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YUM! BRANDS, INC.-2015 Form10-K 65
Form 10-K
PART II
ITEM 9AControls and Procedures
NOTE19 Selected Quarterly Financial Data (Unaudited)
2015
First Quarter Second Quarter Third Quarter Fourth Quarter Total
Revenues:
Company sales $ 2,179 $ 2,659 $ 2,968 $ 3,339 $11,145
Franchise and license fees and income 443 446 459 612 1,960
Total revenues 2,622 3,105 3,427 3,951 13,105
Restaurant profit 382 411 539 454 1,786
Operating Profit(a) 506 371 603 441 1,921
Net Income – YUM! Brands, Inc. 362 235 421 275 1,293
Basic earnings per common share 0.83 0.54 0.97 0.64 2.97
Diluted earnings per common share 0.81 0.53 0.95 0.63 2.92
Dividends declared per common share — 0.82 — 0.92 1.74
2014
First Quarter Second Quarter Third Quarter Fourth Quarter Total
Revenues:
Company sales $ 2,292 $ 2,758 $ 2,891 $ 3,383 $11,324
Franchise and license fees and income 432 446 463 614 1,955
Total revenues 2,724 3,204 3,354 3,997 13,279
Restaurant profit 441 428 429 344 1,642
Operating Profit(b) 571 479 550 (43) 1,557
Net Income – YUM! Brands, Inc. 399 334 404 (86) 1,051
Basic earnings per common share 0.89 0.75 0.91 (0.20) 2.37
Diluted earnings per common share 0.87 0.73 0.89 (0.20) 2.32
Dividends declared per common share 0.37 0.37 — 0.82 1.56
(a) Includes losses associated with refranchising of equity markets outside of the U.S. of $73 million, $20 million and $3 million in the second, third and fourth quarters, respectively,
costs associated with the KFC U.S. Acceleration Agreement of $2 million, $8 million, $21 million and $41 million in the first, second, third and fourth quarters, respectively, and net
U.S.refranchising gains of $7 million, $1 million, $16 million and $51 million in the first, second, third and fourth quarters, respectively. See Note 4.
(b) Includes a non-cash charge of $463 million in the fourth quarter related primarily to the impairment of Little Sheep intangible assets. See Note 4.
ITEM 9 Changes In and Disagreements
withAccountants on Accounting
andFinancial Disclosure
None.
ITEM 9A Controls and Procedures
Evaluation of Disclosure Controls and Procedures
The Company has evaluated the effectiveness of the design and operation
of its disclosure controls and procedures pursuant to Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934 as of the end of the
period covered by this report. Based on the evaluation, performed under
the supervision and with the participation of the Company’s management,
including the Chief Executive Officer (the “CEO”) and the Chief Financial
Officer (the “CFO”), the Company’s management, including the CEO and
CFO, concluded that the Company’s disclosure controls and procedures
were effective as of the end of the period covered by this report.