YUM BRANDS INC Leases Disclosure
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Operating lease cost | $ | 158 | $ | 135 | $ | 130 | ||||||||||||||
| Finance lease cost | ||||||||||||||||||||
| Amortization of right-of-use assets | 7 | 7 | 6 | |||||||||||||||||
| Interest on lease liabilities | 4 | 2 | 2 | |||||||||||||||||
| Total finance lease cost | $ | 11 | $ | 9 | $ | 8 | ||||||||||||||
| Sublease income | $ | (49) | $ | (48) | $ | (51) | ||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||||||
| Operating cash flows from operating leases | $ | 158 | $ | 137 | $ | 127 | ||||||||||||||
| Operating cash flows from finance leases | 4 | 2 | 2 | |||||||||||||||||
| Financing cash flows from finance leases | 7 | 8 | 7 | |||||||||||||||||
Right-of-use assets obtained in exchange for lease obligations(a) | ||||||||||||||||||||
| Operating leases | 414 | 247 | 127 | |||||||||||||||||
| Finance leases | 84 | 26 | 6 | |||||||||||||||||
| Operating lease liabilities transferred through refranchising | (13) | (8) | (14) | |||||||||||||||||
| Finance lease and other debt obligations transferred through refranchising | — | (1) | (5) | |||||||||||||||||
| 2025 | 2024 | Consolidated Balance Sheet | ||||||||||||||||||
| Assets | ||||||||||||||||||||
| Operating lease right-of-use assets | $ | $ | Other assets | |||||||||||||||||
| Finance lease right-of-use assets | Property, plant and equipment, net | |||||||||||||||||||
Total right-of-use assets(a) | $ | 1,341 | $ | 930 | ||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Current | ||||||||||||||||||||
| Operating | $ | $ | 91 | Accounts payable and other current liabilities | ||||||||||||||||
| Finance | 11 | 8 | Short-term borrowings | |||||||||||||||||
| Non-current | ||||||||||||||||||||
| Operating | Other liabilities and deferred credits | |||||||||||||||||||
| Finance | 137 | 59 | Long-term debt | |||||||||||||||||
Total lease liabilities(a) | $ | 1,427 | $ | 1,020 | ||||||||||||||||
| Weighted-average Remaining Lease Term (in years) | ||||||||||||||||||||
| Operating leases | 12.6 | 10.9 | ||||||||||||||||||
| Finance leases | 17.4 | 14.8 | ||||||||||||||||||
| Weighted-average Discount Rate | ||||||||||||||||||||
| Operating leases | 5.4 | % | 5.3 | % | ||||||||||||||||
| Finance leases | 5.6 | % | 5.5 | % | ||||||||||||||||
| Commitments | Lease Receivables | |||||||||||||||||||||||||
| Finance | Operating | Direct Financing | Operating | |||||||||||||||||||||||
| 2026 | $ | 19 | $ | 171 | $ | 3 | $ | 59 | ||||||||||||||||||
| 2027 | 17 | 174 | 3 | 54 | ||||||||||||||||||||||
| 2028 | 15 | 163 | 2 | 47 | ||||||||||||||||||||||
| 2029 | 14 | 149 | 2 | 43 | ||||||||||||||||||||||
| 2030 | 14 | 139 | 2 | 43 | ||||||||||||||||||||||
| Thereafter | 145 | 998 | 13 | 261 | ||||||||||||||||||||||
| Total lease payments/receipts | 224 | 1,795 | 26 | $ | 506 | |||||||||||||||||||||
| Less imputed interest/unearned income | (75) | (516) | (9) | |||||||||||||||||||||||
| Total lease liabilities/receivables | $ | 148 | $ | 1,279 | $ | 17 | ||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 16, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.