View Filing Data

Income Before Income Taxes

143

397

296

Interest income, net

^[1]

148

404

300

Income tax provision

(35)

(16)

(111)

(78)

Net income – including noncontrolling interests

113

293

222

Net income (loss) – noncontrolling interests

(4)

Net Income – Yum China Holdings, Inc.

$ 107

$ 77

$ 282

$ 222

Basic Earnings Per Common Share

$ 0.28

$ 0.21

$ 0.73

$ 0.61

Diluted Earnings Per Common Share

$ 0.27

$ 0.21

$ 0.71

$ 0.61

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

Condensed Consolidated and Combined Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		5 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income - including noncontrolling interests	$ 113	$ 73	$ 293	$ 222
Other comprehensive income, net of tax of nil:
Foreign currency gains (losses) arising during the period	13	(7)	35	(29)
Comprehensive income - including noncontrolling interests	126	66	328	193
Comprehensive income (loss) - noncontrolling interests	6	(3)	12	1
Comprehensive Income - Yum China Holdings, Inc.	$ 120	$ 69	$ 316	$ 192

Condensed Consolidated and Combined Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	5 Months Ended
	May 31, 2017	May 31, 2016
Cash Flows – Operating Activities
Net income - including noncontrolling interests	$ 293	$ 222
Depreciation and amortization	160	171
Closures and impairment expenses	17	31
Refranchising gain	(2)	(4)
Deferred income taxes	(1)	(29)
Equity income from investments in unconsolidated affiliates	(30)	(26)
Distributions of income received from unconsolidated affiliates	26	13
Share-based compensation expense	10	5
Changes in accounts receivable	3	(8)
Changes in inventories	7	(30)
Changes in prepaid expenses and other current assets	5
Changes in accounts payable and other current liabilities	7	35
Changes in income taxes payable	3	25
Other, net	(25)	18
Net Cash Provided by Operating Activities	473	423
Cash Flows – Investing Activities
Capital spending	(177)	(172)
Purchases of short-term investments	(229)	(54)
Proceeds from refranchising of restaurants	3	13
Acquisition of business, net of cash acquired	(25)
Other, net	(4)	(1)
Net Cash Used in Investing Activities	(432)	(214)
Cash Flows – Financing Activities
Net transfers to Parent		(118)
Payment of capital lease obligation	(1)	(1)
Repurchase of shares of common stock	(30)
Proceeds from exercise of stock options	4
Other, net	(16)
Net Cash Used in Financing Activities	(43)	(119)
Effect of Exchange Rates on Cash and Cash Equivalents	9	(7)
Net Increase in Cash and Cash Equivalents	7	83
Cash and Cash Equivalents - Beginning of Period	885	425
Cash and Cash Equivalents - End of Period	892	508
Supplemental Cash Flow Data
Cash paid for income tax	$ 115	$ 84

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	May 31, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 892	$ 885
Short-term investments	310	79
Accounts receivable, net	74	74
Inventories, net	266	268
Prepaid expenses and other current assets	150	120
Total Current Assets	1,692	1,426
Property, plant and equipment, net	1,617	1,647
Goodwill	103	79
Intangible assets, net	105	88
Investments in unconsolidated affiliates	51	71
Other assets	287	254
Deferred income taxes	166	162
Total Assets	4,021	3,727
Current Liabilities
Accounts payable and other current liabilities	966	971
Income taxes payable	36	33
Total Current Liabilities	1,002	1,004
Capital lease obligations	27	28
Other liabilities and deferred credits	260	252
Total Liabilities	1,289	1,284
Redeemable Noncontrolling Interest	5
Equity
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 386,617,759.42 shares and 383,344,835.42 shares issued at May 31, 2017 and December 31, 2016, respectively; 384,760,471 shares and 383,344,835.42 shares outstanding at May 31, 2017 and December 31, 2016, respectively	4	4
Treasury stock	(59)	(20)
Additional paid-in capital	2,367	2,352
Retained earnings	322	40
Accumulated other comprehensive income	35	1
Total Equity – Yum China Holdings, Inc.	2,669	2,377
Noncontrolling interests	58	66
Total Equity	2,727	2,443
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$ 4,021	$ 3,727

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	May 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	386,617,759.42	383,344,835.42
Common stock, shares outstanding	384,760,471	383,344,835.42

Description of the Business	5 Months Ended
Description of the Business	May 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of the Business	Note 1 – Description of the Business Yum China Holdings, Inc. (“Yum China” and, together with its subsidiaries, the “Company,” “we,” “us” and “our”) was incorporated in Delaware on April 1, 2016. The Company separated from Yum! Brands, Inc. (“YUM” or the “Parent”) on October 31, 2016 (the “separation”), becoming an independent publicly traded company as a result of a pro rata distribution (the “distribution”) of all outstanding shares of Yum China common stock to shareholders of YUM. On October 31, 2016, YUM’s shareholders of record as of 5:00 p.m. Eastern Time on October 19, 2016 received one share of Yum China common stock for every one share of YUM common stock held as of the record date. Yum China’s common stock began trading “regular way” under the ticker symbol “YUMC” on the New York Stock Exchange on November 1, 2016. The Company owns, franchises or has an ownership in entities that own and operate restaurants under the KFC, Pizza Hut Casual Dining, Pizza Hut Home Service, East Dawning, Little Sheep and Taco Bell concepts (collectively, the “Concepts”). In connection with the separation of the Company from YUM, Yum! Restaurants Asia Pte. Ltd., a wholly-owned indirect subsidiary of YUM, and Yum Restaurants Consulting (Shanghai) Company Limited (“YCCL”), a wholly-owned indirect subsidiary of Yum China, entered into a 50-year master license agreement with automatic renewals for additional consecutive renewal terms of 50 years each, subject only to YCCL being in “good standing” and unless YCCL gives notice of its intent not to renew, for the exclusive right to use and sub-license the use of intellectual property owned by YUM and its subsidiaries for the development and operation of the KFC, Pizza Hut and, subject to achieving certain agreed-upon milestones, Taco Bell brands and their related marks and other intellectual property rights for restaurant services in the People’s Republic of China excluding Hong Kong, Taiwan and Macau (the “PRC” or “China”). 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. During the quarter ended May 31, 2017, the Company completed the acquisition of a controlling interest in the holding company of DAOJIA.com.cn (“Daojia”), an established online food delivery service provider. The Company agreed to pay cash consideration of $36.7 million to the sellers and made a concurrent capital contribution of $25.0 million to Daojia. As of the completion of the acquisition, the Company held 90% of Daojia’s outstanding shares of common stock, or 80% of its equity interests on a fully-diluted basis. Daojia became an operating segment of the Company. The acquisition was considered immaterial. The operations of each Concept also represent an operating segment of the Company. In connection with the previously-announced plans to integrate the businesses of Pizza Hut Casual Dining and Pizza Hut Home Service, beginning with the quarter ended May 31, 2017, the two businesses were combined and reported together as the Pizza Hut reportable segment. As a result, the Company has two reportable segments: KFC, which remains unchanged, and Pizza Hut. Our remaining operating segments, including the operations of East Dawning, Little Sheep, Taco Bell and Daojia, are combined and referred to as All Other Segments, as those operating segments are insignificant both individually and in the aggregate. Segment financial information for prior periods has been recast to align with this change in segment reporting. There was no impact to the consolidated and combined financial statements of the Company as a result of this change.

Basis of Presentation

5 Months Ended

May 31, 2017

Accounting Policies [Abstract]

Basis of Presentation

Note 2 – Basis of Presentation

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) for periods prior to October 31, 2016, the combined financial statements of YUM’s China businesses and operations when Yum China was a wholly-owned subsidiary of YUM (referred to as “Condensed Combined Financial Statements”) and (ii) for periods subsequent to October 31, 2016, the consolidated financial statements of the Company as a separate publicly traded company following its separation from YUM (referred to as “Condensed Consolidated Financial Statements” and, together with the Condensed Combined Financial Statements, referred to as the “Condensed Consolidated and Combined Financial Statements”).

Our preparation of the accompanying Condensed 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.

The accompanying Condensed 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 were recorded. The Condensed Combined Financial Statements include all revenues, costs, assets and liabilities directly attributable to the Company either through specific identification or allocation. The Condensed Combined Statements of Income include allocations for certain of YUM’s Corporate functions that 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 for the periods prior to October 31, 2016 to be reasonable. 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.

We have prepared the Condensed Consolidated and Combined Financial Statements in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The Condensed Consolidated and Combined Financial Statements include all normal and recurring adjustments considered necessary to present fairly our financial position as of May 31, 2017, and the results of our operations and comprehensive income for the quarters and years to date ended May 31, 2017 and 2016, and cash flows for the years to date ended May 31, 2017 and 2016. Our results of operations, comprehensive income and cash flows for these interim periods are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with the Consolidated and Combined Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K as filed with the SEC on March 8, 2017.

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

Recently Adopted Accounting Pronouncements

In July 2015, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2015-11, Inventory (Topic 330) (ASU 2015-11), which requires inventory within the scope of the standard to be measured at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for the Company in the first quarter of 2017, with early adoption permitted. We adopted ASU 2015-11 during the quarter ended February 28, 2017, and such adoption did not have a material impact on our financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) (ASU 2016-09): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 includes provisions to simplify several aspects of accounting for share-based payment transactions, including income tax consequences, accounting for forfeitures, classification of awards as either equity or liability, and classification on the statement of cash flows. ASU 2016-09 includes a requirement that the tax effect related to the settlement of share-based awards be recorded within income tax expense or benefit in the income statement. The simplification of income tax accounting for share-based payment transactions also impacts the computation of weighted-average diluted shares outstanding under the treasury stock method. ASU 2016-09 is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU 2016-09 during the quarter ended February 28, 2017 and the impact of the adoption resulted in the following:

•

The Company elected to continue to estimate the number of awards expected to be forfeited and adjust the estimate when appropriate, as is currently required. This adoption did not have a material impact on the Company’s consolidated results of operations, financial condition or cash flows.

•

The Company recorded an excess tax benefit of $5.9 million and $6.8 million within provision for income taxes for the quarter and year to date ended May 31, 2017, respectively, related to excess tax benefits on awards, on a prospective basis. Prior to adoption, the tax effect of share-based awards would have been recognized in additional paid-in capital.

•

Under ASU 2016-09, excess tax benefits from share-based arrangements are classified within cash flow from operating activities, rather than within cash flow from financing activities. The Company applied this provision on a retrospective basis and the prior period statement of cash flows was adjusted. This adoption did not have a material impact on the Company’s cash flows.

•

There was no material impact on the computation of weighted-average diluted shares outstanding.

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

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.

Transactions with YUM

5 Months Ended

May 31, 2017

Transactions with YUM

Note 3 – Transactions with YUM

Prior to the separation, there existed a parent-subsidiary relationship between YUM and the Company. We had the following transactions with YUM for the quarter and year to date ended May 31, 2016:

Allocation of Corporate Expenses

Prior to October 31, 2016, YUM historically performed centralized corporate functions on our behalf. Accordingly, certain YUM costs have been allocated to the Company and reflected as expenses in the Condensed 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 Condensed 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 $3 million and $6 million were allocated to the Company during the quarter and year to date ended May 31, 2016, respectively, and have been included in general and administrative (“G&A”) expenses in the Condensed 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 Condensed 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 Condensed Combined Statements of Income include license fees that were 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 during the quarter and year to date ended May 31, 2016 are reflected in the table below:

	Quarter ended		Year to date ended
	5/31/2016		5/31/2016
Initial fees - Company	$	2	$	4
Initial fees - Franchise		1		1
Continuing Fees - Company		44		82
Continuing Fees - Franchise		12		22
Total	$	59	$	109

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 was historically repatriated to YUM through intercompany loans or dividends. Transfers of cash both to and from YUM are included within Parent Company Investment in the Condensed 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 Condensed Combined Financial Statements.

Earnings Per Common Share ("EPS")

5 Months Ended

May 31, 2017

Earnings Per Share [Abstract]

Earning Per Common Share (EPS)

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

On October 31, 2016, YUM’s shareholders of record as of October 19, 2016 received one share of Yum China common stock for every one share of YUM 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 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 the quarter and year to date ended May 31, 2016 since there were no dilutive securities until after the separation.

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

	Quarter ended				Year to date ended
	5/31/2017		5/31/2016		5/31/2017		5/31/2016
Net Income – Yum China Holdings, Inc.	$	107	$	77	$	282	$	222
Weighted-average common shares outstanding (for basic calculation) ^(a)		387,901,955		363,758,219		387,754,681		363,758,219
Effect of dilutive share-based employee compensation ^(a)		9,424,278		—		8,925,022		—
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		397,326,233		363,758,219		396,679,703		363,758,219
Basic Earnings Per Share	$	0.28	$	0.21	$	0.73	$	0.61
Diluted Earnings Per Share	$	0.27	$	0.21	$	0.71	$	0.61
Employee stock options, stock appreciation rights and warrants excluded from the diluted EPS computation ^(b)		19,131,358		—		18,625,451		—

(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 on shares of common stock of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect.

(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 quarters and years to date presented.

Equity

5 Months Ended

May 31, 2017

Stockholders Equity Note [Abstract]

Equity

Note 5 – Equity

Changes in Equity and Redeemable Noncontrolling Interest

	Yum China Holdings, Inc.
									Accumulated
	Common				Additional				Other														Redeemable
	Stock				Paid-in		Retained		Comprehensive		Treasury Stock						Noncontrolling			Total			Noncontrolling
	Shares		Amount		Capital		Earnings		Income		Shares			Amount			Interests			Equity			Interest
Balance at December 31, 2016		383,344,835.42	$	4	$	2,352	$	40	$	1		(784,686.42	)	$	(20	)	$	66		$	2,443		$	—
Net Income								282										11			293
Foreign currency translation gains										34								1			35
Comprehensive income																					328			—
Dividends declared																		(22	)		(22	)
Acquisition of Daojia																		2			2			5
Repurchase of shares of common stock												(1,072,602.00	)		(39	)					(39	)
Exercise and vesting of share-based awards		3,272,924.00		—		5															5
Share-based compensation						10															10
Balance at May 31, 2017		386,617,759.42	$	4	$	2,367	$	322	$	35		(1,857,288.42	)	$	(59	)	$	58		$	2,727		$	5

Share Repurchase Program

On February 7, 2017, we announced that our Board of Directors authorized a $300 million share repurchase program. Under this authorization, we repurchased shares of Yum China common stock during the year to date ended May 31, 2017 as indicated below. All amounts exclude applicable transaction fees.

Shares Repurchased

(thousands)

Dollar Value of

Repurchased

Remaining Dollar

Value of Shares

that may be

Repurchased

1,072,602

^(a)

261

(a)	Includes 0.2 million shares repurchased for $9 million with trade dates prior to May 31, 2017 but cash settlement dates subsequent to May 31, 2017.

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

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

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+ Details

Items Affecting Comparability of Net Income and Cash Flows

5 Months Ended

May 31, 2017

Comparability of Prior Year Financial Data

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

Refranchising Gain, net

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

	Quarter ended				Year to date ended
	5/31/2017		5/31/2016		5/31/2017		5/31/2016
KFC	$	—	$	1	$	1	$	4
Pizza Hut		—		—		—		—
All Other Segments		1		—		1		—
Total Company	$	1	$	1	$	2	$	4

Store Closure and Impairment Activity

Store closure income and Store impairment charges by reportable segment and All Other Segments are presented below:

	Quarter ended											Year to date ended
	5/31/2017											5/31/2017
	Total Company			KFC			Pizza Hut			All Other Segments		Total Company			KFC			Pizza Hut			All Other Segments
Store closure income^(a)	$	3		$	2		$	1		$	—	$	5		$	3		$	2		$	—
Store impairment charges		(20	)		(10	)		(10	)		—		(22	)		(12	)		(10	)		—
Closure and impairment expenses	$	(17	)	$	(8	)	$	(9	)	$	—	$	(17	)	$	(9	)	$	(8	)	$	—

	Quarter ended												Year to date ended
	5/31/2016												5/31/2016
	Total Company			KFC			Pizza Hut			All Other Segments			Total Company			KFC			Pizza Hut			All Other Segments
Store closure income^(a)	$	4		$	2		$	1		$	1		$	6		$	4		$	1		$	1
Store impairment charges		(35	)		(23	)		(11	)		(1	)		(37	)		(25	)		(11	)		(1	)
Closure and impairment expenses	$	(31	)	$	(21	)	$	(10	)	$	—		$	(31	)	$	(21	)	$	(10	)	$	—

(a)

Store closure income include proceeds from forced store closures, lease reserves established when we cease using a property under an operating lease and subsequent adjustments to those reserves and other facility-related expenses from previously closed stores. Remaining lease obligations for closed stores were not material at May 31, 2017 or December 31, 2016.

Other Income, Net

5 Months Ended

May 31, 2017

Other Income And Expenses [Abstract]

Other Income, Net

Note 7 – Other Income, net

	Quarter ended					Year to date ended
	5/31/2017			5/31/2016		5/31/2017			5/31/2016
Equity income from investments in unconsolidated affiliates	$	13		$	10	$	30		$	26
Foreign exchange net (loss) gain and other		(2	)		2		(2	)		1
Other income, net	$	11		$	12	$	28		$	27

Supplemental Balance Sheet Information

5 Months Ended

May 31, 2017

Supplemental Balance Sheet Information Disclosure [Abstract]

Supplemental Balance Sheet Information

Note 8 – Supplemental Balance Sheet Information

Accounts Receivable, net	5/31/2017			12/31/2016
Accounts receivable, gross	$	75		$	76
Allowance for doubtful accounts		(1	)		(2	)
Accounts receivable, net	$	74		$	74

Prepaid Expenses and Other Current Assets	5/31/2017		12/31/2016
Prepaid rent	$	38	$	39
Other prepaid expenses and current assets^(a)		112		81
Prepaid expenses and other current assets	$	150	$	120

(a)	Includes receivables of $10 million and $16 million due from payment processors or aggregators as of May 31, 2017 and December 31, 2016, respectively.

Property, Plant and Equipment	5/31/2017			12/31/2016
Buildings and improvements	$	2,100		$	2,029
Capital leases, primarily buildings		29			29
Machinery and equipment		1,078			1,081
Property, plant and equipment, gross		3,207			3,139
Accumulated depreciation and amortization		(1,590	)		(1,492	)
Property, plant and equipment, net	$	1,617		$	1,647

Accounts Payable and Other Current Liabilities	5/31/2017		12/31/2016
Accounts payable	$	492		480
Accrued capital expenditures		89		132
Accrued compensation and benefits		168		191
Accrued taxes, other than income taxes		14		14
Dividends payable		5		—
Other current liabilities		198		154
Accounts payable and other current liabilities	$	966	$	971

Other Liabilities and Deferred Credits	5/31/2017		12/31/2016
Deferred escalating minimum rent	$	156	$	153
Other noncurrent liabilities and deferred credits		104		99
Other liabilities and deferred credits	$	260	$	252

Goodwill and Intangible Assets

5 Months Ended

May 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 9 – Goodwill and Intangible Assets

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

	Total Company			KFC		Pizza Hut		All Other Segments^(a)
Balance as of December 31, 2016
Goodwill, gross	$	461		$	70	$	9	$	382
Accumulated impairment losses		(382	)		—		—		(382	)
Goodwill, net		79			70		9		—
Goodwill acquired and allocated		23			5		9		9
Effect of currency translation adjustment		1			1		—		—
Balance as of May 31, 2017
Goodwill, gross		485			76		18		391
Accumulated impairment losses		(382	)		—		—		(382	)
Goodwill, net	$	103		$	76	$	18	$	9

(a)	Goodwill, gross and Accumulated impairment losses as of December 31, 2016 represent Little Sheep goodwill and related impairment.

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

	5/31/2017							12/31/2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Definite-lived intangible assets
Reacquired franchise rights	$	95	$	(76	)	$	19	$	93	$	(71	)	$	22
Daojia platform		16		—			16		—		—			—
Customer-related assets		12		(4	)		8		7		(4	)		3
Other		19		(10	)		9		19		(9	)		10
	$	142	$	(90	)	$	52	$	119	$	(84	)	$	35
Indefinite-lived intangible assets
Little Sheep trademark	$	53	$	—		$	53	$	53	$	—		$	53

Total intangible assets	$	195	$	(90	)	$	105	$	172	$	(84	)	$	88

Amortization expense of definite-lived intangible assets was $3 million and $3 million for the quarters ended May 31, 2017 and 2016, respectively, and $5 million and $5 million for the years to date ended May 31, 2017 and 2016, respectively. As of May 31, 2017, expected amortization expense for the unamortized definite-lived intangible assets is approximately $9 million for the remainder of 2017, $16 million in 2018, $8 million in 2019, $4 million in 2020 and $4 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.

+ References + Details

Fair Value Measurements	5 Months Ended
Fair Value Measurements	May 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 10 – Fair Value Measurements As of May 31, 2017, the carrying values of cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximated their fair values because of the short-term nature of these instruments. In addition, certain of the Company’s assets, such as property, plant and equipment, goodwill and intangible assets, are measured at fair value on a non-recurring basis, if determined to be impaired. During the quarter and year to date ended May 31, 2017, we recorded restaurant-level impairment (Level 3) of $16 million and $18 million, respectively. During the quarter and year to date ended May 31, 2016, we recorded restaurant-level impairment (Level 3) of $33 million and $33 million, respectively. The remaining net book value of the assets measured at fair value as of May 31, 2017, subsequent to these impairments, was not significant.

Reportable Operating Segments

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

+ References + Details

Income Taxes

5 Months Ended

May 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Note 11 – Income Taxes

	Quarter ended						Year to date ended
	5/31/2017			5/31/2016			5/31/2017			5/31/2016
Income tax provision	$	35		$	16		$	111		$	78
Effective tax rate		22.9	%		18.6	%		27.4	%		26.2	%

Our effective tax rate is generally lower than the U.S. federal statutory rate of 35% due to the majority of our income being earned in China where the tax rate is lower than the U.S. rate. Our quarter and year to date effective tax rates for the period ended May 31, 2017 were higher than the prior year primarily due to higher costs of repatriating current year foreign earnings.

Reportable Operating Segments

5 Months Ended

May 31, 2017

Segment Reporting [Abstract]

Note 12 – Reportable Operating Segments

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

	Quarter ended				Year to date ended
Revenues	5/31/2017		5/31/2016		5/31/2017		5/31/2016
KFC	$	1,116	$	1,107	$	2,012	$	2,028
Pizza Hut		468		466		847		833
All Other Segments		10		15		19		30
Total	$	1,594	$	1,588	$	2,878	$	2,891

	Quarter ended						Year to date ended
Operating Profit	5/31/2017			5/31/2016			5/31/2017			5/31/2016
KFC^(a)	$	154		$	109		$	361		$	300
Pizza Hut		30			12			97			50
All Other Segments		(2	)		(2	)		—			(1	)
Unallocated and corporate expenses^(b)		(40	)		(37	)		(63	)		(61	)
Unallocated Other income^(b)		—			4			—			4
Unallocated Refranchising gain^(b)		1			1			2			4
Operating Profit	$	143		$	87		$	397		$	296
Interest income, net^(b)		5			2			7			4
Income Before Income Taxes	$	148		$	89		$	404		$	300

	Identifiable Assets
	5/31/2017		12/31/2016
KFC^(c)	$	1,424	$	1,411
Pizza Hut		667		628
All Other Segments		140		160
Corporate^(d)		1,790		1,528
	$	4,021	$	3,727

	Long-Lived Assets^(e)
	5/31/2017		12/31/2016
KFC	$	1,093	$	1,099
Pizza Hut		586		553
All Other Segments		112		129
Corporate		34		33
	$	1,825	$	1,814

(a)	Includes equity income from investments in unconsolidated affiliates of $13 million and $10 million for the quarters ended May 31, 2017 and 2016, respectively, and $30 million and $26 million for the years to date ended May 31, 2017 and 2016, respectively.

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

(c)	Includes investments in three unconsolidated affiliates totaling $51 million and $71 million for the quarter ended May 31, 2017 and the year ended December 31, 2016, respectively.

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

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

Recently Adopted Accounting Pronouncements

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

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-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Contingencies	5 Months Ended
Contingencies	May 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Contingencies	Note 13 – 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, 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 tax could be significant. Any tax liability arising from the application of Bulletin 7 to the distribution is expected to be settled in accordance with the tax matters agreement between the Company and YUM. Pursuant to the tax matters agreement, to the extent any Chinese indirect transfer tax pursuant to Bulletin 7 is imposed, such tax and related losses will be allocated between YUM and the Company in proportion to their respective share of the combined market capitalization of YUM and the Company during the thirty trading days after the separation. Such a settlement could be significant and have a material adverse effect on our results of operations and our financial condition. At the inception of the tax indemnity being provided to YUM, the fair value of the non-contingent obligation to stand ready to perform was insignificant and the liability for the contingent obligation to make payment was not probable or estimable. Guarantees From time to time we have guaranteed certain lines of credit and loans of franchisees and unconsolidated affiliates. As of May 31, 2017, we have provided guarantees of approximately $2 million on behalf of franchisees and no guarantees were outstanding for unconsolidated affiliates. The maximum guarantee exposure is approximately $2 million. Legal Proceedings From time to time, the Company is subject to various lawsuits covering a variety of allegations. The Company believes that the ultimate liability, if any, in excess of amounts already provided for these matters in the Condensed Consolidated and Combined Financial Statements, is not likely to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. Matters faced by the Company from time to time include, but are not limited to, claims from landlords, employees, customers and others related to operational, contractual or employment issues.

Basis of Presentation (Policies)

5 Months Ended

May 31, 2017

Accounting Policies [Abstract]

Basis of Presentation

•

There was no material impact on the computation of weighted-average diluted shares outstanding.

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

Transactions with YUM (Tables)

5 Months Ended

May 31, 2017

Schedule of License Fees Paid

Total license fees paid during the quarter and year to date ended May 31, 2016 are reflected in the table below:

	Quarter ended		Year to date ended
	5/31/2016		5/31/2016
Initial fees - Company	$	2	$	4
Initial fees - Franchise		1		1
Continuing Fees - Company		44		82
Continuing Fees - Franchise		12		22
Total	$	59	$	109

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

5 Months Ended

May 31, 2017

Earnings Per Share [Abstract]

Earnings Per Common Share

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

	Quarter ended				Year to date ended
	5/31/2017		5/31/2016		5/31/2017		5/31/2016
Net Income – Yum China Holdings, Inc.	$	107	$	77	$	282	$	222
Weighted-average common shares outstanding (for basic calculation) ^(a)		387,901,955		363,758,219		387,754,681		363,758,219
Effect of dilutive share-based employee compensation ^(a)		9,424,278		—		8,925,022		—
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		397,326,233		363,758,219		396,679,703		363,758,219
Basic Earnings Per Share	$	0.28	$	0.21	$	0.73	$	0.61
Diluted Earnings Per Share	$	0.27	$	0.21	$	0.71	$	0.61
Employee stock options, stock appreciation rights and warrants excluded from the diluted EPS computation ^(b)		19,131,358		—		18,625,451		—

(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 quarters and years to date presented.

Equity (Tables)

5 Months Ended

May 31, 2017

Stockholders Equity Note [Abstract]

Changes in Equity and Redeemable Noncontrolling Interest

	Yum China Holdings, Inc.
									Accumulated
	Common				Additional				Other														Redeemable
	Stock				Paid-in		Retained		Comprehensive		Treasury Stock						Noncontrolling			Total			Noncontrolling
	Shares		Amount		Capital		Earnings		Income		Shares			Amount			Interests			Equity			Interest
Balance at December 31, 2016		383,344,835.42	$	4	$	2,352	$	40	$	1		(784,686.42	)	$	(20	)	$	66		$	2,443		$	—
Net Income								282										11			293
Foreign currency translation gains										34								1			35
Comprehensive income																					328			—
Dividends declared																		(22	)		(22	)
Acquisition of Daojia																		2			2			5
Repurchase of shares of common stock												(1,072,602.00	)		(39	)					(39	)
Exercise and vesting of share-based awards		3,272,924.00		—		5															5
Share-based compensation						10															10
Balance at May 31, 2017		386,617,759.42	$	4	$	2,367	$	322	$	35		(1,857,288.42	)	$	(59	)	$	58		$	2,727		$	5

Repurchase Of Shares Of Common Stock

Under this authorization, we repurchased shares of Yum China common stock during the year to date ended May 31, 2017 as indicated below. All amounts exclude applicable transaction fees.

Shares Repurchased

(thousands)

Dollar Value of

Repurchased

Remaining Dollar

Value of Shares

that may be

Repurchased

1,072,602

^(a)

261

(a)	Includes 0.2 million shares repurchased for $9 million with trade dates prior to May 31, 2017 but cash settlement dates subsequent to May 31, 2017.

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

5 Months Ended

May 31, 2017

Refranchising Gain, Net [Member]

Closures and Impairment (Income) Expenses [Member]

Facility Actions

Refranchising Gain, net

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

	Quarter ended				Year to date ended
	5/31/2017		5/31/2016		5/31/2017		5/31/2016
KFC	$	—	$	1	$	1	$	4
Pizza Hut		—		—		—		—
All Other Segments		1		—		1		—
Total Company	$	1	$	1	$	2	$	4

Other Income And Expenses [Abstract]

Facility Actions

Store Closure and Impairment Activity

Store closure income and Store impairment charges by reportable segment and All Other Segments are presented below:

	Quarter ended											Year to date ended
	5/31/2017											5/31/2017
	Total Company			KFC			Pizza Hut			All Other Segments		Total Company			KFC			Pizza Hut			All Other Segments
Store closure income^(a)	$	3		$	2		$	1		$	—	$	5		$	3		$	2		$	—
Store impairment charges		(20	)		(10	)		(10	)		—		(22	)		(12	)		(10	)		—
Closure and impairment expenses	$	(17	)	$	(8	)	$	(9	)	$	—	$	(17	)	$	(9	)	$	(8	)	$	—

	Quarter ended												Year to date ended
	5/31/2016												5/31/2016
	Total Company			KFC			Pizza Hut			All Other Segments			Total Company			KFC			Pizza Hut			All Other Segments
Store closure income^(a)	$	4		$	2		$	1		$	1		$	6		$	4		$	1		$	1
Store impairment charges		(35	)		(23	)		(11	)		(1	)		(37	)		(25	)		(11	)		(1	)
Closure and impairment expenses	$	(31	)	$	(21	)	$	(10	)	$	—		$	(31	)	$	(21	)	$	(10	)	$	—

(a)

Other Income, Net (Tables)

5 Months Ended

May 31, 2017

Other Income, Net Table

	Quarter ended					Year to date ended
	5/31/2017			5/31/2016		5/31/2017			5/31/2016
Equity income from investments in unconsolidated affiliates	$	13		$	10	$	30		$	26
Foreign exchange net (loss) gain and other		(2	)		2		(2	)		1
Other income, net	$	11		$	12	$	28		$	27

Supplemental Balance Sheet Information (Tables)

5 Months Ended

May 31, 2017

Supplemental Balance Sheet Information Disclosure [Abstract]

Accounts Receivable, Net

Accounts Receivable, net	5/31/2017			12/31/2016
Accounts receivable, gross	$	75		$	76
Allowance for doubtful accounts		(1	)		(2	)
Accounts receivable, net	$	74		$	74

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets	5/31/2017		12/31/2016
Prepaid rent	$	38	$	39
Other prepaid expenses and current assets^(a)		112		81
Prepaid expenses and other current assets	$	150	$	120

(a)	Includes receivables of $10 million and $16 million due from payment processors or aggregators as of May 31, 2017 and December 31, 2016, respectively.

Property, Plant and Equipment

Property, Plant and Equipment	5/31/2017			12/31/2016
Buildings and improvements	$	2,100		$	2,029
Capital leases, primarily buildings		29			29
Machinery and equipment		1,078			1,081
Property, plant and equipment, gross		3,207			3,139
Accumulated depreciation and amortization		(1,590	)		(1,492	)
Property, plant and equipment, net	$	1,617		$	1,647

Accounts Payable and Other Current Liabilities

Accounts Payable and Other Current Liabilities	5/31/2017		12/31/2016
Accounts payable	$	492		480
Accrued capital expenditures		89		132
Accrued compensation and benefits		168		191
Accrued taxes, other than income taxes		14		14
Dividends payable		5		—
Other current liabilities		198		154
Accounts payable and other current liabilities	$	966	$	971

Other Liabilities and Deferred Credits

Other Liabilities and Deferred Credits	5/31/2017		12/31/2016
Deferred escalating minimum rent	$	156	$	153
Other noncurrent liabilities and deferred credits		104		99
Other liabilities and deferred credits	$	260	$	252

Goodwill and Intangible Assets (Tables)

5 Months Ended

May 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Changes in the Carrying Amount of Goodwill

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

	Total Company			KFC		Pizza Hut		All Other Segments^(a)
Balance as of December 31, 2016
Goodwill, gross	$	461		$	70	$	9	$	382
Accumulated impairment losses		(382	)		—		—		(382	)
Goodwill, net		79			70		9		—
Goodwill acquired and allocated		23			5		9		9
Effect of currency translation adjustment		1			1		—		—
Balance as of May 31, 2017
Goodwill, gross		485			76		18		391
Accumulated impairment losses		(382	)		—		—		(382	)
Goodwill, net	$	103		$	76	$	18	$	9

(a)	Goodwill, gross and Accumulated impairment losses as of December 31, 2016 represent Little Sheep goodwill and related impairment.

Schedule of Finite and Indefinite Lived Intangible Assets by Major Class

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

	5/31/2017							12/31/2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Definite-lived intangible assets
Reacquired franchise rights	$	95	$	(76	)	$	19	$	93	$	(71	)	$	22
Daojia platform		16		—			16		—		—			—
Customer-related assets		12		(4	)		8		7		(4	)		3
Other		19		(10	)		9		19		(9	)		10
	$	142	$	(90	)	$	52	$	119	$	(84	)	$	35
Indefinite-lived intangible assets
Little Sheep trademark	$	53	$	—		$	53	$	53	$	—		$	53

Total intangible assets	$	195	$	(90	)	$	105	$	172	$	(84	)	$	88

Income Taxes (Tables)

5 Months Ended

May 31, 2017

Income Tax Disclosure [Abstract]

Income Tax And Effective Tax Rate

	Quarter ended						Year to date ended
	5/31/2017			5/31/2016			5/31/2017			5/31/2016
Income tax provision	$	35		$	16		$	111		$	78
Effective tax rate		22.9	%		18.6	%		27.4	%		26.2	%

Reportable Operating Segments (Tables)

5 Months Ended

May 31, 2017

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

	Quarter ended				Year to date ended
Revenues	5/31/2017		5/31/2016		5/31/2017		5/31/2016
KFC	$	1,116	$	1,107	$	2,012	$	2,028
Pizza Hut		468		466		847		833
All Other Segments		10		15		19		30
Total	$	1,594	$	1,588	$	2,878	$	2,891

	Quarter ended						Year to date ended
Operating Profit	5/31/2017			5/31/2016			5/31/2017			5/31/2016
KFC^(a)	$	154		$	109		$	361		$	300
Pizza Hut		30			12			97			50
All Other Segments		(2	)		(2	)		—			(1	)
Unallocated and corporate expenses^(b)		(40	)		(37	)		(63	)		(61	)
Unallocated Other income^(b)		—			4			—			4
Unallocated Refranchising gain^(b)		1			1			2			4
Operating Profit	$	143		$	87		$	397		$	296
Interest income, net^(b)		5			2			7			4
Income Before Income Taxes	$	148		$	89		$	404		$	300

	Identifiable Assets
	5/31/2017		12/31/2016
KFC^(c)	$	1,424	$	1,411
Pizza Hut		667		628
All Other Segments		140		160
Corporate^(d)		1,790		1,528
	$	4,021	$	3,727

	Long-Lived Assets^(e)
	5/31/2017		12/31/2016
KFC	$	1,093	$	1,099
Pizza Hut		586		553
All Other Segments		112		129
Corporate		34		33
	$	1,825	$	1,814

(a)	Includes equity income from investments in unconsolidated affiliates of $13 million and $10 million for the quarters ended May 31, 2017 and 2016, respectively, and $30 million and $26 million for the years to date ended May 31, 2017 and 2016, respectively.

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

(c)	Includes investments in three unconsolidated affiliates totaling $51 million and $71 million for the quarter ended May 31, 2017 and the year ended December 31, 2016, respectively.

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

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

Description of the Business - Narrative (Details) $ in Millions		3 Months Ended	5 Months Ended
	Oct. 31, 2016	May 31, 2017 USD ($) Segment	May 31, 2017 USD ($) Segment
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	2
Daojia [Member]
Segment Reporting Information [Line Items]
Amount of cash consideration paid for the acquisition		$ 36.7
Percentage of outstanding shares of common stock acquired		90.00%	90.00%
Percentage of equity interest acquired on a fully-diluted basis		80.00%	80.00%
Additional capital		$ 25.0	$ 25.0
Yum Brands, Inc. [Member]
Segment Reporting Information [Line Items]
Exchange ratio of shares	1

Basis of Presentation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	5 Months Ended
	May 31, 2017	May 31, 2017
Accounting Policies [Abstract]
Excess tax benefit within provision for income taxes	$ 5.9	$ 6.8

Transactions With YUM (Details) - USD ($) $ in Millions	3 Months Ended	5 Months Ended	10 Months Ended
Transactions With YUM (Details) - USD ($) $ in Millions	May 31, 2016	May 31, 2016	Oct. 31, 2016
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	$ 3	$ 6

Transactions With YUM (Details 2) - USD ($) $ in Millions	3 Months Ended	5 Months Ended
Transactions With YUM (Details 2) - USD ($) $ in Millions	May 31, 2016	May 31, 2016
Transactions With Parent [Abstract]
Initial fees - Company	$ 2	$ 4
Initial fees - Franchise	1	1
Continuing Fees - Company	44	82
Continuing Fees - Franchise	12	22
Total	$ 59	$ 109

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, $ in Millions

3 Months Ended

5 Months Ended

May 31, 2017

May 31, 2016

May 31, 2017

May 31, 2016

Earnings Per Share [Abstract]

Net Income – Yum China Holdings, Inc.

$ 107

$ 77

$ 282

$ 222

Weighted-average common shares outstanding (for basic calculation)

^[1]

387,901,955

363,758,219

387,754,681

363,758,219

Effect of dilutive share-based employee compensation

^[1]

9,424,278

8,925,022

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

397,326,233

363,758,219

396,679,703

363,758,219

Basic Earnings Per Share

$ 0.28

$ 0.21

$ 0.73

$ 0.61

Diluted Earnings Per Share

$ 0.27

$ 0.21

$ 0.71

$ 0.61

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

^[2]

19,131,358

18,625,451

[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 quarters and years to date presented.

Equity (Details) - USD ($) $ in Millions	3 Months Ended		5 Months Ended
Equity (Details) - USD ($) $ in Millions	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			$ 2,443
Net Income	$ 113	$ 73	293	$ 222
Foreign currency translation gains	13	(7)	35	(29)
Comprehensive income	126	$ 66	328	$ 193
Balance at May 31, 2017	2,727		2,727
Common Stock [Member]
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			$ 4
Balance (in shares) at Dec. 31, 2016			383,344,835.42
Exercise and vesting of share-based awards, shares			3,272,924.00
Balance at May 31, 2017	$ 4		$ 4
Balance (in shares) at May 31, 2017	386,617,759.42		386,617,759.42
Additional Paid-in Capital [Member]
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			$ 2,352
Exercise and vesting of share-based awards			5
Share-based compensation			10
Balance at May 31, 2017	$ 2,367		2,367
Retained Earnings [Member]
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			40
Net Income			282
Balance at May 31, 2017	322		322
Accumulated Other Comprehensive Income [Member]
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			1
Foreign currency translation gains			34
Balance at May 31, 2017	35		35
Treasury Stock [Member]
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			$ (20)
Balance (in shares) at Dec. 31, 2016			(784,686.42)
Repurchase of shares of common stock			$ (39)
Repurchase of shares of common stock, shares			(1,072,602.00)
Balance at May 31, 2017	$ (59)		$ (59)
Balance (in shares) at May 31, 2017	(1,857,288.42)		(1,857,288.42)
Noncontrolling Interests [Member]
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			$ 66
Net Income			11
Foreign currency translation gains			1
Dividends declared			(22)
Acquisition of Daojia			2
Balance at May 31, 2017	$ 58		58
Total equity Including Noncontrolling Interest [Member]
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			2,443
Net Income			293
Foreign currency translation gains			35
Comprehensive income			328
Dividends declared			(22)
Acquisition of Daojia			2
Repurchase of shares of common stock			(39)
Exercise and vesting of share-based awards			5
Share-based compensation			10
Balance at May 31, 2017	2,727		2,727
Redeemable Noncontrolling Interest [Member]
Class Of Stock [Line Items]
Acquisition of Daojia			5
Balance at May 31, 2017	$ 5		$ 5

Equity - Narrative (Details)	Feb. 07, 2017 USD ($)
Equity [Abstract]
Stock repurchase program, authorized amount	$ 300,000,000

Equity (Details 1) - 2/7/2017 [Member]
shares in Thousands, $ in Millions

5 Months Ended

May 31, 2017

USD ($)

Repurchase Of Shares Of Common Stock [Line Items]

Shares Repurchased | shares

1,072,602

^[1]

Dollar Value of Shares Repurchased

$ 39

Remaining Dollar Value of Shares that may be Repurchased

$ 261

[1]	Includes 0.2 million shares repurchased for $9 million with trade dates prior to May 31, 2017 but cash settlement dates subsequent to May 31, 2017.

Equity (Parenthetical) (Details 1) shares in Millions, $ in Millions	5 Months Ended
	May 31, 2017 USD ($) shares
Stockholders Equity Note [Abstract]
Value of shares repurchased with trade dates prior to the current reporting quarter, but settlement dates in the current quarter \| $	$ 9
Number of shares repurchased with trade dates prior to the current reporting quarter, but settlement dates in the current quarter \| shares	0.2

Items Affecting Comparability of Net Income and Cash Flows (Details 1) - USD ($) $ in Millions	3 Months Ended		5 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Refranchising gain, net	$ 1	$ 1	$ 2	$ 4
KFC [Member]
Refranchising gain, net		$ 1	1	$ 4
All Other Segments [Member]
Refranchising gain, net	$ 1		$ 1

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

3 Months Ended

5 Months Ended

May 31, 2017

May 31, 2016

May 31, 2017

May 31, 2016

^[1]

$ 3

$ 4

$ 5

$ 6

Closure and impairment expenses

(20)

(35)

(22)

(37)

(17)

(31)

(17)

(31)

KFC [Member]

^[1]

Closure and impairment expenses

(10)

(23)

(12)

(25)

(8)

(21)

(9)

(21)

Pizza Hut [Member]

^[1]

Closure and impairment expenses

(10)

(11)

(10)

(11)

$ (9)

(10)

$ (8)

(10)

All Other Segments [Member]

^[1]

Accounts receivable, gross

$ (1)

[1]

Other Income, Net (Details) - USD ($) $ in Millions	3 Months Ended		5 Months Ended
Other Income, Net (Details) - USD ($) $ in Millions	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Other Income And Expenses [Abstract]
Equity income from investments in unconsolidated affiliates	$ 13	$ 10	$ 30	$ 26
Foreign exchange net (loss) gain and other	(2)	2	(2)	1
Other income, net	$ 11	$ 12	$ 28	$ 27

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

May 31, 2017

Dec. 31, 2016

Accounts Receivable, net

$ 75,000,000

$ 76,000,000

Allowance for doubtful accounts

(1,000,000)

(2,000,000)

Accounts receivable, net

74,000,000

Prepaid Expenses and Other Current Assets

Prepaid rent

38,000,000

39,000,000

Other prepaid expenses and current assets

^[1]

112,000,000

81,000,000

Prepaid expenses and other current assets

150,000,000

120,000,000

Accounts Payable and Other Current Liabilities

Accounts payable

492,000,000

480,000,000

Accrued capital expenditures

89,000,000

132,000,000

Accrued compensation and benefits

168,000,000

191,000,000

Accrued taxes, other than income taxes

14,000,000

Dividends payable

5,000,000

Other current liabilities

198,000,000

154,000,000

Accounts payable and other current liabilities

966,000,000

971,000,000

Other Liabilities and Deferred Credits

Deferred escalating minimum rent

156,000,000

153,000,000

Other noncurrent liabilities and deferred credits

104,000,000

99,000,000

Other liabilities and deferred credits

$ 260,000,000

$ 252,000,000

[1]	Includes receivables of $10 million and $16 million due from payment processors or aggregators as of May 31, 2017 and December 31, 2016, respectively.

Supplemental Balance Sheet Information (Parenthetical) (Details) - USD ($) $ in Millions	May 31, 2017	Dec. 31, 2016
Payment Processors or Aggregators [Member]
Supplemental Balance Sheet Information [Line Items]
Receivables due from third parties	$ 10	$ 16

Supplemental Balance Sheet Information (Details 1) - USD ($) $ in Millions	May 31, 2017	Dec. 31, 2016
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 3,207	$ 3,139
Accumulated depreciation and amortization	(1,590)	(1,492)
Property, plant and equipment, net	1,617	1,647
Buildings and Improvements [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	2,100	2,029
Capital Leases, Primarily Buildings [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	29	29
Machinery and Equipment [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 1,078	$ 1,081

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

5 Months Ended

May 31, 2017

Dec. 31, 2016

Accumulated impairment losses

$ 485

$ 461

(382)

103

Effect of currency translation adjustment

KFC [Member]

Effect of currency translation adjustment

Pizza Hut [Member]

All Other Segments [Member]

Accumulated impairment losses

^[1]

391

382

^[1]

(382)

$ (382)

^[1]

^[1]

$ 9

[1]	Goodwill, gross and Accumulated impairment losses as of December 31, 2016 represent Little Sheep goodwill and related impairment.

Goodwill and Intangible Assets (Details 1) - USD ($) $ in Millions	May 31, 2017	Dec. 31, 2016
Definite-lived intangible assets
Gross Carrying Amount	$ 142	$ 119
Accumulated Amortization	(90)	(84)
Net Carrying Amount	52	35
Total intangible assets
Gross Carrying Amount	195	172
Intangible assets, net	105	88
Little Sheep trademark [Member]
Indefinite-lived intangible assets
Net Carrying Amount	53	53
Reacquired franchise rights [Member]
Definite-lived intangible assets
Gross Carrying Amount	95	93
Accumulated Amortization	(76)	(71)
Net Carrying Amount	19	22
Daojia platform [Member]
Definite-lived intangible assets
Gross Carrying Amount	16
Net Carrying Amount	16
Customer-related assets
Definite-lived intangible assets
Gross Carrying Amount	12	7
Accumulated Amortization	(4)	(4)
Net Carrying Amount	8	3
Other [Member]
Definite-lived intangible assets
Gross Carrying Amount	19	19
Accumulated Amortization	(10)	(9)
Net Carrying Amount	$ 9	$ 10

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		5 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Definite-lived intangible assets
Definite-lived intangible assets, amortization expense	$ 3	$ 3	$ 5	$ 5
Expected amortization expense for the unamortized definite-lived intangible assets - remainder of 2017	9		9
Expected amortization expense for the unamortized definite-lived intangible assets - 2018	16		16
Expected amortization expense for the unamortized definite-lived intangible assets - 2019	8		8
Expected amortization expense for the unamortized definite-lived intangible assets - 2020	4		4
Expected amortization expense for the unamortized definite-lived intangible assets - 2021	$ 4		$ 4

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		5 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Fair Value, Measurements, Nonrecurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impairment of Long-Lived Assets Held-for-use	$ 16	$ 33	$ 18	$ 33

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		5 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Income Tax Disclosure [Abstract]
Income tax provision	$ 35	$ 16	$ 111	$ 78
Effective tax rate	22.90%	18.60%	27.40%	26.20%
Effective Income Tax Rate - Federal Statutory Income Tax Rate, Percent			35.00%

Reportable Operating Segments - Narrative (Details) - Segment	3 Months Ended	5 Months Ended
	May 31, 2017	May 31, 2017
Segment Reporting [Abstract]
Number of reportable segments	2	2

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

3 Months Ended

5 Months Ended

May 31, 2017

May 31, 2016

May 31, 2017

May 31, 2016

Dec. 31, 2016

$ 1,594

$ 1,588

$ 2,878

$ 2,891

Unallocated and corporate expenses

143

397

296

^[1]

(40)

(37)

(63)

(61)

Unallocated Other income

^[1]

Unallocated Refranchising gain

^[1]

Interest income, net

^[1]

Income Before Income Taxes

148

404

300

4,021

$ 3,727

^[2]

1,825

1,814

KFC [Member]

1,116

1,107

2,012

2,028

^[3]

154

109

361

300

^[4]

1,424

1,411

^[2]

1,093

1,099

Pizza Hut [Member]

468

466

847

833

667

628

All Other Segments [Member]

^[2]

586

553

(2)

$ (2)

$ (1)

140

160

^[2]

112

129

Corporate [Member]

^[5]

1,790

1,528