View Filing Data

Changes in fair value of financial instruments

640

488

Interest income, net

^[1]

Income Before Income Taxes

672

496

Income tax provision

(158)

(168)

(54)

Net income (loss) – including noncontrolling interests

514

328

(37)

Net income (loss) – noncontrolling interests

(30)

Net Income (Loss) – Yum China Holdings, Inc.

$ 502

$ 323

$ (7)

Basic Earnings (Loss) Per Common Share

$ 1.36

$ 0.89

$ (0.02)

Diluted Earnings (Loss) Per Common Share

$ 1.36

$ 0.89

$ (0.02)

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

Consolidated and Combined Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss) - including noncontrolling interests	$ 514	$ 328	$ (37)
Other comprehensive income (loss), net of tax of nil
Foreign currency losses arising during the year	(132)	(93)	(52)
Comprehensive income (loss) - including noncontrolling interests	382	235	(89)
Comprehensive income (loss) - noncontrolling interests	9	(1)	(32)
Comprehensive Income (Loss) - Yum China Holdings, Inc.	$ 373	$ 236	$ (57)

Consolidated and Combined Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flows – Operating Activities
Net income (loss) - including noncontrolling interests	$ 514	$ 328	$ (37)
Depreciation and amortization	402	425	411
Closures and impairment expenses	78	64	517
Refranchising gain	(15)	(13)	(17)
Deferred income taxes	(40)	29	(104)
Equity income from investments in unconsolidated affiliates	(54)	(41)	(30)
Distributions of income received from unconsolidated affiliates	35	21	28
Excess tax benefit from share-based compensation	(2)	(3)	(2)
Share-based compensation expense	16	14	13
Changes in fair value of financial instruments	(21)
Changes in accounts receivable	(54)	(5)	(5)
Changes in inventories	(96)	61	(21)
Changes in prepaid expenses and other current assets	7	(8)	21
Changes in accounts payable and other current liabilities	123	31	39
Changes in income taxes payable	6	(14)	(44)
Other, net	(35)	21	6
Net Cash Provided by Operating Activities	864	910	775
Cash Flows – Investing Activities
Capital spending	(436)	(512)	(525)
Purchases of short-term investments	(136)	(40)	(427)
Maturities of short-term investments	53	40	427
Proceeds from refranchising of restaurants	32	27	31
Proceeds from disposal of aircraft	19
Other, net	(3)	(8)	(18)
Net Cash Used in Investing Activities	(471)	(493)	(512)
Cash Flows – Financing Activities
Net transfers to Parent	(357)	(214)	(316)
Payment of capital lease obligations	(3)	(2)	(1)
Short-term borrowings, by original maturity
More than three months – proceeds			2
More than three months – payments			(2)
Excess tax benefit from share-based compensation	2	3	2
Proceeds from issuance of common stock and warrants	460
Other, net	(7)		(4)
Net Cash Provided by (Used in) Financing Activities	95	(213)	(319)
Effect of Exchange Rates on Cash and Cash Equivalents	(28)	(17)	(6)
Net Increase (Decrease) in Cash and Cash Equivalents	460	187	(62)
Cash and Cash Equivalents – Beginning of Year	425	238	300
Cash and Cash Equivalents – End of Year	885	425	238
Supplemental Cash Flow Data
Cash paid for income tax	$ 182	$ 143	$ 186

Consolidated and Combined Balance Sheets - USD ($)
$ in Millions

Dec. 31, 2016

Dec. 31, 2015

Current Assets

Cash and cash equivalents

$ 885

$ 425

Short-term investments

Accounts receivable, net

Inventories, net

268

189

Prepaid expenses and other current assets

120

152

Total Current Assets

1,426

799

Property, plant and equipment, net

1,647

1,841

Goodwill

Intangible assets, net

107

Investments in unconsolidated affiliates

Other assets

254

192

Deferred income taxes

162

116

Total Assets

3,727

3,201

Current Liabilities

Accounts payable and other current liabilities

971

926

Income taxes payable

Total Current Liabilities

1,004

948

Capital lease obligations

Other liabilities and deferred credits

252

234

Total Liabilities

1,284

1,216

Redeemable Noncontrolling Interest

Equity

Common stock, $0.01 par value; 1,000,000,000 shares authorized; 383,344,835.42 shares issued and outstanding at December 31, 2016

Treasury stock

(20)

Additional paid-in capital

2,352

Retained earnings(a)

^[1]

Parent Company Investment(b)

^[2]

1,791

Accumulated other comprehensive income

130

Total Equity – Yum China Holdings, Inc.

2,377

1,921

Noncontrolling interests

Total Equity

2,443

1,979

Total Liabilities, Redeemable Noncontrolling Interest and Equity

$ 3,727

$ 3,201

[1]	Retained earnings represent the Company’s earnings after taxes generated from November 1, 2016 to December 31, 2016.
[2]	Parent Company Investment represents YUM’s historical investment in the Company, the Company’s accumulated net earnings after taxes, and the net effect of transactions with and allocations from YUM. Upon the separation, Parent Company Investment was reclassified into the Company’s common stock and additional paid-in capital.

Consolidated and Combined Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Oct. 31, 2016
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000
Common stock, shares issued	383,344,835.42	363,758,219
Common stock, shares outstanding	383,344,835.42	363,758,219

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

Total

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

Accumulated Other Comprehensive Income [Member]

Parent Company Investment [Member]

Noncontrolling Interests [Member]

Treasury Stock [Member]

Total equity Including Noncontrolling Interest [Member]

Redeemable Noncontrolling Interest [Member]

Balance at Dec. 31, 2013

$ 267

$ 2,014

$ 63

$ 2,344

$ 39

Net Income (loss)

$ (37)

(7)

(1)

(8)

(29)

Foreign currency translation gains (losses)

(52)

(50)

(1)

(51)

(1)

Comprehensive income (loss) - including noncontrolling interests

(89)

(59)

(30)

Dividends declared

(4)

Net transfers to Parent

(336)

Balance at Dec. 31, 2014

217

1,671

1,945

Net Income (loss)

328

323

329

(1)

Foreign currency translation gains (losses)

(93)

(87)

(4)

(91)

(2)

Comprehensive income (loss) - including noncontrolling interests

235

238

(3)

Acquisition of Little Sheepstore-level noncontrolling interests

(1)

Net transfers to Parent

(204)

Balance at Dec. 31, 2015

1,979

130

1,791

1,979

Net Income (loss)

514

$ 40

462

521

Noncontrolling interest loss upon redemption

(8)

Foreign currency translation gains (losses)

(132)

(129)

(4)

(133)

Comprehensive income (loss) - including noncontrolling interests

382

388

(6)

Dividends declared

(7)

Acquisition of Little Sheepstore-level noncontrolling interests

$ (8)

Net transfers to Parent

(360)

Capitalization at separation

$ 4

$ 1,889

$ (1,893)

Capitalization at separation (in shares)

363,758,219.00

Issuance of common stock to Investors

364

Issuance of common stock to Investors (in shares)

19,145,169.42

Reclassification of warrants issued to Investors

Stock repurchased from Investors

^[1]

$ (20)

(20)

Stock repurchased from Investors (in shares)

^[1]

(784,686.42)

Exercise and vesting of share-based awards

441,447.00

Share-based compensation

Balance at Dec. 31, 2016

$ 2,443

$ 4

$ 2,352

$ 40

$ 1

$ 66

$ (20)

$ 2,443

Balance (in shares) at Dec. 31, 2016

383,344,835.42

(784,686.42)

[1]

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

Consolidated and Combined Statements of Equity (Parenthetical) - shares

12 Months Ended

Jan. 09, 2017

Nov. 01, 2016

Dec. 31, 2016

Treasury Stock [Member]

Shares repurchased from strategic investors

^[1]

784,686.42

Treasury Stock [Member] | Subsequent Event [Member]

Shares repurchased from strategic investors

784,686.42

Common Stock [Member]

Shares issued subject to post-closing adjustment

19,145,169.42

[1]

Description of Business

12 Months Ended

Dec. 31, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of Business

Note 1 – Description of Business

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

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

The operations of each Concept represent an operating segment of the Company within these Consolidated and Combined Financial Statements. We have two reportable segments: KFC and Pizza Hut Casual Dining. Our remaining operating segments, including the operations of Pizza Hut Home Service, East Dawning, Little Sheep and Taco Bell, are combined and referred to as All Other Segments, as those operating segments are insignificant both individually and in the aggregate.

In 1987, KFC was the first quick-service restaurant brand to enter China. As of December 31, 2016, there are over 5,200 KFCs in China. We maintain a 58% and 70% controlling interest in the entities that own and operate the KFCs in Shanghai and Beijing, respectively. We have a 47% noncontrolling ownership in each of our unconsolidated affiliates that own and operate KFCs in Hangzhou, Suzhou and Wuxi.

KFC Unit Count	2016		2015		2014
Company - owned		3,913		3,821		3,732
Unconsolidated affiliates		836		796		757
Franchise		475		386		339
		5,224		5,003		4,828

The first Pizza Hut Casual Dining in China opened in 1990. As of December 31, 2016, there are over 1,700 Pizza Hut Casual Dining restaurants in China.

Pizza Hut Casual Dining Unit Count	2016		2015		2014
Company - owned		1,690		1,556		1,310
Franchise		24		16		3
		1,714		1,572		1,313

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2 – Summary of Significant Accounting Policies

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

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

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

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

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

Our most significant variable interests are in entities that operate restaurants under franchise arrangements. We do not generally have an equity interest in our franchisee businesses with the exception of certain entities discussed below. Additionally, we do not typically provide significant financial support such as loans or guarantees to our franchisees. We have variable interests in certain entities that operate restaurants under franchise agreements through real estate lease arrangements with them to which we are a party. At December 31, 2016, the Company had future lease payments due from franchisees, on a nominal basis, of approximately $95 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.

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

We have a noncontrolling 47% interest in each of the entities that operate the KFCs in Hangzhou, Suzhou and Wuxi. We account for these entities by the equity method. 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.

At December 31, 2015, the founding shareholders that owned the remaining 7% ownership interest in Little Sheep held an option that, if exercised, requires us to redeem their noncontrolling interest. This redeemable noncontrolling interest was classified outside permanent equity and recorded in the Consolidated and Combined Balance Sheets at the greater of the initial carrying amount adjusted for the noncontrolling interest’s share of net income (loss), or its redemption value, as of December 31, 2015. During the year ended December 31, 2016, the Little Sheep founding shareholders sold their remaining 7% Little Sheep ownership interest to us pursuant to their redemption rights.

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

Fiscal Calendar. Our fiscal year ends on December 31. The Company operates on a fiscal monthly calendar, with two months in the first quarter, three months in the second and third quarters and four months in the fourth quarter.

Foreign Currency. Our functional currency for the operating entities in China is the Chinese Renminbi (“RMB”), the currency of the primary economic environment in which they operate. Income and expense accounts for our operations are then translated into U.S. dollars at the average exchange rates prevailing during the period. Assets and liabilities are then translated into U.S. dollars at exchange rates in effect at the balance sheet date. As of December 31, 2016, net cumulative translation adjustment gains of $1 million were recorded in Accumulated other comprehensive income in the Consolidated and Combined Balance Sheets. Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency, to the extent they arise, are included in Other income, net in our Consolidated and Combined Statements of Income.

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

The internal costs we incur to provide support services to our franchisees are charged to General and Administrative (“G&A”) expenses as incurred. Certain direct costs of our franchise operations are charged to Franchise expenses. These costs include provisions for estimated uncollectible fees, rent or depreciation expense associated with restaurants we sublease to franchisees, and certain other direct incremental franchise support costs. The 3% license fee we pay to YUM for the right to sublicense the KFC, Pizza Hut and Taco Bell intellectual property is also recorded in Franchise expenses.

License fees due to YUM for our Company-owned stores are included within restaurant margin in Occupancy and other operating expenses in the Consolidated and Combined Statements of Income. License fees due to YUM on franchise sales are included in Franchise Expenses. Total license fees paid to YUM were $249 million, $269 million and $265 million during the years ended December 31, 2016, 2015 and 2014.

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

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

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

The recorded liability related to these customer loyalty programs totaled $4 million as of December 31, 2016. The Company estimates the value of the future redemption obligations using statistical formulas that project timing of future point redemptions based on historical levels, including an estimate of the breakage for points that members will never redeem, and an estimate of the points that members will eventually redeem. A ten percent reduction in the estimate of breakage would have increased the estimated liability as of December 31, 2016 by $1 million.

Direct Marketing Costs. We charge direct marketing costs to expense ratably in relation to revenues over the year in which incurred and, in the case of advertising production costs, in the year the advertisement is first shown. Deferred direct marketing costs, which are classified as prepaid expenses, consist of media and related advertising production costs which will generally be used for the first time in the next fiscal year and have historically not been significant. Our direct marketing expenses were $332 million, $327 million and $328 million in 2016, 2015 and 2014, respectively. We report direct marketing costs in Occupancy and other operating expenses.

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

Research and Development Expenses. Research and development expenses, which are expensed as incurred, are reported in G&A expenses. Research and development expenses were $5 million in each of 2016, 2015 and 2014.

Share-Based Compensation. Prior to the separation, all employee equity awards were granted by YUM. Upon the separation, holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards of either YUM or Yum China in their entirety, to maintain the pre-separation intrinsic value of the awards. The modified equity awards have the same terms and conditions as the awards held immediately before the separation, except the number of shares and the price were adjusted. The incremental compensation cost, measured as the excess of the fair value of the award immediately after the modification over the fair value of the award immediately before the modification, based on Black-Scholes option-pricing model was immaterial, and YUM and the Company continue to recognize the unamortized fair value of the awards over the remaining requisite service period as their respective employees continue to provide services. All awards granted following the separation were granted under the Company’s Long Term Incentive Plan (the “2016 Plan”). We recognize all share-based payments to employees and directors, including grants of stock options, restricted stock units (“RSU”) and stock appreciation rights (“SARs”), in the Consolidated and Combined Financial Statements as compensation cost over the service period based on their fair value on the date of grant. This compensation cost is recognized over the service period on a straight-line basis for awards that actually vest. We present this compensation cost consistent with the other compensation costs for the employee recipient in G&A expenses. Share-based compensation expense includes an allocation of amounts incurred by YUM for services provided on our behalf prior to the separation. See Note 15 for further discussion of YUM’s share-based compensation plans.

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

For purposes of impairment testing for our restaurants, we have concluded that an individual restaurant is the lowest level of independent cash flows unless our intent is to refranchise restaurants as a group. We review our long-lived assets of such individual restaurants (primarily PP&E and allocated intangible assets subject to amortization) semi-annually for impairment, or whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. We use two consecutive years of operating losses after a restaurant has been open for three years as our primary indicator of potential impairment for our semi-annual impairment testing of these restaurant assets. We evaluate the recoverability of these restaurant assets by comparing the estimated undiscounted future cash flows, which are based on our entity-specific assumptions, to the carrying value of such assets. Our impairment indicator and recoverability tests do not include a deduction for license fees paid to YUM before the separation on October 31, 2016. However, such license fee paid to YUM is included in the impairment indicator and recoverability tests after the separation, as our relationship with YUM changed from the one between a subsidiary and its parent prior to the separation to the one between a licensee and a third-party licensor after the separation. As a result of including license fees paid to YUM, we performed an additional impairment assessment as of November 1, 2016 and recognized incremental restaurant-level impairment of $17 million. For restaurant assets that are not deemed to be recoverable, we write down an impaired restaurant to its estimated fair value, which becomes its new cost basis. Fair value is an estimate of the price a franchisee would pay for the restaurant and its related assets and is determined by discounting the estimated future after-tax cash flows of the restaurant, which include a deduction for royalties we would receive under a franchise agreement with terms substantially at market. The after-tax cash flows incorporate reasonable assumptions we believe a franchisee would make such as sales growth and margin improvement. The discount rate used in the fair value calculation is our estimate of the required rate-of-return that a franchisee would expect to receive when purchasing a similar restaurant and the related long-lived assets. The discount rate incorporates rates of returns for historical refranchising market transactions and is commensurate with the risks and uncertainty inherent in the forecasted cash flows.

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

When we decide to close a restaurant, it is reviewed for impairment and depreciable lives are adjusted based on the expected disposal date. Other costs incurred when closing a restaurant such as costs of disposing of the assets as well as other facility-related expenses from previously closed stores are generally expensed as incurred. Additionally, at the date we cease using a property under an operating lease, we record a liability for the net present value of any remaining lease obligations, net of estimated sublease income, if any. Any costs recorded upon store closure as well as any subsequent adjustments to liabilities for remaining lease obligations as a result of lease termination or changes in estimates of sublease income are recorded in Closures and impairment expenses. In the event we are forced to close a store and receive compensation for such closure, that compensation is recorded in Closures and impairment expenses. To the extent we sell assets associated with a closed store, any gain or loss upon that sale is also recorded in Closures and impairment expenses.

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

Impairment of Investments in Unconsolidated Affiliates. We record impairment charges related to an investment in an unconsolidated affiliate whenever events or circumstances indicate that a decrease in the fair value of an investment has occurred which is other than temporary. In addition, we evaluate our investments in unconsolidated affiliates for impairment when they have experienced two consecutive years of operating losses.

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

Income Taxes. Prior to October 31, 2016, the Company’s results have historically been included in the consolidated U.S. federal income tax return and U.S. state income tax filings of YUM. The Company has computed its provision for income taxes on a separate return basis in these Consolidated and Combined Financial Statements. The separate return method applies the accounting guidance for income taxes to the standalone financial statements as if the Company was a separate taxpayer and a standalone enterprise for the periods presented prior to October 31, 2016. The calculation of income taxes for the Company on a separate return basis requires a considerable amount of judgment and use of both estimates and allocations. Subsequent to October 31, 2016, the Company became a separate taxpayer and will prepare its own consolidated U.S. federal income tax return and U.S. state income tax filings.

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

We recognize the benefit of positions taken or expected to be taken in our tax returns when it is more likely than not, which is a likelihood of more than fifty percent, that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon settlement. We evaluate these amounts on a quarterly basis to ensure that they have been appropriately adjusted for audit settlements and other events we believe may impact the outcome. Changes in judgment that result in subsequent recognition, derecognition or a change in measurement of a tax position taken in a prior annual period (including any related interest and penalties) are recognized as a discrete item in the interim period in which the change occurs. We recognize accrued interest and penalties related to unrecognized tax benefits as components of our Income tax provision.

We do not record a U.S. deferred tax liability for the excess of the book basis over the tax basis of our investments in foreign subsidiaries to the extent that the basis difference results from earnings that meet the indefinite reversal criteria. This criteria is met if the foreign subsidiary has invested, or will invest, the undistributed earnings indefinitely. The decision as to the amount of undistributed earnings that we intend to maintain in non-U.S. subsidiaries considers items including, but not limited to, forecasts and budgets of financial needs of cash for working capital, liquidity plans and expected cash requirements in the United States.

In November, 2015 the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), to simplify the presentation of deferred taxes on the balance sheet. ASU 2015-17 requires organizations that present a classified balance sheet to classify all deferred taxes as noncurrent assets or noncurrent liabilities. We have elected to early adopt this guidance as of December 31, 2015.

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

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


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

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

Level 3		Inputs that are unobservable for the asset.

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

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

Receivables. Trade receivables consisting of royalties from franchisees are generally due within 30 days of the period in which the corresponding sales occur and are classified as Accounts receivable on our Consolidated and Combined Balance Sheets. Our provision for uncollectible franchise receivable balances is based upon pre-defined aging criteria or upon the occurrence of other events that indicate that we may not collect the balance due. Additionally, we monitor the financial condition of our franchisees and record provisions for estimated losses on receivables when we believe it probable that our franchisees will be unable to make their required payments. While we use the best information available in making our determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond our control. Trade receivables that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts. Receivables due from unconsolidated affiliates were $53 million and $19 million as of December 31, 2016 and 2015, respectively.

Receivables from Payment Processors or Aggregators. Receivables from payment processors such as WeChat and Alipay or aggregators are cash due from them for clearing transactions and are included in Prepaid expenses and other current assets. The cash was paid by customers through these payment processors or aggregators for food provided by the Company. The Company considers and monitors the credit worthiness of the third-party payment processors and aggregators used. An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable. Receivable balances are written off after all collection efforts have been exhausted. As of December 31, 2016, no allowance for doubtful accounts was provided for such receivables.

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

Property, Plant and Equipment. We state PP&E at cost less accumulated depreciation and amortization. We calculate depreciation and amortization on a straight-line basis over the estimated useful lives of the assets as follows: 20 years for buildings, the lesser of 8 years and remaining lease term for leasehold improvements, 5 to 10 years for restaurant machinery and equipment and 3 to 5 years for capitalized software costs. We suspend depreciation and amortization on assets related to restaurants that are held for sale.

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

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

From time to time, we purchase the rights to use government-owned land for a fixed period of time. These land use rights are recorded in Other Assets in our Consolidated and Combined Balance Sheets as we are purchasing the right and are a legal party to the underlying land grant, and are amortized to rent expense on a straight-line basis over the term of the land use right.

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

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

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

If we record goodwill upon acquisition of a restaurant(s) from a franchisee and such restaurant(s) is then sold within two years of acquisition, the goodwill associated with the acquired restaurant(s) is written off in its entirety. If the restaurant is refranchised two years or more subsequent to its acquisition, we include goodwill in the carrying amount of the restaurants disposed of based on the relative fair values of the portion of the reporting unit disposed of in the refranchising and the portion of the reporting unit that will be retained. The fair value of the portion of the reporting unit disposed of in a refranchising is determined by reference to the discounted value of the future cash flows expected to be generated by the restaurant and retained by the franchisee, which includes a deduction for the anticipated, future royalties the franchisee will pay us associated with the franchise agreement entered into simultaneously with the refranchising transition. The fair value of the reporting unit retained is based on the price a willing buyer would pay for the reporting unit and includes the value of franchise agreements. Appropriate adjustments are made if a franchise agreement includes terms that are determined to not be at prevailing market rates. As such, the fair value of the reporting unit retained can include expected cash flows from future royalties from those restaurants currently being refranchised, future royalties from existing franchise businesses and company restaurant operations. As a result, the percentage of a reporting unit’s goodwill that will be written off in a refranchising transaction will be less than the percentage of the reporting unit’s Company-owned restaurants that are refranchised in that transaction.

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

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

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

Financial Instruments. We account for derivative instruments and liability-classified equity contracts (e.g., warrants) as either assets or liabilities in the Consolidated and Combined Balance Sheets. The financial instruments are recorded at their respective fair value as determined on the day of issuance and subsequently adjusted to the fair value at each reporting date. Changes in the fair value of financial instruments are recognized periodically in the Consolidated and Combined Statements of Income (Loss). The estimated fair values of derivative instruments and liability-classified equity contracts are determined at discrete points in time using standard valuation techniques. See Note 13 for further discussion.

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

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

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

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

For executives who were hired or re-hired after September 30, 2001, YUM has implemented the Leadership Retirement Plan (“YUM LRP”). This is an unfunded, unsecured account-based retirement plan which allocates a percentage of pay to an account payable to the executive following the executive’s separation of employment from YUM or attainment of age 55. The Company adopted YCHLRP upon the separation, and the terms of the YCHLRP are substantially similar to the terms of the YUM LRP. The Company also offers other defined contribution plans to employees. The total contribution for such employee benefits was expensed as incurred. The Company has no additional legal obligation or liabilities for the benefits beyond the paid and accrued amounts. See Note 14 for additional information.

PRC Value-Added Tax. On January 1, 2012, the Chinese State Council officially launched a retail tax structure reform program (“VAT pilot program” or “VAT reform”), applicable to businesses in selected industries, whereby entities in these industries would pay VAT instead of business tax (“BT”). Since January 1, 2012, the Chinese government has gradually expanded the scope of the VAT reform to cover most service sectors. Effective as of May 1, 2016, the Chinese government extended the VAT reform to all remaining sectors still subject to BT, including the catering sector. Thus, the Company has been subject to VAT within the normal course of its restaurant business nationwide since May 1, 2016.

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

As of December 31, 2016, an input VAT credit asset of $80 million and payable of $3 million were recorded in Other assets and Accounts payable and other current liabilities, respectively, in the Consolidated and Combined Balance Sheets. The Company has not made an allowance for the recoverability of the input VAT credit asset, as the balance is expected to be utilized to offset against net VAT payables more than one year from December 31, 2016. Any input VAT credit asset would be classified as Prepaid expenses and other current assets if the Company expected to use the credit within one year.

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

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

Transactions with Parent

12 Months Ended

Dec. 31, 2016

Transactions with Parent

Note 3 – Transactions with Parent

Prior to the separation, there existed a parent-subsidiary relationship between YUM and the Company. We had the following transactions with YUM for the ten months ended October 31, 2016 and the years ended December 31, 2015 and 2014:

Allocation of Corporate Expenses

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

Corporate expense allocations primarily relate to centralized corporate functions, including finance, accounting, treasury, tax, legal, internal audit and risk management functions. In addition, corporate expense allocations include, among other costs, IT maintenance, professional fees for legal services and expenses related to litigation, investigations, or similar matters. Corporate allocations of $11 million, $12 million and $11 million were allocated to the Company during the ten months ended October 31, 2016 and the years ended December 31, 2015 and 2014, respectively, and have been included in G&A expenses in the Consolidated and Combined Statements of Income. All of the corporate allocations of costs are deemed to have been incurred and settled through Parent Company Investment in the Consolidated and Combined Balance Sheets in the period where the costs were recorded. Following the separation from YUM, we perform these functions using our own resources or purchased services.

License Fee

The Consolidated and Combined Statements of Income include a fee that was historically paid to YUM comprised of initial fees and continuing fees equal to 3% of our Company and franchise sales prior to October 31, 2016. Total license fees paid to YUM during the ten months ended October 31, 2016 and the years ended December 31, 2015 and 2014 are reflected in the table below:

	10 months ended		Year ended
	October 31,		December 31,		December 31,
	2016		2015		2014
Initial fees – Company	$	9	$	18	$	17
Initial fees – Franchise		2		3		2
Continuing fees – Company		163		201		200
Continuing fees – Franchise		42		47		46
Total	$	216	$	269	$	265

Cash Management and Treasury

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

Earnings Per Common Share ("EPS")

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Earning Per Common Share (EPS)

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

On October 31, 2016, YUM’s shareholders of record as of October 19, 2016 received one share of Yum China common stock for every one share of YUM’s common stock held as of the record date. For periods ended October 31, 2016 and prior, basic and diluted earnings per share were computed using the number of shares of Yum China common stock outstanding as of October 31, 2016, the date on which the Yum China common stock was distributed to YUM’s shareholders. The same number of shares was used to calculate basic and diluted earnings per share for years 2015 and 2014 since there were no dilutive securities until after the separation.

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

	2016		2015		2014
Net Income (Loss) – Yum China Holdings, Inc.	$	502	$	323	$	(7	)
Weighted-average common shares outstanding (for basic calculation)^(a)		367,744,992		363,758,219		363,758,219
Effect of dilutive share-based employee compensation^(a)		1,398,846		—		—
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		369,143,838		363,758,219		363,758,219
Basic Earnings (Loss) Per Share	$	1.36	$	0.89	$	(0.02	)
Diluted Earnings (Loss) Per Share	$	1.36	$	0.89	$	(0.02	)
Employee stock options, stock appreciation rights and warrants excluded from the diluted EPS computation^(b)		16,987,578		—		—

(a)

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

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

Items Affecting Comparability of Net Income and Cash Flows

12 Months Ended

Dec. 31, 2016

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

Comparability of Prior Year Financial Data

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

Little Sheep Impairment

On February 1, 2012, we acquired an additional 66% interest in Little Sheep Group Limited (“Little Sheep”) for $540 million, net of cash acquired of $44 million, increasing our ownership to 93%. The primary assets recorded as a result of the acquisition and resulting consolidation of Little Sheep were the Little Sheep trademark and goodwill of approximately $400 million and $375 million, respectively.

Sustained declines in sales and profits in 2013 resulted in a determination that the Little Sheep trademark, goodwill and certain restaurant level PP&E were impaired. As a result, we recorded impairment charges to the trademark, goodwill and PP&E of $69 million, $222 million and $4 million, respectively, during the year ended December 31, 2013. We also recorded tax benefit of $18 million and loss of $19 million attributable to noncontrolling interest in connection with the impairment charges recorded. The Little Sheep business continued to underperform during 2014 and a significant number of Company-operated restaurants were closed or refranchised during 2014 with future plans calling for further focus on franchise-ownership for the Concept. As a result, we recorded impairment charges to the trademark, goodwill, and PP&E of $284 million, $160 million and $14 million, respectively, and a $5 million impairment of our equity method investment in a meat processing business that supplies lamb to Little Sheep during the year ended December 31, 2014. We also recorded tax benefit of $76 million and loss of $26 million attributable to noncontrolling interest in connection with the impairment charges recorded.

The losses related to Little Sheep that have occurred concurrent with our trademark and goodwill impairments in 2014 and 2013 were included in Closures and impairment expenses, net in our Consolidated and Combined Statement of Income, but were not allocated to any segment for performance reporting purposes. There were no impairment charges related to Little Sheep during the years ended December 31, 2016 and 2015. During the year ended December 31, 2016, we recorded a tax benefit of $26 million related to the legal entity restructuring of our Little Sheep business.

Refranchising Gain, net

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

	Refranchising gain, net
	2016		2015		2014
KFC	$	14	$	8	$	17
Pizza Hut Casual Dining		1		3		—
All Other Segments		—		2		—
Total Company	$	15	$	13	$	17

Store Closure and Impairment Activity

Store closure income (costs) and Store impairment charges by reportable segment and All Other Segments are presented below. These tables exclude $463 million of Little Sheep impairment losses in 2014 and $17 million of incremental restaurant-level impairment upon the separation in 2016, which were not allocated to any segment for performance reporting purposes.

	2016
	Total Company			KFC			Pizza Hut Casual Dining			All Other Segments
Store closure income (costs)^(a)	$	9		$	7		$	1		$	1
Store impairment charges		(70	)		(48	)		(18	)		(4	)
Closure and impairment expenses	$	(61	)	$	(41	)	$	(17	)	$	(3	)

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

	2014
	Total Company			KFC			Pizza Hut Casual Dining			All Other Segments
Store closure income (costs)^(a)	$	—		$	2		$	1		$	(3	)
Store impairment charges		(54	)		(43	)		(3	)		(8	)
Closure and impairment expenses	$	(54	)	$	(41	)	$	(2	)	$	(11	)

(a)

Store closure income (costs) include lease reserves established when we cease using a property under an operating lease and subsequent adjustments to those reserves, other facility-related expenses from previously closed stores and proceeds from forced store closures. Remaining lease obligations for the closed stores were not material at December 31, 2016 or December 31, 2015.

Redeemable Noncontrolling Interest

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

Losses Associated with Sale of Aircraft

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

Incremental Restaurant-Level Impairment upon Separation

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

Investment Agreements with Strategic Investors

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

Franchise Fees and Income

12 Months Ended

Dec. 31, 2016

Franchisor Revenue [Abstract]

Franchise Fees and Income

Note 6 – Franchise Fees and Income

	2016			2015			2014
Initial fees, including renewal fees	$	10		$	9		$	7
Initial franchise fees included in Refranchising gain, net		(4	)		(3	)		(3	)
		6			6			4
Continuing fees and rental income		124			114			109
Franchise fees and income	$	130		$	120		$	113

Other Income, Net

12 Months Ended

Dec. 31, 2016

Other Income And Expenses [Abstract]

Other Income, Net

Note 7 – Other Income, net

	2016			2015			2014
Equity income from investments in unconsolidated affiliates	$	54		$	41		$	30
China poultry supply insurance recovery^(a)		3			5			25
Reversal of (provision for) losses associated with sale of aircraft		2			(15	)		—
Foreign exchange net loss and other		(3	)		(5	)		(4	)
Other income, net	$	56		$	26		$	51

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

Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2016

Supplemental Balance Sheet Information Disclosure [Abstract]

Supplemental Balance Sheet Information

Note 8 – Supplemental Balance Sheet Information

Accounts Receivables, net	2016			2015
Accounts receivables, gross	$	76		$	35
Allowance for doubtful accounts		(2	)		(2	)
Accounts receivables, net	$	74		$	33

Prepaid Expenses and Other Current Assets	2016		2015
Assets held for sale^(a)	$	—	$	18
Prepaid rent		39		53
Other prepaid expenses and current assets^(b)		81		81
Prepaid expenses and other current assets	$	120	$	152

(a)	Reflects the carrying value of a corporate aircraft in China (See Note 5).

(b)	Includes receivables of $16 million and insignificant amounts due from payment processors or aggregators as of December 31, 2016 and 2015, respectively (See Note 2).

Property, Plant and Equipment	2016			2015
Buildings and improvements	$	2,029		$	2,231
Capital leases, primarily buildings		29			35
Machinery and equipment		1,081			1,171
Property, plant and equipment, gross		3,139			3,437
Accumulated depreciation and amortization		(1,492	)		(1,596	)
Property, plant and equipment, net	$	1,647		$	1,841

Depreciation and amortization expense related to property, plant and equipment was $385 million, $408 million and $392 million in 2016, 2015 and 2014, respectively.

Accounts Payable and Other Current Liabilities	2016		2015
Accounts payable	$	480	$	438
Accrued capital expenditures		132		153
Accrued compensation and benefits		191		180
Accrued taxes, other than income taxes		14		42
Other current liabilities		154		113
Accounts payable and other current liabilities	$	971	$	926

Other Liabilities and Deferred Credits	2016		2015
Deferred escalating minimum rent	$	153	$	162
Other noncurrent liabilities and deferred credits		99		72
Other liabilities and deferred credits	$	252	$	234

Noncontrolling Interests

Noncontrolling interests represent the ownership interests of minority shareholders of the entities that operate KFC restaurants in Beijing and Shanghai, China. At December 31, 2015, the redeemable noncontrolling interest comprised the 7% ownership interest in Little Sheep held by the Little Sheep founding shareholders, and was classified outside of permanent equity on our Consolidated and Combined Balance Sheets due to redemption rights held by the founding Little Sheep shareholders. During the year ended December 31, 2016, the Little Sheep founding shareholders sold their remaining 7% Little Sheep ownership interest to the Company pursuant to their redemption rights. The difference between the purchase price of less than $1 million, which was determined using a non-fair value based formula pursuant to the agreement governing the redemption rights, and the carrying value of their redeemable noncontrolling interest was recorded as an $8 million loss attributable to noncontrolling interests during the year ended December 31, 2016. Consistent with our 2012 gain on the acquisition of Little Sheep and subsequent impairments of Little Sheep goodwill and intangibles in 2013 and 2014, the loss attributable to noncontrolling interests is not being allocated to any segment operating results. A reconciliation of the beginning and ending carrying amount of the equity attributable to noncontrolling interests is as follows:

	Noncontrolling Interests			Redeemable Noncontrolling Interest
Balance at December 31, 2014	$	57		$	9
Net income (loss) – noncontrolling interests		6			(1	)
Acquisition of noncontrolling interests		(1	)		—
Currency translation adjustments		(4	)		(2	)
Balance at December 31, 2015	$	58		$	6
Net income – noncontrolling interests		19			1
Noncontrolling interest loss upon redemption		—			(8	)
Dividends declared		(7	)		—
Currency translation adjustments		(4	)		1
Balance at December 31, 2016	$	66		$	—

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 9 – Goodwill and Intangible Assets

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

	Total Company			KFC			Pizza Hut Casual Dining			All Other Segments^(a)
Balance as of December 31, 2014
Goodwill, gross	$	471		$	78		$	11		$	382
Accumulated impairment losses		(382	)		—			—			(382	)
Disposals and other, net^(b)		(4	)		(3	)		(1	)		—
Balance as of December 31, 2015
Goodwill, gross		467			75			10			382
Accumulated impairment losses		(382	)		—			—			(382	)
Disposals and other, net^(b)		(6	)		(5	)		(1	)		—
Balance as of December 31, 2016
Goodwill, gross		461			70			9			382
Accumulated impairment losses		(382	)		—			—			(382	)
Goodwill, net	$	79		$	70		$	9		$	—

(a)	Goodwill, gross and Accumulated impairment losses represent Little Sheep goodwill and related impairment.

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

Intangible assets, net as of December 31, 2016 and 2015 are as follows:

	2016							2015
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Definite-lived intangible assets
Reacquired franchise rights	$	93	$	(71	)	$	22	$	100	$	(66	)	$	34
Other		26		(13	)		13		30		(13	)		17
	$	119	$	(84	)	$	35	$	130	$	(79	)	$	51
Indefinite-lived intangible assets
Little Sheep trademark	$	53	$	—		$	53	$	56	$	—		$	56

Total intangible assets	$	172	$	(84	)	$	88	$	186	$	(79	)	$	107

Amortization expense for definite-lived intangible assets was $12 million in 2016, $13 million in 2015 and $14 million in 2014. Amortization expense for definite-lived intangible assets will approximate $12 million in 2017, $12 million in 2018, $4 million in 2019, $2 million in 2020 and $1 million in 2021.

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

Credit Facilities	12 Months Ended
Credit Facilities	Dec. 31, 2016
Debt Disclosure [Abstract]
Credit Facilities	Note 10 – Credit Facilities As of December 31, 2016, the Company had credit facilities of RMB2,300 million (approximately $330 million) in the aggregate. During 2016, the Company entered into six new revolving credit facilities of RMB700 million, RMB300 million, RMB200 million, RMB300 million, RMB300 million and RMB200 million (approximately $287 million in the aggregate). As of December 31, 2015, the Company had an external bank credit agreement for each of two RMB300 million revolving credit facilities (approximately $92 million in aggregate). The three-year credit facility matured on April 30, 2016 and was not renewed. The one-year credit facility was renewed on February 17, 2016. The credit facilities have terms ranging from 1 to 3 years. Each credit facility bears interest based on the prevailing rate stipulated by the People’s Bank of China and contains financial covenants including, among other things, limitations on certain additional indebtedness and liens, and certain other transactions specified in the respective agreement. Each credit facility contains cross-default provision whereby our failure to make any payment on a principal amount from any credit facility will constitute a default on the respective agreement. Interest on any outstanding borrowings is due at least monthly. As of December 31, 2016, the full amount of borrowings were available to us under each credit facility.

Investment Agreements with Strategic Investors	12 Months Ended
Investment Agreements with Strategic Investors	Dec. 31, 2016
Stockholders Equity Note [Abstract]
Investment Agreements with Strategic Investors	Note 11 – Investment Agreements with Strategic Investors On September 1, 2016, YUM and the Company entered into investment agreements (the “Investment Agreements”) with each of Pollos Investment L.P., an affiliate of Primavera Capital Group (“Primavera”), and API (Hong Kong) Investment Limited, an affiliate of Zhejiang Ant Small and Micro Financial Services Group Co., Ltd. (“Ant Financial” and, together with Primavera, the “Investors”). Pursuant to the Investment Agreements, on November 1, 2016 (“Closing Date”), Primavera and Ant Financial invested $410 million and $50 million, respectively, for a collective $460 million investment (the “Investment”) in the Company in exchange for: (i) shares of Yum China common stock representing in the aggregate 5% of Yum China common stock issued and outstanding immediately following the separation subject to Post-Closing Adjustment for a final aggregate ownership of between 4.3% and 5.9% in Yum China and (ii) two tranches of warrants (the “Warrants”), which will be issued to the Investors approximately 70 days after the separation, exercisable by the Investors for an approximate additional 4% ownership, in the aggregate, of Yum China common stock issued and outstanding after the separation, taking into account the shares previously issued to the Investors. Immediately before the closing of the Investment, Yum China had 363,758,219 shares of common stock issued and outstanding, with a par value US$0.01 per share. Pursuant to the Investment Agreements, on November 1, 2016, Yum China issued 17,064,172.74 and 2,080,996.68 shares of common stock (the “Closing Shares”) at US$24.03 per share (“Closing Price”) to Primavera and Ant Financial, respectively, subject to adjustment as described below. Pursuant to the Investment Agreements, the Investors and the Company determined the volume weighted average trading price (“VWAP”) per share of Company common stock over the trading days occurring over the period from December 1, 2016 to December 30, 2016 (the “Measurement Period”), and discounted such VWAP by 8% (the “Adjusted VWAP Price Per Share”). Since the Adjusted VWAP Price Per Share of $25.05 exceeded the Closing Price of US$24.03 paid by the Investors at the Closing Date, on January 9, 2017, the Company repurchased from Primavera and Ant Financial 699,394.74 and 85,291.68 shares of common stock, respectively, at par value of $0.01 per share, based on the Adjusted VWAP Price Per Share as determined on December 30, 2016. The repurchased shares were included in Treasury Stock as of December 31, 2016 in the Consolidated and Combined Financial Statements. In addition, pursuant to the terms of the Investment Agreements, on January 9, 2017, Yum China issued to each of the Investors two tranches of Warrants. Upon exercise, the first tranche of Warrants provide Primavera and Ant Financial with the right to purchase 7,309,057 and 891,348 shares of Yum China common stock, respectively, at an exercise price of $31.40 per share. The second tranche of Warrants provide Primavera and Ant Financial with the right to purchase the same number of shares of Yum China common stock purchasable by Primavera and Ant Financial under the first tranche of Warrants, at an exercise price of $39.25 per share. The exercise price for the Warrants was based on $12 billion and $15 billion for the first tranche and second tranche, respectively, divided by the number of shares of common stock, including the Closing Shares after the Post-Closing Adjustment, issued and outstanding as of the Closing Date. The Warrants may be exercised at any time through October 31, 2021 and contain customary anti-dilution protections. As a result of the issuance of the Closing Shares and the Post-Closing Adjustment (excluding shares issuable upon exercise of the Warrants), Primavera and Ant Financial collectively beneficially owned approximately 4.8% of the outstanding shares of Yum China common stock as of January 9, 2017, or approximately 8.7% of the outstanding shares of Yum China common stock as of January 9, 2017 assuming the full exercise of both tranches of Warrants by each of the Investors. The Post-Closing Adjustment was accounted for as a combination of a purchased call and a written put. In accordance with ASC Topic 480 (“ASC 480”), Distinguishing Liabilities from Equity, the feature should be accounted for as a liability or an asset, as the monetary value of the obligation varies inversely in relation to changes in the fair value of Yum China common stock and Yum China can net share settle the contract. Therefore, the Post-Closing Adjustment was measured as a derivate asset at a fair value of $1.3 million on November 1, 2016, with the subsequent increase in fair value of $19.2 million included in earnings until December 30, 2016. As the Post-Closing Adjustment was effectively settled and included in Treasury Stock on December 30, 2016, no subsequent fair value measurement was required. The Warrants were recorded as liability-classified equity contracts in accordance with ASC Topic 815 (“ASC 815”), Derivatives and Hedging, as the number of Warrants cannot be determined until the Post-Closing Adjustment is made and, therefore, the settlement amount is not fixed. They were measured at fair value of $97.1 million as of November 1, 2016, with subsequent decrease in fair value of $2.1 million included in earnings until December 30, 2016, when the Warrants were reclassified to equity at the then fair value of $95 million. After the Post-Closing Adjustment was resolved, the number of Warrants to be issued became fixed, and the Warrants were considered indexed to the Yum China’s own stock. As share settlement is within Yum China’s control, the Warrants met the equity classification criteria on December 30, 2016 and no subsequent fair value measurement was required. Total cash proceeds of $460 million from the closing of the Investment were first allocated to the Post-Closing Adjustment and Warrants based on their fair value on November 1, 2016, with the residual value of $364 million allocated to the shares of common stock issued. In connection with and at the closing of the Investment, on November 1, 2016, Yum China and the Investors entered into a shareholders agreement, relating to rights and obligations of the Investors as holders of Yum China common stock and Warrants. Under the terms of the shareholders agreement, Primavera is entitled to designate one member of Yum China’s board of directors and has the right to designate one non-voting board observer to Yum China’s board of directors. In addition, Ant Financial also has the right to designate one non-voting board observer to Yum China’s board of directors. If Primavera no longer meets certain shareholding requirements, then three years after such time, Ant Financial will lose its right to designate a board observer (unless such right has been previously terminated pursuant to the terms of the shareholders agreement).

Leases

12 Months Ended

Dec. 31, 2016

Leases [Abstract]

Leases

Note 12 – Leases

At December 31, 2016, we operated more than 6,000 restaurants, leasing the underlying land and/or building, with our commitments expiring within 20 years from the inception of the lease. In addition, the Company subleases approximately 180 properties to franchisees. Most leases require us to pay related executory costs, which include property taxes, maintenance and insurance.

We also lease office space for headquarters and support functions, as well as certain office and restaurant equipment. We do not consider any of these individual leases material to our operations.

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

	Commitments				Lease Receivables
	Capital		Operating		Operating
2017	$	3	$	444	$	16
2018		3		413		16
2019		3		383		15
2020		3		354		13
2021		3		314		11
Thereafter		30		1,140		24
	$	45	$	3,048	$	95

At December 31, 2016 and 2015, the present value of minimum payments under capital leases was $30 million and $35 million, respectively. The current portion of capital lease obligations was $1 million and $1 million in 2016 and 2015, respectively, and is classified in Accounts payable and other current liabilities.

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

	2016		2015		2014
Rental expense
Minimum	$	470	$	516	$	523
Contingent		250		260		265
	$	720	$	776	$	788
Rental income	$	26	$	24	$	20

Fair Value Disclosures

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Note 13 – Fair Value Disclosures

As of December 31, 2016 the carrying values of cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximated their fair values because of the short-term nature of these instruments.

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

The following table presents expense recognized from all non-recurring fair value measurements during the years ended December 31, 2016, 2015 and 2014. All fair value measurements were based on unobservable inputs (Level 3). These amounts exclude fair value measurements made for restaurants that were subsequently closed or refranchised prior to those respective year-end dates.

	2016			2015		2014
Little Sheep impairment^(a)	$	—		$	—	$	463
Restaurant-level impairment^(b)		58			51		35
Incremental restaurant-level impairment upon separation^(c)		17			—		—
Changes in fair value of financial instruments^(d)		(21	)		—		—
Total	$	54		$	51	$	498

(a)

Except for the Little Sheep trademark, which had a carrying value of $53 million at December 31, 2016, the remaining carrying value of assets measured at fair value due to the 2014 Little Sheep impairments (Level 3) was insignificant. Our 2014 fair value estimate of the Little Sheep trademark was determined using a relief-from-royalty valuation approach that included future revenues as a significant input and a discount rate of 13% as our estimate of the required rate-of-return that a third party buyer would expect to receive when purchasing the trademark. The primary drivers of the trademark’s fair value are franchise revenue growth and revenues associated with a wholly-owned business that sells seasoning to retail customers. Franchise revenue growth reflected annual same store sales growth of 4% and approximately 35 new franchise units per year, partially offset by approximately 25 franchise closures per year. The retail seasoning business was forecasted to generate sales growth consistent with historical results. Our 2016 and 2015 fair value estimates exceeded their carrying values using similar assumptions and methods as those used in 2014.

(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. The fair value measurements used in these impairment evaluations were based on discounted cash flow estimates using unobservable inputs (Level 3). The remaining net book value of assets measured at fair value during the years ended December 31, 2016, 2015 and 2014 was insignificant.

(c)

Incremental restaurant-level impairment represents additional impairment as a result of including the impact from the license fee paid to YUM on the individual restaurants future cash flow, which is equal to 3% of net system sales. Such license fee did not impact the impairment assessment prior to the separation as it was considered an intercompany charge at the time, whereas it became a charge from a third party after the separation and therefore should be considered in the impairment assessment. The remaining net book value of assets measured at fair value during the year ended December 31, 2016 was insignificant.

(d)

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

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

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

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.

Retirement Plans	12 Months Ended
Retirement Plans	Dec. 31, 2016
Compensation And Retirement Disclosure [Abstract]
Retirement Plans	Note 14 –Retirement Plans Certain of the Company’s employees participate in noncontributory defined benefit plans and post-retirement medical plans sponsored by YUM prior to October 31, 2016. The Company has considered these plans to be part of multi-employer plans. YUM has allocated expenses related to our employees’ participation in our Consolidated and Combined Statements of Income. However, our Consolidated and Combined Balance Sheets do not reflect any assets or the liabilities related to these plans. We consider the expense allocation methodology and results to be reasonable for the periods prior to October 31, 2016. Subsequent to the separation, employees participating in YUM’s plans were enrolled in YCHLRP, as discussed below. For executives who were hired or re-hired after September 30, 2001, YUM has implemented the YUM LRP. This is an unfunded, unsecured account-based retirement plan which allocates a percentage of pay to an account payable to the executive following the executive’s separation of employment from YUM or attainment of age 55. The Company adopted the YCHLRP upon the separation, and 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 liability of $3.3 million and $0.1 million attributable to our employees under the YUM LRP and YCHLRP, respectively, is included in our Consolidated and Combined Balance Sheets. YUM offers certain of the Company’s executives working in China retirement benefits under the Bai Sheng Restaurants (Hong Kong) Ltd. Retirement Scheme. Under this defined contribution plan, YUM provides a company funded contribution ranging from 5% to 10% of an executive’s base salary. Upon termination, participants will receive a lump sum equal to a percentage of the Company’s contributions inclusive of investment return. This percentage is based on a vesting schedule that provides participants with a vested 30% interest upon completion of a minimum of 3 years of service, and an additional 10% vested interest for each additional completed year, up to a maximum of 100%. The Company adopted the same plan after the separation and the contribution amount to the plan for the years ended December 31, 2016, 2015 and 2014 was insignificant. As stipulated by Chinese state regulations, the Company participates in a government-sponsored defined contribution retirement plan. Substantially all employees are entitled to an annual pension equal to a fixed proportion of the average basic salary amount of the geographical area of their last employment at their retirement date. We are required to make contributions to the local social security bureau between 10% and 22% of the previous year’s average basic salary amount of the geographical area where the employees are under our employment. Contributions are recorded in the Consolidated and Combined Statements of Income as they become payable. We have no obligation for the payment of pension benefits beyond the annual contributions as set out above. The Company contributed $148 million, $150 million and $147 million to the government-sponsored plan for 2016, 2015 and 2014, respectively.

Share-Based Compensation

12 Months Ended

Dec. 31, 2016

Share-Based Compensation

Note 15 – Share-Based Compensation

Overview

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

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

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

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

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

Award Valuation

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

	2016	2015			2014
Risk-free interest rate	1.3% - 1.4%		1.3	%		1.6	%
Expected term (years)	6.5 - 6.75		6.5			6.3
Expected volatility	27% - 35%		27.0	%		29.9	%
Expected dividend yield	0% - 2.6%		2.2	%		2.1	%

Awards granted to employees typically have a graded vesting schedule of 25% per year over four years and expire ten years after grant. Both YUM and the Company use a single weighted-average term for awards that have a graded vesting schedule. Based on analysis of the historical exercise and post-vesting termination behavior, YUM and the Company determined that employees exercised the awards on average after 6.5 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 YUM prior to the separation, when determining expected volatility, YUM considered both historical volatility of its stock as well as implied volatility associated with its publicly traded options. The expected dividend yield is based on the annual dividend yield at the time of grant. For those awards granted by the Company after the separation, the Company considered the volatility of common shares of comparable companies in the same business as the Company. The Company had no plan to pay dividends at the time of the grant.

RSU awards generally vest over a three-year period, with certain awards vesting at 50% on the second grant anniversary and 50% on the third grant anniversary, and other awards vesting at 25%, 25% and 50% on each respective grant anniversary over the three-year period. The fair values of RSU awards are based on the closing price of YUM stock or the Company’s stock on the date of grant.

On November 11, 2016, Yum China also granted annual awards of common stock to non-employee directors for their service on Yum China’s board of directors. The fair value of these awards is based on the closing price per share of Yum China common stock on the date of grant. The shares were issued outright to the directors on the date of grant, with no conditions attached. Therefore, the fair value of the awards was fully recognized as expenses upon grant. For the year ended December 31, 2016, a total of 64,209 shares of Yum China common stock were granted to non-employee directors and the grant-date fair value of $1.7 million was immediately recognized in full in the Consolidated and Combined Statements of Income.

Award Activity

Stock Options and SARs

	Shares (in thousands)				Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of the year		—				—
Converted from YUM equity awards^(a)		25,274				17.57
Granted		500				26.98
Exercised		(590	)			9.99
Forfeited or expired		(456	)			21.13
Outstanding at the end of the year		24,728		^(b)		17.88		5.94		204
Exercisable at the end of the year		14,883				15.32		4.36		161

(a)	Awards converted from YUM equity awards include 1,345,259 and 23,928,259 stock options and SARs held by the Company’s employees (including non-employee directors of Yum China) and YUM’s employees, respectively, as a result of the modification of YUM equity awards prior to the separation.

(b)	Outstanding awards include 1,335,131 stock options and 23,393,125 SARs with weighted average exercise prices of $14.10 and $18.09, 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 2016, 2015 and 2014 was $12.78, $16.11 and $17.45, respectively. The total intrinsic value of stock options and SARs exercised by the Company’s employees during the years ended December 31, 2016, 2015 and 2014, was $25 million, $33 million and $16 million, respectively.

As of December 31, 2016, $22 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 1.77 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 2016, 2015 and 2014 was $11 million, $6 million and $7 million, respectively.

RSUs

	Shares (in thousands)			Weighted- Average Grant Date Fair Value
Unvested at the beginning of the year		—			—
Converted from YUM equity awards^(a)		349			21.96
Granted		201			26.98
Vested		(2	)		22.29
Forfeited or expired		(2	)		22.57
Unvested at the end of the year		546			23.81

(a)	Awards converted from YUM equity awards include 226,445 and 122,830 RSUs held by the Company’s employees (including non-employee directors of Yum China) and YUM’s employees, respectively, as a result of modification of YUM equity awards prior to the separation.

As of December 31, 2016, there was $8 million of unrecognized compensation cost related to 545,846 unvested RSUs.

Impact on Net Income

Share-based compensation expense was $16 million, $14 million and $13 million for 2016, 2015 and 2014, respectively. Deferred tax benefits recognized totaled $3 million in each of 2016, 2015 and 2014.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

Equity	12 Months Ended
Equity	Dec. 31, 2016
Stockholders Equity Note [Abstract]
Equity	Note 16 – Equity On September 23, 2016, YUM’s board of directors approved the distribution of its shares of Yum China common stock to YUM’s stockholders on a pro rata basis. On October 31, 2016, YUM’s shareholders of record as of October 19, 2016 received one share of Yum China common stock for every one share of YUM’s common stock held as of the record date. On October 31, 2016, we completed the legal separation from YUM, and we began trading “regular way” under the ticker symbol “YUMC” on the New York Stock Exchange on November 1, 2016. Following the separation, YUM does not own any equity interest in us. Immediately after the separation on October 31, 2016, Yum China authorized capital stock consisted of 1,000,000,000 shares of common stock, par value $0.01 per share, and 363,758,219 shares of Yum China common stock were issued and outstanding. As of December 31, 2016, 383,344,835.42 shares of Yum China common stock were issued and 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. The Rights will initially trade with, and will be inseparable from, Yum China common stock. The Rights Plan expires on October 27, 2017. New Rights will accompany any new shares of Yum China common stock issued until the Rights become exercisable or the Rights Plan expires. 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 are considered clearly and closely related to the underlying equity host and, therefore, do not require separate accounting. Accumulated Other Comprehensive Income (“AOCI”) The Company’s other comprehensive income (loss) for the years ended December 31, 2016, 2015, and 2014 and AOCI balances as of December 31, 2016 and 2015 were comprised solely of foreign currency translation adjustments. Other comprehensive loss was $132 million, $93 million, and $52 million for the years ended December 31, 2016, 2015, and 2014, respectively. The accumulated balances reported in AOCI on the Consolidated and Combined Balance Sheets for currency translation adjustments were $1 million and $130 million as of December 31, 2016 and 2015, respectively. There was no tax effect related to the components of other comprehensive income for all years presented. Restricted net assets The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the Consolidated and Combined Financial Statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries. In accordance with the PRC Regulations on Enterprises with Foreign Investment and the articles of association of the Company’s PRC subsidiaries, a foreign-invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A foreign-invested enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign-invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. As a result of these PRC laws and regulations subject to the limit discussed above that require annual appropriations of 10% of after-tax income to be set aside, prior to payment of dividends as general reserve fund, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company in the form of dividend payments, loans or advances. The restricted net assets of the PRC subsidiaries is approximately $572 million as of December 31, 2016. 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.

Reportable Operating Segments

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Note 17 – Income Taxes

Prior to October 31, 2016, the Company’s results have historically been included in the consolidated U.S. federal tax return and U.S. state income tax filings of YUM. Our foreign income tax returns, primarily those filed by our China subsidiaries, are filed on an individual entity basis. The Company has calculated its provision using the separate return method in these Consolidated and Combined Financial Statements. Under this method, the Company is assumed to have filed hypothetical tax returns on a standalone basis separate from YUM in the relevant tax jurisdictions. Any additional accrued tax liability attributable to the Company arising from the separate return method has been shown as settled against the net Parent Company Investment account in these Consolidated and Combined Financial Statements. The Company has recorded deferred taxes on its temporary differences, including hypothetical carryforwards and tax credits created by the separate tax return filings. The established current and deferred tax balances may not be indicative of the Company’s actual balances prior to the separation.

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

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

	2016		2015			2014
U.S.	$	5	$	(7	)	$	15
China		659		502			—
Other Foreign		8		1			2
	$	672	$	496		$	17

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

		2016			2015			2014
Current:	Federal	$	(2	)	$	7		$	9
	Foreign		200			132			149
		$	198		$	139		$	158

Deferred:	Federal	$	(36	)	$	(7	)	$	(9	)
	Foreign		(4	)		36			(95	)
		$	(40	)	$	29		$	(104	)
		$	158		$	168		$	54

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

	2016					2015					2014
U.S. federal statutory rate	$	235		35.0	%	$	173		35.0	%	$	6		35.0	%
Statutory rate differential attributable to foreign operations		(55	)	(8.4	)		(15	)	(3.1	)		5		32.2
Adjustments to reserves and prior years		16		2.4			3		0.6			(3	)	(20.9	)
Change in valuation allowances		—		—			12		2.4			13		79.8
Tax benefit from Little Sheep restructuring		(26	)	(3.8	)		—		—			—		—
Tax impact from Little Sheep goodwill impairment		—		—			—		—			40		240.8
Other, net		(12	)	(1.7	)		(5	)	(1.0	)		(7	)	(44.6	)
Effective income tax rate	$	158		23.5	%	$	168		33.9	%	$	54		322.3	%

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

In 2016, 2015 and 2014, this benefit was negatively impacted by the actual and deemed repatriation of current year foreign earnings to the U.S. as we recognized additional tax expense, resulting from the related effective tax rate being lower than the U.S. federal statutory rate.

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

In 2016, this item was negatively impacted by the additional amount recorded for uncertain tax positions in China, whereas in 2014, it was favorably impacted by the resolution of uncertain tax positions in China.

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

In 2015 and 2014, $12 million and $13 million, respectively, of net tax expense was driven by valuation allowances recorded against deferred tax assets generated during the current year.

Tax benefit from Little Sheep restructuring. In 2016, we recognized tax benefit of $26 million as a result of Little Sheep legal entity restructuring completed prior to the separation. The cash tax savings associated with this benefit will be realized as we recognize future U.S. taxable income.

Tax impact from Little Sheep goodwill impairment. In 2014, we recorded $160 million of non-cash impairment of Little Sheep goodwill, which resulted in no related tax benefit. See Note 5.

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

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

The details of 2016 and 2015 deferred tax assets (liabilities) are set forth below:

	2016			2015
Operating losses and tax credit carryforwards	$	86		$	66
Tax benefit from Little Sheep restructuring		26			—
Employee benefits		4			2
Share-based compensation		8			11
Deferred escalating minimum rent		42			43
Various liabilities		8			14
Deferred income and other		35			37
Gross deferred tax assets		209			173
Deferred tax asset valuation allowances		(41	)		(45	)
Net deferred tax assets	$	168		$	128
Intangible assets		(22	)	$	(23	)
Property, plant and equipment		(1	)		(4	)
Other		(9	)		(9	)
Gross deferred tax liabilities	$	(32	)	$	(36	)
Net deferred tax assets	$	136		$	92
Reported in Consolidated and Combined Balance Sheets as:
Deferred income taxes		162		$	116
Other liabilities and deferred credits		(26	)		(24	)
	$	136		$	92

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 is 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. This amount may become taxable upon an actual or deemed repatriation of assets from the subsidiaries or a sale or liquidation of the subsidiaries. We estimate that our total temporary difference upon which we have not provided deferred tax is approximately $1.5 billion at December 31, 2016. However, it is not practicable to determine the deferred tax liability on this amount due to uncertainty with regard to the timing or manner of repatriation and the related impact on local taxes, withholding taxes and foreign tax credits.

At December 31, 2016, the Company has operating loss carryforwards of $160 million, primarily related to our Little Sheep business, all of which will expire by 2021. These losses are being carried forward in jurisdictions where we are permitted to use tax losses from prior periods to reduce future taxable income.

As of December 31, 2016, the Company has U.S. tax credit carryforwards of $46 million, which represents Yum China’s foreign tax credit carryforwards as a result of the separation. This was attributable to the distributions from the Company’s China business to YUM after Yum China was incorporated and became the parent of the Company’s operating entities in China. The tax credits will expire by 2026.

At December 31, 2016, the Company also has tax benefit from Little Sheep restructuring of $26 million, $12 million and $14 million of which will expire by 2026 and 2036, respectively.

Cash payments for tax liabilities on income tax returns filed in China were $182 million, $143 million and $186 million in 2016, 2015 and 2014, 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 fifty percent likely of being realized upon settlement.

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

	2016			2015
Beginning of Year	$	15		$	13
Additions on tax positions		14			4
Reductions due to statute expiration		(3	)		(2	)
End of Year	$	26		$	15

In 2016 and 2015, we increased our unrecognized tax benefits by $14 million and $4 million, respectively, related to uncertainty with regard to the deductibility of certain business expenses incurred during the year. The Company believes it is reasonably possible its unrecognized tax benefits may decrease by approximately $6 million in the next twelve months, all of which, if recognized upon audit settlement or statute expiration, would affect the 2017 effective tax rate.

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 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.

YUM has settled audits with the IRS through fiscal year 2010. The Company’s operations in foreign jurisdictions generally remain subject to examination for tax years as far back as 2006, some of which years are currently under audit by local tax authorities. The accrued interest and penalties related to income taxes at December 31, 2016 and 2015 are set forth below:

		2016				2015
Accrued interest and penalties		$	5			$	3

During 2016, 2015 and 2014, a net expense of $3 million, $1 million and a net benefit of $4 million, respectively, for interest and penalties was recognized in our Consolidated and Combined Statements of Income as components of our income tax provision.

Reportable Operating Segments

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Note 18 – Reportable Operating Segments

We have two reportable segments: KFC and Pizza Hut Casual Dining. We also have four non-reportable operating segments, Pizza Hut Home Service, East Dawning, Little Sheep and Taco Bell, which are combined and referred to as All Other Segments, as these operating segments are individually insignificant.

	Revenues
	2016		2015		2014
KFC	$	4,696	$	4,768	$	4,893
Pizza Hut Casual Dining		1,774		1,825		1,696
All Other Segments		282		316		345
	$	6,752	$	6,909	$	6,934

	Operating Profit; Interest Income, Net; and Income Before Income Taxes
	2016			2015			2014
KFC^(a)	$	645		$	499		$	435
Pizza Hut Casual Dining		150			145			176
All Other Segments		(6	)		(14	)		(44	)
Unallocated and corporate expenses^(b)		(153	)		(144	)		(143	)
Unallocated Closures and impairment expense^(b)(c)		(17	)		—			(463	)
Unallocated Refranchising gain^(b)		15			13			17
Unallocated Other income (expense)^(b)		6			(11	)		25
Operating Profit		640			488			3
Interest income, net^(b)		11			8			14
Changes in fair value of financial instruments		21			—			—
Income Before Income Taxes	$	672		$	496		$	17

	Depreciation and Amortization
	2016		2015		2014
KFC	$	266	$	283	$	286
Pizza Hut Casual Dining		111		109		92
All Other Segments		14		20		20
Corporate		11		13		13
	$	402	$	425	$	411

	Capital Spending
	2016		2015		2014
KFC	$	221	$	259	$	269
Pizza Hut Casual Dining		118		176		187
All Other Segments		12		16		23
Corporate		85		61		46
	$	436	$	512	$	525

	Identifiable Assets
	2016		2015
KFC^(d)	$	1,411	$	1,577
Pizza Hut Casual Dining		628		718
All Other Segments		160		181
Corporate^(e)		1,528		725
	$	3,727	$	3,201

	Long-Lived Assets^(f)
	2016		2015
KFC	$	1,099	$	1,248
Pizza Hut Casual Dining		553		616
All Other Segments		129		146
Corporate		33		23
	$	1,814	$	2,033

(a)	Includes equity income from investments in unconsolidated affiliates of $54 million, $41 million and $30 million in 2016, 2015 and 2014, respectively.

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

(c)	Represents 2014 impairment losses related to Little Sheep and 2016 incremental restaurant-level impairment charges. See Note 5.

(d)	Includes investments in 3 unconsolidated affiliates totaling $71 million and $61 for 2016 and 2015, respectively.

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

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

Selected Quarterly Financial Data Unaudited [Abstract]

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599

+ Details

Contingencies	12 Months Ended
Contingencies	Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Contingencies	Note 19 – Contingencies Indemnification of China Tax on Indirect Transfers of Assets In February 2015, the Chinese State Administration of Taxation (“SAT”) issued Bulletin 7 on Income arising from Indirect Transfers of Assets by Non-Resident Enterprises. Pursuant to Bulletin 7, an “indirect transfer” of Chinese taxable assets, including equity interests in a Chinese resident enterprise (“Chinese interests”), by a non-resident enterprise, may be recharacterized and treated as a direct transfer of Chinese taxable assets, if such arrangement does not have reasonable commercial purpose and the transferor has avoided payment of Chinese enterprise income tax. As a result, gains derived from such an indirect transfer may be subject to Chinese enterprise income tax at a rate of 10%. YUM concluded and we concurred that it is more likely than not that YUM will not be subject to this tax with respect to the distribution. However, given how recently Bulletin 7 was promulgated, there are significant uncertainties regarding what constitutes a reasonable commercial purpose, how the safe harbor provisions for group restructurings are to be interpreted and how the taxing authorities will ultimately view the distribution. As a result, YUM’s position could be challenged by Chinese tax authorities resulting in a 10% tax assessed on the difference between the fair market value and the tax basis of the separated China business. As YUM’s tax basis in the China business is minimal, the amount of such a tax could be significant. Any tax liability arising from the application of Bulletin 7 to the distribution is expected to be settled in accordance with the tax matters agreement between the Company and YUM. Pursuant to the tax matters agreement, to the extent any Chinese indirect transfer tax pursuant to Bulletin 7 is imposed, such tax and related losses will be allocated between YUM and the Company in proportion to their respective share of the combined market capitalization of YUM and the Company during the thirty trading days after the separation. Such a settlement could be significant and have a material adverse effect on our results of operations and our financial condition. At the inception of the tax indemnity being provided to YUM, the fair value of the non-contingent obligation to stand ready to perform was insignificant and the liability for the contingent obligation to make payment was not probable or estimable. Unconsolidated Affiliates Guarantees From time to time we have guaranteed certain lines of credit and loans of unconsolidated affiliates. As of December 31, 2016, there are no guarantees outstanding for unconsolidated affiliates. Our unconsolidated affiliates had total revenues of approximately $1,106 million for the year ended December 31, 2016 and assets and debt of approximately $283 million and $132 million, respectively, at December 31, 2016. 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, 2016. Legal Proceedings The Company is subject to various lawsuits covering a variety of allegations from time to time. The Company believes that the ultimate liability, if any, in excess of amounts already provided for these matters in the Consolidated and Combined Financial Statements, is not likely to have a material adverse effect on the Company’s annual results of operations, financial condition or cash flows. Matters faced by the Company from time to time include, but are not limited to, claims from landlords, employees, customers and others related to operational, contractual or employment issues.

Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2016

Selected Quarterly Financial Data (Unaudited)

Note 20 – Selected Quarterly Financial Data (Unaudited)

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

	2015
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter			Total
Revenues:
Company sales	$	1,235	$	1,608	$	1,935	$	2,011		$	6,789
Franchise fees and income		21		28		34		37			120
Total revenues		1,256		1,636		1,969		2,048			6,909
Restaurant profit		192		185		318		163			858
Operating Profit		142		86		255		5			488
Net Income – Yum China Holdings, Inc.		101		64		187		(29	)		323
Basic earnings (losses) per common share	$	0.28	$	0.18	$	0.51	$	(0.08	)	$	0.89
Diluted earnings (losses) per common share	$	0.28	$	0.18	$	0.51	$	(0.08	)	$	0.89

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Note 21 – Subsequent Events Segments In the first quarter of 2017, we started discussions on integrating the management and business approach for Pizza Hut Casual Dining and Pizza Hut Home Service which allows us to create a network of approximately 2,000 stores for pizza delivery. As we make progress on implementing changes, we will continue to evaluate the impact on reportable segments. Share Repurchase Program On February 7, 2017, we announced that our board of directors authorized a $300 million share repurchase program. Yum China may repurchase shares under this program from time to time in open market or privately negotiated transactions, including block trades, accelerated share repurchase transactions and Rule 10b5-1 trading plans. Share-Based Compensation On February 10, 2017, the Company’s board of directors approved grants of 87,972 RSUs and 2,230,544 SARs to the employees under the 2016 Plan. The estimated total grant-date fair value of these awards is $25 million, which will be recognized on a straight-line basis over the vesting periods. On February 28, 2017, the Company’s board of directors approved a grant of 75 RSUs to each eligible RGM under the 2016 Plan. The estimated total grant-date fair value of these awards is approximately $12 million, which will be recognized on a straight-line basis over the vesting periods.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Basis of Preparation and Principles of Consolidation

Comparative Information

Fiscal Calendar

Foreign Currency

Franchise and License Operations

Revenue Recognition

Customer Loyalty Program

Direct Marketing Costs

Research and Development Expenses

Share-Based Compensation

Impairment or Disposal of Property, Plant and Equipment

Impairment Of Investments In Unconsolidated Affiliates Policy Text Block

Government Subsidies

Income Taxes

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

Fair Value Measurements


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

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

Level 3		Inputs that are unobservable for the asset.

Cash and Cash Equivalents

Short-term Investments

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

Receivables

Receivables from Payment Processors or Aggregators

Inventories

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

Property, Plant and Equipment

Leases and Leasehold Improvements

Internal Development Costs and Abandoned Sites Costs

Goodwill and Intangible Assets

Financial Instruments

Guarantees

Asset Retirement Obligations

Parent Company Investment

Description of the Business (Tables)

12 Months Ended

Dec. 31, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Summary of KFC and Pizza Hut Casual Dining Unit Count

KFC Unit Count	2016		2015		2014
Company - owned		3,913		3,821		3,732
Unconsolidated affiliates		836		796		757
Franchise		475		386		339
		5,224		5,003		4,828

The first Pizza Hut Casual Dining in China opened in 1990. As of December 31, 2016, there are over 1,700 Pizza Hut Casual Dining restaurants in China.

Pizza Hut Casual Dining Unit Count	2016		2015		2014
Company - owned		1,690		1,556		1,310
Franchise		24		16		3
		1,714		1,572		1,313

Transactions with Parent (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of License Fees Paid

Total license fees paid to YUM during the ten months ended October 31, 2016 and the years ended December 31, 2015 and 2014 are reflected in the table below:

	10 months ended		Year ended
	October 31,		December 31,		December 31,
	2016		2015		2014
Initial fees – Company	$	9	$	18	$	17
Initial fees – Franchise		2		3		2
Continuing fees – Company		163		201		200
Continuing fees – Franchise		42		47		46
Total	$	216	$	269	$	265

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

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Common Share

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

	2016		2015		2014
Net Income (Loss) – Yum China Holdings, Inc.	$	502	$	323	$	(7	)
Weighted-average common shares outstanding (for basic calculation)^(a)		367,744,992		363,758,219		363,758,219
Effect of dilutive share-based employee compensation^(a)		1,398,846		—		—
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		369,143,838		363,758,219		363,758,219
Basic Earnings (Loss) Per Share	$	1.36	$	0.89	$	(0.02	)
Diluted Earnings (Loss) Per Share	$	1.36	$	0.89	$	(0.02	)
Employee stock options, stock appreciation rights and warrants excluded from the diluted EPS computation^(b)		16,987,578		—		—

(a)

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

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

12 Months Ended

Dec. 31, 2016

Refranchising Gain, Net [Member]

Closures and Impairment (Income) Expenses [Member]

Facility Actions

Refranchising Gain, net

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

	Refranchising gain, net
	2016		2015		2014
KFC	$	14	$	8	$	17
Pizza Hut Casual Dining		1		3		—
All Other Segments		—		2		—
Total Company	$	15	$	13	$	17

Franchise Fees and Income

Facility Actions

Store Closure and Impairment Activity

	2016
	Total Company			KFC			Pizza Hut Casual Dining			All Other Segments
Store closure income (costs)^(a)	$	9		$	7		$	1		$	1
Store impairment charges		(70	)		(48	)		(18	)		(4	)
Closure and impairment expenses	$	(61	)	$	(41	)	$	(17	)	$	(3	)

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

	2014
	Total Company			KFC			Pizza Hut Casual Dining			All Other Segments
Store closure income (costs)^(a)	$	—		$	2		$	1		$	(3	)
Store impairment charges		(54	)		(43	)		(3	)		(8	)
Closure and impairment expenses	$	(54	)	$	(41	)	$	(2	)	$	(11	)

(a)

Franchise Fees and Income (Tables)

12 Months Ended

Dec. 31, 2016

Franchisor Revenue [Abstract]

	2016			2015			2014
Initial fees, including renewal fees	$	10		$	9		$	7
Initial franchise fees included in Refranchising gain, net		(4	)		(3	)		(3	)
		6			6			4
Continuing fees and rental income		124			114			109
Franchise fees and income	$	130		$	120		$	113

Other Income, Net (Tables)

12 Months Ended

Dec. 31, 2016

Other Income And Expenses [Abstract]

Other Income, Net Table

	2016			2015			2014
Equity income from investments in unconsolidated affiliates	$	54		$	41		$	30
China poultry supply insurance recovery^(a)		3			5			25
Reversal of (provision for) losses associated with sale of aircraft		2			(15	)		—
Foreign exchange net loss and other		(3	)		(5	)		(4	)
Other income, net	$	56		$	26		$	51

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

Supplemental Balance Sheet Information (Tables)

12 Months Ended

Dec. 31, 2016

Supplemental Balance Sheet Information Disclosure [Abstract]

Accounts Receivable, Net

Accounts Receivables, net	2016			2015
Accounts receivables, gross	$	76		$	35
Allowance for doubtful accounts		(2	)		(2	)
Accounts receivables, net	$	74		$	33

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets	2016		2015
Assets held for sale^(a)	$	—	$	18
Prepaid rent		39		53
Other prepaid expenses and current assets^(b)		81		81
Prepaid expenses and other current assets	$	120	$	152

(a)	Reflects the carrying value of a corporate aircraft in China (See Note 5).

(b)	Includes receivables of $16 million and insignificant amounts due from payment processors or aggregators as of December 31, 2016 and 2015, respectively (See Note 2).

Property, Plant and Equipment

Property, Plant and Equipment	2016			2015
Buildings and improvements	$	2,029		$	2,231
Capital leases, primarily buildings		29			35
Machinery and equipment		1,081			1,171
Property, plant and equipment, gross		3,139			3,437
Accumulated depreciation and amortization		(1,492	)		(1,596	)
Property, plant and equipment, net	$	1,647		$	1,841

Accounts Payable and Other Current Liabilities

Accounts Payable and Other Current Liabilities	2016		2015
Accounts payable	$	480	$	438
Accrued capital expenditures		132		153
Accrued compensation and benefits		191		180
Accrued taxes, other than income taxes		14		42
Other current liabilities		154		113
Accounts payable and other current liabilities	$	971	$	926

Other Liabilities and Deferred Credits

Other Liabilities and Deferred Credits	2016		2015
Deferred escalating minimum rent	$	153	$	162
Other noncurrent liabilities and deferred credits		99		72
Other liabilities and deferred credits	$	252	$	234

Equity Attributable to Noncontrolling Interests, rollforward

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

	Noncontrolling Interests			Redeemable Noncontrolling Interest
Balance at December 31, 2014	$	57		$	9
Net income (loss) – noncontrolling interests		6			(1	)
Acquisition of noncontrolling interests		(1	)		—
Currency translation adjustments		(4	)		(2	)
Balance at December 31, 2015	$	58		$	6
Net income – noncontrolling interests		19			1
Noncontrolling interest loss upon redemption		—			(8	)
Dividends declared		(7	)		—
Currency translation adjustments		(4	)		1
Balance at December 31, 2016	$	66		$	—

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Changes in the Carrying Amount of Goodwill

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

	Total Company			KFC			Pizza Hut Casual Dining			All Other Segments^(a)
Balance as of December 31, 2014
Goodwill, gross	$	471		$	78		$	11		$	382
Accumulated impairment losses		(382	)		—			—			(382	)
Disposals and other, net^(b)		(4	)		(3	)		(1	)		—
Balance as of December 31, 2015
Goodwill, gross		467			75			10			382
Accumulated impairment losses		(382	)		—			—			(382	)
Disposals and other, net^(b)		(6	)		(5	)		(1	)		—
Balance as of December 31, 2016
Goodwill, gross		461			70			9			382
Accumulated impairment losses		(382	)		—			—			(382	)
Goodwill, net	$	79		$	70		$	9		$	—

(a)	Goodwill, gross and Accumulated impairment losses represent Little Sheep goodwill and related impairment.

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

Schedule of Finite and Indefinite Lived Intangible Assets by Major Class

Intangible assets, net as of December 31, 2016 and 2015 are as follows:

	2016							2015
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Definite-lived intangible assets
Reacquired franchise rights	$	93	$	(71	)	$	22	$	100	$	(66	)	$	34
Other		26		(13	)		13		30		(13	)		17
	$	119	$	(84	)	$	35	$	130	$	(79	)	$	51
Indefinite-lived intangible assets
Little Sheep trademark	$	53	$	—		$	53	$	56	$	—		$	56

Total intangible assets	$	172	$	(84	)	$	88	$	186	$	(79	)	$	107

Leases (Tables)

12 Months Ended

Dec. 31, 2016

Leases [Abstract]

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

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

	Commitments				Lease Receivables
	Capital		Operating		Operating
2017	$	3	$	444	$	16
2018		3		413		16
2019		3		383		15
2020		3		354		13
2021		3		314		11
Thereafter		30		1,140		24
	$	45	$	3,048	$	95

Details of rental expense and income

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

	2016		2015		2014
Rental expense
Minimum	$	470	$	516	$	523
Contingent		250		260		265
	$	720	$	776	$	788
Rental income	$	26	$	24	$	20

Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Schedule of Expense Recognized From Non-recurring Fair Value Measurements

	2016			2015		2014
Little Sheep impairment^(a)	$	—		$	—	$	463
Restaurant-level impairment^(b)		58			51		35
Incremental restaurant-level impairment upon separation^(c)		17			—		—
Changes in fair value of financial instruments^(d)		(21	)		—		—
Total	$	54		$	51	$	498

(a)

(b)

(c)

Incremental restaurant-level impairment represents additional impairment as a result of including the impact from the license fee paid to YUM on the individual restaurants future cash flow, which is equal to 3% of net system sales. Such license fee did not impact the impairment assessment prior to the separation as it was considered an intercompany charge at the time, whereas it became a charge from a third party after the separation and therefore should be considered in the impairment assessment. The remaining net book value of assets measured at fair value during the year ended December 31, 2016 was insignificant.

(d)

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

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2016

Assumptions Used in the BS Model

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

	2016	2015			2014
Risk-free interest rate	1.3% - 1.4%		1.3	%		1.6	%
Expected term (years)	6.5 - 6.75		6.5			6.3
Expected volatility	27% - 35%		27.0	%		29.9	%
Expected dividend yield	0% - 2.6%		2.2	%		2.1	%

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 the year		—				—
Converted from YUM equity awards^(a)		25,274				17.57
Granted		500				26.98
Exercised		(590	)			9.99
Forfeited or expired		(456	)			21.13
Outstanding at the end of the year		24,728		^(b)		17.88		5.94		204
Exercisable at the end of the year		14,883				15.32		4.36		161

(a)	Awards converted from YUM equity awards include 1,345,259 and 23,928,259 stock options and SARs held by the Company’s employees (including non-employee directors of Yum China) and YUM’s employees, respectively, as a result of the modification of YUM equity awards prior to the separation.

(b)	Outstanding awards include 1,335,131 stock options and 23,393,125 SARs with weighted average exercise prices of $14.10 and $18.09, respectively. Outstanding awards represent Yum China awards held by employees of both the Company and YUM.

Summary of Restricted Stock Units

	Shares (in thousands)			Weighted- Average Grant Date Fair Value
Unvested at the beginning of the year		—			—
Converted from YUM equity awards^(a)		349			21.96
Granted		201			26.98
Vested		(2	)		22.29
Forfeited or expired		(2	)		22.57
Unvested at the end of the year		546			23.81

(a)	Awards converted from YUM equity awards include 226,445 and 122,830 RSUs held by the Company’s employees (including non-employee directors of Yum China) and YUM’s employees, respectively, as a result of modification of YUM equity awards prior to the separation.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Before Income Taxes

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

	2016		2015			2014
U.S.	$	5	$	(7	)	$	15
China		659		502			—
Other Foreign		8		1			2
	$	672	$	496		$	17

Details of Income Tax Provision (Benefit)

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

		2016			2015			2014
Current:	Federal	$	(2	)	$	7		$	9
	Foreign		200			132			149
		$	198		$	139		$	158

Deferred:	Federal	$	(36	)	$	(7	)	$	(9	)
	Foreign		(4	)		36			(95	)
		$	(40	)	$	29		$	(104	)
		$	158		$	168		$	54

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:

	2016					2015					2014
U.S. federal statutory rate	$	235		35.0	%	$	173		35.0	%	$	6		35.0	%
Statutory rate differential attributable to foreign operations		(55	)	(8.4	)		(15	)	(3.1	)		5		32.2
Adjustments to reserves and prior years		16		2.4			3		0.6			(3	)	(20.9	)
Change in valuation allowances		—		—			12		2.4			13		79.8
Tax benefit from Little Sheep restructuring		(26	)	(3.8	)		—		—			—		—
Tax impact from Little Sheep goodwill impairment		—		—			—		—			40		240.8
Other, net		(12	)	(1.7	)		(5	)	(1.0	)		(7	)	(44.6	)
Effective income tax rate	$	158		23.5	%	$	168		33.9	%	$	54		322.3	%

Details of Deferred Tax Assets (Liabilities)

The details of 2016 and 2015 deferred tax assets (liabilities) are set forth below:

	2016			2015
Operating losses and tax credit carryforwards	$	86		$	66
Tax benefit from Little Sheep restructuring		26			—
Employee benefits		4			2
Share-based compensation		8			11
Deferred escalating minimum rent		42			43
Various liabilities		8			14
Deferred income and other		35			37
Gross deferred tax assets		209			173
Deferred tax asset valuation allowances		(41	)		(45	)
Net deferred tax assets	$	168		$	128
Intangible assets		(22	)	$	(23	)
Property, plant and equipment		(1	)		(4	)
Other		(9	)		(9	)
Gross deferred tax liabilities	$	(32	)	$	(36	)
Net deferred tax assets	$	136		$	92
Reported in Consolidated and Combined Balance Sheets as:
Deferred income taxes		162		$	116
Other liabilities and deferred credits		(26	)		(24	)
	$	136		$	92

Unrecognized Tax Benefits Reconciliation

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

	2016			2015
Beginning of Year	$	15		$	13
Additions on tax positions		14			4
Reductions due to statute expiration		(3	)		(2	)
End of Year	$	26		$	15

Summary of Income Tax Examinations

The Company’s operations in foreign jurisdictions generally remain subject to examination for tax years as far back as 2006, some of which years are currently under audit by local tax authorities. The accrued interest and penalties related to income taxes at December 31, 2016 and 2015 are set forth below:

		2016				2015
Accrued interest and penalties		$	5			$	3

Reportable Operating Segments (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

	Revenues
	2016		2015		2014
KFC	$	4,696	$	4,768	$	4,893
Pizza Hut Casual Dining		1,774		1,825		1,696
All Other Segments		282		316		345
	$	6,752	$	6,909	$	6,934

	Operating Profit; Interest Income, Net; and Income Before Income Taxes
	2016			2015			2014
KFC^(a)	$	645		$	499		$	435
Pizza Hut Casual Dining		150			145			176
All Other Segments		(6	)		(14	)		(44	)
Unallocated and corporate expenses^(b)		(153	)		(144	)		(143	)
Unallocated Closures and impairment expense^(b)(c)		(17	)		—			(463	)
Unallocated Refranchising gain^(b)		15			13			17
Unallocated Other income (expense)^(b)		6			(11	)		25
Operating Profit		640			488			3
Interest income, net^(b)		11			8			14
Changes in fair value of financial instruments		21			—			—
Income Before Income Taxes	$	672		$	496		$	17

	Depreciation and Amortization
	2016		2015		2014
KFC	$	266	$	283	$	286
Pizza Hut Casual Dining		111		109		92
All Other Segments		14		20		20
Corporate		11		13		13
	$	402	$	425	$	411

	Capital Spending
	2016		2015		2014
KFC	$	221	$	259	$	269
Pizza Hut Casual Dining		118		176		187
All Other Segments		12		16		23
Corporate		85		61		46
	$	436	$	512	$	525

	Identifiable Assets
	2016		2015
KFC^(d)	$	1,411	$	1,577
Pizza Hut Casual Dining		628		718
All Other Segments		160		181
Corporate^(e)		1,528		725
	$	3,727	$	3,201

	Long-Lived Assets^(f)
	2016		2015
KFC	$	1,099	$	1,248
Pizza Hut Casual Dining		553		616
All Other Segments		129		146
Corporate		33		23
	$	1,814	$	2,033

(a)	Includes equity income from investments in unconsolidated affiliates of $54 million, $41 million and $30 million in 2016, 2015 and 2014, respectively.

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

(c)	Represents 2014 impairment losses related to Little Sheep and 2016 incremental restaurant-level impairment charges. See Note 5.

(d)	Includes investments in 3 unconsolidated affiliates totaling $71 million and $61 for 2016 and 2015, respectively.

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

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

Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Scheduleof Quarterly Financial Information [Abstract]

Schedule of Quarterly Financial Information

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

	2015
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter			Total
Revenues:
Company sales	$	1,235	$	1,608	$	1,935	$	2,011		$	6,789
Franchise fees and income		21		28		34		37			120
Total revenues		1,256		1,636		1,969		2,048			6,909
Restaurant profit		192		185		318		163			858
Operating Profit		142		86		255		5			488
Net Income – Yum China Holdings, Inc.		101		64		187		(29	)		323
Basic earnings (losses) per common share	$	0.28	$	0.18	$	0.51	$	(0.08	)	$	0.89
Diluted earnings (losses) per common share	$	0.28	$	0.18	$	0.51	$	(0.08	)	$	0.89

Description of Business - Narrative (Details)		12 Months Ended
Description of Business - Narrative (Details)	Oct. 31, 2016	Dec. 31, 2016 Segment Restaurant	Dec. 31, 2015 Restaurant	Dec. 31, 2014 Restaurant
Segment Reporting Information [Line Items]
Entity, date of incorporation		Apr. 01, 2016
Entity incorporation, state name		Delaware
Expiration term of master license agreement		50 years
Additional consecutive renewal terms of license agreement		50 years
Percentage of license fees on net sales		3.00%
Number of reportable segments \| Segment		2
Number of restaurants		6,000
KFC [Member]
Segment Reporting Information [Line Items]
Number of restaurants		5,224	5,003	4,828
KFC [Member] \| Minimum [Member]
Segment Reporting Information [Line Items]
Number of restaurants		5,200
KFC [Member] \| Shanghai [Member]
Segment Reporting Information [Line Items]
Controlling ownership percentage maintained		58.00%
KFC [Member] \| Beijing [Member]
Segment Reporting Information [Line Items]
Controlling ownership percentage maintained		70.00%
KFC [Member] \| Hangzhou [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned		47.00%
KFC [Member] \| Suzhou [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned		47.00%
KFC [Member] \| Wuxi [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned		47.00%
KFC [Member] \| Unconsolidated affiliates [Member]
Segment Reporting Information [Line Items]
Number of restaurants		836	796	757
KFC [Member] \| Unconsolidated affiliates [Member] \| Hangzhou [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned		47.00%
KFC [Member] \| Unconsolidated affiliates [Member] \| Suzhou [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned		47.00%
KFC [Member] \| Unconsolidated affiliates [Member] \| Wuxi [Member]
Segment Reporting Information [Line Items]
Non-controlling equity ownership interest owned		47.00%
Pizza Hut Casual Dining [Member]
Segment Reporting Information [Line Items]
Number of restaurants		1,714	1,572	1,313
Pizza Hut Casual Dining [Member] \| Minimum [Member]
Segment Reporting Information [Line Items]
Number of restaurants		1,700
Yum Brands, Inc. [Member]
Segment Reporting Information [Line Items]
Exchange ratio of shares	1

Description of Business (Details) - Restaurant	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Unit count	6,000
KFC [Member]
Segment Reporting Information [Line Items]
Unit count	5,224	5,003	4,828
KFC [Member] \| Company - owned [Member]
Segment Reporting Information [Line Items]
Unit count	3,913	3,821	3,732
KFC [Member] \| Unconsolidated affiliates [Member]
Segment Reporting Information [Line Items]
Unit count	836	796	757
KFC [Member] \| Franchise [Member]
Segment Reporting Information [Line Items]
Unit count	475	386	339

Description of Business (Details1) - Restaurant	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Unit count	6,000
Pizza Hut Casual Dining [Member]
Segment Reporting Information [Line Items]
Unit count	1,714	1,572	1,313
Pizza Hut Casual Dining [Member] \| Company - owned [Member]
Segment Reporting Information [Line Items]
Unit count	1,690	1,556	1,310
Pizza Hut Casual Dining [Member] \| Franchise [Member]
Segment Reporting Information [Line Items]
Unit count	24	16	3

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Feb. 01, 2012
Summary Of Significant Accounting Policies [Line Items]
Future lease payments due from franchisees on a nominal basis	$ 95
Points expiration period	18 months
Customer loyalty programs	$ 4
Reduction in estimate of breakage	10.00%
Increase in estimated liability	$ 1
Other Assets [Member]
Summary Of Significant Accounting Policies [Line Items]
Input VAT credit asset	80
Accounts Payable And Other Current Liabilities [Member]
Summary Of Significant Accounting Policies [Line Items]
VAT payable	$ 3
Little Sheep Group Limited [Member]
Summary Of Significant Accounting Policies [Line Items]
Controlling ownership percentage maintained			93.00%
Little Sheep Group Limited [Member] \| Redeemable Noncontrolling Interest [Member]
Summary Of Significant Accounting Policies [Line Items]
Ownership interest percentage	7.00%	7.00%
Shanghai [Member] \| KFC [Member]
Summary Of Significant Accounting Policies [Line Items]
Controlling ownership percentage maintained	58.00%
Beijing [Member] \| KFC [Member]
Summary Of Significant Accounting Policies [Line Items]
Controlling ownership percentage maintained	70.00%
Hangzhou [Member] \| KFC [Member]
Summary Of Significant Accounting Policies [Line Items]
Non-controlling equity ownership interest owned	47.00%
Suzhou [Member] \| KFC [Member]
Summary Of Significant Accounting Policies [Line Items]
Non-controlling equity ownership interest owned	47.00%
Wuxi [Member] \| KFC [Member]
Summary Of Significant Accounting Policies [Line Items]
Non-controlling equity ownership interest owned	47.00%
KFC [Member] \| Shanghai [Member]
Summary Of Significant Accounting Policies [Line Items]
Controlling ownership percentage maintained	58.00%
KFC [Member] \| Beijing [Member]
Summary Of Significant Accounting Policies [Line Items]
Controlling ownership percentage maintained	70.00%

Summary of Significant Accounting Policies - Narrative (Details 1) - USD ($)		10 Months Ended	12 Months Ended
	Nov. 01, 2016	Oct. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Foreign Currency [Abstract]
Foreign currency translation adjustment			$ 1,000,000
License fee percentage			3.00%
Total license fees paid		$ 216,000,000	$ 249,000,000	$ 269,000,000	$ 265,000,000
Direct Marketing Costs [Abstract]
Direct marketing expenses			332,000,000	327,000,000	328,000,000
Research and Development Expenses [Abstract]
Research and development expenses			$ 5,000,000	5,000,000	$ 5,000,000
Impairment or Disposal of Property, Plant and Equipment [Abstract]
Number of consecutive years of operating losses used as primary indicator of potential impairment for our semi-annual impairment testing of restaurant assets			2 years
Impairment of Investments in Unconsolidated Affiliates [Abstract]
Number Of Consecutive Years Used As Indicator Of Impairment Of Investment In Unconsolidated Affiliates			2 years
Income Taxes [Abstract]
Percentage threshold that the positions taken or expected to be taken is more likely than not sustained upon examination by tax authorities (in hundredths)			50.00%
Receivables [Abstract]
Number of days from the period in which the corresponding sales occur that trade receivables are generally due			30 days
Receivables due from unconsolidated affiliates			$ 53,000,000	$ 19,000,000
Goodwill and Intangible Assets [Abstract]
Goodwill Written Off Related To Sale Of Business Unit Years From Acquisition			2 years
Fair Value Goodwill Written Off Related To Sale Of Business Unit Minimum Years Refranchised			2 years
Buildings [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)			20 years
Minimum [Member] \| Machinery and Equipment [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
Minimum [Member] \| Capitalized Software Costs [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
Maximum [Member] \| Leasehold Improvements [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)			8 years
Maximum [Member] \| Machinery and Equipment [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
Maximum [Member] \| Capitalized Software Costs [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)			5 years
Payment Processors and Aggregators [Member]
Receivables [Abstract]
Allowance for doubtful accounts			$ 0
Incremental Impairment Spin-off [Member]
Impairment or Disposal of Property, Plant and Equipment [Abstract]
Additional impairment charges	$ 17,000,000

Transactions With Parent (Details) - USD ($) $ in Millions	10 Months Ended	12 Months Ended
Transactions With Parent (Details) - USD ($) $ in Millions	Oct. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Percentage of initial fees and continuing fees to company and franchise sales	3.00%
General and administrative expenses [Member]
Related Party Transaction [Line Items]
Corporate expense allocations	$ 11	$ 12	$ 11

Transactions With Parent (Details 2) - USD ($) $ in Millions	10 Months Ended	12 Months Ended
	Oct. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Transactions With Parent [Abstract]
Initial fees – Company	$ 9		$ 18	$ 17
Initial fees – Franchise	2		3	2
Continuing fees – Company	163		201	200
Continuing fees – Franchise	42		47	46
Total	$ 216	$ 249	$ 269	$ 265

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

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

2 Months Ended

3 Months Ended

4 Months Ended

12 Months Ended

Feb. 29, 2016

Feb. 28, 2015

Aug. 31, 2016

May 31, 2016

Aug. 31, 2015

May 31, 2015

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Earnings Per Share [Abstract]

Net Income (Loss) – Yum China Holdings, Inc.

$ 145

$ 101

$ 192

$ 77

$ 187

$ 64

$ 88

$ (29)

$ 502

$ 323

$ (7)

Weighted-average common shares outstanding (for basic calculation)

^[1]

367,744,992

363,758,219

Effect of dilutive share-based employee compensation

^[1]

1,398,846

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

369,143,838

363,758,219

Basic Earnings (Loss) Per Common Share

$ 0.40

$ 0.28

$ 0.53

$ 0.21

$ 0.51

$ 0.18

$ 0.23

$ (0.08)

$ 1.36

$ 0.89

$ (0.02)

Diluted Earnings (Loss) Per Common Share

$ 0.40

$ 0.28

$ 0.53

$ 0.21

$ 0.51

$ 0.18

$ 0.23

$ (0.08)

$ 1.36

$ 0.89

$ (0.02)

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

^[2]

16,987,578

[1]

[2]

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

Items Affecting Comparability of Net Income and Cash Flows - Narrative (Details) - USD ($)			12 Months Ended
	Nov. 01, 2016	Feb. 01, 2012	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill			$ 79,000,000	$ 85,000,000
Impairment of goodwill					$ 160,000,000
Reversal of the previous loss recognized			2,000,000
Proceeds from disposal of aircraft			19,000,000
Net book value of aircraft			17,000,000
Loss on sale of aircraft			$ 2,000,000	(15,000,000)
Percentage of license fees on net sales			3.00%
Changes in fair value of financial instruments			$ 21,000,000
Redeemable Noncontrolling Interest [Member]
Noncontrolling interest loss upon redemption			$ (8,000,000)
Common Stock [Member]
Issuance of common stock to Investors (in shares)	19,145,169.42		19,145,169.42
Little Sheep Group Limited [Member]
Additional percentage of ownership acquired		66.00%
Acquisition of business, net of cash acquired		$ 540,000,000
Cash acquired due to acquisition		$ 44,000,000
Current ownership percentage		93.00%
Trademark		$ 400,000,000
Goodwill		$ 375,000,000
Impairment of trademark					284,000,000	$ 69,000,000
Impairment of goodwill					160,000,000	222,000,000
Additional impairment charges			$ 17,000,000		14,000,000	4,000,000
Impairment effect on tax expense (benefit)			(26,000,000)		(76,000,000)	(18,000,000)
Loss attributable to noncontrolling interest effect on impairment charges					(26,000,000)	$ (19,000,000)
Impairment of equity method investment					5,000,000
Asset impairment charges			$ 0	$ 0	$ 463,000,000
Little Sheep Group Limited [Member] \| Redeemable Noncontrolling Interest [Member]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners			7.00%	7.00%
Noncontrolling interest loss upon redemption			$ 8,000,000
Little Sheep Group Limited [Member] \| Redeemable Noncontrolling Interest [Member] \| Maximum [Member]
Redeemable Noncontrolling Interest, Purchase Price			$ 1,000,000

Items Affecting Comparability of Net Income and Cash Flows (Details 1) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Refranchising gain, net	$ 15	$ 13	$ 17
KFC [Member]
Refranchising gain, net	14	8	$ 17
Pizza Hut Casual Dining [Member]
Refranchising gain, net	$ 1	3
All Other Segments [Member]
Refranchising gain, net		$ 2

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

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Exclude Little Sheep Impairment Losses in Twenty Fourteen and Incremental Restaurant-Level Impairment upon Spin-Off the Separation in Twenty Sixteen [Member]

$ (78)

$ (64)

$ (517)

^[1]

(70)

(54)

KFC [Member] | Exclude Little Sheep Impairment Losses in Twenty Fourteen and Incremental Restaurant-Level Impairment upon Spin-Off the Separation in Twenty Sixteen [Member]

(61)

(64)

(54)

^[1]

(48)

(57)

(43)

Pizza Hut Casual Dining [Member] | Exclude Little Sheep Impairment Losses in Twenty Fourteen and Incremental Restaurant-Level Impairment upon Spin-Off the Separation in Twenty Sixteen [Member]

(41)

(50)

(41)

^[1]

(18)

(10)

(3)

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

(17)

(8)

(2)

^[1]

(3)

(4)

(3)

(8)

Other Income And Expenses [Abstract]

$ (3)

$ (6)

$ (11)

[1]

Franchise Fees and Income (Details) - USD ($) $ in Millions	2 Months Ended		3 Months Ended				4 Months Ended		12 Months Ended
Franchise Fees and Income (Details) - USD ($) $ in Millions	Feb. 29, 2016	Feb. 28, 2015	Aug. 31, 2016	May 31, 2016	Aug. 31, 2015	May 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Franchisor Revenue [Abstract]
Initial fees, including renewal fees									$ 10	$ 9	$ 7
Initial franchise fees included in Refranchising gain, net									(4)	(3)	(3)
Initial fees, net									6	6	4
Continuing fees and rental income									124	114	109
Franchise fees and income	$ 25	$ 21	$ 35	$ 30	$ 34	$ 28	$ 40	$ 37	$ 130	$ 120	$ 113

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

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Equity income from investments in unconsolidated affiliates

$ 54

$ 41

$ 30

China poultry supply insurance recovery

^[1]

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

(15)

Foreign exchange net loss and other

(3)

(5)

(4)

Other income, net

$ 56

$ 26

$ 51

[1]	Recoveries related to lost profits associated with a 2012 poultry supply incident.

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

Dec. 31, 2016

Dec. 31, 2015

Accounts Receivables, net

Accounts receivables, gross

$ 76,000,000

$ 35,000,000

Allowance for doubtful accounts

(2,000,000)

Accounts receivables, net

74,000,000

33,000,000

Prepaid Expenses and Other Current Assets

Assets held for sale

^[1]

18,000,000

Prepaid rent

39,000,000

53,000,000

Other prepaid expenses and current assets

^[2]

81,000,000

Prepaid expenses and other current assets

120,000,000

152,000,000

Accounts Payable and Other Current Liabilities

Accounts payable

480,000,000

438,000,000

Accrued capital expenditures

132,000,000

153,000,000

Accrued compensation and benefits

191,000,000

180,000,000

Accrued taxes, other than income taxes

14,000,000

42,000,000

Other current liabilities

154,000,000

113,000,000

Accounts payable and other current liabilities

971,000,000

926,000,000

Other Liabilities and Deferred Credits

Deferred escalating minimum rent

153,000,000

162,000,000

Other noncurrent liabilities and deferred credits

99,000,000

72,000,000

Other liabilities and deferred credits

$ 252,000,000

$ 234,000,000

[1]	Reflects the carrying value of a corporate aircraft in China (See Note 5).
[2]	Includes receivables of $16 million and insignificant amounts due from payment processors or aggregators as of December 31, 2016 and 2015, respectively (See Note 2).

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

Supplemental Balance Sheet Information (Details 1) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 3,139	$ 3,437
Accumulated depreciation and amortization	(1,492)	(1,596)
Property, plant and equipment, net	1,647	1,841
Buildings and Improvements [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	2,029	2,231
Capital Leases, Primarily Buildings [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	29	35
Machinery and Equipment [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 1,081	$ 1,171

Supplemental Balance Sheet Information - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Supplemental Balance Sheet Information [Line Items]
Depreciation and amortization expense related to property, plant and equipment	$ 385,000,000	$ 408,000,000	$ 392,000,000
Redeemable Noncontrolling Interest [Member]
Supplemental Balance Sheet Information [Line Items]
Noncontrolling interest loss upon redemption	$ (8,000,000)
Little Sheep [Member] \| Redeemable Noncontrolling Interest [Member]
Supplemental Balance Sheet Information [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	7.00%	7.00%
Noncontrolling interest loss upon redemption	$ 8,000,000
Little Sheep [Member] \| Maximum [Member] \| Redeemable Noncontrolling Interest [Member]
Supplemental Balance Sheet Information [Line Items]
Redeemable Noncontrolling Interest, Purchase Price	$ 1,000,000

Supplemental Balance Sheet Information (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Minority Interest [Line Items]
Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance	$ 58
Net income (loss) – noncontrolling interests	12	$ 5	$ (30)
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance	66	58
Noncontrolling Interests [Member]
Minority Interest [Line Items]
Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance	58	57
Net income (loss) – noncontrolling interests	19	6
Noncontrolling interest loss upon redemption		(1)
Dividends declared	(7)
Currency translation adjustments	(4)	(4)
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance	66	58	57
Redeemable Noncontrolling Interest [Member]
Minority Interest [Line Items]
Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance	6	9
Net income (loss) – noncontrolling interests	1	(1)
Noncontrolling interest loss upon redemption	(8)
Currency translation adjustments	$ 1	(2)
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance		$ 6	$ 9

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

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Accumulated impairment losses

$ 461

$ 467

$ 471

(382)

Disposals and other, net

^[1]

(6)

(4)

Goodwill, net

KFC [Member]

Pizza Hut Casual Dining [Member]

Disposals and other, net

^[1]

(5)

(3)

Goodwill, net

All Other Segments [Member]

Disposals and other, net

^[1]

(1)

Goodwill, net

Accumulated impairment losses

^[2]

382

^[2]

$ (382)

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

Goodwill and Intangible Assets (Details 1) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Definite-lived intangible assets
Gross Carrying Amount	$ 119	$ 130
Accumulated Amortization	(84)	(79)
Net Carrying Amount	35	51
Total intangible assets
Gross Carrying Amount	172	186
Intangible assets, net	88	107
Little Sheep trademark [Member]
Indefinite-lived intangible assets
Net Carrying Amount	53	56
Reacquired franchise rights [Member]
Definite-lived intangible assets
Gross Carrying Amount	93	100
Accumulated Amortization	(71)	(66)
Net Carrying Amount	22	34
Other [Member]
Definite-lived intangible assets
Gross Carrying Amount	26	30
Accumulated Amortization	(13)	(13)
Net Carrying Amount	$ 13	$ 17

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Definite-lived intangible assets
Definite-lived intangible assets, amortization expense	$ 12	$ 13	$ 14
Approximate amortization expense for definite-lived intangible assets - 2017	12
Approximate amortization expense for definite-lived intangible assets - 2018	12
Approximate amortization expense for definite-lived intangible assets - 2019	4
Approximate amortization expense for definite-lived intangible assets - 2020	2
Approximate amortization expense for definite-lived intangible assets - 2021	$ 1

Credit Facilities - Narrative (Details)		12 Months Ended
Credit Facilities - Narrative (Details)	Oct. 31, 2016	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount		$ 330,000,000		¥ 2,300,000,000
Revolving Credit Facility [Member]
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount		$ 287,000,000	$ 92,000,000		¥ 300,000,000
Number of new revolving credit facilities		6		6
Credit facility terms		The credit facilities have terms ranging from 1 to 3 years. Each credit facility bears interest based on the prevailing rate stipulated by the People’s Bank of China and contains financial covenants including, among other things, limitations on certain additional indebtedness and liens, and certain other transactions specified in the respective agreement. Each credit facility contains cross-default provision whereby our failure to make any payment on a principal amount from any credit facility will constitute a default on the respective agreement. Interest on any outstanding borrowings is due at least monthly.
Revolving Credit Facility [Member] \| Minimum [Member]
Line Of Credit Facility [Line Items]
Credit facility expiration period	1 year
Revolving Credit Facility [Member] \| Maximum [Member]
Line Of Credit Facility [Line Items]
Credit facility expiration period	3 years
Revolving Credit Facility 1 [Member]
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount				¥ 700,000,000
Credit facility renewal date			Feb. 17, 2016
Revolving Credit Facility 2 [Member]
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount				300,000,000
Revolving Credit Facility 3 [Member]
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount				200,000,000
Credit facility expiration date			Apr. 30, 2016
Revolving Credit Facility 4 [Member]
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount				300,000,000
Revolving Credit Facility 5 [Member]
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount				300,000,000
Revolving Credit Facility 6 [Member]
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount				¥ 200,000,000

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

Leases - Narrative (Details) $ in Millions	12 Months Ended
Leases - Narrative (Details) $ in Millions	Dec. 31, 2016 USD ($) Restaurant Property	Dec. 31, 2015 USD ($)
Capital Leased Assets [Line Items]
Unit count \| Restaurant	6,000
Maximum duration of lease commitments from inception for the vast majority of our lease commitments (in years)	20 years
Number of properties sublease subject to franchisees \| Property	180
Present value of minimum payments under capital leases	$ 30	$ 35
Accounts Payable And Other Current Liabilities [Member]
Capital Leased Assets [Line Items]
Current portion of capital lease obligations	$ 1	$ 1

Leases (Details) $ in Millions	Dec. 31, 2016 USD ($)
Capital leases, future minimum commitments [Abstract]
2017	$ 3
2018	3
2019	3
2020	3
2021	3
Thereafter	30
Capital leases, total future minimum commitments	45
Operating leases, future minimum commitments [Abstract]
2017	444
2018	413
2019	383
2020	354
2021	314
Thereafter	1,140
Operating leases, total future minimum commitments	3,048
Operating leases, lease receivables [Abstract]
2017	16
2018	16
2019	15
2020	13
2021	11
Thereafter	24
Operating leases, total lease receivables	$ 95

Leases (Details 1) - USD ($) $ in Millions	12 Months Ended
Leases (Details 1) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Rental expense
Minimum	$ 470	$ 516	$ 523
Contingent	250	260	265
Total rental expense	720	776	788
Rental income	$ 26	$ 24	$ 20

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

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

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

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Total expense recognized from non-recurring fair value measurements

$ 54

$ 51

$ 498

Little Sheep Trademark [Member]

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

Total expense recognized from non-recurring fair value measurements

^[1]

463

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]

$ 51

$ 35

Incremental Restaurant-level Impairment Upon Separation [Member]

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

Total expense recognized from non-recurring fair value measurements

^[3]

Changes in fair value of financial instruments [Member]

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

Total expense recognized from non-recurring fair value measurements

^[4]

$ (21)

[1]	Except for the Little Sheep trademark, which had a carrying value of $53 million at December 31, 2016, the remaining carrying value of assets measured at fair value due to the 2014 Little Sheep impairments (Level 3) was insignificant. Our 2014 fair value estimate of the Little Sheep trademark was determined using a relief-from-royalty valuation approach that included future revenues as a significant input and a discount rate of 13% as our estimate of the required rate-of-return that a third party buyer would expect to receive when purchasing the trademark. The primary drivers of the trademark’s fair value are franchise revenue growth and revenues associated with a wholly-owned business that sells seasoning to retail customers. Franchise revenue growth reflected annual same store sales growth of 4% and approximately 35 new franchise units per year, partially offset by approximately 25 franchise closures per year. The retail seasoning business was forecasted to generate sales growth consistent with historical results. Our 2016 and 2015 fair value estimates exceeded their carrying values using similar assumptions and methods as those used in 2014.
[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. The fair value measurements used in these impairment evaluations were based on discounted cash flow estimates using unobservable inputs (Level 3). The remaining net book value of assets measured at fair value during the years ended December 31, 2016, 2015 and 2014 was insignificant.
[3]	Incremental restaurant-level impairment represents additional impairment as a result of including the impact from the license fee paid to YUM on the individual restaurants future cash flow, which is equal to 3% of net system sales. Such license fee did not impact the impairment assessment prior to the separation as it was considered an intercompany charge at the time, whereas it became a charge from a third party after the separation and therefore should be considered in the impairment assessment. The remaining net book value of assets measured at fair value during the year ended December 31, 2016 was insignificant.
[4]	(d)The Post-Closing Adjustment and the warrants from the investment with strategic investors were accounted for as derivative instruments and liability-classified equity contracts, respectively (see Note 11). These financial instruments were initially measured at fair value as of November 1, 2016, the date when shares of common stock were issued, and subject to subsequent fair value measurement until December 30, 2016. They are classified within Level 3 because their fair values are based on inputs that are unobservable in the market. The Company adopted the Monte-Carlo Simulation model (the “MCS” model) and Black-Scholes option-pricing model (the “BS” model) in deriving the initial fair values of the Post-Closing Adjustment and the warrants, respectively. On December 30, 2016, when the Adjusted VWAP Price Per Share was determined, the Post-Closing Adjustment was remeasured at fair value of $20.5 million based on 784,686.42 shares of common stock to be repurchased from the Investors at the closing price of $26.12 per share. The Warrants were remeasured at fair value of $95 million using the BS option pricing model with assumptions as of December 30, 2016. The key assumptions for the MCS model and the BS model as of November 1, 2016 and December 30, 2016, respectively, are as follows: November 1, 2016 December 30, 2016 Post-Closing Adjustment Warrants Warrants Fair market value of common stock $26.19 $26.19 $26.12 Expected term 60 days 5 years 5 years Average risk-free rate of return 0.27% 1.31% 1.93% Expected volatility 33% 34% 33% Expected dividend yield —% —% —%

Fair Value Disclosures (Parenthetical) (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($) franchise	Dec. 30, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Percentage of license fees on net sales	3.00%
Common Stock [Member] \| Post-closing Adjustment [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value of stock to be repurchased, shares \| shares		784,686.42
Shares repurchased price per share \| $ / shares		$ 26.12
Fair Value, Inputs, Level 3 \| Common Stock [Member] \| Post-closing Adjustment [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value of stock to be repurchased calculated based on weighted average trading price		$ 20.5
Fair Value, Inputs, Level 3 \| Warrants [Member] \| BS Option Pricing Model [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value of stock to be repurchased calculated based on weighted average trading price		$ 95.0
Little Sheep Trademark [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Gross Carrying Amount	$ 53.0		$ 56.0
Fair Value measurements valuation	Our 2014 fair value estimate of the Little Sheep trademark was determined using a relief-from-royalty valuation approach that included future revenues as a significant input and a discount rate of 13% as our estimate of the required rate-of-return that a third party buyer would expect to receive when purchasing the trademark.
Fair value measurements discount rate	13.00%
Annual franchise revenue store sales growth percentage	4.00%
Number of new franchise units per year \| franchise	35
Number of franchise units closures per year \| franchise	25

Fair Value Disclosures (Details 1) - $ / shares			12 Months Ended
Fair Value Disclosures (Details 1) - $ / shares	Dec. 30, 2016	Nov. 01, 2016	Dec. 31, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Expected dividend yield			0.00%
Fair Value, Inputs, Level 3 \| Post-closing Adjustment [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair market value of common stock		$ 26.19
Expected term		60 days
Average risk-free rate of return		0.27%
Expected volatility		33.00%
Warrants [Member] \| Fair Value, Inputs, Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair market value of common stock	$ 26.12	$ 26.19
Expected term	5 years	5 years
Average risk-free rate of return	1.93%	1.31%
Expected volatility	33.00%	34.00%

Fair Value Disclosures - Narrative (Details)	12 Months Ended
Fair Value Disclosures - Narrative (Details)	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Dividend yield	0.00%

Retirement Plans - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
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	$ 148.0	$ 150.0	$ 147.0
Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	5.00%
Minimum [Member] \| Local Social Security Bureau [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	10.00%
Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	10.00%
Defined contribution plan, additional annual vesting interest percentage	100.00%
Maximum [Member] \| Local Social Security Bureau [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	22.00%
Account Payable [Member] \| Leadership Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Liability attributable to employees	$ 3.3
Account Payable [Member] \| Yum China Holdings, Inc. Leadership Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Liability attributable to employees	$ 0.1

Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	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.
Share-based compensation expense	$ 16.0	$ 14.0	$ 13.0
Deferred tax benefit recognized	$ 3.0	$ 3.0	$ 3.0
Non-Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock granted	64,209
Grant date fair value	$ 1.7
Stock Options and Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Weighted-average grant-date fair value of awards granted (in dollars per share)	$ 12.78	$ 16.11	$ 17.45
Total intrinsic value of stock options and SARs exercised	$ 25.0	$ 33.0	$ 16.0
Unrecognized compensation cost	$ 22.0
Remaining weighted-average vesting period	1 year 9 months 7 days
Total fair value at grant date or modification date of awards vested	$ 11.0	$ 6.0	$ 7.0
Other Awards [Member] \| Second Grant Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting schedule of grants under stock award plans	25.00%
Other Awards [Member] \| Third Grant Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting schedule of grants under stock award plans	50.00%
Other Awards [Member] \| First Grant Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting schedule of grants under stock award plans	25.00%
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Unrecognized compensation cost	$ 8.0
Unvested RSUs	545,846
RSUs [Member] \| Second Grant Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting schedule of grants under stock award plans	50.00%
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	50.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	1 year
Long Term Incentive Plan (the "2016" Plan) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance				45,000,000
Long Term Incentive Plan (the "2016" Plan) [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Long Term Incentive Plan (the "2016" Plan) [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	5 years
Executive stock plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Vesting schedule of grants under stock award plans	25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Average Exercise Period	6 years 6 months

Share-Based Compensation (Details)	12 Months Ended
Share-Based Compensation (Details)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Award Valuation
Risk-free interest rate		1.30%	1.60%
Expected term (years)		6 years 6 months	6 years 3 months 18 days
Expected volatility		27.00%	29.90%
Expected dividend yield		2.20%	2.10%
Minimum [Member]
Award Valuation
Risk-free interest rate	1.30%
Expected term (years)	6 years 6 months
Expected volatility	27.00%
Expected dividend yield	0.00%
Maximum [Member]
Award Valuation
Risk-free interest rate	1.40%
Expected term (years)	6 years 9 months
Expected volatility	35.00%
Expected dividend yield	2.60%

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

12 Months Ended

Dec. 31, 2016

USD ($)

$ / shares

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

Converted from YUM equity awards (in shares) | shares

25,274

^[1]

Granted (in shares) | shares

500

Exercised (in shares) | shares

(590)

Forfeited or expired (in shares) | shares

(456)

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

24,728

^[2]

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

14,883

Converted from YUM equity awards | $ / shares

$ 17.57

^[1]

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

26.98

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

9.99

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

21.13

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

17.88

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

$ 15.32

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

5 years 11 months 9 days

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

4 years 4 months 10 days

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

$ 204

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

$ 161

[1]	Awards converted from YUM equity awards include 1,345,259 and 23,928,259 stock options and SARs held by the Company’s employees (including non-employee directors of Yum China) and YUM’s employees, respectively, as a result of the modification of YUM equity awards prior to the separation.
[2]	Outstanding awards include 1,335,131 stock options and 23,393,125 SARs with weighted average exercise prices of $14.10 and $18.09, respectively. Outstanding awards represent Yum China awards held by employees of both the Company and YUM.

Share-Based Compensation (Parenthetical) (Details 1)	12 Months Ended
Share-Based Compensation (Parenthetical) (Details 1)	Dec. 31, 2016 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding at the end of the year (in shares)	1,335,131
SARs outstanding at the end of the year (in shares)	23,393,125
Stock options outstanding at the end of the year, Weighted-average exercise price (in dollars per share) \| $ / shares	$ 14.10
SARs outstanding at the end of the year, Weighted-average exercise price (in dollars per share) \| $ / shares	$ 18.09
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Converted from YUM equity awards (in shares)	1,345,259
SARs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Converted from YUM equity awards (in shares)	23,928,259

Share-Based Compensation (Details 2) - RSUs [Member]

12 Months Ended

Dec. 31, 2016

$ / shares

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

Converted from YUM equity awards (in shares) | shares

349,000

^[1]

Granted (in shares) | shares

201,000

Vested (in shares) | shares

(2,000)

Forfeited or expired (in shares) | shares

(2,000)

Unvested at the end of the year (in shares) | shares

545,846

Converted from YUM equity awards | $ / shares

$ 21.96

^[1]

Granted | $ / shares

26.98

Vested | $ / shares

22.29

Forfeited or expired | $ / shares

22.57

Unvested at the end of the year | $ / shares

$ 23.81

[1]	Awards converted from YUM equity awards include 226,445 and 122,830 RSUs held by the Company’s employees (including non-employee directors of Yum China) and YUM’s employees, respectively, as a result of modification of YUM equity awards prior to the separation.

Share-Based Compensation (Parenthetical) (Details 2) - RSUs [Member]

12 Months Ended

Dec. 31, 2016

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

Converted from YUM equity awards (in shares)

349,000

^[1]

Yum Brands, Inc. [Member]

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

Converted from YUM equity awards (in shares)

226,445

YUM [Member]

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

Converted from YUM equity awards (in shares)

122,830

[1]	Awards converted from YUM equity awards include 226,445 and 122,830 RSUs held by the Company’s employees (including non-employee directors of Yum China) and YUM’s employees, respectively, as a result of modification of YUM equity awards prior to the separation.

Equity - Narrative (Details) - USD ($)	12 Months Ended
Equity - Narrative (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Oct. 31, 2016	Oct. 27, 2016
Class Of Stock [Line Items]
Percentage of shares distribution for each share held by parent stockholders				100.00%
Common stock, shares authorized	1,000,000,000
Common stock, par value	$ 0.01			$ 0.01
Common stock, shares issued	383,344,835.42			363,758,219
Common stock, shares outstanding	383,344,835.42			363,758,219
Other comprehensive Income (loss)	$ (132,000,000)	$ (93,000,000)	$ (52,000,000)
Accumulated other comprehensive income	1,000,000	130,000,000
Tax effect related to components of other comprehensive income	$ 0	$ 0	$ 0
Percentage of annual after tax profit required to be allocated to general reserve	10.00%
Maximum percentage of annual after tax profit to be allocated to general reserve based on registered capital	50.00%
Restricted net assets	$ 572,000,000
Rights Plan [Member]
Class Of Stock [Line Items]
Percentage of preferred stock purchase of share					100.00%
Dividend record date	Oct. 27, 2016
Rights plan expiration date	Oct. 27, 2017
Spin-Off [Member]
Class Of Stock [Line Items]
Common stock, shares authorized				1,000,000,000
Common stock, par value				$ 0.01
Common stock, shares issued	383,344,835.42			363,758,219
Common stock, shares outstanding	383,344,835.42			363,758,219

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
U.S. and foreign income before income taxes [Abstract]
U.S.	$ 5	$ (7)	$ 15
China	659	502
Other Foreign	8	1	2
Income Before Income Taxes	$ 672	$ 496	$ 17

Income Taxes (Details 1) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 1) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Details of income tax provision (benefit) [Abstract]
Current: Federal	$ (2)	$ 7	$ 9
Current: Foreign	200	132	149
Total current income tax provision (benefit)	198	139	158
Deferred: Federal	(36)	(7)	(9)
Deferred: Foreign	(4)	36	(95)
Total deferred income tax provision (benefit)	(40)	29	(104)
Effective income tax rate	$ 158	$ 168	$ 54

Income Taxes (Details 2) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 2) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
U.S. federal statutory rate	$ 235	$ 173	$ 6
Statutory rate differential attributable to foreign operations	(55)	(15)	5
Adjustments to reserves and prior years	16	3	(3)
Change in valuation allowances		12	13
Other, net	(12)	(5)	(7)
Effective income tax rate	$ 158	$ 168	$ 54
Effective income tax rate reconciliation [Abstract]
U.S. federal statutory rate, percent	35.00%	35.00%	35.00%
Statutory rate differential attributable to foreign operations, percent	(8.40%)	(3.10%)	32.20%
Adjustments to reserves and prior years, percent	2.40%	0.60%	(20.90%)
Change in valuation allowances, percent		2.40%	79.80%
Other, net, percent	(1.70%)	(1.00%)	(44.60%)
Effective income tax rate, percent	23.50%	33.90%	322.30%
Little Sheep Group Limited [Member]
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
Tax benefit from Little Sheep restructuring	$ (26)
Tax impact from Little Sheep goodwill impairment			$ 40
Effective income tax rate reconciliation [Abstract]
Tax benefit from Little Sheep restructuring, percent	(3.80%)
Tax impact from Little Sheep goodwill impairment			240.80%

Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Taxes Disclosure [Line Items]
Effective income tax rate	23.50%	33.90%	322.30%
U.S. federal statutory rate, percent	35.00%	35.00%	35.00%
Net tax expense due to change in valuation allowances		$ 12,000,000	$ 13,000,000
Recognized tax benefit	$ 158,000,000	168,000,000	54,000,000
Impairment of goodwill			160,000,000
Tax benefit on goodwill impairment loss			0
Deferred Tax Liability Not Recognized, Cumulative Amount of Temporary Differences	1,500,000,000
Cash payments for tax liabilities on income tax returns	$ 182,000,000	143,000,000	186,000,000
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%
Increase in unrecognized tax benefits	$ 14,000,000	4,000,000
Total interest and penalties recorded during the period	3,000,000	1,000,000	4,000,000
Impact on Next Years' Effective Tax Rate [Member]
Income Taxes Disclosure [Line Items]
Amount of unrecognized tax benefits that may decrease in the next 12 months		$ 6,000,000
Tax Expire by 2026 [Member] \| Foreign [Member]
Income Taxes Disclosure [Line Items]
Tax credit carryforwards	$ 46,000,000
Tax credit carryforward expiration year	2026
Little Sheep Group Limited [Member]
Income Taxes Disclosure [Line Items]
Recognized tax benefit	$ 26,000,000
Impairment of goodwill			$ 160,000,000	$ 222,000,000
Operating loss carryforwards	$ 160,000,000
Operating loss carryforwards expiration year	2021
Little Sheep Group Limited [Member] \| Tax Expire by 2026 [Member]
Income Taxes Disclosure [Line Items]
Recognized tax benefit	$ 12,000,000
Tax credit carryforward expiration year	2026
Little Sheep Group Limited [Member] \| Tax Expire by 2036 [Member]
Income Taxes Disclosure [Line Items]
Recognized tax benefit	$ 14,000,000
Tax credit carryforward expiration year	2036
China [Member]
Income Taxes Disclosure [Line Items]
Effective income tax rate	25.00%

Income Taxes (Details 3) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Net deferred tax assets (liabilities) [Abstract]
Operating losses and tax credit carryforwards	$ 86	$ 66
Employee benefits	4	2
Share-based compensation	8	11
Deferred escalating minimum rent	42	43
Various liabilities	8	14
Deferred income and other	35	37
Gross deferred tax assets	209	173
Deferred tax asset valuation allowances	(41)	(45)
Net deferred tax assets	168	128
Intangible assets	(22)	(23)
Property, plant and equipment	(1)	(4)
Other	(9)	(9)
Gross deferred tax liabilities	(32)	(36)
Net deferred tax assets	136	92
Reported in Consolidated and Combined Balance Sheets as:
Deferred income taxes	162	116
Other liabilities and deferred credits	(26)	(24)
Net deferred tax assets	136	$ 92
Little Sheep Group Limited [Member]
Net deferred tax assets (liabilities) [Abstract]
Tax benefit from Little Sheep restructuring	$ 26

Income Taxes (Details 4) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 4) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Beginning of Year	$ 15	$ 13
Additions for tax positions of prior years	14	4
Reductions due to statute expiration	(3)	(2)
End of Year	$ 26	$ 15

Income Taxes (Details 5) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Accrued interest and penalties	$ 5	$ 3

Reportable Operating Segments - Narrative (Details)	12 Months Ended
Reportable Operating Segments - Narrative (Details)	Dec. 31, 2016 Segment
Segment Reporting [Abstract]
Number of reportable segments	2
Number of non-reportable operating segments	4

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

2 Months Ended

3 Months Ended

4 Months Ended

12 Months Ended

Feb. 29, 2016

Feb. 28, 2015

Aug. 31, 2016

May 31, 2016

Aug. 31, 2015

May 31, 2015

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

$ 1,303

$ 1,256

$ 1,883

$ 1,588

$ 1,969

$ 1,636

$ 1,978

$ 2,048

$ 6,752

$ 6,909

$ 6,934

Unallocated and corporate expenses

$ 209

$ 142

$ 286

$ 87

$ 255

$ 86

640

488

^[1]

(153)

(144)

(143)

Unallocated Closures and impairment expense

^[1],[2]

(17)

(463)

Unallocated Refranchising gain

^[1]

Unallocated Other income (expense)

^[1]

(11)

Interest income, net

^[1]

Changes in fair value of financial instruments

Income Before Income Taxes

672

496

402

425

411

436

512

525

3,727

3,201

3,727

3,201

^[3]

1,814

2,033

1,814

2,033

KFC [Member]

4,696

4,768

4,893

^[4]

645

499

435

266

283

286

221

259

269

^[5]

1,411

1,577

1,411

1,577

Pizza Hut Casual Dining [Member]

^[3]

1,099

1,248

1,099

1,248

1,774

1,825

1,696

150

145

176

111

109

118

176

187

628

718

628

718

All Other Segments [Member]

^[3]

553

616

553

616

282

316

345

(6)

(14)

(44)

160

181

160

181

^[3]

129

146

129

146

Corporate [Member]

$ 46

^[6]

1,528

725

1,528

725