View Filing Data

$ 8,776

$ 8,415

$ 7,769

General and administrative expenses

487

456

495

Other operating costs and expenses

Closures and impairment expenses, net

Other income, net

(60)

(152)

(64)

Total costs and expenses, net

7,875

7,474

6,991

Income Before Income Taxes

901

941

778

Interest income, net

^[1]

Investment gain (loss)

^[1]

(27)

1,003

950

803

Income tax provision

(260)

(214)

(379)

Net income – including noncontrolling interests

743

736

424

Net income – noncontrolling interests

Net Income – Yum China Holdings, Inc.

$ 713

$ 708

$ 398

Weighted-average common shares outstanding (in millions):

Basic

^[2]

377

384

387

Diluted

388

395

398

Basic Earnings Per Common Share

$ 1.89

$ 1.84

$ 1.03

Diluted Earnings Per Common Share

$ 1.84

$ 1.79

$ 1.00

Company Sales [Member]

Revenues

$ 7,925

$ 7,633

$ 6,993

Franchise [Member]

Revenues

148

141

Cost of goods and services sold

Transactions With Franchisees and Unconsolidated Affiliates [Member]

Revenues

654

603

599

Cost of goods and services sold

645

595

592

Other Revenues [Member]

Revenues

Company Restaurant Expenses [Member]

Payroll and employee benefits

Food and paper

2,479

2,326

2,034

1,807

1,714

1,543

Occupancy and other operating expenses

2,373

2,394

2,245

Cost of goods and services sold

$ 6,659

$ 6,434

$ 5,822

[1]

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

[2]

As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The incremental shares arising from outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect. See Note 14 for a further discussion of share-based compensation.

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 1,046	$ 1,266
Short-term investments	611	122
Accounts receivable, net	88	80
Inventories, net	380	307
Prepaid expenses and other current assets	134	177
Total Current Assets	2,259	1,952
Property, plant and equipment, net	1,594	1,615
Operating lease right-of-use assets	1,985
Goodwill	254	266	$ 108
Intangible assets, net	94	116
Deferred income taxes	95	89
Investments in unconsolidated affiliates	89	81
Other assets	580	491
Total Assets	6,950	4,610
Current Liabilities
Accounts payable and other current liabilities	1,691	1,199
Income taxes payable	45	54
Total Current Liabilities	1,736	1,253
Non-current operating lease liabilities	1,803
Non-current finance lease obligations	26	25
Other liabilities	210	355
Total Liabilities	3,775	1,633
Redeemable Noncontrolling Interest		1
Equity
Common stock, $0.01 par value; 1,000 million shares authorized; 395 million shares and 392 million shares issued at December 31, 2019 and 2018, respectively; 376 million shares and 379 million shares outstanding at December 31, 2019 and 2018, respectively	4	4
Treasury stock	(721)	(460)
Additional paid-in capital	2,427	2,402
Retained earnings	1,416	944
Accumulated other comprehensive loss	(49)	(17)
Total Yum China Holdings, Inc. Stockholders’ Equity	3,077	2,873
Noncontrolling interests	98	103
Total Equity	3,175	2,976
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$ 6,950	$ 4,610

Earnings Per Common Share ("EPS") (Parenthetical) (Details)		12 Months Ended
	Jan. 09, 2017 Tranche $ / shares shares	Dec. 31, 2019 Tranche
Class Of Warrant Or Right [Line Items]
Number of tranches of warrants \| Tranche	2	2
Tranche One Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants to purchase shares of common stock \| shares	8,200,405
Exercise price of warrants \| $ / shares	$ 31.40
Tranche Two Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants to purchase shares of common stock \| shares	8,200,405
Exercise price of warrants \| $ / shares	$ 39.25

Fair Value Measurements and Disclosures - Narrative (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Transfer from Level 1 to Level 2	$ 0	$ 0
Transfer from Level 2 to Level 1	$ 0	$ 0

Consolidated Statements of Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement Of Stockholders Equity [Abstract]
Cash dividends declared, per common share	$ 0.48	$ 0.42	$ 0.10

Leases - Summary of Supplemental Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Schedule Of Lease Assets And Liabilities [Abstract]
Operating lease right-of-use assets	$ 1,985
Finance lease right-of-use assets	$ 18
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentMember
Total leased assets	$ 2,003
Operating leases liabilities	382
Finance lease liabilities, Current	$ 2
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent
Non-current operating lease liabilities	$ 1,803
Non-current finance lease obligations	26	$ 25
Total lease liabilities	$ 2,213

Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
	Oct. 04, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Oct. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, vesting terms		Certain awards are subject to specific retirement conditions, which allow the awards to fully vest as long as the employee is actively employed for at least one year following the grant date, provides at least six months notification of intention to retire, and signs non-solicitation and non-compete agreements. Under such circumstances, the grant-date fair value of the award is recognized as expense on a straight-line basis over the one-year service period from the grant date.
Expected term (years)		6 years 6 months	6 years 6 months	6 years 9 months
Dividends approved date	Oct. 04, 2017
Dividends payable, amount per share	$ 0.10
Share-based compensation expense		$ 26.0	$ 24.0	$ 26.0
Deferred tax benefit recognized		$ 1.0	$ 1.0	3.0
Non-Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock granted		60,419	45,425
Grant date fair value		$ 2.4	$ 1.8
Stock Options and Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		4 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Vesting schedule of grants under stock award plans		25.00%
Expected term (years)		6 years 6 months
Total intrinsic value of stock options and SARs exercised		$ 39.0	31.0	44.0
Unrecognized compensation cost		$ 25.0
Remaining weighted-average vesting period		1 year 8 months 12 days
Total fair value at grant date or modification date of awards vested		$ 14.0	$ 14.0	$ 11.0
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		3 years
RSUs [Member] \| Third Grant Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting schedule of grants under stock award plans		100.00%
PSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		3 years	3 years
Expected term (years)		3 years	3 years
Model to fair value share-based payment awards		Monte-Carlo Simulation model (the “MCS model”)
Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value of awards granted (in dollars per share)		$ 13.43	$ 13.52	$ 10.19
RSUs and PSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value of awards granted (in dollars per share)		$ 44.75	$ 39.50	$ 28.46
Unrecognized compensation cost		$ 16.0
Remaining weighted-average vesting period		1 year 8 months 12 days
Unvested RSUs		970,762	988,000
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		1 year
Long Term Incentive Plan (the "2016" Plan) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance					45,000,000
Long Term Incentive Plan (the "2016" Plan) [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		3 years
Long Term Incentive Plan (the "2016" Plan) [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		5 years

Revenue - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Revenue From Contract With Customer [Abstract]
Impairment losses related to costs to obtain contracts	$ 0	$ 0
Costs to obtain contracts	9	8
Revenue recognized	$ 68	$ 46

Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Information

Note 7 – Supplemental Balance Sheet Information

Accounts Receivable, net	2019			2018
Accounts receivable, gross	$	89		$	81
Allowance for doubtful accounts		(1	)		(1	)
Accounts receivable, net	$	88		$	80

Prepaid Expenses and Other Current Assets	2019		2018
Receivables from payment processors and aggregators	$	41	$	49
Prepaid rent		2		42
Dividends receivable from unconsolidated affiliates		8		20
Other prepaid expenses and current assets		83		66
Prepaid expenses and other current assets	$	134	$	177

Property, Plant and Equipment	2019			2018
Buildings and improvements	$	2,159		$	2,121
Finance leases, primarily buildings		30			26
Machinery and equipment and construction in progress		1,282			1,201
Property, plant and equipment, gross		3,471			3,348
Accumulated depreciation		(1,877	)		(1,733	)
Property, plant and equipment, net	$	1,594		$	1,615

Depreciation and amortization expense related to property, plant and equipment was $408 million, $414 million and $391 million in 2019, 2018 and 2017, respectively.

Other Assets	2019		2018
VAT assets	$	243	$	226
Land use right		133		138
Investment in equity securities		110		47
Long-term deposits		71		64
Costs to obtain contracts		9		8
Restricted cash		9		—
Others		5		8
Other Assets	$	580	$	491

Amortization expense related to land use right was $4 million, $5 million and $4 million in 2019, 2018 and 2017, respectively.

Accounts Payable and Other Current Liabilities	2019		2018
Accounts payable	$	623	$	619
Operating leases liabilities		382		—
Accrued compensation and benefits		223		200
Accrued capital expenditures		150		137
Contract liabilities		135		96
Accrued marketing expenses		64		32
Other current liabilities		114		115
Accounts payable and other current liabilities	$	1,691	$	1,199

Other Liabilities	2019		2018
Accrued income tax payable	$	69	$	71
Deferred income tax liabilities		67		65
Contract liabilities		33		31
Deferred rental accrual		—		144
Other noncurrent liabilities		41		44
Other liabilities	$	210	$	355

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

	2019		2018
Cash and cash equivalents as presented in Consolidated Balance Sheets	$	1,046	$	1,266
Restricted cash included in Other assets ^(a)		9		—
Cash, Cash Equivalents and Restricted Cash as presented in Consolidated Statements of Cash Flows	$	1,055	$	1,266

(a)

Restricted cash included in Other assets within our 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 the first half of 2020. The acquisition is considered immaterial.

Investment Agreements with Strategic Investors - Narrative (Details) $ / shares in Units, $ in Millions			12 Months Ended
	Jan. 09, 2017 Tranche $ / shares shares	Nov. 01, 2016 USD ($) Tranche $ / shares shares	Dec. 31, 2019 USD ($) Tranche $ / shares shares	Dec. 31, 2018 $ / shares shares	Dec. 31, 2017 shares	Dec. 30, 2016 $ / shares	Oct. 31, 2016 $ / shares shares
Subsidiary Sale Of Stock [Line Items]
Investment agreements, consideration received \| $		$ 460
Number of tranches of warrants \| Tranche	2		2
Common stock, shares issued			395,000,000	392,000,000			363,758,219
Common stock, shares outstanding			376,000,000	379,000,000			363,758,219
Common stock, par value \| $ / shares			$ 0.01	$ 0.01			$ 0.01
Discount percentage on volume weighted average trading price per share						8.00%
Shares repurchased from investors			6,200,000	9,000,000.0	3,400,000
Warrants exercisable period			Oct. 31, 2021
Residual amounts allocated to common stock \| $		364
Warrants First Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Amount on which initial exercise price of warrants based \| $			$ 12,000
Warrants Second Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Amount on which initial exercise price of warrants based \| $			$ 15,000
Minimum [Member]
Subsidiary Sale Of Stock [Line Items]
VWAP measurement period			Dec. 01, 2016
Maximum [Member]
Subsidiary Sale Of Stock [Line Items]
VWAP measurement period			Dec. 30, 2016
Primavera [Member]
Subsidiary Sale Of Stock [Line Items]
Investment agreements, consideration received \| $		$ 410
Shares issued subject to post-closing adjustment		17,064,172.74
Shares repurchased from investors	699,394.74
Primavera [Member] \| Warrants First Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock	7,309,057
Primavera [Member] \| Warrants Second Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock	7,309,057
Ant Financial [Member]
Subsidiary Sale Of Stock [Line Items]
Investment agreements, consideration received \| $		$ 50
Shares issued subject to post-closing adjustment		2,080,996.68
Shares repurchased from investors	85,291.68
Ant Financial [Member] \| Warrants First Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock	891,348
Ant Financial [Member] \| Warrants Second Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock	891,348
Primavera & Ant Financial [Member]
Subsidiary Sale Of Stock [Line Items]
Ownership percentage of new common stock issued, subject to potential adjustment		5.00%
Number of tranches of warrants \| Tranche		2
Warrants additional ownership percentage exercisable by investors		4.00%
Common stock, par value \| $ / shares	$ 0.01
Common stock, price per share \| $ / shares		$ 24.03
Shares repurchased price per share \| $ / shares						$ 25.05
Outstanding shares of common stock owned	4.80%
Outstanding shares of common stock owned, subject to post-closing adjustment	8.70%
Primavera & Ant Financial [Member] \| Warrants First Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Warrant exercise price \| $ / shares	$ 31.40
Primavera & Ant Financial [Member] \| Warrants Second Tranche [Member]
Subsidiary Sale Of Stock [Line Items]
Warrant exercise price \| $ / shares	$ 39.25
Primavera & Ant Financial [Member] \| Minimum [Member]
Subsidiary Sale Of Stock [Line Items]
Expected ownership percentage of new common stock issued, final		4.30%
Primavera & Ant Financial [Member] \| Maximum [Member]
Subsidiary Sale Of Stock [Line Items]
Expected ownership percentage of new common stock issued, final		5.90%

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended			12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2020
Income Taxes Disclosure [Line Items]
U.S. federal statutory rate, percent				21.00%	21.00%	35.00%
Estimated additional income tax expense (benefit)	$ 8.0	$ (36.0)	$ 164.0	$ 8.0	$ (36.0)	$ 164.0
Estimated transition tax on deemed repatriation of accumulated undistributed foreign earnings			130.0
Estimated re-measurement of deferred tax assets based on revising rate			4.0
Estimated valuation allowance for deferred assets as a result of Tax Act			30.0	$ 29.6
One time transition tax payable			83.0			83.0
Transition tax included in income tax payable			7.0			7.0
Transition tax included in other liabilities			76.0			$ 76.0
Effective income tax rate				25.90%	22.60%	47.20%
Foreign withholding taxes not recognized, cumulative amount of temporary differences				$ 2,000.0
Cash payments for tax liabilities on income tax returns				$ 255.0	$ 208.0	$ 232.0
Percentage threshold that the positions taken or expected to be taken is more likely than not sustained upon examination by tax authorities (in hundredths)				50.00%	50.00%
Increase (decrease) in unrecognized tax benefits				$ 4.0	$ 3.0
Amount of unrecognized tax benefits balance		$ 22.0	$ 28.0	19.0	22.0	28.0
Total interest and penalties recorded during the period				(1.0)	$ (1.0)	$ 2.0
Other Liabilities [Member]
Income Taxes Disclosure [Line Items]
Amount of unrecognized tax benefits balance				19.0
Scenario Forecast [Member]
Income Taxes Disclosure [Line Items]
Increase (decrease) in unrecognized tax benefits in the next 12 months							$ (6.0)
Little Sheep Group Limited and Daojia [Member]
Income Taxes Disclosure [Line Items]
Operating loss carryforwards				$ 94.0
Operating loss carryforwards expiration year				2024
Minimum [Member]
Income Taxes Disclosure [Line Items]
Effective Income Tax Rate Foreign Tax Withholding					5.00%
Maximum [Member]
Income Taxes Disclosure [Line Items]
Effective Income Tax Rate Foreign Tax Withholding					10.00%
China [Member]
Income Taxes Disclosure [Line Items]
Effective income tax rate						25.00%

Income Taxes (Details 4) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 4) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Beginning of Year	$ 22	$ 28
Additions for tax positions of prior years	4	3
Reductions due to statute expiration	(7)	(9)
End of Year	$ 19	$ 22

Share-Based Compensation (Parenthetical) (Details 1)	Dec. 31, 2019 $ / shares shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock options outstanding at the end of 2019 (in shares) \| shares	497,480
SARs outstanding at the end of 2019 (in shares) \| shares	13,875,168
Stock options outstanding at the end of 2019, Weighted-average exercise price (in dollars per share) \| $ / shares	$ 18.50
SARs outstanding at the end of 2019, Weighted-average exercise price (in dollars per share) \| $ / shares	$ 24.42

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

3 Months Ended

12 Months Ended

Mar. 31, 2019

Dec. 31, 2018

Mar. 31, 2018

Dec. 31, 2017

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Sep. 30, 2018

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

^[1]

$ 98

Unrealized investment gain (loss)

^[2]

$ 63

(27)

Impairment charge

$ 58

Estimated additional income tax expense (benefit)

^[3]

Tax benefit

260

214

379

$ 8

$ (36)

$ 164

(36)

$ 164

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

130

Re-measurement of deferred tax assets

Deferred tax assets valuation allowance

$ 30

Daojia Platform and Customer-related Assets [Member]

Impairment charge

Impairment charge allocated to noncontrolling interests

Tax benefit

(1)

(3)

Impairment charge allocated to parent

Daojia Platform and Customer-related Assets [Member] | Closures And Impairment Expenses [Member]

Impairment charge

Meituan Dianping [Member]

Number of ordinary shares subscribed

Maximum percentage of ordinary shares subscribed

1.00%

Fair value of Investment in Meituan's ordinary shares

$ 74

Unrealized investment gain (loss)

$ 63

$ (27)

Wuxi KFC [Member]

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

$ 98

Ownership interest previously held

47.00%

[1]	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 5, 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.
[2]	Amounts have not been allocated to any segment for performance reporting purposes.
[3]	In 2019, we recorded an impairment charge of $9 million on goodwill attributable to the Daojia reporting unit (Note 5).

Leases - Schedule of Supplemental Cash Flow Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 481
Operating cash flows from finance leases	1
Financing cash flows from finance leases	2
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	346
Finance leases	$ 4

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note 16 – Income Taxes

In December 2017, the U.S. enacted the Tax Act, which included a broad range of tax reforms, including, but not limited to, the establishment of a flat corporate income tax rate of 21%, the elimination or reduction of certain business deductions, and the imposition of tax on deemed repatriation of accumulated undistributed foreign earnings. The Tax Act has impacted Yum China in two material aspects: (1) in general, all of the foreign-source dividends received by Yum China from its foreign subsidiaries will be exempted from taxation starting from its 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.

Based on the information available, we made a reasonable estimate of the effects and recorded the provisional amount of $164 million as an additional income tax expense in the fourth quarter of 2017. This amount included an estimated one-time transition tax of $130 million on the deemed repatriation of accumulated undistributed foreign earnings, $4 million primarily related to the re-measurement of certain deferred tax assets based on the rates at which they are expected to reverse in the future, and the valuation allowance of $30 million for certain deferred tax assets. After utilizing existing qualified foreign tax credits, the total payable of the estimated one-time transition tax was $83 million as of December 31, 2017 of which $7 million was included in Income taxes payable and $76 million was included in Other liabilities.

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 in the first quarter of 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 income tax expense of $8 million for the transition tax accordingly.

The Tax Act requires a U.S. shareholder to be subject to tax on Global Intangible Low Taxed Income (“GILTI”) earned by certain foreign subsidiaries. We have elected the option to account for current year GILTI tax as a period cost as incurred.

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

	2019			2018			2017
U.S.	$	(7	)	$	(3	)	$	(13	)
Mainland China		941			979			806
Other Foreign	$	69			(26	)		10
	$	1,003		$	950		$	803

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

		2019			2018			2017
Current:	Federal	$	16		$	(33	)	$	85
	Foreign		228			214			232
		$	244		$	181		$	317

Deferred:	Federal	$	(1	)	$	—		$	77
	Foreign		17			33			(15	)
		$	16		$	33		$	62
		$	260		$	214		$	379

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

	2019					2018					2017
U.S. federal statutory rate	$	211		21.0	%	$	199		21.0	%	$	281		35.0	%
Impact from the Tax Act		8		0.8			(36	)	(3.8	)		164		20.4
Statutory rate differential attributable to foreign operations		53		5.3			56		5.8			(60	)	(7.5	)
Change in valuation allowances		2		0.2			(4	)	(0.4	)		2		0.2
Impact from investment (gain) loss		(10	)	(1.0	)		4		0.5			—		—
Others, net		(4	)	(0.4	)		(5	)	(0.5	)		(8	)	(0.9	)
Effective income tax rate	$	260		25.9	%	$	214		22.6	%	$	379		47.2	%

Statutory rate differential attributable to foreign operations. This item includes local taxes, withholding taxes, and shareholder-level taxes, net of foreign tax credits. A majority of our income is earned in China, which is generally subject to a 25% tax rate. The favorable impact in 2017 is primarily attributable to the statutory income tax rate of 25% in China, which is lower than the historical U.S. federal statutory rate of 35%. The negative impact in 2019 and 2018 is primarily due to the decrease of the U.S. federal statutory rate to 21%, which is lower than China’s statutory income tax rate.

Change in valuation allowances. This item relates to changes for deferred tax assets generated or utilized during the current year and changes in our judgment regarding the likelihood of using deferred tax assets that existed at the beginning of the year. The change in valuation allowance as a result of the Tax Act in the amount of $29.6 million was included in ‘Impact from the Tax Act’. The impact of certain changes may offset items reflected in ‘Statutory rate differential attributable to foreign operations’.

Impact from investment (gain) loss. This item relates to the unrealized gain or loss on investment in equity securities of Meituan, which is non-taxable.

Others. This item primarily includes the impact of permanent differences related to current year earnings, adjustments to reserves and prior years as well as U.S. tax credits and deductions.

The details of 2019 and 2018 deferred tax assets (liabilities) are set forth below:

	2019			2018
Operating losses and tax credit carryforwards	$	25		$	28
Tax benefit from Little Sheep restructuring		18			18
Employee benefits		4			6
Share-based compensation		5			5
Leases		61			41
Other liabilities		13			12
Deferred income and other		58			50
Gross deferred tax assets		184			160
Deferred tax asset valuation allowances		(47	)		(50	)
Net deferred tax assets	$	137		$	110
Intangible assets		(23	)		(28	)
Property, plant and equipment		(59	)		(31	)
Gain from re-measurement of equity interest upon acquisition		(22	)		(23	)
Others		(5	)		(4	)
Gross deferred tax liabilities	$	(109	)	$	(86	)
Net deferred tax assets	$	28		$	24
Reported in Consolidated Balance Sheets as:
Deferred income taxes		95			89
Other liabilities		(67	)		(65	)
	$	28		$	24

We have investments in our foreign subsidiaries where the carrying values for financial reporting exceed the tax basis. We have not provided deferred tax on the portion of the excess that we believe is indefinitely reinvested, as we have the ability and intent to indefinitely postpone the basis differences from reversing with a tax consequence. The Company’s separation from YUM was intended to qualify as a tax-free reorganization for U.S. income tax purposes resulting in the excess of financial reporting basis over tax basis in our investment in the China business continuing to be indefinitely reinvested. The excess of financial reporting basis over tax basis as of December 31, 2017 was subject to the one-time transition tax under the Tax Act as a deemed repatriation of accumulated undistributed earnings from the foreign subsidiaries. However, we continue to believe that the portion of the excess of financial reporting basis over tax basis (including earnings and profits subject to the one-time transition tax) is indefinitely reinvested in our foreign subsidiaries for foreign withholding tax purposes. We estimate that our total temporary difference for which we have not provided foreign withholding taxes is approximately $2 billion at December 31, 2019. The foreign withholding tax rate on this amount is 5% or 10% depending on the manner of repatriation and the applicable tax treaties or tax arrangements.

At December 31, 2019, the Company had operating loss carryforwards of $94 million, primarily related to our Little Sheep and Daojia business, most of which will expire by 2024. These losses are being carried forward in jurisdictions where we are permitted to use tax losses from prior periods to reduce future taxable income.

Cash payments for tax liabilities on income tax returns filed were $255 million, $208 million and $232 million in 2019, 2018 and 2017, respectively.

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

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

	2019			2018
Beginning of Year	$	22		$	28
Additions on tax positions		4			3
Reductions due to statute expiration		(7	)		(9	)
End of Year	$	19		$	22

In 2019 and 2018, our unrecognized tax benefits were increased by $4 million and $3 million, respectively. The unrecognized tax benefits balance of $19 million as of December 31, 2019 related to the uncertainty with regard to the deductibility of certain business expenses incurred, all of which, if recognized upon audit settlement or statute expiration, would affect the effective tax rate. The Company believes it is reasonably possible its unrecognized tax benefits of $19 million as of December 31, 2019, which is included in Other liabilities on the Consolidated Balance Sheet, may decrease by approximately $6 million in the next 12 months, which if recognized, would affect the 2020 effective tax rate. The accrued interest and penalties related to income taxes at December 31, 2019 and 2018 are set forth below:

		2019				2018
Accrued interest and penalties		$	5			$	6

During 2019, 2018 and 2017, a net benefit of $1 million and $1 million and a net expense of $2 million, respectively, for interest and penalties was recognized in our Consolidated Statements of Income as components of our income tax provision.

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

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 exchanged with tax authorities focuses on our franchise arrangement with YUM. 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.

Summary of Significant Accounting Policies - Narrative (Details 1) - USD ($)	3 Months Ended			12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Foreign Currency [Abstract]
Foreign currency translation adjustment				$ (49,000,000)
License fee percentage				3.00%
Total license fees paid				$ 273,000,000	$ 263,000,000	$ 245,000,000
Direct Marketing Costs [Abstract]
Direct marketing expenses				344,000,000	341,000,000	333,000,000
Research and Development Expenses [Abstract]
Research and development expenses				$ 4,000,000	4,000,000	5,000,000
Impairment or Disposal of Long-Lived Assets [Abstract]
Number of consecutive years of operating losses used as primary indicator of potential impairment for our semi-annual impairment testing of restaurant assets				2 years
Income Taxes [Abstract]
Transaction tax	$ 8,000,000	$ (36,000,000)	$ 164,000,000	$ 8,000,000	$ (36,000,000)	164,000,000
Percentage threshold that the positions taken or expected to be taken is more likely than not sustained upon examination by tax authorities (in hundredths)				50.00%	50.00%
Receivables [Abstract]
Number of days from the period in which the corresponding sales occur that trade receivables are generally due				30 days
Receivables due from unconsolidated affiliates including trade receivables and dividend receivables		65,000,000		$ 58,000,000	$ 65,000,000
Goodwill and Intangible Assets [Abstract]
Goodwill Written Off Related To Sale Of Business Unit Years From Acquisition				2 years
Fair Value Goodwill Written Off Related To Sale Of Business Unit Minimum Years Refranchised				2 years
Daojia platform [Member]
Goodwill and Intangible Assets [Abstract]
Intangible asset and goodwill Impairment charge				$ 11,000,000	12,000,000
Buildings [Member] \| Minimum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)				20 years
Buildings [Member] \| Maximum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)				50 years
Leasehold Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)				5 years
Leasehold Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)				10 years
Machinery and Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)				3 years
Machinery and Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)				10 years
Capitalized Software Costs [Member] \| Minimum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)				3 years
Capitalized Software Costs [Member] \| Maximum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)				5 years
Payment Processors and Aggregators [Member]
Receivables [Abstract]
Allowance for doubtful accounts		$ 0		$ 0	0
Chinese Local Tax Authority [Member]
Income Taxes [Abstract]
PRC withholding tax on dividends				10.00%
Percentage of withholding tax on dividends by Hong Kong				5.00%
Minimum percentage of equity interest in a PRC-resident enterprise to be held by Hong Kong resident enterprise				25.00%
Tax withholding reduction percentage				5.00%
Transactions With Franchisees and Unconsolidated Affiliates [Member]
Direct Marketing Costs [Abstract]
Direct marketing expenses				$ 65,000,000	$ 62,000,000	$ 69,000,000

Leases - Narrative (Details) $ in Millions	12 Months Ended
Leases - Narrative (Details) $ in Millions	Dec. 31, 2019 USD ($) Restaurant	Dec. 31, 2018 USD ($)
Schedule Of Lease Assets And Liabilities [Line Items]
Number of restaurants \| Restaurant	7,300
Additional lease signed but not commenced with total undiscounted minimum lease payments	$ 84
Present value of lease liabilities	28	$ 27
Finance lease imputed interest	11	10
Finance lease liabilities, Current	$ 2
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

Equity

12 Months Ended

Dec. 31, 2019

Stockholders Equity Note [Abstract]

Equity

Note 15 – Equity

Immediately after the separation on October 31, 2016, Yum China authorized capital stock consisted of 1,000 million shares of common stock, par value $0.01 per share, and 364 million shares of Yum China common stock were issued and outstanding. As of December 31, 2019, 395 million shares of Yum China common stock were issued and 376 million shares were outstanding.

On October 27, 2016, a duly authorized committee of Yum China’s board of directors adopted a stockholder rights plan (the “Rights Plan”), pursuant to which the board declared a dividend, to Yum China’s sole stockholder of record as of October 27, 2016, of one preferred stock purchase right (a “Right”) for each of share of Yum China common stock. Before the Rights Plan expired on October 27, 2017, the Rights would trade with, and would be inseparable from, Yum China common stock. The original dividend of the Rights to the existing shareholder was recorded at fair value, which was insignificant given the contingent nature of the Rights. The embedded Rights were considered clearly and closely related to the underlying equity host and, therefore, did not require separate accounting.

Share Repurchase Program

The Company repurchased 6.2 million, 9.0 million and 3.4 million shares of common stock at a total cost of $261 million, $312 million and $128 million for the years ended December 31, 2019, 2018 and 2017, respectively. As of

December 31, 2019, $699 million remained available for repurchase under the current authorization.

Cash Dividend

On October 4, 2017, the board of directors approved a regular quarterly cash dividend program, and declared an initial cash dividend of $0.10 per share on Yum China’s common stock. Total cash dividends of $38 million were paid to shareholders in December 2017. The Company paid a cash dividend of $0.10 per share for each of the first three quarters of 2018 and $0.12 per share for the fourth quarter of 2018 and each quarter of 2019. Total cash dividends of $181 million and $161 million were paid to shareholders in 2019 and 2018, respectively.

Accumulated Other Comprehensive Income (“AOCI”)

The Company’s other comprehensive income (loss) for the years ended December 31, 2019, 2018, and 2017 and AOCI balances as of December 31, 2019 and 2018 were comprised solely of foreign currency translation adjustments. Other comprehensive loss was $32 million and $160 million for the years ended December 31, 2019 and 2018, respectively, and other comprehensive gain was $142 million for the year ended December 31, 2017. The accumulated balances reported in AOCI in the Consolidated Balance Sheets for currency translation adjustments were net loss of $49 million and $17 million as of December 31, 2019 and 2018, respectively. There was no tax effect related to the components of other comprehensive income for all years presented.

Restricted net assets

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

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

As a result of these PRC laws and regulations subject to the limit discussed above that require annual appropriations of 10% of after-tax income to be set aside, prior to payment of dividends as general reserve fund, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company in the form of dividend payments, loans or advances. The restricted net assets of the PRC subsidiaries is approximately $625 million as of December 31, 2019.

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

Revenue - Contract Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Contract liabilities
Contract liabilities	$ 168	$ 127
Deferred Revenue Related To Prepaid Stored Value Products [Member]
Contract liabilities
Contract liabilities	86	70
Deferred Revenue Related To Upfront Franchise Fees [Member]
Contract liabilities
Contract liabilities	39	37
Deferred Revenue Related To Customer Loyalty Programs [Member]
Contract liabilities
Contract liabilities	24	17
Deferred Revenue Related To Privilege Membership Programs [Member]
Contract liabilities
Contract liabilities	16	$ 3
Others [Member]
Contract liabilities
Contract liabilities	$ 3

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

3 Months Ended

12 Months Ended

Mar. 31, 2018

Dec. 31, 2018

Other Operating Income (Expense), Net

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

^[1]

$ 98

Wuxi KFC [Member]

Other Operating Income (Expense), Net

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

$ 98

Ownership interest previously held

47.00%

[1]	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 5, 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.

Contingencies - Narrative (Details) - USD ($)	1 Months Ended
Contingencies - Narrative (Details) - USD ($)	Feb. 28, 2015	Dec. 31, 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
Fair value obligations related to indemnifications		$ 0

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

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Accounts Receivable, net

Accounts receivable, gross

$ 89

$ 81

Allowance for doubtful accounts

(1)

Accounts receivable, net

Prepaid Expenses and Other Current Assets

Receivables from payment processors and aggregators

Prepaid rent

Dividends receivable from unconsolidated affiliates

Other prepaid expenses and current assets

Investment in equity securities

134

177

Other Assets

VAT assets

243

226

Land use right

133

138

110

Long-term deposits

Costs to obtain contracts

Restricted cash

^[1]

Others

Other Assets

580

491

Accounts Payable and Other Current Liabilities

Accounts payable

623

619

Operating leases liabilities

382

Accrued compensation and benefits

223

200

Accrued capital expenditures

150

137

Contract liabilities

135

Accrued marketing expenses

Other current liabilities

114

115

Accrued income tax payable

1,691

1,199

Other Liabilities

Deferred income tax liabilities

Contract liabilities

Deferred rental accrual

144

Other noncurrent liabilities

Cash and cash equivalents

210

355

1,046

1,266

Restricted cash included in Other assets

^[1]

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

$ 1,055

$ 1,266

$ 1,059

$ 885

[1]

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

3 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

$ 2,029

$ 2,319

$ 2,124

$ 2,304

$ 1,914

$ 2,212

$ 2,068

$ 2,221

$ 8,776

$ 8,415

$ 7,769

6,039

5,688

5,066

All Other Segments [Member]

2,054

2,111

2,093

Corporate and Unallocated [Member]

121

106

^[1]

562

517

^[2]

504

Combined [Member]

8,814

8,431

7,769

Elimination [Member]

Elimination [Member] | All Other Segments [Member]

(38)

(16)

Operating Segments [Member]

Operating Segments [Member] | KFC [Member]

8,776

8,415

7,769

Operating Segments [Member] | Pizza Hut [Member]

6,040

5,688

5,066

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

2,054

2,111

2,093

158

115

106

Company Sales [Member]

Company Sales [Member] | KFC [Member]

1,813

2,097

1,926

2,089

1,721

2,008

1,888

2,016

7,925

7,633

6,993

Company Sales [Member] | Pizza Hut [Member]

5,839

5,495

4,863

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

2,045

2,106

2,090

Company Sales [Member] | Combined [Member]

7,925

7,633

6,993

Franchise [Member]

Franchise [Member] | KFC [Member]

148

141

Franchise [Member] | Pizza Hut [Member]

136

132

134

Franchise [Member] | All Other Segments [Member]

Franchise [Member] | Combined [Member]

Transactions With Franchisees and Unconsolidated Affiliates [Member]

148

141

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

158

172

154

170

142

159

141

161

654

603

599

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]

558

514

^[2]

504

654

603

599

Other Revenues [Member]

Other Revenues [Member] | KFC [Member]

$ 23

$ 12

$ 8

$ 6

$ 20

$ 9

$ 5

$ 4

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]

^[2]

Other Revenues [Member] | Elimination [Member]

$ 36

Investment Agreements with Strategic Investors

$ (38)

$ (16)

[1]	Amounts have not been allocated to any segment for performance reporting purposes.
[2]	As COFFii & JOY and our e-commerce business became operating segments starting from the first quarter of 2019, revenue by segment information for 2018 has been recast to align with the change in segment reporting. Additional details on our reportable segments are included in Note 17.

Goodwill and Intangible Assets - Parenthetical (Details 1) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Schedule Of Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Impairment charge	$ 49	$ 52	$ 58
Reclassification of favorable 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
Daojia platform [Member]
Schedule Of Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Impairment charge	$ 2	$ 12

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

Investment Agreements with Strategic Investors

12 Months Ended

Dec. 31, 2019

Stockholders Equity Note [Abstract]

Note 10 – Investment Agreements with Strategic Investors

On September 1, 2016, YUM and the Company entered into investment agreements (the “Investment Agreements”) with each of Pollos Investment L.P., an affiliate of Primavera Capital Group (“Primavera”), and API (Hong Kong) Investment Limited, an affiliate of Zhejiang Ant Small and Micro Financial Services Group Co., Ltd. (“Ant Financial” and, together with Primavera, the “Investors”). Pursuant to the Investment Agreements, on November 1, 2016 (“Closing Date”), Primavera and Ant Financial invested $410 million and $50 million, respectively, for a collective $460 million investment (the “Investment”) in the Company in exchange for: (i) shares of Yum China common stock representing in the aggregate 5% of Yum China common stock issued and outstanding immediately following the separation subject to Post-Closing Adjustment for a final aggregate ownership of between 4.3% and 5.9% in Yum China and (ii) two tranches of warrants (the “Warrants”), exercisable for an approximate additional 4% ownership, in the aggregate, of Yum China common stock issued and outstanding after the separation, taking into account the shares previously issued to the Investors. Immediately before the closing of the Investment, Yum China had 363,758,219 shares of common stock issued and outstanding, with a par value US$0.01 per share. Pursuant to the Investment Agreements, on November 1, 2016, Yum China issued 17,064,172.74 and 2,080,996.68 shares of common stock (the “Closing Shares”) at US$24.03 per share (“Closing Price”) to Primavera and Ant Financial, respectively, subject to adjustment as described below.

Pursuant to the Investment Agreements, the Investors and the Company determined the volume weighted-average trading price (“VWAP”) per share of Company common stock over the trading days occurring over the period from December 1, 2016 to December 30, 2016 (the “Measurement Period”), and discounted such VWAP by 8% (the “Adjusted VWAP Price Per Share”).

Since the Adjusted VWAP Price Per Share of $25.05 exceeded the Closing Price of US$24.03 paid by the Investors at the Closing Date, on January 9, 2017, the Company repurchased from Primavera and Ant Financial 699,394.74 and 85,291.68 shares of common stock, respectively, at par value of $0.01 per share, based on the Adjusted VWAP Price Per Share as determined on December 30, 2016. The repurchased shares were included in Treasury Stock as of December 31, 2016 in the Consolidated Financial Statements.

In addition, pursuant to the terms of the Investment Agreements, on January 9, 2017, Yum China issued to each of the Investors two tranches of Warrants. Upon exercise, the first tranche of Warrants initially provided Primavera and Ant Financial with the right to purchase 7,309,057 and 891,348 shares of Yum China common stock, respectively, at an initial exercise price of $31.40 per share. The second tranche of Warrants initially provided Primavera and Ant Financial with the right to purchase the same number of shares of Yum China common stock purchasable by Primavera and Ant Financial under the first tranche of Warrants, at an initial exercise price of $39.25 per share. The initial exercise price for the Warrants was based on $12 billion and $15 billion for the first tranche and second tranche, respectively, divided by the number of shares of common stock, including the Closing Shares after the Post-Closing Adjustment, issued and outstanding as of the Closing Date. The Warrants may be exercised at any time through October 31, 2021 and contain customary anti-dilution protections.

As a result of the issuance of the Closing Shares and the Post-Closing Adjustment (excluding shares issuable upon exercise of the Warrants), Primavera and Ant Financial collectively beneficially owned approximately 4.8% of the outstanding shares of Yum China common stock as of January 9, 2017, or approximately 8.7% of the outstanding shares of Yum China common stock as of January 9, 2017 assuming the full exercise of both tranches of Warrants by each of the Investors.

Total cash proceeds of $460 million from the closing of the Investment were first allocated to the Post-Closing Adjustment and Warrants based on their fair value on November 1, 2016, with the residual value of $364 million allocated to the shares of common stock issued.

In October and November 2019, Primavera entered into pre-paid forward sale transactions with several financial institutions (the "Dealers"), pursuant to which Primavera is obligated to deliver to the Dealers all of its second tranche of Warrants.

Share-Based Compensation (Details 2) - RSUs and PSUs [Member] - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of 2019 (in shares)	988,000
Granted (in shares)	332,000
Vested (in shares)	(219,000)
Forfeited (in shares)	(130,000)
Unvested at the end of 2019 (in shares)	970,762	988,000
Unvested at the beginning of 2019	$ 30.60
Granted	44.75	$ 39.50	$ 28.46
Vested	24.11
Forfeited	36.76
Unvested at the end of 2019	$ 36.08	$ 30.60

Revenue - Schedule of Franchise Fees and Income (Details) - Franchise [Member] - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenue From Contract With Customer [Line Items]
Franchise fees and income	$ 35	$ 38	$ 36	$ 39	$ 31	$ 36	$ 34	$ 40	$ 148	$ 141	$ 141
Transferred at Point in Time [Member]
Revenue From Contract With Customer [Line Items]
Franchise fees and income									8	7	6
Transferred over Time [Member]
Revenue From Contract With Customer [Line Items]
Franchise fees and income									$ 140	$ 134	$ 135

Income Taxes (Details 1) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 1) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Details of income tax provision (benefit) [Abstract]
Current: Federal	$ 16	$ (33)	$ 85
Current: Foreign	228	214	232
Total current income tax provision (benefit)	244	181	317
Deferred: Federal	(1)		77
Deferred: Foreign	17	33	(15)
Total deferred income tax provision (benefit)	16	33	62
Effective income tax rate	$ 260	$ 214	$ 379

Segment Reporting (Parenthetical) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting [Abstract]
Equity income from investments in unconsolidated affiliates	$ 69	$ 65	$ 65

Items Affecting Comparability of Net Income and Cash Flows

12 Months Ended

Dec. 31, 2019

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

Items Affecting Comparability of Net Income and Cash Flows

Note 5 – 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 are 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

The Company subscribed for 8 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 Consolidated Statements of Income. The fair value of the investment in Meituan is determined based on the closing market price for the shares at the end of each reporting period. The related unrealized gain of $63 million and unrealized loss of $27 million was included in Investment gain or loss in our Consolidated Statements of Income for the years ended December 31, 2019 and 2018, respectively.

Daojia impairment

During the years ended December 31, 2019 and 2018, we recorded impairment charges of $2 million and $12 million, respectively, on the intangible assets acquired from the Daojia business primarily attributable to its platform.

Additionally, during the year ended December 31, 2019, goodwill related to Daojia reporting unit was fully impaired, resulting in an impairment charge of $9 million.

The fair values of Daojia intangible assets and reporting unit were based on the estimated price a willing buyer would pay, using unobservable inputs (level 3). The fair values of intangible assets were determined using a relief-from-royalty valuation approach, with estimated future sales and royalty rates as significant inputs. The fair value of the reporting unit was determined using an income approach with future cash flow estimates supported by estimated future sales and margin. Both valuation approaches incorporated a selection of an appropriate discount rate based on weighted-average cost of capital and company-specific risk premium.

For the years ended December 31, 2019 and 2018, these non-cash impairment charges totaling $11 million and $12 million, respectively, were included in Closures and impairment expenses in our Consolidated Statements of Income, but were not allocated to any segment for performance reporting purposes. We recorded tax benefit of $1 million and $3 million associated with the impairment, respectively, and allocated $2 million and $1 million of the after-tax impairment charge to Net Income - noncontrolling interests, respectively, which resulted in a net impairment charge of $8 million and $8 million allocated to Net Income – Yum China Holdings, Inc., respectively, for the years ended December 31, 2019 and 2018.

Income Taxes

The Company recorded $164 million as an additional income tax expense in the fourth quarter of 2017, the period in which the Tax Act was enacted. It includes an estimated one-time transition tax of $130 million on the deemed repatriation of accumulated undistributed foreign earnings, $5 million primarily related to the re-measurement of certain deferred tax assets based on the rates at which they are expected to reverse in the future, and the valuation allowance of $30 million for 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 IRS as of December 2018 and made an adjustment of $36 million to reduce the provisional amount for transition tax recorded in 2017 accordingly. The U.S. Treasury Department and the IRS released the final transition tax regulations in the first quarter of 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 income tax expense of $8 million for the transition tax accordingly.

Income Taxes (Details 2) - USD ($) $ in Millions	3 Months Ended			12 Months Ended
Income Taxes (Details 2) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
U.S. federal statutory rate				$ 211	$ 199	$ 281
Transaction tax	$ 8	$ (36)	$ 164	8	(36)	164
Statutory rate differential attributable to foreign operations				53	56	(60)
Change in valuation allowances				2	(4)	2
Impact from investment (gain) loss				(10)	4
Others, net				(4)	(5)	(8)
Effective income tax rate				$ 260	$ 214	$ 379
Effective income tax rate reconciliation [Abstract]
U.S. federal statutory rate, percent				21.00%	21.00%	35.00%
Impact from the Tax Act, percent				0.80%	(3.80%)	20.40%
Statutory rate differential attributable to foreign operations, percent				5.30%	5.80%	(7.50%)
Change in valuation allowances, percent				0.20%	(0.40%)	0.20%
Impact from investment (gain) loss, percent				(1.00%)	0.50%
Other, net, percent				(0.40%)	(0.50%)	(0.90%)
Effective income tax rate, percent				25.90%	22.60%	47.20%

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

12 Months Ended

Dec. 31, 2019

USD ($)

$ / shares

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

Outstanding at the beginning of 2019 (in shares) | shares

17,670

Granted (in shares) | shares

1,469

Exercised (in shares) | shares

(4,234)

Forfeited or expired (in shares) | shares

(532)

Outstanding at the end of 2019 (in shares) | shares

14,373

^[1]

Exercisable at the end of 2019 (in shares) | shares

10,583

Outstanding at the beginning 2019, Weighted-average exercise price (in dollars per share) | $ / shares

$ 21.18

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

41.66

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

16.58

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

32.02

Outstanding at the end of 2019, Weighted-average exercise price (in dollars per share) | $ / shares

24.22

Exercisable at the end of 2019, Weighted-average exercise price (in dollars per share) | $ / shares

$ 20.92

Outstanding at the end of 2019, Weighted-average remaining contractual term (in years)

5 years 1 month 9 days

Exercisable at the end of 2019, Weighted-average remaining contractual term (in years)

4 years 1 month 24 days

Outstanding at the end of 2019, Aggregate intrinsic value (in dollars) | $

$ 342

Exercisable at the end of 2019, Aggregate intrinsic value (in dollars) | $

$ 287

[1]	Outstanding awards include 497,480 stock options and 13,875,168 SARs with weighted-average exercise prices of $18.50 and $24.42, respectively. Outstanding awards represent Yum China awards held by employees of both the Company and YUM.

Retirement Plans

12 Months Ended

Dec. 31, 2019

Compensation And Retirement Disclosure [Abstract]

Retirement Plans

Note 13 –Retirement Plans

For executives who were hired or re-hired after September 30, 2001, YUM has implemented the YUM LRP. This is an unfunded, unsecured account-based retirement plan which allocates a percentage of pay to an account payable to the executive following the executive’s separation of employment from YUM or attainment of age 55. The Company adopted the YCHLRP upon separation while the assets and liabilities associated with these employees under YUM LRP were transferred to YCHLRP. YCHLRP will continue to be in effect until terminated by the Company’s board of directors. The terms of the YCHLRP are substantially similar to the terms of the YUM LRP. Under the YCHLRP, certain executives who are at least age 21, who are classified as salary level 12, who are not eligible to participate in a tax-qualified defined benefit plan, and who satisfy certain additional requirements as to work location and assignment, are eligible to participate in the YCHLRP if selected for participation by the Company. The YCHLRP is an unfunded, unsecured account-based retirement plan that allocates a percentage of pay to an account payable to an executive following the later to occur of the executive’s separation of employment from the Company or attainment of age 55. Under the YCHLRP, participants aged 55 or older are entitled to a lump sum distribution of their account balance on the last day of the calendar quarter that occurs on or follows their separation of employment. The liabilities of $4.8 million and $4.4 million attributable to our employees under the YCHLRP as of December 31, 2019 and 2018, respectively, are included in our Consolidated Balance Sheets.

YUM offers certain of the Company’s executives working in China retirement benefits under the Bai Sheng Restaurants China Holdings Limited Retirement Scheme (previously known as the Bai Sheng Restaurants (Hong Kong) Ltd. Retirement Scheme). Under this defined contribution plan, YUM provides a company funded contribution ranging from 5% to 10% of an executive’s base salary. Upon termination, participants will receive a lump sum equal to a percentage of the Company’s contributions inclusive of investment return. This percentage is based on a vesting schedule that provides participants with a vested 30% interest upon completion of a minimum of 3 years of service, and an additional 10% vested interest for each additional completed year, up to a maximum of 100%. The Company adopted the same plan after the separation and the contribution amount to the plan for the years ended December 31, 2019, 2018 and 2017 was insignificant.

As stipulated by Chinese state regulations, the Company participates in a government-sponsored defined contribution retirement plan. Substantially all employees are entitled to an annual pension equal to a fixed proportion of the average basic salary amount of the geographical area of their last employment at their retirement date. We are required to make contributions to the local social security bureau between 12% and 20% of the previous year’s average basic salary amount of the geographical area where the employees are under our employment. Contributions are recorded in the Consolidated Statements of Income as they become payable. We have no obligation for the payment of pension benefits beyond the annual contributions as set out above. The Company contributed $160 million, $174 million and $157 million to the government-sponsored plan for 2019, 2018 and 2017, respectively.

Income Taxes (Details 5) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Accrued interest and penalties	$ 5	$ 6

Other Income, Net

12 Months Ended

Dec. 31, 2019

Other Income And Expenses [Abstract]

Other Income, Net

Note 6 – Other Income, net

	2019			2018			2017
Equity income from investments in unconsolidated affiliates	$	69		$	65		$	65
Gain from re-measurement of equity interest upon acquisition^(a)		—			98			—
Foreign exchanges and other		(9	)		(11	)		(1	)
Other income, net	$	60		$	152		$	64

(a)	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 5, 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.

Fair Value Measurements and Disclosures (Parenthetical) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2017
Fair Value, Inputs, Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Income recognized from reversal of contingent consideration		$ 3
ASU 2016-02 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cumulative adjustment to retained earnings	$ 60
ASU 2016-02 [Member] \| 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
ASU 2016-02 [Member] \| 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

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

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Other Income And Expenses [Abstract]

Equity income from investments in unconsolidated affiliates

$ 69

$ 65

Gain from re-measurement of equity interest upon acquisition

^[1]

Foreign exchanges and other

(9)

(11)

(1)

Other income, net

$ 60

$ 152

$ 64

[1]	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 5, 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.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income (Loss) Before Income Taxes

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

	2019			2018			2017
U.S.	$	(7	)	$	(3	)	$	(13	)
Mainland China		941			979			806
Other Foreign	$	69			(26	)		10
	$	1,003		$	950		$	803

Details of Income Tax Provision (Benefit)

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

		2019			2018			2017
Current:	Federal	$	16		$	(33	)	$	85
	Foreign		228			214			232
		$	244		$	181		$	317

Deferred:	Federal	$	(1	)	$	—		$	77
	Foreign		17			33			(15	)
		$	16		$	33		$	62
		$	260		$	214		$	379

Effective Income Tax and Tax Rate Reconciliation

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

	2019					2018					2017
U.S. federal statutory rate	$	211		21.0	%	$	199		21.0	%	$	281		35.0	%
Impact from the Tax Act		8		0.8			(36	)	(3.8	)		164		20.4
Statutory rate differential attributable to foreign operations		53		5.3			56		5.8			(60	)	(7.5	)
Change in valuation allowances		2		0.2			(4	)	(0.4	)		2		0.2
Impact from investment (gain) loss		(10	)	(1.0	)		4		0.5			—		—
Others, net		(4	)	(0.4	)		(5	)	(0.5	)		(8	)	(0.9	)
Effective income tax rate	$	260		25.9	%	$	214		22.6	%	$	379		47.2	%

Details of Deferred Tax Assets (Liabilities)

The details of 2019 and 2018 deferred tax assets (liabilities) are set forth below:

	2019			2018
Operating losses and tax credit carryforwards	$	25		$	28
Tax benefit from Little Sheep restructuring		18			18
Employee benefits		4			6
Share-based compensation		5			5
Leases		61			41
Other liabilities		13			12
Deferred income and other		58			50
Gross deferred tax assets		184			160
Deferred tax asset valuation allowances		(47	)		(50	)
Net deferred tax assets	$	137		$	110
Intangible assets		(23	)		(28	)
Property, plant and equipment		(59	)		(31	)
Gain from re-measurement of equity interest upon acquisition		(22	)		(23	)
Others		(5	)		(4	)
Gross deferred tax liabilities	$	(109	)	$	(86	)
Net deferred tax assets	$	28		$	24
Reported in Consolidated Balance Sheets as:
Deferred income taxes		95			89
Other liabilities		(67	)		(65	)
	$	28		$	24

Unrecognized Tax Benefits Reconciliation

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

	2019			2018
Beginning of Year	$	22		$	28
Additions on tax positions		4			3
Reductions due to statute expiration		(7	)		(9	)
End of Year	$	19		$	22

Summary of Income Tax Examinations

		2019				2018
Accrued interest and penalties		$	5			$	6

Supplemental Balance Sheet Information (Tables)

12 Months Ended

Dec. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable, Net

Accounts Receivable, net	2019			2018
Accounts receivable, gross	$	89		$	81
Allowance for doubtful accounts		(1	)		(1	)
Accounts receivable, net	$	88		$	80

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets	2019		2018
Receivables from payment processors and aggregators	$	41	$	49
Prepaid rent		2		42
Dividends receivable from unconsolidated affiliates		8		20
Other prepaid expenses and current assets		83		66
Prepaid expenses and other current assets	$	134	$	177

Property, Plant and Equipment

Property, Plant and Equipment	2019			2018
Buildings and improvements	$	2,159		$	2,121
Finance leases, primarily buildings		30			26
Machinery and equipment and construction in progress		1,282			1,201
Property, plant and equipment, gross		3,471			3,348
Accumulated depreciation		(1,877	)		(1,733	)
Property, plant and equipment, net	$	1,594		$	1,615

Accounts Payable and Other Current Liabilities

Other Assets	2019		2018
VAT assets	$	243	$	226
Land use right		133		138
Investment in equity securities		110		47
Long-term deposits		71		64
Costs to obtain contracts		9		8
Restricted cash		9		—
Others		5		8
Other Assets	$	580	$	491

Accounts Payable and Other Current Liabilities	2019		2018
Accounts payable	$	623	$	619
Operating leases liabilities		382		—
Accrued compensation and benefits		223		200
Accrued capital expenditures		150		137
Contract liabilities		135		96
Accrued marketing expenses		64		32
Other current liabilities		114		115
Accounts payable and other current liabilities	$	1,691	$	1,199

Other Liabilities and Deferred Credits

Other Liabilities	2019		2018
Accrued income tax payable	$	69	$	71
Deferred income tax liabilities		67		65
Contract liabilities		33		31
Deferred rental accrual		—		144
Other noncurrent liabilities		41		44
Other liabilities	$	210	$	355

Reconciliation of Cash, Cash Equivalents, and Restricted Cash

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

	2019		2018
Cash and cash equivalents as presented in Consolidated Balance Sheets	$	1,046	$	1,266
Restricted cash included in Other assets ^(a)		9		—
Cash, Cash Equivalents and Restricted Cash as presented in Consolidated Statements of Cash Flows	$	1,055	$	1,266

(a)

Equity - Narrative (Details) - USD ($)		3 Months Ended								12 Months Ended
Equity - Narrative (Details) - USD ($)	Oct. 04, 2017	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Oct. 31, 2016	Oct. 27, 2016
Class Of Stock [Line Items]
Common stock, shares authorized		1,000,000,000				1,000,000,000				1,000,000,000	1,000,000,000		1,000,000,000
Common stock, par value		$ 0.01				$ 0.01				$ 0.01	$ 0.01		$ 0.01
Common stock, shares issued		395,000,000				392,000,000				395,000,000	392,000,000		363,758,219
Common stock, shares outstanding		376,000,000				379,000,000				376,000,000	379,000,000		363,758,219
Treasury stock repurchased, shares										6,200,000	9,000,000.0	3,400,000
Treasury stock repurchased, value										$ 261,000,000	$ 312,000,000	$ 128,000,000
Stock repurchase program, remaining authorized repurchase amount		$ 699,000,000								699,000,000
Dividends declared date	Oct. 04, 2017
Dividends payable, amount per share	$ 0.10
Total cash dividend paid										181,000,000	161,000,000	38,000,000
Cash dividend paid date	2017-12
Cash dividends paid, amount per share		$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.10	$ 0.10	$ 0.10
Other comprehensive Income (loss)										(32,000,000)	(160,000,000)	142,000,000
Accumulated other comprehensive Income (loss)		$ (49,000,000)				$ (17,000,000)				(49,000,000)	(17,000,000)
Tax effect related to components of other comprehensive income										$ 0	$ 0	$ 0
Percentage of annual after tax profit required to be allocated to general reserve		10.00%								10.00%
Maximum percentage of annual after tax profit to be allocated to general reserve based on registered capital		50.00%								50.00%
Restricted net assets		$ 625,000,000								$ 625,000,000
Rights Plan [Member]
Class Of Stock [Line Items]
Percentage of preferred stock purchase of share														100.00%
Dividend record date										Oct. 27, 2016
Rights plan expiration date										Oct. 27, 2017

Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

	2019
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total
Revenues:
Company sales	$	2,089	$	1,926	$	2,097	$	1,813	$	7,925
Franchise fees and income		39		36		38		35		148
Revenues from transactions with franchisees and unconsolidated affiliates		170		154		172		158		654
Other revenues		6		8		12		23		49
Total revenues		2,304		2,124		2,319		2,029		8,776
Restaurant profit		386		283		372		225		1,266
Operating Profit		303		204		300		94		901
Net Income – Yum China Holdings, Inc.		222		178		223		90		713
Basic earnings per common share	$	0.59	$	0.47	$	0.59	$	0.24	$	1.89
Diluted earnings per common share	$	0.57	$	0.46	$	0.58	$	0.23	$	1.84

	2018
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total
Revenues:
Company sales	$	2,016	$	1,888	$	2,008	$	1,721	$	7,633
Franchise fees and income		40		34		36		31		141
Revenues from transactions with franchisees and unconsolidated affiliates		161		141		159		142		603
Other revenues		4		5		9		20		38
Total revenues		2,221		2,068		2,212		1,914		8,415
Restaurant profit		361		286		353		199		1,199
Operating Profit		395		193		269		84		941
Net Income (Loss) – Yum China Holdings, Inc.		288		143		203		74		708
Basic earnings (loss) per common share	$	0.75	$	0.37	$	0.53	$	0.19	$	1.84
Diluted earnings (loss) per common share	$	0.72	$	0.36	$	0.51	$	0.19	$	1.79

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2019	Feb. 21, 2020	Jun. 28, 2019
Document And Entity Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Trading Symbol	YUMC
Entity Registrant Name	Yum China Holdings, Inc.
Entity Central Index Key	0001673358
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock Shares Outstanding		375,786,390
Entity Public Float			$ 17.4
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Interactive Data Current	Yes
Entity File Number	001-37762
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-2421743
Entity Address, Address Line One	7100 Corporate Drive
Entity Address, City or Town	Plano
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75024
Entity Address, Country	US
City Area Code	469
Local Phone Number	980-2898
Document Annual Report	true
Document Transition Report	false
Title of 12(b) Security	Common Stock, Par Value $0.01 Per Share
Security Exchange Name	NYSE
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Portions of the definitive proxy statement for the registrant’s 2020 annual meeting of stockholders (the “2020 Proxy Statement”), to be filed not later than 120 days after the end of the registrant’s fiscal year, are incorporated by reference into Part III of this Form 10-K.
Other Address [Member]
Document And Entity Information [Line Items]
Entity Address, Address Line One	Yum China Building
Entity Address, City or Town	Shanghai
Entity Address, Postal Zip Code	200030
Entity Address, Country	CN
Entity Address, Address Line Two	20 Tian Yao Qiao Road

Revenue (Tables)

12 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Schedule of Disaggregation of Revenue by Types of Arrangements and Segments

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

	2019
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	5,839	$	2,045	$	41	$	—	$	7,925	$	—		$	7,925
Franchise fees and income		136		4		8		—		148		—			148
Revenues from transactions with franchisees and unconsolidated affiliates		64		4		28		558		654		—			654
Other revenues		1		1		81		4		87		(38	)		49
Total revenues	$	6,040	$	2,054	$	158	$	562	$	8,814	$	(38	)	$	8,776

	2018
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	5,495	$	2,106	$	32	$	—	$	7,633	$	—		$	7,633
Franchise fees and income		132		3		6		—		141		—			141
Revenues from transactions with franchisees and unconsolidated affiliates		61		2		26		514		603		—			603
Other revenues		—		—		51		3		54		(16	)		38
Total revenues	$	5,688	$	2,111	$	115	$	517	$	8,431	$	(16	)	$	8,415

(a)	As COFFii & JOY and our e-commerce business became operating segments starting from the first quarter of 2019, revenue by segment information for 2018 has been recast to align with the change in segment reporting. Additional details on our reportable segments are included in Note 17.

	2017
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination		Consolidated
Company sales	$	4,863	$	2,090	$	40	$	—	$	6,993	$	—	$	6,993
Franchise fees and income		134		2		5		—		141		—		141
Revenues from transactions with franchisees and unconsolidated affiliates		69		1		25		504		599		—		599
Other revenues		—		—		36		—		36		—		36
Total revenues	$	5,066	$	2,093	$	106	$	504	$	7,769	$	—	$	7,769

Franchise Fees and Income

	2019		2018		2017
Initial fees, including renewal fees	$	8	$	7	$	6
Continuing fees and rental income		140		134		135
Franchise fees and income	$	148	$	141	$	141

Contract Liabilities

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

	2019		2018

Contract liabilities
- Deferred revenue related to prepaid stored-value products	$	86	$	70
- Deferred revenue related to upfront franchise fees		39		37
- Deferred revenue related to customer loyalty programs		24		17
- Deferred revenue related to privilege membership programs		16		3
- Others		3		—
Total	$	168	$	127

Fair Value Measurements and Disclosures

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements and Disclosures

Note 12 – Fair Value Measurements and Disclosures

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

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

The following table is a summary of our financial assets measured on a recurring basis or disclosed at fair value and the level within the fair value hierarchy in which the measurement falls. The Company classifies its cash equivalents, short-term investments and investment in equity securities within Level 1 or Level 2 in the fair value hierarchy because it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value, respectively. No transfers among the levels within the fair value hierarchy occurred in 2019 and 2018.

			Fair Value Measurement or Disclosure at December 31, 2019
	Balance at December 31, 2019		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	407			$	407
Money market funds		331		331
Total cash equivalents		738		331		407		—
Short-term investments:
Time deposits		611				611
Total short-term investments		611				611
Other assets:
Investment in equity securities		110		110
Total	$	1,459	$	441	$	1,018	$	—

			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 income 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 unobservable inputs (Level 3) on a non-recurring basis, if determined to be impaired.

The following table presents amounts recognized from all non-recurring fair value measurements based on unobservable inputs (Level 3) during the years ended December 31, 2019, 2018 and 2017. These amounts exclude fair value measurements made for restaurants that were subsequently closed or refranchised prior to those respective year-end dates.

	2019		2018		2017			Account Classification
ROU impairment prior to the adoption of ASC 842 ^(a)	$	82	$	—	$	—		Retained Earnings
Restaurant-level impairment ^(b)		28		27		41		Closure and impairment expenses, net
Daojia impairment ^(c)		11		12		—		Closure and impairment expenses, net
Income from the reversal of contingent consideration^(d)		—		—		(3	)	Other income, net
Total	$	121	$	39	$	38

(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)

Restaurant-level impairment charges are recorded in Closures and impairment expenses, net and resulted primarily from our semi-annual impairment evaluation of long-lived assets of individual restaurants that were being operated at the time of impairment and had not been offered for refranchising. We also performed an additional impairment evaluation upon adoption of ASC 842 in the first quarter of 2019. The remaining net book value of assets measured at fair value during the years ended December 31, 2019, 2018 and 2017 was insignificant.

(c)	See Note 5 for further discussion.

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

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

+ References + Details

Retirement Plans - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, vesting interest percentage	30.00%
Deferred compensation arrangement with individual, minimum service period	3 years
Defined contribution plan, additional annual vesting interest percentage	10.00%
Government-Sponsored Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company	$ 160.0	$ 174.0	$ 157.0
Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	5.00%
Minimum [Member] \| Local Social Security Bureau [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	12.00%
Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	10.00%
Defined contribution plan, additional annual vesting interest percentage	100.00%
Maximum [Member] \| Local Social Security Bureau [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	20.00%
Account Payable [Member] \| Yum China Holdings, Inc. Leadership Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Liabilities attributable to employees	$ 4.8	$ 4.4

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net income - including noncontrolling interests	$ 743	$ 736	$ 424
Other comprehensive (loss) income, net of tax of nil
Foreign currency (loss) gain arising during the year	(32)	(160)	142
Comprehensive income - including noncontrolling interests	711	576	566
Comprehensive income - noncontrolling interests	30	22	31
Comprehensive Income - Yum China Holdings, Inc.	$ 681	$ 554	$ 535

Assumptions Used in the BS Model

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669625-108580

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591551-111686

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=118932676&loc=d3e3000-108585

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591552-111686

+ Details

Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interests [Member]	Treasury Stock [Member]	Total equity Including Noncontrolling Interest [Member]	Redeemable Noncontrolling Interest [Member]
Balance at Dec. 31, 2016		$ 4	$ 2,344	$ 37		$ 66	$ (20)	$ 2,431
Balance (in shares) at Dec. 31, 2016		383.0					(1.0)
Net Income (loss)	$ 424			398		26		424
Foreign currency translation adjustment	142				$ 137	5		142
Comprehensive income - including noncontrolling interests	566							566
Dividends declared						(22)		(22)
Cash dividends declared				(38)				(38)
Acquisition of business						2		2	$ 5
Repurchase of shares of common stock	$ (128)						$ (128)	(128)
Repurchase of shares of common stock (in shares)	(3.4)						(3.0)
Exercise and vesting of share-based awards			5					5
Exercise and vesting of share-based awards (in shares)		6.0
Share-based compensation			26					26
Balance at Dec. 31, 2017		$ 4	2,375	397	137	77	$ (148)	2,842	5
Balance (in shares) at Dec. 31, 2017		389.0					(4.0)
Net Income (loss)	$ 736			708		29		737	(1)
Foreign currency translation adjustment	(160)				(154)	(6)		(160)
Comprehensive income - including noncontrolling interests	576							577	(1)
Dividends declared						(33)		(33)
Cash dividends declared				(161)				(161)
Acquisition of business						36		36
Repurchase of shares of common stock	$ (312)						$ (312)	(312)
Repurchase of shares of common stock (in shares)	(9.0)						(9.0)
Exercise and vesting of share-based awards (in shares)		3.0
Share-based compensation			24					24
Revaluation of redeemable noncontrolling interest			3					3	(3)
Balance at Dec. 31, 2018	$ 2,976	$ 4	2,402	944	(17)	103	$ (460)	2,976	1
Balance (in shares) at Dec. 31, 2018		392.0					(13.0)
Net Income (loss)	743			713		32		745	(2)
Foreign currency translation adjustment	(32)				(32)			(32)
Comprehensive income - including noncontrolling interests	711							713	(2)
Dividends declared						(34)		(34)
Cash dividends declared				(181)				(181)
Repurchase of shares of common stock	$ (261)						$ (261)	(261)
Repurchase of shares of common stock (in shares)	(6.2)						(6.0)
Exercise and vesting of share-based awards (in shares)		3.0
Share-based compensation			26					26
Revaluation of redeemable noncontrolling interest			(1)					(1)	$ 1
Cumulative effect of accounting change				(60)		(3)		(63)
Balance at Dec. 31, 2019	$ 3,175	$ 4	$ 2,427	$ 1,416	$ (49)	$ 98	$ (721)	$ 3,175
Balance (in shares) at Dec. 31, 2019		395.0					(19.0)

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

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

	2019			2018			2017
Risk-free interest rate		2.5	%		2.5	%		1.9	%
Expected term (years)		6.50			6.50			6.75
Expected volatility		32.0	%		33.0	%		34.0	%
Expected dividend yield		1.2	%		1.0	%		0.0	%

Summary of award activity

	Shares (in thousands)				Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of 2019		17,670				21.18
Granted		1,469				41.66
Exercised		(4,234	)			16.58
Forfeited or expired		(532	)			32.02
Outstanding at the end of 2019		14,373		^(a)		24.22		5.11		342
Exercisable at the end of 2019		10,583				20.92		4.15		287

Summary of Restricted Stock Units and Performance Share Units

	Shares (in thousands)			Weighted- Average Grant Date Fair Value
Unvested at the beginning of 2019		988			30.60
Granted		332			44.75
Vested		(219	)		24.11
Forfeited		(130	)		36.76
Unvested at the end of 2019		971			36.08

Segment Reporting

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Reporting

Note 17 –Segment Reporting

The Company has 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, Little Sheep, COFFii & JOY, East Dawning, Taco Bell, Daojia and our e-commerce business, are combined and referred to as All Other Segments, as these operating segments are insignificant both individually and in the aggregate. Segment financial information for prior years has been recast due to alignment with this change in segment reporting. There was no impact on the Consolidated Financial Statements of the Company as a result of this change. See Note 1.

	2019
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	6,039	$	2,054	$	121	$	562	$	8,776	$	—		$	8,776
Inter-segment revenue		1		—		37		—		38		(38	)		—
Total	$	6,040	$	2,054	$	158	$	562	$	8,814	$	(38	)	$	8,776

	2018
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	5,688	$	2,111	$	99	$	517	$	8,415	$	—		$	8,415
Inter-segment revenue		—		—		16		—		16		(16	)		—
Total	$	5,688	$	2,111	$	115	$	517	$	8,431	$	(16	)	$	8,415

	2017
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination		Consolidated
Revenues
Revenue from external customers	$	5,066	$	2,093	$	106	$	504	$	7,769	$	—	$	7,769
Inter-segment revenue		—		—		—		—		—		—		—
Total	$	5,066	$	2,093	$	106	$	504	$	7,769	$	—	$	7,769

Operating Profit	2019			2018			2017
KFC^(b)	$	949		$	895		$	802
Pizza Hut		114			97			157
All Other Segments		(14	)		(12	)		(9	)
Unallocated revenues from transactions with franchisees and unconsolidated affiliates^(c)		558			514			504
Unallocated Other revenues		4			3			—
Unallocated expenses for transactions with franchisees and unconsolidated affiliates^(c)		(554	)		(512	)		(500	)
Unallocated Other operating costs and expenses		(4	)		(2	)		—
Unallocated and corporate G&A expenses		(145	)		(128	)		(185	)
Unallocated Closures and impairment expense^(d)		(11	)		(12	)		—
Unallocated Other income^(e)		4			98			9
Operating Profit		901			941			778
Interest income, net^(a)		39			36			25
Investment gain (loss)^(a)		63			(27	)		—
Income Before Income Taxes	$	1,003		$	950		$	803

	Depreciation and Amortization
	2019		2018		2017
KFC	$	290	$	296	$	265
Pizza Hut		120		129		126
All Other Segments		5		8		4
Corporate and Unallocated		13		12		14
	$	428	$	445	$	409

	Impairment Charges
	2019		2018		2017
KFC^(f)	$	16	$	14	$	27
Pizza Hut^(f)		20		26		31
All Other Segments^(f)		2		—		—
Corporate and Unallocated^(d)		11		12		—
	$	49	$	52	$	58

	Capital Spending
	2019		2018		2017
KFC	$	264	$	292	$	227
Pizza Hut		71		77		93
All Other Segments		10		6		2
Corporate and Unallocated		90		95		93
	$	435	$	470	$	415

	Total Assets
	2019		2018
KFC^(g)	$	3,160	$	1,745
Pizza Hut		950		558
All Other Segments		166		132
Corporate and Unallocated^(h)		2,674		2,175
	$	6,950	$	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 $69 million, $65 million and $65 million in 2019, 2018 and 2017, 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 all food and paper products from suppliers then sells and delivers to all 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)	Includes impairment charges on intangible assets and goodwill attributable to the Daojia business in 2019 and 2018, respectively. See Note 5.

(e)	In 2018, the unallocated other income primarily includes gain from re-measurement of previously held equity interest in connection with the acquisition of Wuxi KFC. See Note 5.

(f)	Primarily includes store closure impairment charges, restaurant-level impairment charges resulting from our semi-annual impairment evaluation, and incremental restaurant-level impairment charges as a result of adopting ASC 842. (See Note 12).

(g)	Includes investments in unconsolidated affiliates.

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

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

Other Income, Net (Tables)

12 Months Ended

Dec. 31, 2019

Other Income And Expenses [Abstract]

Other Income, Net

	2019			2018			2017
Equity income from investments in unconsolidated affiliates	$	69		$	65		$	65
Gain from re-measurement of equity interest upon acquisition^(a)		—			98			—
Foreign exchanges and other		(9	)		(11	)		(1	)
Other income, net	$	60		$	152		$	64

(a)	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 5, 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.

Credit Facilities

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Credit Facilities

Note 9 – Credit Facilities

As of December 31, 2019, the Company had credit facilities of RMB2,893 million (approximately $415 million), comprised of onshore credit facilities of RMB1,500 million (approximately $215 million) in the aggregate and offshore credit facilities of $200 million in the aggregate.

The credit facilities had remaining terms ranging from less than one year to three years as of December 31, 2019. Each credit facility bears interest based on the prevailing rate stipulated by the People’s Bank of China, Loan Prime Rate (“LPR”) published by the National Interbank Funding Centre of the PRC or London Interbank Offered Rate (“LIBOR”) administered by the ICE Benchmark Administration. Each credit facility contains a cross-default provision whereby our failure to make any payment on a principal amount from any credit facility will constitute a default on other credit facilities. Some of the credit facilities contain covenants limiting, among other things, certain additional indebtedness and liens, and certain other transactions specified in the respective agreement. Interest on any outstanding borrowings is due at least monthly. Some of the onshore credit facilities contain sub-limits for overdrafts, non-financial bonding, standby letters of credit and guarantees. As of December 31, 2019, we had outstanding bank guarantees of RMB 85 million (approximately $12 million) to secure our lease payment to landlords for certain Company-owned restaurants. The credit facilities were therefore reduced by the same amount, while there were no borrowings outstanding as of December 31, 2019.

Contingencies

12 Months Ended

Dec. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Contingencies

Note 18 – Contingencies

Indemnification of China Tax on Indirect Transfers of Assets

In February 2015, the STA issued Bulletin 7 on Income arising from Indirect Transfers of Assets by Non-Resident Enterprises. Pursuant to Bulletin 7, an “indirect transfer” of Chinese taxable assets, including equity interests in a Chinese resident enterprise (“Chinese interests”), by a non-resident enterprise, may be recharacterized and treated as a direct transfer of Chinese taxable assets, if such arrangement does not have reasonable commercial purpose and the transferor has avoided payment of Chinese enterprise income tax. As a result, gains derived from such an indirect transfer may be subject to Chinese enterprise income tax at a rate of 10%.

YUM concluded and we concurred that it is more likely than not that YUM will not be subject to this tax with respect to the distribution. However, given how recently Bulletin 7 was promulgated, there are significant uncertainties regarding what constitutes a reasonable commercial purpose, how the safe harbor provisions for group restructurings are to be interpreted and how the taxing authorities will ultimately view the distribution. As a result, YUM’s position could be challenged by Chinese tax authorities resulting in a 10% tax assessed on the difference between the fair market value and the tax basis of the separated China business. As YUM’s tax basis in the China business is minimal, the amount of such a tax could be significant.

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

Guarantees for Franchisees and Unconsolidated Affiliates

From time to time we have guaranteed certain lines of credit and loans of franchisees and unconsolidated affiliates. As of December 31, 2019, guarantees on behalf of franchisees were immaterial and no guarantees were outstanding for unconsolidated affiliates.

Indemnification of Officers and Directors

The Company’s amended and restated certificate of incorporation and amended and restated bylaws include provisions that require the Company to indemnify directors or officers for monetary damages for actions taken as a director or officer of the Company or while serving at the Company’s request as a director or officer or another position at another corporation or enterprise, as the case may be. The Company purchases standard directors and officers insurance to cover claims or a portion of the claims made against its directors and officers. Since a maximum obligation is not explicitly stated in the Company’s bylaws or in the indemnification agreements and will depend on the facts and circumstances that arise out of any future claims, the overall maximum amount of the obligations cannot be reasonably estimated. The Company has not been required to make payments related to these obligations, and the fair value for these obligations is zero as of December 31, 2019.

Legal Proceedings

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

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 8 – Goodwill and Intangible Assets

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

	Total Company			KFC			Pizza Hut		All Other Segments
Balance as of December 31, 2017
Goodwill, gross	$	490		$	80		$	19	$	391
Accumulated impairment losses^(a)		(382	)		—			—		(382	)
Goodwill, net		108			80			19		9
Goodwill acquired^(b)		175			175			—		—
Effect of currency translation adjustment and other		(17	)		(17	)		—		—
Balance as of December 31, 2018
Goodwill, gross		648			238			19		391
Accumulated impairment losses^(a)		(382	)		—			—		(382	)
Goodwill, net		266			238			19		9
Goodwill impairment^(c)		(9	)		—			—		(9	)
Effect of currency translation adjustment and other		(3	)		(3	)		—		—
Balance as of December 31, 2019
Goodwill, gross		645			235			19		391
Accumulated impairment losses		(391	)		—			—		(391	)
Goodwill, net	$	254		$	235		$	19	$	—

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

(b)	Goodwill acquired resulted from the acquisition of Wuxi KFC. (Note 1).

(c)	In 2019, we recorded an impairment charge of $9 million on goodwill attributable to the Daojia reporting unit (Note 5).

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

	2019										2018
	Gross Carrying Amount^(a)		Accumulated Amortization			Accumulated Impairment Losses^(b)			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment Losses^(b)			Net Carrying Amount
Finite-lived intangible assets
Reacquired franchise rights	$	148	$	(113	)	$	—		$	35	$	150	$	(100	)	$	—		$	50
Daojia platform		16		(4	)		(12	)		—		16		(3	)		(10	)		3
Customer-related assets		12		(8	)		(2	)		2		12		(8	)		(2	)		2
Others^(c)		9		(4	)		—			5		17		(9	)		—			8
	$	185	$	(129	)	$	(14	)	$	42	$	195	$	(120	)	$	(12	)	$	63
Indefinite-lived intangible assets
Little Sheep trademark	$	52	$	—		$	—		$	52	$	53	$	—		$	—		$	53

Total intangible assets	$	237	$	(129	)	$	(14	)	$	94	$	248	$	(120	)	$	(12	)	$	116

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

(b)	In 2019 and 2018, we recorded impairment charges of $2 million and $12 million on intangible assets acquired from Daojia primarily attributable to the Daojia platform, respectively. See Note 5 for details.

(c)	Decrease in Others in 2019 is primarily due to the reclassification of favorable lease assets, with a gross value of $7 million and accumulated amortization of $5 million, to right-to-use assets upon adoption of ASC 842.

Amortization expense for finite-lived intangible assets was $16 million in 2019, $26 million in 2018 and $14 million in 2017. Amortization expense for finite-lived intangible assets is expected to approximate $12 million in 2020, $12 million in 2021, $12 million in 2022, $2 million in 2023 and $1 million in 2024.

Share-Based Compensation

12 Months Ended

Dec. 31, 2019

Share-Based Compensation

Note 14 – Share-Based Compensation

Overview

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

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

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

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

The Company recognizes all share-based payments to employees and non-employee directors in the Consolidated Financial Statements as compensation cost on a straight-line basis over the service period based on their fair value on the date of grant, for awards that actually vest and when performance conditions are probable of being achieved, if applicable. If no substantive service condition exists, the grant-date fair value is fully recognized as expense upon grant. Certain awards are subject to specific retirement conditions, which allow the awards to fully vest as long as the employee is actively employed for at least one year following the grant date, provides at least six months notification of intention to retire, and signs non-solicitation and non-compete agreements. Under such circumstances, the grant-date fair value of the award is recognized as expense on a straight-line basis over the one-year service period from the grant date.

Award Valuation

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

	2019			2018			2017
Risk-free interest rate		2.5	%		2.5	%		1.9	%
Expected term (years)		6.50			6.50			6.75
Expected volatility		32.0	%		33.0	%		34.0	%
Expected dividend yield		1.2	%		1.0	%		0.0	%

Share option and SAR awards granted to employees typically have a graded vesting schedule of 25% per year over four years and expire 10 years after grant. The Company uses a single weighted-average term for awards that have a graded vesting schedule. Based on analysis of the historical exercise and post-vesting termination behavior, the Company determined that employees exercised the awards on average after 6.5 years. Forfeitures were estimated based on historical experience. Historical data used to estimate the expected term and forfeiture rate were based on data associated with the Company’s employees who were granted share-based awards by YUM prior to the separation.

For those awards granted by the Company after the separation, the Company considered the volatility of common shares of comparable companies in the same business as the Company. The Company initially had no plan to pay dividends at the time of the grant. On October 4, 2017, the board of directors approved a regular quarterly cash dividend program, and declared an initial cash dividend of $0.10 per share on Yum China’s common stock. In 2019 and 2018, the dividend yield was estimated based on the Company’s dividend policy at the time of the grant.

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

During 2019 and 2018, the Company granted PSUs that are subject to market conditions and service conditions, cliff vesting at the end of the performance period. The number of shares to be distributed is based on the Company’s performance on its total shareholder return relative to its peer group in the MSCI International China Index, measured over a three-year performance period. The fair value of PSU awards was valued based on the outcome of the Monte-Carlo Simulation model (the “MCS model”) and amortized on a straight-line basis over the three-year period. The total amount of fair value for the PSUs granted in 2019 and 2018 is immaterial.

Commencing from November 11, 2016, Yum China also granted annual awards of common stock to non-employee directors for their service on Yum China’s board of directors. The fair value of these awards is based on the closing price per share of the Company’s common stock on the date of grant. The shares were issued outright to the directors on the date of grant, with no conditions attached. Therefore, the fair value of the awards was fully recognized as expenses upon grant. For the years ended December 31, 2019 and 2018, a total of 60,419 and 45,425 shares of Yum China common stock, respectively, were granted to non-employee directors and the grant-date fair value of $2.4 million and $1.8 million, respectively, was immediately recognized in full in the Consolidated Statements of Income.

Award Activity

Stock Options and SARs

	Shares (in thousands)				Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of 2019		17,670				21.18
Granted		1,469				41.66
Exercised		(4,234	)			16.58
Forfeited or expired		(532	)			32.02
Outstanding at the end of 2019		14,373		^(a)		24.22		5.11		342
Exercisable at the end of 2019		10,583				20.92		4.15		287

(a)	Outstanding awards include 497,480 stock options and 13,875,168 SARs with weighted-average exercise prices of $18.50 and $24.42, respectively. Outstanding awards represent Yum China awards held by employees of both the Company and YUM.

The weighted-average grant-date fair value of SARs granted in 2019, 2018 and 2017 was $13.43, $13.52 and $10.19, respectively. The total intrinsic value of stock options and SARs exercised by the Company’s employees during the years ended December 31, 2019, 2018 and 2017 was $39 million, $31 million and $44 million, respectively.

As of December 31, 2019, $25 million of unrecognized compensation cost related to unvested stock options and SARs, which will be reduced by any forfeitures that occur, is expected to be recognized over a remaining weighted-average vesting period of approximately 1.70 years. This reflects unrecognized cost for both Yum China awards and YUM awards held by the Company’s employees. The total fair value at grant date or modification date of awards held by the Company’s employees that vested during 2019, 2018 and 2017 was $14 million, $14 million and $11 million, respectively.

RSUs and PSUs

	Shares (in thousands)			Weighted- Average Grant Date Fair Value
Unvested at the beginning of 2019		988			30.60
Granted		332			44.75
Vested		(219	)		24.11
Forfeited		(130	)		36.76
Unvested at the end of 2019		971			36.08

The weighted-average grant-date fair value of RSUs and PSUs granted in 2019, 2018 and 2017 was $44.75, $39.50 and $28.46, respectively. As of December 31, 2019, $16 million of unrecognized compensation cost related to 970,762 unvested RSUs and PSUs, which will be reduced by any forfeiture that occurs, is expected to be recognized over a remaining weighted-average vesting period of approximately 1.70 years.

Impact on Net Income

Share-based compensation expense was $26 million, $24 million and $26 million for 2019, 2018 and 2017, respectively. Deferred tax benefits of $1 million, $1 million, $3 million was recognized in 2019, 2018 and 2017, respectively.

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

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Cash Flows – Operating Activities

Net income - including noncontrolling interests

$ 743

$ 736

$ 424

Amortization of operating lease right-of-use assets

428

445

409

339

Closures and impairment expenses

Gain from re-measurement of equity interest upon acquisition

^[1]

(98)

Investment (gain) loss

^[2]

(63)

Equity income from investments in unconsolidated affiliates

(69)

(65)

Distributions of income received from unconsolidated affiliates

Share-based compensation expense

Changes in accounts receivable

(9)

(13)

Changes in inventories

(77)

(23)

(11)

Changes in prepaid expenses and other current assets

(3)

(22)

(15)

Changes in accounts payable and other current liabilities

171

254

(56)

Changes in income taxes payable

(8)

Changes in non-current operating lease liabilities

(381)

Other, net

(37)

(86)

Net Cash Provided by Operating Activities

1,185

1,333

884

Cash Flows – Investing Activities

Capital spending

(435)

(470)

(415)

Purchases of short-term investments

(1,024)

(604)

(596)

Maturities of short-term investments

534

680

479

Acquisition of business, net of cash acquired

(91)

(25)

Investment in equity securities

(74)

Other, net

Net Cash Used in Investing Activities

(910)

(552)

(557)

Cash Flows – Financing Activities

Repurchase of shares of common stock

(265)

(307)

(128)

Cash dividends paid on common stock

(181)

(161)

(38)

Dividends paid to noncontrolling interests

(32)

(36)

(22)

Other, net

(2)

(14)

Net Cash Used in Financing Activities

(480)

(518)

(185)

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

(6)

(56)

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

(211)

207

174

Cash, Cash Equivalents and Restricted Cash - Beginning of Year

1,266

1,059

885

Cash, Cash Equivalents and Restricted Cash - End of Year

1,055

1,266

1,059

Supplemental Cash Flow Data

Cash paid for income tax

$ 255

$ 208

$ 232

[1]	As a result of the acquisition of Wuxi KFC in the first quarter of 2018, as disclosed in Note 5, 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.
[2]	Amounts have not been allocated to any segment for performance reporting purposes.

Supplemental Balance Sheet Information - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Supplemental Balance Sheet Information Disclosure [Abstract]
Depreciation and amortization expense related to property, plant and equipment	$ 408	$ 414	$ 391
Amortization expense related to land use right	$ 4	$ 5	$ 4

Fair Value Measurements and Disclosures (Details) - Fair Value, Measurements, Nonrecurring [Member] - Fair Value, Inputs, Level 3 [Member] - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

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

Total expense recognized from non-recurring fair value measurements

$ 121

$ 39

$ 38

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

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

ROU impairment prior to the adoption of ASC 842

^[1]

Restaurant-level impairment [Member]

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

Total expense recognized from non-recurring fair value measurements

^[2]

Daojia Impairment [Member]

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

Total expense recognized from non-recurring fair value measurements

^[3]

$ 11

$ 12

Income from Reversal of Contingent Consideration [Member]

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

Total expense recognized from non-recurring fair value measurements

^[4]

$ (3)

[1]	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.
[2]	Restaurant-level impairment charges are recorded in Closures and impairment expenses, net and resulted primarily from our semi-annual impairment evaluation of long-lived assets of individual restaurants that were being operated at the time of impairment and had not been offered for refranchising. We also performed an additional impairment evaluation upon adoption of ASC 842 in the first quarter of 2019. The remaining net book value of assets measured at fair value during the years ended December 31, 2019, 2018 and 2017 was insignificant.
[3]	See Note 5 for further discussion.
[4]	During 2017, we recognized income of $3 million from the reversal of contingent consideration previously recorded for a business combination (Level 3), as the fair value of such contingent consideration is considered to be nil given the remote likelihood of the payment obligation.

Leases - Schedule of Lease Term and Discount Rate (Details)	Dec. 31, 2019
Weighted-average remaining lease term (years)
Operating leases	7 years 1 month 6 days
Finance leases	11 years 6 months
Weighted-average discount rate
Operating leases	6.10%
Finance leases	5.90%

Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Note 11 – Leases

As of December 31, 2019, we operated over 7,300 company-owned restaurants, leasing the underlying land and/or building. We generally enter into lease agreements for our restaurants with initial terms of 10 to 20 years. Most of our lease agreements contain termination options that permit us to terminate the lease agreement early if the restaurant’s unit contribution is negative for a specified period of time. We generally do not have renewal options for our leases. Such options are accounted for only when it is reasonably certain that we will exercise the options. The rent under the majority of our current restaurant lease agreements is generally payable in one of three ways: (i) fixed rent; (ii) the higher of a fixed base rent or a percentage of the restaurant’s sales; or (iii) a percentage of the restaurant’s sales. Most leases require us to pay common area maintenance fees for the leased property. In addition to restaurants leases, we also lease office spaces, logistics centers and equipment. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

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

Supplemental Balance Sheet
	12/31/2019		Account Classification
Assets
Operating lease right-of-use assets	$	1,985	Operating lease right-of-use assets
Finance lease right-of-use assets		18	Property, plant and equipment, net
Total leased assets	$	2,003

Liabilities
Current
Operating lease liabilities	$	382	Accounts payable and other current liabilities
Finance lease liabilities		2	Accounts payable and other current liabilities
Non-current
Operating lease liabilities		1,803	Non-current operating lease liabilities
Finance lease liabilities		26	Non-current finance lease liabilities
Total lease liabilities	$	2,213

Summary of Lease Cost	Year Ended			Account Classification
	12/31/2019

Operating lease cost	$	472		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		2		Interest expense, net
Variable lease cost		325		Occupancy and other operating expenses or Franchise expenses
Short-term lease cost		10		Occupancy and other operating expenses or G&A
Sub-lease income		(27	)	Franchise fees and income or Other revenues
Total lease cost	$	783

Supplemental Cash Flow Information	Year Ended
	12/31/2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	481
Operating cash flows from finance leases		1
Financing cash flows from finance leases		2
Right-of-use assets obtained in exchange for new lease liabilities^(a):
Operating leases	$	346
Finance leases		4

(a)	This supplemental non-cash disclosure for ROU obtained in exchange for new lease liabilities 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	12/31/2019
Weighted-average remaining lease term (years)
Operating leases		7.1
Finance leases		11.5

Weighted-average discount rate
Operating leases		6.1	%
Finance leases		5.9	%

Summary of Future Lease Payments and Lease Liabilities

Maturities of lease liabilities as of December 31, 2019 were as follows:

	Amount of Operating Leases		Amount of Finance Leases		Total
2020	$	504	$	4	$	508
2021		448		4		452
2022		389		4		393
2023		325		3		328
2024		261		3		264
Thereafter		781		21		802
Total undiscounted lease payment		2,708		39		2,747
Less: imputed interest ^(b)		523		11		534
Present value of lease liabilities	$	2,185	$	28	$	2,213

(b)

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

As of December 31, 2019, we have additional lease agreements that have been signed but not yet commenced, with total undiscounted minimum lease payments of $84 million. These leases will commence between 2020 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.

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

12 Months Ended

Dec. 31, 2019

USD ($)

Schedule Of Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]

Schedule Of Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]

$ 9

^[1]

Daojia platform [Member]

Organization Consolidation And Presentation Of Financial Statements [Abstract]

$ 9

[1]	In 2019, we recorded an impairment charge of $9 million on goodwill attributable to the Daojia reporting unit (Note 5).

Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

Note 20 – Subsequent Events

Novel Coronavirus Outbreak

Starting January 2020, the novel coronavirus outbreak originating in Wuhan, China has significantly impacted the Company’s operations, including the temporary closure of more than 30% of its restaurants in China during the Chinese New Year holiday, and a significant decline in sales for restaurants that remained open. Given the uncertainty of the situation, the duration of the business disruption, resulting reduced customer traffic and related financial impact cannot be reasonably estimated at this time but are expected to have a material adverse impact on the Company’s results of operations, cash flows and financial position for 2020.

Cash Dividend

On February 5, 2020, the Company announced that the board of directors declared a cash dividend of $0.12 per share on Yum China’s common stock, payable as of the close of business on March 25, 2020, to stockholders of record as of the close of business on March 4, 2020. Total estimated cash dividend payable is approximately $45 million.

Share-Based Compensation

In February 2020, the Company’s board of directors approved new grants of SARs, RSUs and PSUs to employees under the 2016 Plan with the estimated total grant-date fair value of $60 million. The awards will be earned based on their respective vesting terms, with PSUs also subject to market conditions or performance conditions. Certain PSU awards were granted to select employees who were deemed critical to the Company’s execution of its strategic operating plan. These PSU awards will only vest if threshold performance goals are achieved over a four-year performance period, with the payout ranging from 0% to 200% of the target number of shares subject to the PSU awards. The estimated grant-date fair value of these award based on target performance is $35 million.

Description of Business

12 Months Ended

Dec. 31, 2019

Description of Business

Note 1 – Description of Business

Yum China Holdings, Inc. (“Yum China” and, together with its subsidiaries, the “Company,” “we,” “us,” and “our”) was incorporated in Delaware on April 1, 2016.

The Company owns, franchises or has ownership in entities that own and operate restaurants (also referred to as “stores” or “units”) under the KFC, Pizza Hut, Little Sheep, COFFii & JOY, East Dawning and Taco Bell concepts (collectively, the “concepts”). In connection with the separation of the Company in 2016 from its former parent company, Yum! Brands, Inc. (“YUM”), Yum! Restaurants Asia Pte. Ltd., a wholly-owned indirect subsidiary of YUM, and Yum Restaurants Consulting (Shanghai) Company Limited (“YCCL”), a wholly-owned indirect subsidiary of the Company, entered into a 50-year master license agreement with automatic renewals for additional consecutive renewal terms of 50 years each, subject only to YCCL being in “good standing” and unless YCCL gives notice of its intent not to renew, for the exclusive right to use and sublicense the use of intellectual property owned by YUM and its subsidiaries for the development and operation of the KFC, Pizza Hut and, subject to achieving certain agreed-upon milestones, Taco Bell brands and their related marks and other intellectual property rights for restaurant services in the People’s Republic of China (the “PRC” or “China”), excluding Hong Kong, Taiwan and Macau. In exchange, we pay a license fee to YUM equal to 3% of net system sales from both our Company and franchise restaurants. We own the intellectual property of Little Sheep, COFFii & JOY and East Dawning, and pay no license fee related to these concepts.

In 1987, KFC was the first quick-service restaurant brand to enter China. As of December 31, 2019, there are over 6,500 KFCs in China. We maintain a 58% and 70% controlling interest in the entities that own and operate the KFCs in Shanghai and Beijing, respectively. 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. We have a 47% noncontrolling ownership in each of our unconsolidated affiliates that own and operate KFCs in Hangzhou and Suzhou.

The first Pizza Hut in China opened in 1990. As of December 31, 2019, there are over 2,200 Pizza Hut restaurants in China.

In 2017, the Company completed the acquisition of a controlling interest in the holding company of DAOJIA.com.cn (“Daojia”), an established online food delivery service provider. The Company agreed to pay cash consideration of $36.7 million to the sellers and made a concurrent capital contribution of $25.0 million to Daojia. As of the completion of the acquisition, the Company held 90% of Daojia’s outstanding shares of common stock, or 80% of its equity interests on a fully-diluted basis. Daojia became an operating segment of the Company. The acquisition was considered immaterial.

The Company has two reportable segments: KFC and Pizza Hut. Our remaining operating segments, including the operations of Little Sheep, East Dawning, Taco Bell, Daojia, newly developed COFFii & JOY and our e-commerce business, with the latter two becoming operating segments starting from the first quarter of 2019, are combined and referred to as All Other Segments, as those operating segments are insignificant both individually and in the aggregate. Segment financial information for prior years has been recast to align with this change in segment reporting. There was no impact to the consolidated financial statements of the Company as a result of this change. Additional details on our segment reporting are included in Note 17.

Revenue

12 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenue

Note 3 – Revenue

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

	2019
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	5,839	$	2,045	$	41	$	—	$	7,925	$	—		$	7,925
Franchise fees and income		136		4		8		—		148		—			148
Revenues from transactions with franchisees and unconsolidated affiliates		64		4		28		558		654		—			654
Other revenues		1		1		81		4		87		(38	)		49
Total revenues	$	6,040	$	2,054	$	158	$	562	$	8,814	$	(38	)	$	8,776

	2018
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Company sales	$	5,495	$	2,106	$	32	$	—	$	7,633	$	—		$	7,633
Franchise fees and income		132		3		6		—		141		—			141
Revenues from transactions with franchisees and unconsolidated affiliates		61		2		26		514		603		—			603
Other revenues		—		—		51		3		54		(16	)		38
Total revenues	$	5,688	$	2,111	$	115	$	517	$	8,431	$	(16	)	$	8,415

(a)	As COFFii & JOY and our e-commerce business became operating segments starting from the first quarter of 2019, revenue by segment information for 2018 has been recast to align with the change in segment reporting. Additional details on our reportable segments are included in Note 17.

	2017
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination		Consolidated
Company sales	$	4,863	$	2,090	$	40	$	—	$	6,993	$	—	$	6,993
Franchise fees and income		134		2		5		—		141		—		141
Revenues from transactions with franchisees and unconsolidated affiliates		69		1		25		504		599		—		599
Other revenues		—		—		36		—		36		—		36
Total revenues	$	5,066	$	2,093	$	106	$	504	$	7,769	$	—	$	7,769

Franchise Fees and Income

	2019		2018		2017
Initial fees, including renewal fees	$	8	$	7	$	6
Continuing fees and rental income		140		134		135
Franchise fees and income	$	148	$	141	$	141

Costs to Obtain Contracts

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

Contract Liabilities

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

	2019		2018

Contract liabilities
- Deferred revenue related to prepaid stored-value products	$	86	$	70
- Deferred revenue related to upfront franchise fees		39		37
- Deferred revenue related to customer loyalty programs		24		17
- Deferred revenue related to privilege membership programs		16		3
- Others		3		—
Total	$	168	$	127

Contract liabilities primarily consist of deferred revenue related to prepaid stored-value products, privilege membership programs, customer loyalty programs and upfront franchise fees. Deferred revenue related to prepaid stored-value products, privilege membership programs, and customer loyalty programs is included in Accounts payable and other current liabilities in the Consolidated Balance Sheets. Deferred revenue related to upfront franchise fees that we expect to recognize as revenue in the next 12 months is included in Accounts payable and other current liabilities, and the remaining balance is included in Other liabilities in the Consolidated Balance Sheets. Revenue recognized that was included in the contract liability balance at the beginning of the year amounted to $68 million and $46 million in 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 years presented.

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

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

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

$ 645

$ 648

$ 490

(391)

(382)

^[1]

(382)

^[1]

254

266

108

Goodwill acquired

^[2]

175

Effect of currency translation adjustment and other

^[3]

(9)

(3)

(17)

235

238

Effect of currency translation adjustment and other

235

238

Goodwill acquired

^[2]

175

(3)

(17)

All Other Segments [Member]

391

(391)

(382)

^[1]

(382)

^[1]

$ 9

^[3]

$ (9)

[1]	Accumulated impairment losses represent Little Sheep goodwill related impairment.
[2]	Goodwill acquired resulted from the acquisition of Wuxi KFC. (Note 1).
[3]	In 2019, we recorded an impairment charge of $9 million on goodwill attributable to the Daojia reporting unit (Note 5).

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

3 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

$ 2,029

$ 2,319

$ 2,124

$ 2,304

$ 1,914

$ 2,212

$ 2,068

$ 2,221

$ 8,776

$ 8,415

$ 7,769

Income Before Income Taxes

$ 300

$ 204

$ 303

$ 269

$ 193

$ 395

901

941

778

Interest income, net

^[1]

Investment gain (loss)

^[1]

(27)

1,003

950

803

428

445

409

435

470

415

6,950

4,610

6,950

4,610

6,039

5,688

5,066

^[2]

3,160

1,745

3,160

1,745

All Other Segments [Member]

2,054

2,111

2,093

Corporate and Unallocated [Member]

121

106

Unallocated revenues from transactions with franchisees and unconsolidated affiliates

^[1]

562

517

^[3]

504

^[4]

558

514

504

Unallocated Other revenues

Unallocated expenses for transactions with franchisees and unconsolidated affiliates

^[4]

(554)

(512)

(500)

Unallocated Other operating costs and expenses

(4)

(2)

Unallocated and corporate G&A expenses

(145)

(128)

(185)

Unallocated Closures and impairment expense

^[5]

(11)

(12)

Unallocated Other income

^[6]

^[5]

Operating Segments [Member]

^[7]

2,674

2,175

2,674

2,175

Operating Segments [Member] | KFC [Member]

8,776

8,415

7,769

6,040

5,688

5,066

^[8]

949

895

802

290

296

265

^[9]

Operating Segments [Member] | Pizza Hut [Member]

264

292

227

2,054

2,111

2,093

114

157

120

129

126

^[9]

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

950

558

950

558

158

115

106

(14)

(12)

(9)

^[9]

$ 166

$ 132

166

132

Elimination [Member]

Elimination [Member] | All Other Segments [Member]

(38)

(16)

Combined [Member]

Cash and cash equivalents

$ 8,814

$ 8,431

$ 7,769

[1]	Amounts have not been allocated to any segment for performance reporting purposes.
[2]	Includes investments in unconsolidated affiliates.
[3]	As COFFii & JOY and our e-commerce business became operating segments starting from the first quarter of 2019, revenue by segment information for 2018 has been recast to align with the change in segment reporting. Additional details on our reportable segments are included in Note 17.
[4]	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 all food and paper products from suppliers then sells and delivers to all 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.
[5]	Includes impairment charges on intangible assets and goodwill attributable to the Daojia business in 2019 and 2018, respectively. See Note 5.
[6]	In 2018, the unallocated other income primarily includes gain from re-measurement of previously held equity interest in connection with the acquisition of Wuxi KFC. See Note 5.
[7]	Primarily includes cash and cash equivalents, short-term investments, inventories and investment in equity securities that are centrally managed.
[8]	Includes equity income from investments in unconsolidated affiliates of $69 million, $65 million and $65 million in 2019, 2018 and 2017, respectively.
[9]	Primarily includes store closure impairment charges, restaurant-level impairment charges resulting from our semi-annual impairment evaluation, and incremental restaurant-level impairment charges as a result of adopting ASC 842. (See Note 12).

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

Dec. 31, 2019

Jan. 01, 2019

Dec. 31, 2018

Dec. 31, 2017

Current Assets

$ 1,046

$ 1,266

Short-term investments

611

122

Accounts receivable, net

Inventories, net

380

307

Property, plant and equipment, net

134

177

Total Current Assets

2,259

1,952

1,594

1,615

1,985

Goodwill

254

266

$ 108

116

Investments in unconsolidated affiliates

Other assets

580

491

6,950

4,610

Current Liabilities

Total Current Liabilities

1,691

1,199

Income taxes payable

1,736

1,253

Non-current operating lease liabilities

1,803

Non-current finance lease liabilities

Redeemable Noncontrolling Interest

210

355

Total Liabilities

3,775

1,633

Equity

Common stock

Treasury stock

(721)

(460)

Additional paid-in capital

2,427

2,402

Retained earnings

1,416

944

Accumulated other comprehensive loss

(49)

(17)

Total Yum China Holdings, Inc. Stockholders’ Equity

3,077

2,873

Noncontrolling interests

103

Total Equity

3,175

2,976

Total Liabilities, Redeemable Noncontrolling Interest and Equity

$ 6,950

4,610

As Adjusted [Member]

Current Assets

Cash and cash equivalents

$ 1,266

Short-term investments

122

Accounts receivable, net

Inventories, net

307

Property, plant and equipment, net

138

Total Current Assets

1,913

1,614

1,997

Goodwill

266

114

Investments in unconsolidated affiliates

108

Other assets

487

6,579

Current Liabilities

Total Current Liabilities

1,519

Income taxes payable

1,573

Non-current operating lease liabilities

1,860

Non-current finance lease liabilities

Redeemable Noncontrolling Interest

207

Total Liabilities

3,665

Equity

Common stock

Treasury stock

(460)

Additional paid-in capital

2,402

Retained earnings

884

Accumulated other comprehensive loss

(17)

Total Yum China Holdings, Inc. Stockholders’ Equity

2,813

Noncontrolling interests

100

Total Equity

2,913

Total Liabilities, Redeemable Noncontrolling Interest and Equity

6,579

Effect of Adoption [Member]

Current Assets

Property, plant and equipment, net

^[1]

(39)

Total Current Assets

(39)

(1)

$ 2,000

1,997

^[2]

^[3]

(2)

Investments in unconsolidated affiliates

^[4]

(1)

Other assets

^[3]

(4)

1,969

Current Liabilities

Total Current Liabilities

^[5]

320

320

Non-current operating lease liabilities

^[6]

1,860

Total Yum China Holdings, Inc. Stockholders’ Equity

^[7]

(148)

Total Liabilities

2,032

Equity

Retained earnings

^[8]

(60)

(60)

Noncontrolling interests

^[9]

(3)

Total Equity

(63)

Total Liabilities, Redeemable Noncontrolling Interest and Equity

$ 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.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Preparation and Principles of Consolidation

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

Our most significant variable interests are in entities that operate restaurants under franchise arrangements. We do not generally have an equity interest in our franchisee businesses. Additionally, we do not typically provide significant financial support such as loans or guarantees to our franchisees. We have variable interests in certain entities that operate restaurants under franchise agreements through real estate lease arrangements with them to which we are a party. At December 31, 2019, the Company had future lease payments due from franchisees, on a nominal basis, of approximately $47 million. As our franchise arrangements provide our franchisee entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might otherwise be considered a VIE.

Through the acquisition of Daojia, the Company also acquired a VIE and subsidiaries of the VIE effectively controlled by Daojia. There exists a parent-subsidiary relationship between Daojia and its VIE as a result of certain exclusive agreements that require Daojia to consolidate its VIE and subsidiaries of the VIE because Daojia is the primary beneficiary that possesses the power to direct the activities of the VIE that most significantly impact its economic performance, and is entitled to substantially all of the profits and has the obligation to absorb all of the expected losses of the VIE. The acquired VIE and its subsidiaries were considered immaterial, both individually and in the aggregate. The results of Daojia’s operations have been included in the Company’s Consolidated Financial Statements since the acquisition date.

We consolidate the entities that operate KFCs in Shanghai, Beijing and Wuxi where we have controlling interests of 58%, 70% and 83%, respectively. We report Net income attributable to noncontrolling interests, which includes the minority shareholders of the entities, separately on the face of our Consolidated Statements of Income. The portion of equity not attributable to the Company for these entities is reported within equity, separately from the Company’s stockholders’ equity on the Consolidated Balance Sheets.

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

Comparative Information

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

Fiscal Calendar

Fiscal Calendar. Our fiscal year ends on December 31. Effective at the beginning of fiscal 2018, the Company changed its fiscal calendar from two months in the first quarter, three months in the second and third quarters and four months in the fourth quarter, to four three-month quarters ending on March 31, June 30, September 30 and December 31 of each year. The change was made to align with how management measures performance internally and to facilitate the comparability of our results with peers using calendar quarters.

Foreign Currency

Foreign Currency. Our functional currency for the operating entities in China is the Chinese Renminbi (“RMB”), the currency of the primary economic environment in which they operate. Income and expense accounts for our operations are then translated into U.S. dollars at the average exchange rates prevailing during the period. Assets and liabilities are then translated into U.S. dollars at exchange rates in effect at the balance sheet date. As of December 31, 2019, net cumulative translation adjustment loss of $49 million was recorded in Accumulated other comprehensive loss on the Consolidated Balance Sheets. Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency, to the extent they arise, are included in Other income, net in our Consolidated Statements of Income.

Franchise and License Operations

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

The 3% license fees we pay to YUM for the right to sublicense the KFC, Pizza Hut and Taco Bell intellectual property to franchisees and unconsolidated affiliates are recorded in Franchise expenses.

License fees due to YUM for our Company-owned stores are included within restaurant margin in Occupancy and other operating expenses. Total license fees paid to YUM were $273 million, $263 million and $245 million during the years ended December 31, 2019, 2018 and 2017, respectively.

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

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

Revenue Recognition

Revenue Recognition. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”), to provide principles within a single framework for revenue recognition of transactions involving contracts with customers across all industries. The standard allows for either a full retrospective or modified retrospective transition method. Additional amendments were subsequently issued by the FASB to clarify the implementation guidance. The Company adopted these standards on January 1, 2018, and applied the full retrospective approach.

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 either used our dedicated riders or third-party aggregators’ delivery staff in the past. 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. Starting in 2019, we used our own dedicated riders to deliver orders placed through aggregators’ platforms to customers of KFC and Pizza Hut stores.

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

Our privilege membership programs offer privilege members rights to multiple benefits, such as free delivery and discounts on certain products. For certain KFC and Pizza Hut privilege membership programs offering a pre-defined amount of benefits that can be redeemed ratably over the membership period, revenue is ratably recognized over the period based on the elapse of time. With respect to the 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. In determining the relative standalone selling price of the benefits, the Company considers likelihood of future redemption based on historical redemption pattern and reviews such estimates periodically based upon the latest available information regarding redemption and expiration patterns.

Franchise Fees and Income

Franchise fees and income primarily include upfront franchise fees, such as initial fees and renewal fees, and continuing fees. We have determined that the services we provide in exchange for upfront franchise fees and continuing fees are highly interrelated with the franchise right. We recognize upfront franchise fees received from a franchisee as revenue over the term of the franchise agreement or the renewal agreement because the franchise rights are accounted for as rights to access our symbolic intellectual property 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 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 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 Consolidated Balance Sheets and subsequently recognized into revenue when the points are redeemed or expire. The Company estimates the value of the future redemption obligations based on the estimated value of the product for which points are expected to be redeemed and historical redemption patterns and reviews such estimates periodically based upon the latest available information regarding redemption and expiration patterns.

Direct Marketing Costs

Direct Marketing Costs. We charge direct marketing costs to expense ratably in relation to revenues over the year in which incurred and, in the case of advertising production costs, in the year the advertisement is first shown. Deferred direct marketing costs, which are classified as prepaid expenses, consist of media and related advertising production costs which will generally be used for the first time in the next fiscal year and have historically not been significant. Our direct marketing expenses incurred for Company-owned restaurants were $344 million, $341 million and $333 million in 2019, 2018 and 2017, respectively, and were included in Occupancy and other operating expenses. In addition, the direct marketing costs incurred for franchisees and unconsolidated affiliates were $65 million, $62 million and $69 million in 2019, 2018 and 2017, respectively, and were recorded in Expenses for transactions with franchisees and unconsolidated affiliates.

Research and Development Expenses

Research and Development Expenses. Research and development expenses associated with our food innovation activities, which are expensed as incurred, are reported in G&A expenses. Research and development expenses were $4 million, $4 million and $5 million in 2019, 2018 and 2017, respectively.

Share-Based Compensation

Share-Based Compensation. Prior to the separation, all employee equity awards were granted by YUM. Upon the separation, holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards of either YUM or Yum China in their entirety, to maintain the pre-separation intrinsic value of the awards. The modified equity awards have the same terms and conditions as the awards held immediately before the separation, except the number of shares and the price were adjusted. The incremental compensation cost, measured as the excess of the fair value of the award immediately after the modification over the fair value of the award immediately before the modification, based on Black-Scholes option-pricing model was immaterial, and YUM and the Company continue to recognize the unamortized fair value of the awards over the remaining requisite service period as their respective employees continue to provide services. All awards granted following the separation were granted under the Company’s Long Term Incentive Plan (the “2016 Plan”). We recognize all share-based payments to employees and directors, including grants of stock options, restricted stock units (“RSUs”), stock appreciation rights (“SARs”) and performance share units (“PSUs”), in the Consolidated Financial Statements as compensation cost over the service period based on their fair value on the date of grant. This compensation cost is recognized over the service period on a straight-line basis, net of an assumed forfeiture rate, for awards that actually vest. Forfeiture rates are estimated at grant date based on historical experience and compensation cost is adjusted in subsequent periods for differences in actual forfeitures from the previous estimates. We present this compensation cost consistent with the other compensation costs for the employee recipient in either payroll and employee benefits or G&A expenses.

Impairment or Disposal of Long-Lived Assets

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

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

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

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

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

Government Subsidies

Government Subsidies. Government subsidies primarily consist of financial subsidies received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Government subsidies are recognized when it is probable that the Company will comply with the conditions attached to them, and the subsidies are received. If the subsidy is related to an expense item, it is recognized as a reduction to the related expense to match the subsidy to the costs that it is intended to compensate. If the subsidy is related to an asset, it is deferred and recorded in other liabilities and then recognized ratably over the expected useful life of the related asset in the Consolidated Statements of Income.

Income Taxes

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

On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law effective for tax years beginning after December 31, 2017. The Tax Act requires complex computations with significant estimates to be performed, significant judgments to be made in interpretation of the provisions, and the preparation and analysis of information not previously relevant or regularly produced. The U.S. Treasury Department, the IRS, the SEC and other standard-setting bodies could interpret or issue guidance on how provisions of the Tax Act will be applied or otherwise administered that is different from our current interpretation. 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 an adjustment of $36 million to reduce the provisional amount for transition tax recorded in 2017 accordingly. The U.S. Treasury Department and the IRS released the final transition tax regulations in the first quarter of 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 income tax expense of $8 million for the transition tax accordingly.

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

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

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

See Note 16 for a further discussion of our income taxes.

Fair Value Measurements

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


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

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

Level 3		Inputs that are unobservable for the asset.

Cash and Cash Equivalents

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

Short-term Investments

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

Accounts Receivable

Accounts Receivable. Accounts Receivable 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 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. Receivables due from unconsolidated affiliates including trade receivables and dividend receivables were $58 million and $65 million as of December 31, 2019 and 2018, respectively.

Receivables from Payment Processors or Aggregators

Receivables from Payment Processors or Aggregators. Receivables from payment processors such as WeChat and Alipay or aggregators are cash due from them for clearing transactions and are included in Prepaid expenses and other current assets. The cash was paid by customers through these payment processors or aggregators for food provided by the Company. The Company considers and monitors the credit worthiness of the third-party payment processors and aggregators used. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. Receivable balances are written off after all collection efforts have been exhausted. As of December 31, 2019 and 2018, no allowance for doubtful accounts was provided for such receivables.

Inventories

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

Property, Plant and Equipment

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

Leases

Leases. The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASC 842”) and subsequent amendments issued by FASB 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 Consolidated Financial Statements.

Prior to the adoption of ASC 842, operating leases were not recognized on the balance sheet of the Company, but rent expenses with fixed escalating payments and/or rent holidays were recognized on a straight-line basis over the lease term. Contingent rentals are generally based on sales levels, and thus are included in rent expense when attainment of the contingency is considered probable (e.g., when Company sales occur).

Upon adoption of ASC 842, ROU assets and lease liabilities are recognized upon lease commencement for operating leases based on the present value of lease payments over the lease term. As the rate implicit in the lease cannot be readily determined, we use our incremental borrowing rate at the lease commencement date in determining the imputed interest and present value of lease payments. The incremental borrowing rate was determined using a portfolio approach based on the rate of interest that we would have to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The incremental borrowing rate is primarily influenced by the risk-free interest rate of China, the Company’s credit rating and lease term, and is updated on a quarterly basis for measurement of new lease liabilities.

For operating leases, the Company recognizes a single lease cost on a straight-line basis over the remaining lease term. For finance leases, the Company recognizes straight-line amortization of the ROU asset and interest on the lease liability. This is consistent with the historical recognition of finance leases, which was unchanged upon adoption of ASC 842. For rental payments either based on a percentage of the restaurant’s sales in excess of a fixed base amount or solely based on a percentage of the restaurant’s sales, they are recognized as variable lease expenses as incurred.

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

From time to time, we purchase the rights to use government-owned land and the building occupying the land for a fixed period of time. Prior to the adoption of ASC 842, these land use rights and related buildings were recorded in Other Assets and Property, Plant and Equipment in our Consolidated Balance Sheets, and are amortized on a straight-line basis over the term of the land use right. Upon the adoption of ASC 842 on January 1, 2019, land use rights acquired are assessed in accordance with ASC 842 and recognized in right-of-use assets if they meet the definition of lease.

See Note 11 for further discussions on our leases.

Internal Development Costs and Abandoned Sites Costs

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

Goodwill and Intangible Assets

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

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

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

We evaluate the remaining useful life of an intangible asset that is not being amortized each reporting period to determine whether events and circumstances continue to support an indefinite useful life. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, we amortize the intangible asset prospectively over its estimated remaining useful life. Intangible assets that are deemed to have a finite life are generally amortized on a straight-line basis to their residual value.

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

Our finite-lived intangible assets that are not allocated to an individual restaurant are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. An intangible asset that is deemed not recoverable based on forecasted undiscounted future cash flow is written down to its estimated fair value, which is our estimate of the price a willing buyer would pay for the intangible asset based on discounted expected future after-tax cash flows. For purposes of our impairment analysis, we update the cash flows that were initially used to value the finite-lived intangible asset to reflect our current estimates and assumptions over the asset’s future remaining life. During the year ended December 31, 2019 and 2018, we recorded an impairment charge of $11 million and $12 million, respectively, on intangible assets and goodwill attributable to the Daojia business. See Note 5 for additional details.

Equity Investments

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

The Company applies the equity method to account for the investments in unconsolidated affiliates over which it has significant influence but does not control. Equity method investments are included as Investments in unconsolidated affiliates on our Consolidated Balance Sheets. Our share of the earnings or losses of equity method investees are included within Other income, net on our Consolidated Statements of Income. We record impairment charges related to an investment in an unconsolidated affiliate whenever events or circumstances indicate that a decrease in the fair value of an investment has occurred which is other than temporary. In addition, we evaluate our investments in unconsolidated affiliates for impairment when they have experienced two consecutive years of operating losses.

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

Financial Instruments

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

Guarantees

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

Asset Retirement Obligations

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

Contingencies

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

Retirement Plans

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

The Company also offers other defined contribution plans to employees. The total contribution for such employee benefits was expensed as incurred. The Company has no additional legal obligation or liabilities for the benefits beyond the paid and accrued amounts. See Note 13 for additional information.

PRC Value-Added Tax

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

Entities that are VAT general taxpayers are permitted to offset qualified input VAT paid to suppliers against their output VAT upon receipt of appropriate supplier VAT invoices on an entity-by-entity basis. When the output VAT exceeds the input VAT, the difference is remitted to tax authorities, usually on a monthly basis; whereas when the input VAT exceeds the output VAT, the difference is treated as an input VAT credit asset which can be carried forward indefinitely to offset future net VAT payables. VAT related to purchases and sales which have not been settled at the balance sheet date is disclosed separately as an asset and liability, respectively, on the Consolidated Balance Sheets. At each balance sheet date, the Company reviews the outstanding balance of any input VAT credit asset for recoverability, giving consideration to the indefinite life of the input VAT credit assets as well as its forecasted operating results and capital spending, which inherently includes significant assumptions that are subject to change.

As of December 31, 2019 and 2018, an input VAT credit asset of $243 million and $226 million, were recorded in Other assets, respectively, and payable of $5 million and $5 million, were recorded in Accounts payable and other current liabilities, respectively, on the Consolidated Balance Sheets. The Company has not made an allowance for the recoverability of the input VAT credit asset, as the balance is expected to be utilized to offset against VAT payables more than one year from December 31, 2019. Any input VAT credit asset would be classified as Prepaid expenses and other current assets if the Company expected to use the credit within one year.

Earnings Per Share

Earnings Per Share. Basic earnings per share represent net earnings to common stockholders divided by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares. See Note 4 for further information.

Common Stock Repurchases

Common Stock Repurchases. We may repurchase shares of Yum China common stock under a program authorized by our board of directors from time to time in open market or privately negotiated transactions, including block trades, accelerated share repurchase transactions and the use of Rule 10b5-1 trading plans. Shares repurchased are included in treasury stock in the financial statements.

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“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 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 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 Sheets 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 Yum China Holdings, Inc. Stockholders’ Equity		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.

Supplemental Balance Sheet Information (Details 1) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 3,471	$ 3,348
Accumulated depreciation	(1,877)	(1,733)
Property, plant and equipment, net	1,594	1,615
Buildings and Improvements [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	2,159	2,121
Finance Leases, Primarily Buildings [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	30	26
Machinery and Equipment and Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 1,282	$ 1,201

Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data (Unaudited)

Note 19 – Selected Quarterly Financial Data (unaudited; in millions, except per share amounts)

	2019
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total
Revenues:
Company sales	$	2,089	$	1,926	$	2,097	$	1,813	$	7,925
Franchise fees and income		39		36		38		35		148
Revenues from transactions with franchisees and unconsolidated affiliates		170		154		172		158		654
Other revenues		6		8		12		23		49
Total revenues		2,304		2,124		2,319		2,029		8,776
Restaurant profit		386		283		372		225		1,266
Operating Profit		303		204		300		94		901
Net Income – Yum China Holdings, Inc.		222		178		223		90		713
Basic earnings per common share	$	0.59	$	0.47	$	0.59	$	0.24	$	1.89
Diluted earnings per common share	$	0.57	$	0.46	$	0.58	$	0.23	$	1.84

	2018
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total
Revenues:
Company sales	$	2,016	$	1,888	$	2,008	$	1,721	$	7,633
Franchise fees and income		40		34		36		31		141
Revenues from transactions with franchisees and unconsolidated affiliates		161		141		159		142		603
Other revenues		4		5		9		20		38
Total revenues		2,221		2,068		2,212		1,914		8,415
Restaurant profit		361		286		353		199		1,199
Operating Profit		395		193		269		84		941
Net Income (Loss) – Yum China Holdings, Inc.		288		143		203		74		708
Basic earnings (loss) per common share	$	0.75	$	0.37	$	0.53	$	0.19	$	1.84
Diluted earnings (loss) per common share	$	0.72	$	0.36	$	0.51	$	0.19	$	1.79

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions				1 Months Ended
	Feb. 08, 2020	Feb. 05, 2020	Oct. 04, 2017	Feb. 26, 2020
Subsequent Event [Line Items]
Dividends declared date			Oct. 04, 2017
Dividends payable, amount per share			$ 0.10
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends declared date		Feb. 05, 2020
Dividends payable, amount per share		$ 0.12
Dividends payable date		Mar. 25, 2020
Dividends payable, date of record		Mar. 04, 2020
Estimated cash dividend payable		$ 45
Subsequent Event [Member] \| Long Term Incentive Plan (the "2016" Plan) [Member] \| Employees [Member]
Subsequent Event [Line Items]
Estimated total grant-date fair value				$ 60
Subsequent Event [Member] \| Long Term Incentive Plan (the "2016" Plan) [Member] \| Employees [Member] \| PSUs [Member]
Subsequent Event [Line Items]
Estimated total grant-date fair value				$ 35
Performance period				4 years
Subsequent Event [Member] \| Minimum [Member] \| Long Term Incentive Plan (the "2016" Plan) [Member] \| Employees [Member] \| PSUs [Member]
Subsequent Event [Line Items]
Stock-based compensation PSU award percentage				0.00%
Subsequent Event [Member] \| Minimum [Member] \| Novel Coronavirus Outbreak [Member] \| China [Member]
Subsequent Event [Line Items]
Percentage of temporary closure of restaurants	30.00%
Subsequent Event [Member] \| Maximum [Member] \| Long Term Incentive Plan (the "2016" Plan) [Member] \| Employees [Member] \| PSUs [Member]
Subsequent Event [Line Items]
Stock-based compensation PSU award percentage				200.00%

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018	Oct. 31, 2016
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000	1,000,000,000
Common stock, shares issued	395,000,000	392,000,000	363,758,219
Common stock, shares outstanding	376,000,000	379,000,000	363,758,219

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

	2019
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	6,039	$	2,054	$	121	$	562	$	8,776	$	—		$	8,776
Inter-segment revenue		1		—		37		—		38		(38	)		—
Total	$	6,040	$	2,054	$	158	$	562	$	8,814	$	(38	)	$	8,776

	2018
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	5,688	$	2,111	$	99	$	517	$	8,415	$	—		$	8,415
Inter-segment revenue		—		—		16		—		16		(16	)		—
Total	$	5,688	$	2,111	$	115	$	517	$	8,431	$	(16	)	$	8,415

	2017
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination		Consolidated
Revenues
Revenue from external customers	$	5,066	$	2,093	$	106	$	504	$	7,769	$	—	$	7,769
Inter-segment revenue		—		—		—		—		—		—		—
Total	$	5,066	$	2,093	$	106	$	504	$	7,769	$	—	$	7,769

Operating Profit	2019			2018			2017
KFC^(b)	$	949		$	895		$	802
Pizza Hut		114			97			157
All Other Segments		(14	)		(12	)		(9	)
Unallocated revenues from transactions with franchisees and unconsolidated affiliates^(c)		558			514			504
Unallocated Other revenues		4			3			—
Unallocated expenses for transactions with franchisees and unconsolidated affiliates^(c)		(554	)		(512	)		(500	)
Unallocated Other operating costs and expenses		(4	)		(2	)		—
Unallocated and corporate G&A expenses		(145	)		(128	)		(185	)
Unallocated Closures and impairment expense^(d)		(11	)		(12	)		—
Unallocated Other income^(e)		4			98			9
Operating Profit		901			941			778
Interest income, net^(a)		39			36			25
Investment gain (loss)^(a)		63			(27	)		—
Income Before Income Taxes	$	1,003		$	950		$	803

	Depreciation and Amortization
	2019		2018		2017
KFC	$	290	$	296	$	265
Pizza Hut		120		129		126
All Other Segments		5		8		4
Corporate and Unallocated		13		12		14
	$	428	$	445	$	409

	Impairment Charges
	2019		2018		2017
KFC^(f)	$	16	$	14	$	27
Pizza Hut^(f)		20		26		31
All Other Segments^(f)		2		—		—
Corporate and Unallocated^(d)		11		12		—
	$	49	$	52	$	58

	Capital Spending
	2019		2018		2017
KFC	$	264	$	292	$	227
Pizza Hut		71		77		93
All Other Segments		10		6		2
Corporate and Unallocated		90		95		93
	$	435	$	470	$	415

	Total Assets
	2019		2018
KFC^(g)	$	3,160	$	1,745
Pizza Hut		950		558
All Other Segments		166		132
Corporate and Unallocated^(h)		2,674		2,175
	$	6,950	$	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 $69 million, $65 million and $65 million in 2019, 2018 and 2017, respectively.

(c)

(d)	Includes impairment charges on intangible assets and goodwill attributable to the Daojia business in 2019 and 2018, respectively. See Note 5.

(e)	In 2018, the unallocated other income primarily includes gain from re-measurement of previously held equity interest in connection with the acquisition of Wuxi KFC. See Note 5.

(f)	Primarily includes store closure impairment charges, restaurant-level impairment charges resulting from our semi-annual impairment evaluation, and incremental restaurant-level impairment charges as a result of adopting ASC 842. (See Note 12).

(g)	Includes investments in unconsolidated affiliates.

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

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

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Common Share

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

	2019		2018		2017
Net Income – Yum China Holdings, Inc.	$	713	$	708	$	398
Weighted-average common shares outstanding (for basic calculation)^(a)		377		384		387
Effect of dilutive share-based awards^(a)		8		9		10
Effect of dilutive warrants^(b)		3		2		1
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		388		395		398
Basic Earnings Per Share	$	1.89	$	1.84	$	1.03
Diluted Earnings Per Share	$	1.84	$	1.79	$	1.00
Share-based awards and warrants excluded from the diluted EPS computation^(c)		2		6		10

(a)

(b)

Pursuant to the investment agreements dated September 1, 2016 (Note 10), Yum China issued to strategic investors two tranches of warrants on January 9, 2017, with each tranche initially providing the right to purchase 8,200,405 shares of Yum China common stock, at an initial exercise price of $31.40 and $39.25 per share, respectively, subject to customary anti-dilution adjustments. The warrants 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 year exceeds the applicable exercise price of the warrants.

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

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
U.S. and foreign income (loss) before income taxes [Abstract]
U.S.	$ (7)	$ (3)	$ (13)
Mainland China	941	979	806
Other Foreign	69	(26)	10
Income Before Income Taxes	$ 1,003	$ 950	$ 803

Description of Business - Narrative (Details) $ in Millions	3 Months Ended		12 Months Ended
Description of Business - Narrative (Details) $ in Millions	Mar. 31, 2019 Segment	Mar. 31, 2018 USD ($)	Dec. 31, 2019 Restaurant Segment	Dec. 31, 2017 USD ($)
Segment Reporting Information [Line Items]
Entity, date of incorporation			Apr. 01, 2016
Entity incorporation, state name			DE
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%
Number of restaurants \| Restaurant			7,300
Number of reportable segments \| Segment	2		2
Wuxi KFC [Member]
Segment Reporting Information [Line Items]
Percentage of additional equity interest acquired		36.00%
Cash consideration paid to acquire interest		$ 98.0
Equity interest in acquiree, including subsequent acquisition, percentage		83.00%
Amount of cash consideration paid for the acquisition		$ 98.0
Daojia [Member]
Segment Reporting Information [Line Items]
Percentage of additional equity interest acquired				90.00%
Cash consideration paid to acquire interest				$ 36.7
Amount of cash consideration paid for the acquisition				$ 36.7
Percentage of equity interest acquired on a fully-diluted basis				80.00%
Additional capital				$ 25.0
KFC [Member] \| Minimum [Member]
Segment Reporting Information [Line Items]
Number of restaurants \| Restaurant			6,500
KFC [Member] \| Shanghai [Member] \| Owner and Operator of KFC [Member]
Segment Reporting Information [Line Items]
Controlling ownership percentage maintained			58.00%
KFC [Member] \| Beijing [Member] \| Owner and Operator of KFC [Member]
Segment Reporting Information [Line Items]
Controlling ownership percentage maintained			70.00%
KFC [Member] \| Hangzhou [Member] \| Owner and Operator of KFC [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned			47.00%
KFC [Member] \| Suzhou [Member] \| Owner and Operator of KFC [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned			47.00%
KFC [Member] \| Unconsolidated affiliates [Member] \| Hangzhou [Member] \| Owner and Operator of KFC [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned			47.00%
KFC [Member] \| Unconsolidated affiliates [Member] \| Suzhou [Member] \| Owner and Operator of KFC [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned			47.00%
Pizza Hut [Member] \| Minimum [Member]
Segment Reporting Information [Line Items]
Number of restaurants \| Restaurant			2,200

Share-Based Compensation (Details)	12 Months Ended
Share-Based Compensation (Details)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Award Valuation
Risk-free interest rate	2.50%	2.50%	1.90%
Expected term (years)	6 years 6 months	6 years 6 months	6 years 9 months
Expected volatility	32.00%	33.00%	34.00%
Expected dividend yield	1.20%	1.00%	0.00%

Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues
Total revenues	$ 2,029	$ 2,319	$ 2,124	$ 2,304	$ 1,914	$ 2,212	$ 2,068	$ 2,221	$ 8,776	$ 8,415	$ 7,769
Restaurant profit	225	372	283	386	199	353	286	361	1,266	1,199
Operating Profit	94	300	204	303	84	269	193	395	901	941	778
Net Income (Loss) – Yum China Holdings, Inc.	$ 90	$ 223	$ 178	$ 222	$ 74	$ 203	$ 143	$ 288	$ 713	$ 708	$ 398
Basic earnings (loss) per common share	$ 0.24	$ 0.59	$ 0.47	$ 0.59	$ 0.19	$ 0.53	$ 0.37	$ 0.75	$ 1.89	$ 1.84	$ 1.03
Diluted earnings (loss) per common share	$ 0.23	$ 0.58	$ 0.46	$ 0.57	$ 0.19	$ 0.51	$ 0.36	$ 0.72	$ 1.84	$ 1.79	$ 1.00
Company Sales [Member]
Revenues
Revenues	$ 1,813	$ 2,097	$ 1,926	$ 2,089	$ 1,721	$ 2,008	$ 1,888	$ 2,016	$ 7,925	$ 7,633	$ 6,993
Franchise [Member]
Revenues
Revenues	35	38	36	39	31	36	34	40	148	141	141
Transactions With Franchisees and Unconsolidated Affiliates [Member]
Revenues
Revenues	158	172	154	170	142	159	141	161	654	603	599
Other Revenues [Member]
Revenues
Revenues	$ 23	$ 12	$ 8	$ 6	$ 20	$ 9	$ 5	$ 4	$ 49	$ 38	$ 36

Credit Facilities - Narrative (Details) - 12 months ended Dec. 31, 2019 ¥ in Millions	USD ($)	CNY (¥)
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount	$ 415,000,000	¥ 2,893
Onshore Credit Facility [Member]
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount	215,000,000	1,500
Bank guarantees outstanding	12,000,000	¥ 85
Borrowings outstanding	0
Offshore Credit Facility [Member]
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount	$ 200,000,000
Revolving Credit Facility [Member]
Line Of Credit Facility [Line Items]
Credit facility terms	The credit facilities had remaining terms ranging from less than one year to three years as of December 31, 2019. Each credit facility bears interest based on the prevailing rate stipulated by the People’s Bank of China, Loan Prime Rate (“LPR”) published by the National Interbank Funding Centre of the PRC or London Interbank Offered Rate (“LIBOR”) administered by the ICE Benchmark Administration. Each credit facility contains a cross-default provision whereby our failure to make any payment on a principal amount from any credit facility will constitute a default on other credit facilities. Some of the credit facilities contain covenants limiting, among other things, certain additional indebtedness and liens, and certain other transactions specified in the respective agreement. Interest on any outstanding borrowings is due at least monthly.
Credit facility expiration start period	less than one year
Revolving Credit Facility [Member] \| Maximum [Member]
Line Of Credit Facility [Line Items]
Credit facility expiration period	3 years

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Summary of Supplemental Balance Sheet

Supplemental Balance Sheet
	12/31/2019		Account Classification
Assets
Operating lease right-of-use assets	$	1,985	Operating lease right-of-use assets
Finance lease right-of-use assets		18	Property, plant and equipment, net
Total leased assets	$	2,003

Liabilities
Current
Operating lease liabilities	$	382	Accounts payable and other current liabilities
Finance lease liabilities		2	Accounts payable and other current liabilities
Non-current
Operating lease liabilities		1,803	Non-current operating lease liabilities
Finance lease liabilities		26	Non-current finance lease liabilities
Total lease liabilities	$	2,213

Summary of Lease Cost

Summary of Lease Cost	Year Ended			Account Classification
	12/31/2019

Operating lease cost	$	472		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		2		Interest expense, net
Variable lease cost		325		Occupancy and other operating expenses or Franchise expenses
Short-term lease cost		10		Occupancy and other operating expenses or G&A
Sub-lease income		(27	)	Franchise fees and income or Other revenues
Total lease cost	$	783

Schedule of Supplemental Cash Flow Information

Supplemental Cash Flow Information	Year Ended
	12/31/2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	481
Operating cash flows from finance leases		1
Financing cash flows from finance leases		2
Right-of-use assets obtained in exchange for new lease liabilities^(a):
Operating leases	$	346
Finance leases		4

(a)	This supplemental non-cash disclosure for ROU obtained in exchange for new lease liabilities 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	12/31/2019
Weighted-average remaining lease term (years)
Operating leases		7.1
Finance leases		11.5

Weighted-average discount rate
Operating leases		6.1	%
Finance leases		5.9	%

Summary of Maturities of Lease Liabilities

Maturities of lease liabilities as of December 31, 2019 were as follows:

	Amount of Operating Leases		Amount of Finance Leases		Total
2020	$	504	$	4	$	508
2021		448		4		452
2022		389		4		393
2023		325		3		328
2024		261		3		264
Thereafter		781		21		802
Total undiscounted lease payment		2,708		39		2,747
Less: imputed interest ^(b)		523		11		534
Present value of lease liabilities	$	2,185	$	28	$	2,213

(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

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

3 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Earnings Per Share [Abstract]

Net Income – Yum China Holdings, Inc.

$ 90

$ 223

$ 178

$ 222

$ 74

$ 203

$ 143

$ 288

$ 713

$ 708

$ 398

Weighted-average common shares outstanding (for basic calculation)

^[1]

377

384

387

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

395

398

Basic Earnings Per Share

$ 0.24

$ 0.59

$ 0.47

$ 0.59

$ 0.19

$ 0.53

$ 0.37

$ 0.75

$ 1.89

$ 1.84

$ 1.03

Diluted Earnings Per Share

$ 0.23

$ 0.58

$ 0.46

$ 0.57

$ 0.19

$ 0.51

$ 0.36

$ 0.72

$ 1.84

$ 1.79

$ 1.00

Share-based awards and warrants excluded from the diluted EPS computation

^[3]

[1]	As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The incremental shares arising from outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect. See Note 14 for a further discussion of share-based compensation.
[2]	Pursuant to the investment agreements dated September 1, 2016 (Note 10), Yum China issued to strategic investors two tranches of warrants on January 9, 2017, with each tranche initially providing the right to purchase 8,200,405 shares of Yum China common stock, at an initial exercise price of $31.40 and $39.25 per share, respectively, subject to customary anti-dilution adjustments. The warrants 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 year exceeds the applicable exercise price of the warrants
[3]	These outstanding employee stock options, stock appreciation rights, RSUs, PSUs and warrants were not included in the computation of diluted EPS because to do so would have been antidilutive for the years presented.

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=117327953&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1252-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

+ Details

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=117327953&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

+ Details

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

+ References + Details

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

Dec. 31, 2019

Dec. 31, 2018

$ 185

^[1]

$ 195

(129)

(120)

^[2]

(14)

(12)

Total intangible assets

237

^[1]

248

Little Sheep [Member] | Trademark [Member]

116

Indefinite-lived intangible assets

Reacquired franchise rights [Member]

148

^[1]

150

(113)

(100)

Daojia platform [Member]

^[1]

(4)

(3)

^[2]

(12)

(10)

Customer-related assets [Member]

^[1]

(8)

^[2]

(2)

Others [Member]

^[3]

^[1]

^[3]

(4)

(9)

Summary of Significant Accounting Policies

^[3]

$ 5

$ 8

[1]	Changes in gross carrying amount include effect of currency translation adjustment.
[2]	In 2019 and 2018, we recorded impairment charges of $2 million and $12 million on intangible assets acquired from Daojia primarily attributable to the Daojia platform, respectively. See Note 5 for details.
[3]	Decrease in Others in 2019 is primarily due to the reclassification of favorable lease assets, with a gross value of $7 million and accumulated amortization of $5 million, to right-to-use assets upon adoption of ASC 842.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Note 2 – Summary of Significant Accounting Policies

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

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

The 3% license fees we pay to YUM for the right to sublicense the KFC, Pizza Hut and Taco Bell intellectual property to franchisees and unconsolidated affiliates are recorded in Franchise expenses.

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

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

See Note 16 for a further discussion of our income taxes.


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

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

Level 3		Inputs that are unobservable for the asset.

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

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

See Note 11 for further discussions on our leases.

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

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

Recently Adopted Accounting Pronouncements

The following table summarizes the effect on the Consolidated Balance Sheets 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 Yum China Holdings, Inc. Stockholders’ Equity		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.

Fair Value Measurements and Disclosures (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Assets Measured on Recurring Basis or Disclosed at Fair Value

			Fair Value Measurement or Disclosure at December 31, 2019
	Balance at December 31, 2019		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	407			$	407
Money market funds		331		331
Total cash equivalents		738		331		407		—
Short-term investments:
Time deposits		611				611
Total short-term investments		611				611
Other assets:
Investment in equity securities		110		110
Total	$	1,459	$	441	$	1,018	$	—

			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 income 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

	2019		2018		2017			Account Classification
ROU impairment prior to the adoption of ASC 842 ^(a)	$	82	$	—	$	—		Retained Earnings
Restaurant-level impairment ^(b)		28		27		41		Closure and impairment expenses, net
Daojia impairment ^(c)		11		12		—		Closure and impairment expenses, net
Income from the reversal of contingent consideration^(d)		—		—		(3	)	Other income, net
Total	$	121	$	39	$	38

(a)

(b)

(c)	See Note 5 for further discussion.

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

Leases - Summary of Lease Cost (Details) $ in Millions	12 Months Ended
Leases - Summary of Lease Cost (Details) $ in Millions	Dec. 31, 2019 USD ($)
Lease Cost [Abstract]
Operating lease cost	$ 472
Finance lease cost
Amortization of leased assets	1
Interest on lease liabilities	2
Variable lease cost	325
Short-term lease cost	10
Sub-lease income	(27)
Total lease cost	$ 783

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Definite-lived intangible assets
Finite-lived intangible assets, amortization expense	$ 16	$ 26	$ 14
Approximate amortization expense for finite-lived intangible assets - 2020	12
Approximate amortization expense for finite-lived intangible assets - 2021	12
Approximate amortization expense for finite-lived intangible assets - 2022	12
Approximate amortization expense for finite-lived intangible assets - 2023	2
Approximate amortization expense for finite-lived intangible assets - 2024	$ 1

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

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

The following table summarizes the effect on the Consolidated Balance Sheets 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 Yum China Holdings, Inc. Stockholders’ Equity		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.

Earnings Per Common Share ("EPS")

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Earning Per Common Share (EPS)

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

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

	2019		2018		2017
Net Income – Yum China Holdings, Inc.	$	713	$	708	$	398
Weighted-average common shares outstanding (for basic calculation)^(a)		377		384		387
Effect of dilutive share-based awards^(a)		8		9		10
Effect of dilutive warrants^(b)		3		2		1
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		388		395		398
Basic Earnings Per Share	$	1.89	$	1.84	$	1.03
Diluted Earnings Per Share	$	1.84	$	1.79	$	1.00
Share-based awards and warrants excluded from the diluted EPS computation^(c)		2		6		10

(a)

(b)

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

Summary of Significant Accounting Policies - Narrative (Details) - USD ($)
$ in Millions

12 Months Ended

Jan. 01, 2019

Dec. 31, 2019

Dec. 31, 2018

Summary Of Significant Accounting Policies [Line Items]

Future lease payments due from franchisees on a nominal basis

$ 47

Prepaid gift cards expiration period

36 months

Product vouchers maximum expiration period

12 months

Points expiration period

18 months

Operating lease liabilities

$ 1,985

2,185

ASU 2016-02 [Member]

Summary Of Significant Accounting Policies [Line Items]

Operating lease liabilities

$ 2,000

$ 1,997

^[1]

2,200

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

$ 60

Other Assets [Member]

Summary Of Significant Accounting Policies [Line Items]

Input VAT credit asset

243

226

Accounts Payable and Other Current Liabilities [Member]

Summary Of Significant Accounting Policies [Line Items]

VAT payable

$ 5

Summary Of Significant Accounting Policies [Line Items]

10 years

Summary Of Significant Accounting Policies [Line Items]

Little Sheep [Member] | Minimum [Member]

10 years

Summary Of Significant Accounting Policies [Line Items]

Little Sheep [Member] | Maximum [Member]

5 years

Summary Of Significant Accounting Policies [Line Items]