec. 31, 2018

Sep. 30, 2018

Dec. 31, 2017

Accounts Receivable, net

$ 80

$ 81

Allowance for doubtful accounts

(1)

Prepaid Expenses and Other Current Assets

Receivables from payment processors and aggregators

Dividends receivable from unconsolidated affiliates

Prepaid rent

Other prepaid expenses and current assets

141

177

Other Assets

VAT assets

232

226

Land use right

130

138

Costs to obtain contracts

Long-term deposits

Restricted cash

^[1]

Others

Other Assets

539

491

Accounts Payable and Other Current Liabilities

Accounts payable

563

619

Operating leases liabilities

360

Accrued compensation and benefits

199

200

Accrued capital expenditures

112

137

Accrued marketing expenses

110

Other current liabilities

128

115

Accrued income tax payable

1,566

1,199

Other Liabilities

Deferred income tax liabilities

Other non-current liabilities

Deferred rental accrual

144

195

355

Restricted cash included in Other assets

1,355

1,266

^[1]

Cash, Cash Equivalents and Restricted Cash as presented in Condensed Consolidated Statements of Cash Flows

$ 1,364

$ 1,266

$ 1,334

$ 1,059

[1]

Supplemental Balance Sheet Information (Details 1) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 3,316	$ 3,348
Accumulated depreciation	(1,810)	(1,733)
Property, plant and equipment, net	1,506	1,615
Buildings and Improvements [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	2,099	2,121
Finance Leases, Primarily Buildings [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	26	26
Machinery, Equipment and Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 1,191	$ 1,201

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

9 Months Ended

Sep. 30, 2019

Dec. 31, 2018

$ 638

$ 648

^[1]

(382)

256

266

(10)

229

238

229

238

(9)

(1)

391

^[1]

(382)

$ 9

[1]	Accumulated impairment losses represent Little Sheep goodwill impairment.

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

Sep. 30, 2019

Dec. 31, 2018

$ 180

^[1]

$ 195

(122)

(120)

(12)

Total intangible assets

231

^[1]

248

Little Sheep [Member] | Trademark [Member]

116

Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract]

Reacquired franchise rights [Member]

144

^[1]

150

(108)

(100)

Daojia platform [Member]

^[1]

(3)

(10)

Customer-related assets [Member]

^[1]

(8)

(2)

Others [Member]

^[2]

^[1]

^[2]

(3)

(9)

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

^[2]

$ 6

$ 8

[1]	Changes in gross carrying amount include the effect of currency translation adjustment.
[2]	Decrease in Others during year to date ended September 30, 2019 is primarily due to the reclassification of favorable lease assets, with a gross carrying amount of $7 million and accumulated amortization of $5 million, to right-of-use assets upon adoption of ASC 842.

Goodwill and Intangible Assets (Parenthetical) (Details 1) $ in Millions	Sep. 30, 2019 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Reclassification of favourable lease assets gross carrying amount to right of use assets upon adoption of ASU842	$ 7
Reclassification of accumulative amortization of favorable lease assets to right of use assets upon adoption of ASU842	$ 5

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Definite-lived intangible assets
Definite-lived intangible assets, amortization expense	$ 3	$ 7	$ 13	$ 20
Expected amortization expense for the unamortized definite-lived intangible assets - remainder of 2019	3		3
Expected amortization expense for the unamortized definite-lived intangible assets - 2020	12		12
Expected amortization expense for the unamortized definite-lived intangible assets - 2021	12		12
Expected amortization expense for the unamortized definite-lived intangible assets - 2022	12		12
Expected amortization expense for the unamortized definite-lived intangible assets - 2023	$ 3		$ 3

Leases - Narrative (Details) $ in Millions	9 Months Ended
Leases - Narrative (Details) $ in Millions	Sep. 30, 2019 USD ($) Restaurant	Dec. 31, 2018 USD ($)
Schedule Of Lease Assets And Liabilities [Line Items]
Number of restaurants operated \| Restaurant	8,900
Additional lease signed but not commenced with total undiscounted minimum lease payments	$ 121
Present value of lease liabilities	24	$ 27
Finance lease imputed interest	10	10
Finance lease liabilities, Current	$ 1
Accounts Payable and Other Current Liabilities [Member]
Schedule Of Lease Assets And Liabilities [Line Items]
Finance lease liabilities, Current		$ 2
Maximum [Member]
Schedule Of Lease Assets And Liabilities [Line Items]
Lease agreements initial terms	20 years
Lease terms	20 years
Minimum [Member]
Schedule Of Lease Assets And Liabilities [Line Items]
Lease agreements initial terms	10 years
Lease terms	1 year

Leases - Summary of Supplemental Balance Sheet (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Schedule Of Lease Assets And Liabilities [Abstract]
Operating lease right-of-use assets	$ 1,893
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	yumc:OperatingLeaseRightOfUseAssetsMember
Finance lease right-of-use assets	$ 14
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentMember
Total leased assets	$ 1,907
Operating leases liabilities	360
Finance lease liabilities, Current	$ 1
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	yumc:AccountsPayableAndOtherCurrentLiabilitiesMember
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	yumc:AccountsPayableAndOtherCurrentLiabilitiesMember
Non-current operating lease liabilities	$ 1,729
Non-current finance lease liabilities	$ 23	$ 25
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	yumc:NonCurrentOperatingLeaseLiabilitiesMember
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	yumc:NonCurrentFinancingLeaseLiabilitiesMember
Total lease liabilities	$ 2,113

Leases - Summary of Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Lease Cost [Abstract]
Operating lease cost	$ 117	$ 351
Finance lease cost
Amortization of leased assets		1
Interest on lease liabilities		1
Variable lease cost	94	265
Short-term lease cost	3	8
Sublease income	(7)	(21)
Total lease cost	$ 207	$ 605

Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 120	$ 361
Operating cash flows from finance leases		1
Financing cash flows from finance leases		1
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$ 98	$ 217

Leases - Schedule of Lease Term and Discount Rate (Details)	Sep. 30, 2019
Weighted-average remaining lease term (years)
Operating leases	7 years 1 month 6 days
Finance leases	12 years
Weighted-average discount rate
Operating leases	6.10%
Finance leases	5.80%

Leases - Summary of Maturities of Lease Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Amount of Operating Leases
Remainder of 2019	$ 133
2020	458
2021	416
2022	358
2023	295
Thereafter	931
Total undiscounted lease payment	2,591
Less: imputed interest	502
Present value of lease liabilities	2,089
Amount of Finance Leases
Remainder of 2019	1
2020	3
2021	3
2022	3
2023	3
Thereafter	21
Total undiscounted lease payment	34
Less: imputed interest	10	$ 10
Present value of lease liabilities	24	$ 27
Amount of Operating And Finance Leases, Total
Remainder of 2019	134
2020	461
2021	419
2022	361
2023	298
Thereafter	952
Total undiscounted lease payment	2,625
Less: imputed interest	512
Present value of lease liabilities	$ 2,113

Leases - Summary of Future Minimum Lease Payments under Non-Cancellable Leases (Details) $ in Millions	Dec. 31, 2018 USD ($)
Operating leases, future minimum commitments [Abstract]
2019	$ 466
2020	440
2021	394
2022	336
2023	275
Thereafter	864
Operating leases, future minimum payments due	2,775
Finance leases, future minimum commitments [Abstract]
2019	3
2020	3
2021	3
2022	3
2023	3
Thereafter	22
Finance leases, total future minimum commitments	37
Operating and Finance leases, future minimum commitments [Abstract]
2019	469
2020	443
2021	397
2022	339
2023	278
Thereafter	886
Operating and finance leases, future minimum commitments	$ 2,812

Fair Value Measurements - Narrative (Details)	Sep. 30, 2019 USD ($)
Fair Value Disclosures [Abstract]
Transfer from Level 1 to Level 2	$ 0
Transfer from Level 2 to Level 1	$ 0

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

Sep. 30, 2019

Dec. 31, 2018

Cash equivalents, Fair Value Measurement or Disclosure

$ 942

$ 949

Short-term investments, Fair Value Measurement or Disclosure

364

122

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

1,392

1,118

Level 1 [Member]

Cash equivalents, Fair Value Measurement or Disclosure

284

379

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

370

426

Level 2 [Member]

Cash equivalents, Fair Value Measurement or Disclosure

658

570

Short-term investments, Fair Value Measurement or Disclosure

364

122

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

1,022

692

Time Deposits [Member]

Cash equivalents, Fair Value Measurement or Disclosure

658

570

Short-term investments, Fair Value Measurement or Disclosure

364

122

Time Deposits [Member] | Level 2 [Member]

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

Cash equivalents, Fair Value Measurement or Disclosure

658

570

Short-term investments, Fair Value Measurement or Disclosure

364

122

Money Market Funds [Member]

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

Cash equivalents, Fair Value Measurement or Disclosure

284

226

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

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

Cash equivalents, Fair Value Measurement or Disclosure

284

226

Investment in Equity Securities [Member]

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

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

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

Fixed Rate Debt Securities [Member]

$ 86

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

Cash equivalents, Fair Value Measurement or Disclosure

^[1]

153

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

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

Cash equivalents, Fair Value Measurement or Disclosure

^[1]

$ 153

[1]

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

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

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

Total accumulated impairment charges on ROU assets

$ 101

$ 13

Closure and Impairment Expense [Member] | Restaurant-level impairment [Member]

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

ASU 2016-02 [Member] | Closure and Impairment Expense [Member]

^[1]

$ 13

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

ASU 2016-02 [Member] | Cumulative Adjustment to Impairment on ROU Due to Adoption of New Accounting Pronouncement [Member]

^[2]

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

ROU impairment prior to the adoption of ASC 842

^[3]

$ 82

[1]	Restaurant-level impairment changes 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.
[2]	Reflect incremental restaurant-level impairment upon adoption of ASC 842 in the first quarter of 2019. We performed an additional impairment evaluation of long-lived assets of restaurants, which includes operating lease ROU assets, and property, plant and equipment.
[3]	ROU impairment prior to the adoption of ASC 842 represents an impairment charge on operating lease ROU assets arising from existing operating leases as of January 1, 2019. After netting with the related impact on deferred taxes of $19 million and the impact on noncontrolling interests of $3 million, we recorded a cumulative adjustment of $60 million to retained earnings in accordance with the transition guidance for the new lease standard. For those restaurants under operating leases with full impairment on their long-lived assets (primarily property, plant and equipment) before January 1, 2019, an additional impairment charge would have been recorded before January 1, 2019 had the operating lease ROU assets been recognized at the time of impairment.

Fair Value Measurements - Schedule of Amounts Recognized From Non-recurring Fair Value Measurements (Parenthetical) (Details) - ASU 2016-02 [Member] $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cumulative adjustment to retained earnings	$ 60
Cumulative Adjustment to Deferred Income Tax Expenses Due to Adoption of New Accounting Pronouncement [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cumulative adjustment to opening retained earnings due to adoption of new accounting pronouncement	19
Cumulative Adjustment to Net Income (Loss) Attributable to Noncontrolling Interest Due to Adoption of New Accounting Pronouncement [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cumulative adjustment to opening retained earnings due to adoption of new accounting pronouncement	$ 3

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income tax provision	$ 87	$ 67	$ 226	$ 227
Effective tax rate	26.90%	24.20%	25.80%	25.70%

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Adjustment to tax expense	$ 8	$ 8	$ 36
U.S. federal statutory rate, percent		21.00%

Segment Reporting - Narrative (Details)	9 Months Ended
Segment Reporting - Narrative (Details)	Sep. 30, 2019 Segment
Segment Reporting [Abstract]
Number of reportable segments	2
Number of non-reportable operating segments	6

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

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Dec. 31, 2018

$ 2,319

$ 2,212

$ 6,747

$ 6,501

300

269

807

857

322

279

875

885

6,710

$ 4,610

1,597

1,501

4,647

4,399

542

550

1,595

1,643

Unallocated revenues from transactions with franchisees and unconsolidated affiliates

^[1]

148

137

428

397

^[2]

147

136

425

395

Unallocated Other revenues

Unallocated expenses from transactions with franchisees and unconsolidated affiliates

^[2]

(145)

(135)

(421)

(392)

Unallocated Other operating costs and expenses

(1)

(3)

(1)

Unallocated and corporate G&A expenses

(34)

(42)

(92)

(94)

Unallocated Other income (loss)

^[3]

(2)

^[1]

^[1]

^[4]

2,615

2,175

2,319

2,212

6,747

6,501

1,598

1,501

4,648

4,399

^[5]

295

264

788

759

^[6]

^[7]

2,992

1,745

542

550

1,595

1,643

117

106

^[6]

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

939

558

104

(2)

(6)

(12)

(16)

164

$ 132

(9)

(6)

(28)

(9)