Item 6. Selected Financial Data.

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Item 6. Selected Financial Data.

Selected Financial Data

YUM! Brands, Inc. and Subsidiaries

(in millions, except per share and unit amounts)



	Fiscal Year
	2017			2016(a)(d)			2015(a)			2014(a)			2013(a)
Income Statement Data
Revenues
Company sales	$	3,572		$	4,189		$	4,336		$	4,503		$	4,384
Franchise and license fees and income	2,306			2,167			2,082			2,084			2,033
Total	5,878			6,356			6,418			6,587			6,417
Refranchising (gain) loss(b)	(1,083		)	(163		)	23			(16		)	(95		)
Operating Profit(b)	2,761			1,682			1,434			1,517			1,530
Other pension (income) expense(b)	47			32			40			N/A			N/A
Interest expense, net(b)	440			305			141			143			251
Income from continuing operations before income taxes(b)	2,274			1,345			1,253			1,374			1,279
Income from continuing operations(b)	1,340			1,018			926			1,006			922
Income from discontinued operations, net of tax	N/A			625			357			45			169
Net Income(b)	1,340			1,643			1,283			1,051			1,091
Basic earnings per common share from continuing operations(b)	3.86			2.58			2.13			2.27			2.04
Basic earnings per common share from discontinued operations	N/A			1.59			0.82			0.10			0.37
Basic earnings per common share(b)	3.86			4.17			2.95			2.37			2.41
Diluted earnings per common share from continuing operations(b)	3.77			2.54			2.09			2.22			2.00
Diluted earnings per common share from discontinued operations	N/A			1.56			0.81			0.10			0.36
Diluted earnings per common share(b)	3.77			4.10			2.90			2.32			2.36
Diluted earnings per common share from continuing operations excluding Special Items(c)	2.96			2.46			2.31			2.20			2.04
Cash Flow Data
Provided by operating activities	$	1,030		$	1,248		$	1,260		$	1,217		$	1,289
Capital spending	318			427			442			508			481
Proceeds from refranchising of restaurants	1,773			370			213			83			250
Repurchase shares of Common Stock	1,960			5,403			1,200			820			770
Dividends paid on Common Stock	416			744			730			669			615
Balance Sheet Data
Total assets	$	5,311		$	5,453		$	4,939		$	5,073		$	4,975
Long-term debt	9,429			9,059			2,988			3,003			2,888
Total debt	9,804			9,125			3,908			3,268			2,958
Other Data
Number of stores at year end
Franchise	43,603			40,834			39,320			37,959			36,746
Company	1,481			2,841			3,163			3,279			3,071
System	45,084			43,675			42,483			41,238			39,817
System Sales(c)
KFC Division system sales	24,515			23,242			22,628			23,458			23,147
Reported growth	5		%	3		%	(3		)%	1		%	(2		)%
Growth in local currency	6		%	7		%	5		%	4		%	—		%
Pizza Hut Division system sales	12,034			12,019			11,999			12,106			11,948
Reported growth	—		%	—		%	(1		)%	1		%	3		%
Growth in local currency	1		%	2		%	3		%	2		%	4		%
Taco Bell Division system sales	10,145			9,660			9,102			8,459			8,107
Reported growth	5		%	6		%	8		%	4		%	4		%
Growth in local currency	5		%	6		%	8		%	4		%	4		%
Shares outstanding at year end	332			355			420			434			443
Cash dividends declared per Common Share	$	0.90		$	1.73		$	1.74		$	1.56		$	1.41
Market price per share at year end(e)	$	81.61		$	63.33		$	73.05		$	73.14		$	73.87


(a)	Selected financial data for years 2016 and 2015 has been recast to present the change in our reporting calendar and retroactively adopting a new accounting standard related to the presentation of net periodic pension cost and net periodic postretirement benefit cost (collectively,"Benefit Costs"). See Notes 2 and 5 to the Consolidated Financial Statements in Item 8 of this Form 10-K for discussion related to adopting a new accounting standard on Benefit Costs and the change in our reporting calendar, respectively. 2014 reflects our Balance Sheet and store count data that were recast for purposes of presenting 2015 Consolidated Statement of Cash Flows and unit growth. No other data presented in 2014 or 2013 has been recast.

(a)

Selected financial data for years 2016 and 2015 has been recast to present the change in our reporting calendar and retroactively adopting a new accounting standard related to the presentation of net periodic pension cost and net periodic postretirement benefit cost (collectively,"Benefit Costs"). See Notes 2 and 5 to the Consolidated Financial Statements in Item 8 of this Form 10-K for discussion related to adopting a new accounting standard on Benefit Costs and the change in our reporting calendar, respectively. 2014 reflects our Balance Sheet and store count data that were recast for purposes of presenting 2015 Consolidated Statement of Cash Flows and unit growth. No other data presented in 2014 or 2013 has been recast.


(b)	Includes amounts deemed as Special Items for some or all years presented. See discussion of our 2017, 2016 and 2015 Special Items in our Management's Discussion and Analysis ("MD&A"). Special Items in 2014 positively impacted Operating Profit by $16 million, primarily due to Refranchising gains. Special Items in 2013 positively impacted Operating Profit by $73 million, primarily due to Refranchising gains, partially offset by $10 million in pension settlement charges and $5 million of expense related to U.S. productivity initiatives and realignment of resources. Additionally, in 2013, we incurred $118 million of premiums paid and other costs related to the extinguishment of debt that were considered Special Items and were recorded in Interest expense, net. Special Items resulted in cumulative net tax benefits of $23 million 2013.

(b)

Includes amounts deemed as Special Items for some or all years presented. See discussion of our 2017, 2016 and 2015 Special Items in our Management's Discussion and Analysis ("MD&A"). Special Items in 2014 positively impacted Operating Profit by $16 million, primarily due to Refranchising gains. Special Items in 2013 positively impacted Operating Profit by $73 million, primarily due to Refranchising gains, partially offset by $10 million in pension settlement charges and $5 million of expense related to U.S. productivity initiatives and realignment of resources. Additionally, in 2013, we incurred $118 million of premiums paid and other costs related to the extinguishment of debt that were considered Special Items and were recorded in Interest expense, net. Special Items resulted in cumulative net tax benefits of $23 million 2013.


(c)	These non-GAAP measures are discussed in further detail in our MD&A.


(d)	Fiscal years for our U.S. and certain international subsidiaries that operate on a weekly periodic calendar include 52 weeks in 2017, 2015, 2014 and 2013 and 53 weeks in 2016. Refer to Note 2 for additional details related to our fiscal calendar.


(e)	Historical stock prices prior to November 1, 2016, do not reflect any adjustment for the impact of the Separation.

The selected financial data should be read in conjunction with the Consolidated Financial Statements.

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