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NEWS
Yum! Brands Reports Fourth-Quarter Results and Increases Dividend
2025 Q4 and Full-Year Taco Bell Same-Store Sales Growth of 7%;
KFC Record Development with over 1,100 New Store Builds in Q4 and Nearly 3,000 in 2025

Louisville, KY (February 4, 2026) - Yum! Brands, Inc. (NYSE: YUM) today reported results for the fourth quarter and year ended December 31, 2025. Fourth-quarter GAAP operating profit grew 12%, and fourth-quarter Core Operating Profit excluding the lap of the 53rd week grew 11%. Fourth-quarter GAAP EPS was $1.91, and EPS excluding Special Items was $1.73. Full-year GAAP operating profit grew 7%, and full-year Core Operating Profit excluding the lap of the 53rd week grew 7%. Full-year GAAP EPS was $5.55, and EPS excluding Special Items was $6.05, an increase of 10%.

LEADERSHIP COMMENTS
Chris Turner, CEO, said “Yum! delivered another year of outstanding results at KFC and Taco Bell with our fundamentals stronger than ever at both brands. Taco Bell again gained market share with standout same-store sales performance, and KFC delivered another record-breaking year of unit development. We enter 2026 with a clear strategic focus on accelerating long-term growth, embodied in our multi-year 'Raise the Bar' priorities. I’m more convinced than ever that the combination of our global scale, unrivaled culture and talent, and world-class franchise partnerships create a unique and unbeatable competitive advantage.”

Ranjith Roy, CFO, said “In the fourth quarter, Yum! demonstrated its unique ability to achieve strong performance while navigating a complex environment. We sustained strong topline results, delivered double-digit profit growth, completed a sizeable Taco Bell store acquisition and commenced a review of strategic options for the Pizza Hut brand. We have momentum entering 2026, an ambitious strategic agenda and are highly energized by the growth opportunities ahead."

SUMMARY FINANCIAL TABLE
Fourth-QuarterFull-Year
20252024% Change20252024% Change
GAAP EPS$1.91$1.49+28$5.55$5.22+6
Special Items EPS1
$0.18$(0.12)NM$(0.50)$(0.26)NM
EPS Excluding Special Items$1.73$1.61+8$6.05$5.48+10
1 See reconciliation of Non-GAAP Measurements to GAAP Results in our Consolidated Summary of Results for further detail of Special Items.

All comparisons are versus the same period a year ago. Our fourth-quarter and full-year 2024 results included an extra week ("53rd week") for business units operating on a weekly periodic calendar. All results presented herein include the impact of lapping this 53rd week unless otherwise noted.

System sales growth figures exclude foreign currency translation ("F/X") and core operating profit growth figures exclude F/X and Special Items. Special Items are not allocated to any segment and therefore only impact worldwide GAAP results. See reconciliation of Non-GAAP Measurements to GAAP Results in our Consolidated Summary of Results for further details.

Digital system sales includes all transactions where consumers at system restaurants utilize ordering interaction that is primarily facilitated by automated technology.
Yum! Brands, Inc. • 1900 Colonel Sanders Lane • Louisville, KY 40213
Tel 502 874-8300 • investors.yum.com

FOURTH-QUARTER HIGHLIGHTS
•Worldwide system sales grew 5%, excluding foreign currency translation and excluding lapping the 53rd week, led by Taco Bell at 8% and KFC at 6%.
•We opened 1,814 gross units leading to 3% year-over-year unit growth.
•Robust digital system sales exceeding $11 billion with digital mix nearly 60%.
•Foreign currency translation favorably impacted divisional operating profit by $11 million.

% Change
System Sales
Ex F/X		Same-Store SalesUnitsGAAP
Operating Profit
Core
Operating Profit1
KFC Division+4+3+6+10+7
Taco Bell Division+3+7+3+6+6
Pizza Hut Division(5)(1)(1)+7+6
Worldwide+2+3+3+12+5
Results Excluding Lapping 53rd Week % Change
System Sales
Ex F/X
Core
Operating Profit1
KFC Division+6+10
Taco Bell Division+8+12
Pizza Hut Division(2)+11
Worldwide+5+11

FULL-YEAR HIGHLIGHTS
•Worldwide system sales grew 5%, excluding foreign currency translation and excluding lapping the 53rd week, led by Taco Bell at 8% and KFC at 6%.
•We opened 4,567 gross units during the year.
•Robust digital system sales approaching $40 billion with digital mix nearly 60%.
•Foreign currency translation favorably impacted divisional operating profit by $12 million.

% Change
System Sales
Ex F/X		Same-Store SalesUnitsGAAP
Operating Profit
Core
Operating Profit1
KFC Division+5+3+6+10+9
Taco Bell Division+7+7+3+8+8
Pizza Hut Division(3)(1)(1)(9)(9)
Worldwide
+4+3+3+7+5

Results Excluding Lapping 53rd Week % Change
System Sales
Ex F/X
Core
Operating Profit1
KFC Division+6+10
Taco Bell Division+8+10
Pizza Hut Division(2)(8)
Worldwide+5+7

1See reconciliation of Non-GAAP Measurements to GAAP Results in our Consolidated Summary of Results for further detail of Core Operating Profit.



2

KFC DIVISION
Fourth-QuarterFull-Year
%/ppts Change%/ppts Change
20252024ReportedEx F/X20252024ReportedEx F/X
Restaurants
33,89731,981+6NA33,89731,981+6NA
System Sales ($MM)10,0339,429+6+436,43434,452+6+5
Same-Store Sales Growth (%)+3EvenNMNM+3(2)NMNM
Franchise & Property Revenues ($MM)504466+8+51,8071,685+7+6
Operating Profit ($MM)
415377+10+71,5031,363+10+9
Operating Margin (%)39.839.00.80.842.444.0(1.6)(1.4)

Fourth-Quarter (% Change)Full-Year (% Change)
InternationalU.S.InternationalU.S.
System Sales Growth Ex F/X+6(7)+7(5)
System Sales Growth Ex F/X and Excluding Lapping 53rd Week+8(2)+7(3)
Same-Store Sales Growth+3+1+3(1)

•KFC Division opened 1,132 gross new restaurants during the quarter and 2,986 gross new restaurants across 105 countries for the year.
•For the quarter, the 53rd week lap negatively impacted system sales growth by two percentage points and core operating profit growth by three percentage points. For the year, the 53rd week lap negatively impacted system sales growth by one percentage point and core operating profit growth by one percentage point.
•For the quarter, company-owned restaurant margins were 12.7%, up 40 basis points year-over-year. For the year, company-owned restaurant margins were 12.1%, down 10 basis points year-over-year. The impact of lapping the 53rd week negatively impacted the change in company-owned restaurant margins by 20 basis points in the quarter and by 10 basis points for the year.
•Foreign currency translation favorably impacted operating profit by $10 million for the quarter and $12 million for the year.


KFC Markets1
Percent of KFC System Sales2
System Sales Growth Ex F/X
and Excluding Lapping 53rd Week
Fourth-Quarter
(% Change)		Full-Year
(% Change)
China27%+9+6
United States13%(2)(3)
Europe12%+1+5
Asia11%+11+9
Latin America8%+13+12
United Kingdom7%+10+7
Australia7%+4+3
Middle East / Turkey / North Africa6%+7+8
Africa5%+7+10
Canada2%+4+7
India2%+9+9

1Refer to investors.yum.com/financial-information/financial-reports/ for a list of the countries within each of the markets.
2Reflects Full Year 2025.



3

TACO BELL DIVISION
Fourth-QuarterFull-Year
%/ppts Change%/ppts Change
20252024ReportedEx F/X20252024ReportedEx F/X
Restaurants
9,0308,757+3NA9,0308,757+3NA
System Sales ($MM)5,7385,571+3+318,36117,193+7+7
Same-Store Sales Growth (%)+7+5NMNM+7+4NMNM
Franchise & Property Revenues ($MM)324319+2+21,060997+6+6
Operating Profit ($MM)
359340+6+61,1291,049+8+8
Operating Margin (%)36.036.5(0.5)(0.5)36.536.7(0.2)(0.2)

•Taco Bell Division opened 228 gross new restaurants during the quarter and 376 gross new restaurants across 27 countries for the year.
•Taco Bell U.S. system sales grew 2% and Taco Bell International system sales excluding foreign currency grew 11% for the quarter. For the year, Taco Bell U.S. system sales grew 6% and Taco Bell International system sales excluding foreign currency grew 11%.
•Taco Bell U.S. same-store sales grew 7% and Taco Bell International same-store sales grew 5% for both the quarter and for the year.
•For the quarter, the 53rd week lap negatively impacted system sales growth by five percentage points and core operating profit growth by six percentage points. For the year, the 53rd week lap negatively impacted system sales growth by one percentage point and core operating profit growth by two percentage points.
•For the quarter, company-owned restaurant margins were 25.4%, down 10 basis points year-over-year. For the year, company-owned restaurant margins were 24.2%, a 20 basis point decrease year-over-year. The impact of lapping the 53rd week negatively impacted the change in company-owned restaurant margins by 40 basis points in the quarter and by 10 basis points for the year.

PIZZA HUT DIVISION
Fourth-QuarterFull-Year
%/ppts Change%/ppts Change
20252024ReportedEx F/X20252024ReportedEx F/X
Restaurants
19,97420,225(1)NA19,97420,225(1)NA
System Sales ($MM)3,4733,617(4)(5)12,79413,108(2)(3)
Same-Store Sales Growth (%)(1)(1)NMNM(1)(4)NMNM
Franchise & Property Revenues ($MM)166176(6)(6)602622(3)(3)
Operating Profit ($MM)
10195+7+6340373(9)(9)
Operating Margin (%)33.332.40.90.933.637.0(3.4)(3.4)
Fourth-Quarter (% Change)Full-Year (% Change)
InternationalU.S.InternationalU.S.
System Sales Growth Ex F/X+1(11)+2(8)
System Sales Growth Ex F/X and Excluding Lapping 53rd Week+1(6)+2(7)
Same-Store Sales Growth+1(3)+1(5)

•Pizza Hut Division opened 443 gross new restaurants during the quarter and 1,184 gross new restaurants across 65 countries for the year.
•For the quarter, the 53rd week lap negatively impacted system sales growth by three percentage points and core operating profit growth by five percentage points. For the year, the 53rd week lap negatively impacted system sales growth by one percentage point and core operating profit growth by one percentage point.
•Foreign currency translation favorably impacted operating profit by $1 million for the quarter and had a negligible impact for the year.

4


Pizza Hut Markets1
Percent of Pizza Hut System Sales2
System Sales Growth Ex F/X
and Excluding Lapping 53rd Week
Fourth-Quarter
(% Change)		Full-Year
(% Change)
United States40%(6)(7)
China19%+2+2
Asia13%Even+3
Europe12%(5)(3)
Latin America7%+7Even
Middle East / Africa4%+6+8
Canada3%Even+2
India2%(3)+2


THE HABIT BURGER GRILL DIVISION
•The Habit Burger Grill Division opened 11 gross new restaurants during the quarter and 21 for the year.
•The Habit Burger Grill Division system sales were flat for the quarter and grew 1% for the year excluding the lap of the 53rd week.
•The Habit Burger Grill Division same-store sales were flat for the quarter and declined 1% for the year.

OTHER ITEMS
•The Company's Board of Directors approved a dividend of $0.75 per share of common stock, an increase of 6%. The quarterly dividend will be distributed March 6, 2026 to shareholders of record at the close of business on February 20, 2026.
•See reconciliation of Non-GAAP Measurements to GAAP results within this release for further detail of Special Items by financial statement line item including the impact of Special Items on General and administrative expenses.
•Disclosures pertaining to outstanding debt in our Restricted Group capital structure will be provided at the time of the filing of the 2025 Form 10-K.

LONG-TERM GROWTH ALGORITHM
•The Company targets the following long-term financial performance metrics, first announced in 2022, that it believes it can achieve over an extended period of time, on average:
•5% Unit Growth
•7% System Sales Growth, excluding F/X; and
•At least 8% Core Operating Profit Growth3















1Refer to investors.yum.com/financial-information/financial-reports/ for a list of the countries within each of the markets.
2Reflects Full Year 2025.
3At this time, we are unable to forecast any Special Items or any impact from changes in F/X rates, and therefore cannot provide an estimate of Operating Profit Growth on a GAAP basis.
5

CONFERENCE CALL
Yum! Brands, Inc. will host a conference call to review the company's financial performance and strategies at 8:15 a.m. Eastern Time Wednesday, February 4, 2026. The number is 646/844-6383 in the U.S., 833/950-0062 in Canada and +1/646-844-6383 for international callers, conference ID 936175.

The call will be available for playback beginning at 10:00 a.m. Eastern Time February 4, 2026 through February 11, 2026. To access the playback, dial 929/458-6194 in the U.S. and +1/866-813-9403 internationally, conference ID 981204.

The webcast and the playback can be accessed via the website by visiting Yum! Brands' website, investors.yum.com/events-and-presentations and selecting “Q4 2025 Earnings Conference Call.”

ADDITIONAL INFORMATION ONLINE
Quarter end dates for each division, restaurant count details, definitions of terms and Restricted Group financial information are available at investors.yum.com. Reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures are included within this release.

FORWARD-LOOKING STATEMENTS
This announcement may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as “expect,” “expectation,” “believe,” “anticipate,” “may,” “could,” “intend,” “belief,” “plan,” “estimate,” “target,” “predict,” “likely,” “seek,” “project,” “model,” “ongoing,” “will,” “should,” “forecast,” “outlook” or similar terminology. These statements are based on and reflect our current expectations, estimates, assumptions and/ or projections, our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections, including with respect to the future earnings and performance or capital structure of Yum! Brands, will prove to be correct or that any of our expectations, estimates or projections will be achieved.

Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: food safety and food- or beverage-borne illness concerns; adverse impacts of public health conditions or other catastrophic or unforeseen events; the success and financial stability of our concepts’ franchisees; the success of our development strategy; anticipated benefits from past or potential future acquisitions, investments, other strategic transactions or initiatives, or our portfolio business model; the possibility that we may not be able to realize the anticipated benefits of a strategic review of the Pizza Hut brand or any potential transaction involving Pizza Hut; our significant exposure to the Chinese market; our global operations and related exposure to geopolitical instability, including the expansion or threatened expansion of restrictive trade policies and increasing anti-American sentiment; foreign currency risks and foreign exchange controls; our ability to protect the integrity or availability of IT systems or the security of confidential information and other cybersecurity risks; compliance with data privacy, data protection and emerging technology legal requirements; our ability to successfully and securely implement technology initiatives, including utilization of artificial intelligence; our increasing dependence on digital commerce and delivery platforms; the impact of social media; our ability to protect our trademarks or other intellectual property; shortages or interruptions in the availability and the delivery of food, equipment and other supplies; the loss of key personnel or failure to successfully transition senior management, labor shortages and increased labor costs, including as a result of state and local legislation related to wages and working conditions; changes in food prices and other operating costs; our corporate reputation, the value and perception of our brands and changes in consumer preferences such as wellness trends; evolving expectations and requirements with respect to social and environmental sustainability matters; adverse effects of severe weather and climate change; pending or future litigation and legal claims or proceedings; changes in, or non-compliance with, legal requirements; tax matters, including changes in tax rates or laws, impositions of new taxes, tax implications of our restructurings, or disagreements with taxing authorities; changes in consumer discretionary spending and macroeconomic conditions, including inflationary pressures and interest rate conditions; competition within the retail food industry; and risks relating to our level of indebtedness. In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. The forward-looking statements included in this announcement are only made as of the date of this announcement and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances.

You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions “Risk Factors” and “Forward-Looking Statements” in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q) for additional detail about factors that could affect our financial and other results.

Yum! Brands, Inc., based in Louisville, Kentucky, and its subsidiaries franchise or operate a system of over 63,000 restaurants in 155 countries and territories under the company’s concepts – KFC, Taco Bell, Pizza Hut and Habit Burger & Grill. The Company's KFC, Taco Bell and Pizza Hut brands are global leaders of the chicken, Mexican-inspired food and pizza categories, respectively. Habit Burger & Grill is a fast casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. In 2024, Yum! was named to the Dow Jones Sustainability Index North America and 3BL’s list of 100 Best Corporate Citizens. In 2025, the Company was recognized among TIME magazine’s list of Best Companies for Future Leaders. In addition, KFC, Taco Bell and Pizza Hut led Entrepreneur's Top Global Franchises 2024 list and were ranked in the first 25 of Entrepreneur’s 2025 Franchise 500, with Taco Bell securing the No. 1 spot in North America for the fifth consecutive year.

Analysts are invited to contact:
Matt Morris, Head of Investor Relations, at 888/298-6986
Members of the media are invited to contact:
Lori Eberenz, Director, Public Relations, at 502/874-8200
6

YUM! Brands, Inc.
Consolidated Summary of Results
(amounts in millions, except per share amounts)
(unaudited)
 Quarter ended% Change
B/(W)		Year ended% Change
B/(W)
 12/31/2512/31/2412/31/2512/31/24
Revenues
Company sales$971 $885 10$2,945 $2,552 15
Franchise and property revenues997 945 63,473 3,295 5
Franchise contributions for advertising and other services547 532 31,796 1,702 6
Total revenues2,514 2,362 68,214 7,549 9
Costs and Expenses, Net
Company restaurant expenses815 727 (12)2,483 2,120 (17)
General and administrative expenses377 351 (8)1,262 1,181 (7)
Franchise and property expenses33 44 24140 134 (5)
Franchise advertising and other services expense547 542 (1)1,799 1,711 (5)
Refranchising (gain) loss(15)(3)556(48)(34)42
Other (income) expense18 44 NM2 34 NM
Total costs and expenses, net1,776 1,705 (4)5,639 5,146 (10)
Operating Profit 738 657 122,574 2,403 7
Investment (income) expense, net— — NM(1)21 NM
Other pension (income) expense(2)(2)(22)(2)(7)(71)
Interest expense, net133 131 (2)501 489 (2)
Income before income taxes607 528 152,077 1,900 9
Income tax provision72 105 32518 414 (25)
Net income$535 $423 27$1,559 $1,486 5
Basic EPS
EPS$1.92 $1.51 28$5.59 $5.28 6
Average shares outstanding278 280 1279 282 1
Diluted EPS
EPS$1.91 $1.49 28$5.55 $5.22 6
Average shares outstanding280 283 1281 285 1
Dividends declared per common share$0.71 $0.67 $2.84 $2.68 
 
See accompanying notes.
 Percentages may not recompute due to rounding.
7

YUM! Brands, Inc.
KFC DIVISION Operating Results
(amounts in millions)
(unaudited)

 Quarter ended% Change
B/(W)		Year ended% Change
B/(W)
 12/31/2512/31/2412/31/2512/31/24
Company sales$337 $313 7$1,057 $801 32
Franchise and property revenues504 466 81,807 1,685 7
Franchise contributions for advertising and other services201 186 8679 613 11
Total revenues1,041 965 83,542 3,099 14
Company restaurant expenses294 275 (7)929 703 (32)
General and administrative expenses118 110 (8)372 363 (3)
Franchise and property expenses15 17 766 63 (6)
Franchise advertising and other services expenses198 186 (6)670 610 (10)
Other (income) expense1 — NM1 (3)NM
Total costs and expenses, net626 588 (6)2,039 1,736 (17)
Operating Profit$415 $377 10$1,503 $1,363 10
Company restaurant margin %1
12.7 %12.3 %0.4 ppts.12.1 %12.2 %(0.1) ppts.
Operating margin39.8 %39.0 %0.8 ppts.42.4 %44.0 %(1.6) ppts.
 
See accompanying notes.
Percentages may not recompute due to rounding.

1See reconciliation of Non-GAAP Measurements to GAAP results within this release for further detail of Company restaurant margin %.

8

YUM! Brands, Inc.
TACO BELL DIVISION Operating Results
(amounts in millions)
(unaudited)
 
 Quarter ended% Change
B/(W)		Year ended% Change
B/(W)
 12/31/2512/31/2412/31/2512/31/24
Company sales$433 $380 14$1,281 $1,155 11
Franchise and property revenues324 319 21,060 997 6
Franchise contributions for advertising and other services240 231 4754 708 7
Total revenues997 930 73,095 2,860 8
Company restaurant expenses323 282 (14)971 872 (11)
General and administrative expenses67 62 (9)215 199 (8)
Franchise and property expenses7 11 3029 33 12
Franchise advertising and other services expenses240 235 (2)750 708 (6)
Other (income) expense— — NM— (1)NM
Total costs and expenses, net638 590 (8)1,966 1,811 (9)
Operating Profit$359 $340 6$1,129 $1,049 8
Company restaurant margin %1
25.4 %25.5 %(0.1) ppts.24.2 %24.4 %(0.2) ppts.
Operating margin36.0 %36.5 %(0.5) ppts.36.5 %36.7 %(0.2) ppts.
 
See accompanying notes.
Percentages may not recompute due to rounding.

1See reconciliation of Non-GAAP Measurements to GAAP results within this release for further detail of Company restaurant margin %.

9

YUM! Brands, Inc.
PIZZA HUT DIVISION Operating Results
(amounts in millions)
(unaudited)
 
 Quarter ended% Change
B/(W)		Year ended% Change
B/(W)
 12/31/2512/31/2412/31/2512/31/24
Company sales$32 $3 1,117$51 $8 584
Franchise and property revenues166 176 (6)602 622 (3)
Franchise contributions for advertising and other services105 114 (8)360 378 (5)
Total revenues303 293 31,013 1,008 Even
Company restaurant expenses31 3 (1,099)52 8 (589)
General and administrative expenses60 66 10219 219 Even
Franchise and property expenses9 15 4241 34 (18)
Franchise advertising and other services expenses108 120 10376 390 4
Other (income) expense(5)(6)NM(14)(16)NM
Total costs and expenses, net202 198 (2)673 635 (6)
Operating Profit$101 $95 7$340 $373 (9)
Company restaurant margin %1
3.5 %1.9 %1.6 ppts.(1.4)%(0.6)%(0.8) ppts.
Operating margin33.3 %32.4 %0.9 ppts.33.6 %37.0 %(3.4) ppts.
 
See accompanying notes.
Percentages may not recompute due to rounding.

1See reconciliation of Non-GAAP Measurements to GAAP results within this release for further detail of Company restaurant margin %.

10

YUM! Brands, Inc.
Consolidated Balance Sheets
(amounts in millions)
(unaudited)


 12/31/2512/31/24
ASSETS  
Current Assets 
Cash and cash equivalents$709 $616 
Accounts and notes receivable, less allowance: $60 in 2025 and $74 in 2024841 775 
Prepaid expenses and other current assets490 480 
Total Current Assets2,040 1,871 
Property, plant and equipment, net of accumulated depreciation of $1,485 in 20251,605 1,304 
and $1,384 in 2024
Goodwill969 736 
Intangible assets, net909 416 
Other assets1,708 1,329 
Deferred income taxes965 1,071 
Total Assets$8,197 $6,727 
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities
Accounts payable and other current liabilities$1,433 $1,211 
Income taxes payable46 31 
Short-term borrowings38 27 
Total Current Liabilities1,516 1,269 
Long-term debt11,872 11,306 
Other liabilities and deferred credits2,133 1,800 
Total Liabilities15,521 14,375 
Shareholders' Deficit
Common Stock, no par value, 750 shares authorized; 277 and 279 shares issued in 2025 and 2024, respectively— — 
Accumulated deficit(7,014)(7,256)
Accumulated other comprehensive loss(311)(392)
Total Shareholders' Deficit(7,325)(7,648)
Total Liabilities and Shareholders' Deficit$8,197 $6,727 

 See accompanying notes.


11

YUM! Brands, Inc.
Consolidated Statements of Cash Flows
(amounts in millions)
(unaudited)
 Year ended
 12/31/2512/31/24
Cash Flows - Operating Activities 
Net income$1,559 $1,486 
Depreciation and amortization206 175 
Impairment and closure expense22 12 
Refranchising (gain) loss(48)(34)
Investment (income) expense, net(1)21 
Deferred income taxes107 (30)
Share-based compensation expense70 69 
Changes in accounts and notes receivable(45)(53)
Changes in prepaid expenses and other current assets(18)(12)
Changes in accounts payable and other current liabilities94 8 
Changes in income taxes payable(48)(29)
Other, net112 76 
Net Cash Provided by Operating Activities2,010 1,689 
Cash Flows - Investing Activities
Capital spending(371)(257)
Proceeds from sale of Devyani Investment— 104 
Acquisitions of franchise restaurants(798)(208)
Proceeds from refranchising of restaurants78 49 
Maturities (purchases) of Short term investments, net91 (91)
Other, net(3)(19)
Net Cash Used in Investing Activities(1,003)(422)
Cash Flows - Financing Activities
Proceeds from long-term debt1,493 237 
Repayments of long-term debt(966)(479)
Revolving credit facilities, three months or less, net(50)345 
Short-term borrowings, by original maturity
     More than three months - proceeds89 — 
     More than three months - payments(86)— 
     Three months or less, net— — 
Repurchase shares of Common Stock(552)(441)
Dividends paid on Common Stock(789)(752)
Other, net(63)(73)
Net Cash Used in Financing Activities(924)(1,163)
Effect of Exchange Rate on Cash and Cash Equivalents32 (21)
Net Increase in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents116 83 
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - Beginning of Year807 724 
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - End of Year$923 $807 
See accompanying notes.

12

Reconciliation of Non-GAAP Measurements to GAAP Results
(amounts in millions, except per share amounts)
(unaudited)
 
In addition to the results provided in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP"), the Company provides the following non-GAAP measurements.

•Diluted Earnings Per Share ("EPS") excluding Special Items (as defined below) and, in 2024, Diluted EPS excluding Special Items and the 53rd week;
•Effective Tax Rate excluding Special Items and, in 2024, Effective Tax Rate excluding Special Items and the 53rd week;
•Core Operating Profit and, in 2024, Core Operating Profit excluding the 53rd week. Core Operating Profit excludes Special Items and foreign currency translation ("F/X") and we use Core Operating Profit for the purposes of evaluating performance internally;
•Net Income excluding Special Items and, in 2024, Net Income excluding Special Items and the 53rd week;
•Company restaurant profit and Company restaurant margin as a percentage of sales (as defined below).

These non-GAAP measurements are not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the Company believes that the presentation of these non-GAAP measurements provide additional information to investors to facilitate the comparison of past and present operations.

Special Items are not included in any of our Division segment results as the Company does not believe they are indicative of our ongoing operations due to their size and/or nature. Our chief operating decision maker does not consider the impact of Special Items when assessing segment performance. The Special Items are described in (a) - (g) in the accompanying notes.

Company restaurant profit is defined as Company sales less Company restaurant expenses, both of which appear on the face of our Consolidated Statements of Income. Company restaurant expenses include those expenses incurred directly by our Company-owned restaurants in generating Company sales, including cost of food and paper, cost of restaurant-level labor, rent, depreciation and amortization of restaurant-level assets and advertising expenses incurred by and on behalf of that Company restaurant. Company restaurant margin as a percentage of sales ("Company restaurant margin %") is defined as Company restaurant profit divided by Company sales. We use Company restaurant profit for the purposes of internally evaluating the performance of our Company-owned restaurants and we believe Company restaurant profit provides useful information to investors as to the profitability of our Company-owned restaurants. In calculating Company restaurant profit, the Company excludes revenues and expenses directly associated with our franchise operations as well as non-restaurant-level costs included in General and administrative expenses, some of which may support Company-owned restaurant operations. The Company also excludes restaurant-level asset impairment and closures expenses, which have historically not been significant, from the determination of Company restaurant profit as such expenses are not believed to be indicative of ongoing operations. Further, while we generally include depreciation and amortization of restaurant-level assets within Divisional Company restaurant expenses used to derive Divisional Company restaurant profit, we record amortization of reacquired franchise rights arising from acquisition accounting within Corporate and unallocated restaurant expenses as such amortization is not believed to be indicative of ongoing Divisional results as well as to enhance comparability of acquired stores' margins with those of existing restaurants. Company restaurant profit and Company restaurant margin % as presented may not be comparable to other similarly titled measures of other companies in the industry.

Certain non-GAAP measurements are presented excluding the impact of F/X. These amounts are derived by translating current year results at prior year average exchange rates. We believe the elimination of the F/X impact provides better year-to-year comparability without the distortion of foreign currency fluctuations.

For 2024 we provided Core Operating Profit excluding the 53rd week, Net Income excluding Special Items and the 53rd week, Diluted EPS excluding Special Items and the 53rd week and Effective Tax Rate excluding Special Items and the 53rd week to further enhance comparability given the 53rd week that was part of our fiscal calendar in 2024.
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 Quarter endedYear ended
Reconciliation of GAAP Operating Profit to Core Operating Profit and Core Operating Profit, excluding the 53rd Week12/31/2512/31/2412/31/2512/31/24
Consolidated
GAAP Operating Profit$738 $657 $2,574 $2,403 
Detail of Special Items:
(Gain) loss associated with market-wide refranchisings(a)
(1)(2)(1)1 
Charges associated with Pizza Hut Strategic Options Review(b)
33 — 41 — 
Charges associated with Brand HQ consolidation(c)
7 — 27 — 
German acquisition and Turkey termination-related costs(d)
2 61 9 61 
Charges associated with Resource Optimization(e)
1 21 38 79 
Charges associated with Taco Bell U.S. restaurant acquisition(f)
6 — 7 — 
Special Items Expense - Operating Profit49 80 122 141 
Positive Foreign Currency Impact on Divisional Operating Profit(11)N/A(12)N/A
Core Operating Profit775 737 2,684 2,544 
Impact of 53rd Week Operating ProfitN/A(36)N/A(36)
Core Operating Profit, excluding the 53rd Week$775 $701 $2,684 $2,509 
Special Items as shown above were recorded to the financial statement line items identified below:
Quarter endedYear ended
12/31/2512/31/2412/31/2512/31/24
Consolidated Summary of Results Line Item
Decrease in Franchise and property revenues$1 $18 $7 $18 
Increase in General and administrative expenses40 27 111 84 
Increase in Refranchising (gain) loss(1)(2)(1)1 
Increase in Other (income) expense8 37 5 38 
Special Items Expense - Operating Profit$49 $80 $122 $141 
KFC Division
GAAP Operating Profit$415 $377 $1,503 $1,363 
Negative (Positive) Foreign Currency Impact(10)N/A(12)N/A
Core Operating Profit404 377 1,491 1,363 
Impact of 53rd WeekN/A(9)N/A(9)
Core Operating Profit, excluding the 53rd Week$404 $367 $1,491 $1,353 
Taco Bell Division
GAAP Operating Profit$359 $340 $1,129 $1,049 
Negative (Positive) Foreign Currency Impact— N/A— N/A
Core Operating Profit359 340 1,129 1,049 
Impact of 53rd WeekN/A(21)N/A(21)
Core Operating Profit, excluding the 53rd Week$359 $319 $1,129 $1,028 
Pizza Hut Division
GAAP Operating Profit$101 $95 $340 $373 
Negative (Positive) Foreign Currency Impact(1)N/A— N/A
Core Operating Profit100 95 340 373 
Impact of 53rd WeekN/A(5)N/A(5)
Core Operating Profit, excluding the 53rd Week$100 $90 $340 $368 
Habit Burger & Grill Division
GAAP Operating Profit (Loss) $(13)$2 $(13)$— 
Negative (Positive) Foreign Currency Impact— N/A— N/A
Core Operating Profit (Loss)(13)2 (13)— 
Impact of 53rd WeekN/A(1)N/A(1)
Core Operating Profit (Loss), excluding the 53rd Week$(13)$1 $(13)$(1)
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Reconciliation of GAAP Net Income to Net Income excluding Special Items and the 53rd Week
GAAP Net Income$535 $423 $1,559 $1,486 
Special Items Expense - Operating Profit49 80 122 141 
Special Items Tax (Benefit) Expense(g)
(98)(47)18 (66)
Net Income excluding Special Items486 456 1,700 1,561 
Impact of 53rd WeekN/A(25)N/A(25)
Net Income excluding Special Items and the 53rd Week$486 $431 $1,700 $1,536 
Reconciliation of Diluted EPS to Diluted EPS excluding Special Items and the 53rd Week
Diluted EPS $1.91 $1.49 $5.55 $5.22 
Less Special Items Diluted EPS0.18 (0.12)(0.50)(0.26)
Diluted EPS excluding Special Items1.73 1.61 6.05 5.48 
Less Impact of 53rd WeekN/A0.09 N/A0.09 
Diluted EPS excluding Special Items and the 53rd Week$1.73 $1.52 $6.05 $5.39 
Reconciliation of GAAP Effective Tax Rate to Effective Tax Rate excluding Special Items and the 53rd Week
GAAP Effective Tax Rate11.8 %19.9 %24.9 %21.8 %
Impact on Tax Rate as a result of Special Items(14.1)%(5.2)%2.2 %(1.8)%
Effective Tax Rate excluding Special Items25.9 %25.1 %22.7 %23.6 %
Impact on Tax Rate as a result of the 53rd WeekN/A— %N/A0.1 %
Effective Tax Rate excluding Special Items and the 53rd Week25.9 %25.1 %22.7 %23.5 %
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Reconciliation of GAAP Operating Profit to Company Restaurant Profit
Quarter Ended 12/31/25
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
GAAP Operating Profit (Loss)$415 $359 $101 $(13)$(124)$738 
Less:
Franchise and property revenues504 324 166 4 (1)997 
Franchise contributions for advertising and other services201 240 105 1 — 547 
Add:
General and administrative expenses118 67 60 16 117 377 
Franchise and property expenses15 7 9 2 — 33 
Franchise advertising and other services expense198 240 108 1 — 547 
Refranchising (gain) loss— — — — (15)(15)
Other (income) expense1 — (5)12 10 18 
Company restaurant profit$43 $110 $1 $12 $(10)$156 
Company sales$337 $433 $32 $170 $— $971 
Company restaurant margin %12.7 %25.4 %3.5 %7.2 %N/A16.0 %

Quarter Ended 12/31/24
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
GAAP Operating Profit (Loss) $377 $340 $95 $2 $(157)$657 
Less:
Franchise and property revenues466 319 176 2 (18)945 
Franchise contributions for advertising and other services186 231 114 1 — 532 
Add:
General and administrative expenses110 62 66 16 97 351 
Franchise and property expenses17 11 15 1 — 44 
Franchise advertising and other services expense186 235 120 1 — 542 
Refranchising (gain) loss— — — — (3)(3)
Other (income) expense— — (6)9 41 44 
Company restaurant profit$38 $98 $— $26 $(4)$158 
Company sales$313 $380 $3 $189 $— $885 
Company restaurant margin % 12.3 %25.5 %1.9 %14.0 %N/A17.9 %

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Year Ended 12/31/25
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
GAAP Operating Profit (Loss)$1,503 $1,129 $340 $(13)$(384)$2,574 
Less:
Franchise and property revenues1,807 1,060 602 12 (7)3,473 
Franchise contributions for advertising and other services679 754 360 3 — 1,796 
Add:
General and administrative expenses372 215 219 54 402 1,262 
Franchise and property expenses66 29 41 4 — 140 
Franchise advertising and other services expense670 750 376 3 — 1,799 
Refranchising (gain) loss— — — — (48)(48)
Other (income) expense1 — (14)12 3 2 
Company restaurant profit$128 $310 $(1)$46 $(22)$461 
Company sales$1,057 $1,281 $51 $555 $— $2,945 
Company restaurant margin % 12.1 %24.2 %(1.4)%8.3 %N/A15.7 %

Year Ended 12/31/24
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
GAAP Operating Profit (Loss)$1,363 $1,049 $373 $— $(382)$2,403 
Less:
Franchise and property revenues1,685 997 622 9 (18)3,295 
Franchise contributions for advertising and other services613 708 378 3 — 1,702 
Add:
General and administrative expenses363 199 219 54 346 1,181 
Franchise and property expenses63 33 34 4 — 134 
Franchise advertising and other services expense610 708 390 3 — 1,711 
Refranchising (gain) loss— — — — (34)(34)
Other (income) expense(3)(1)(16)10 44 34 
Company restaurant profit$98 $283 $— $59 $(8)$432 
Company sales$801 $1,155 $8 $588 $— $2,552 
Company restaurant margin % 12.2 %24.4 %(0.6)%10.1 %N/A16.9 %
17

YUM! Brands, Inc.
Segment Results
(amounts in millions)
(unaudited)

Quarter Ended 12/31/25KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
Total revenues$1,041 $997 $303 $175 $(1)$2,514 
Company restaurant expenses294 323 31 158 10 815 
General and administrative expenses118 67 60 16 117 377 
Franchise and property expenses15 7 9 2 — 33 
Franchise advertising and other services expense198 240 108 1 — 547 
Refranchising (gain) loss— — — — (15)(15)
Other (income) expense1 — (5)12 10 18 
Total costs and expenses, net626 638 202 188 123 1,776 
Operating Profit (Loss)$415 $359 $101 $(13)$(124)$738 


Quarter Ended 12/31/24KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
Total revenues$965 $930 $293 $192 $(18)$2,362 
Company restaurant expenses275 282 3 163 4 727 
General and administrative expenses110 62 66 16 97 351 
Franchise and property expenses17 11 15 1 — 44 
Franchise advertising and other services expense186 235 120 1 — 542 
Refranchising (gain) loss— — — — (3)(3)
Other (income) expense— — (6)9 41 44 
Total costs and expenses, net588 590 198 190 139 1,705 
Operating Profit (Loss)$377 $340 $95 $2 $(157)$657 


The above tables reconcile segment information, which is based on management responsibility, with our Consolidated Summary of Results.  Corporate and unallocated expenses comprise items that are not allocated to segments for performance reporting purposes.

The Corporate and Unallocated column in the above tables includes, among other amounts, all amounts that we have deemed Special Items. See reconciliation of Non-GAAP Measurements to GAAP Results.


18

YUM! Brands, Inc.
Segment Results
(amounts in millions)
(unaudited)

Year Ended 12/31/25KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
Total revenues$3,542 $3,095 $1,013 $570 $(7)$8,214 
Company restaurant expenses929 971 52 509 22 2,483 
General and administrative expenses372 215 219 54 402 1,262 
Franchise and property expenses66 29 41 4 — 140 
Franchise advertising and other services expense670 750 376 3 — 1,799 
Refranchising (gain) loss— — — — (48)(48)
Other (income) expense1 — (14)12 3 2 
Total costs and expenses, net2,039 1,966 673 583 378 5,639 
Operating Profit (Loss)$1,503 $1,129 $340 $(13)$(384)$2,574 


Year Ended 12/31/24KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedConsolidated
Total revenues$3,099 $2,860 $1,008 $600 $(18)$7,549 
Company restaurant expenses703 872 8 529 8 2,120 
General and administrative expenses363 199 219 54 346 1,181 
Franchise and property expenses63 33 34 4 — 134 
Franchise advertising and other services expense610 708 390 3 — 1,711 
Refranchising (gain) loss— — — — (34)(34)
Other (income) expense(3)(1)(16)10 44 34 
Total costs and expenses, net1,736 1,811 635 600 364 5,146 
Operating Profit (Loss)$1,363 $1,049 $373 $— $(382)$2,403 


The above tables reconcile segment information, which is based on management responsibility, with our Consolidated Summary of Results.  Corporate and unallocated expenses comprise items that are not allocated to segments for performance reporting purposes.

The Corporate and Unallocated column in the above tables includes, among other amounts, all amounts that we have deemed Special Items. See reconciliation of Non-GAAP Measurements to GAAP Results.


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Notes to the Consolidated Summary of Results, Consolidated Balance Sheets
and Consolidated Statements of Cash Flows
(amounts in millions)
(unaudited)

Amounts presented as of and for the quarter and year ended December 31, 2025 are preliminary.

In the first quarter of 2025, the Company prospectively changed its basis of presentation to round financial figures in the Consolidated Summary of Results, Consolidated Balance Sheets, Consolidated Statements of Cash Flows and as presented in the tabular presentations in these Notes to the nearest whole number in millions in all instances. As a result, some totals and percentages may not recompute based on rounded figures as presented within the Consolidated Summary of Results, Consolidated Balance Sheets, Consolidated Statements of Cash Flows and these Notes. Previously, amounts were presented to ensure that all numbers herein recomputed, resulting in the presentation of certain figures inconsistent with their underlying rounding.

(a)Due to their size and volatility, we have reflected as Special Items those refranchising gains and losses that were recorded in connection with market-wide refranchisings.

(b)In 2025, we began a review of strategic options for the Pizza Hut brand. During the quarter and year ended December 31, 2025, we incurred charges of approximately $32 million and $36 million, respectively, primarily in third-party advising costs associated with this strategic options review and wrote-off approximately $1 million and $5 million, respectively, of franchise incentive assets associated with rationalizing the Pizza Hut estate in preparation for a potential transaction. These charges were recorded to Corporate and unallocated General and administrative expenses and Corporate and unallocated franchise and property revenues, respectively. Given the significance of the costs expected to be incurred through the course of this strategic options review, we have reflected such amounts as Special Items.

(c)During the quarter and year ended December 31, 2025, we recorded charges of approximately $7 million and $27 million, respectively, associated with our decision to designate two brand headquarters in the U.S., located in Plano, Texas and Irvine, California, to foster greater collaboration among brands and employees. This involved relocating the KFC U.S. corporate office to the KFC Global headquarters and requiring the majority of our U.S.-based remote employees to relocate to an appropriate headquarter office. During the quarter and year ended December 31, 2025, we recorded charges of $1 million and $21 million, respectively, primarily for severance for employees who have chosen not to relocate and consultant fees to Corporate and unallocated General and administrative expenses. Additionally, during the quarter ended December 31, 2025, we donated our Yum! corporate headquarters in Louisville, Kentucky subsequent to the relocation of the KFC U.S. corporate office resulting in a charge of $6 million to Unallocated Other (income) expense representing the net book value of that headquarters. Due to their scope and size, these charges have been reflected as Special Items.

(d)On January 8, 2025, we terminated our franchise agreements with franchisee IS Gida A.S. (IS Gida), the owner and operator of KFC and Pizza Hut restaurants in Turkey and a subsidiary of IS Holding A.S. (IS Holding), after failure by IS Gida to meet our standards. As a result, 283 KFC restaurants and 254 Pizza Hut restaurants in Turkey were closed during the first quarter of 2025. We also re-acquired the master franchise rights in Germany for KFC and Pizza Hut from the owner of IS Holding in December 2024. As a result, we recorded charges of $37 million to Unallocated Other (income) expense, $18 million to Unallocated Franchise and property revenues and $6 million to Corporate and unallocated General and administrative expenses consisting primarily of transaction costs associated with the German acquisition and termination-related costs associated with the Turkey business in both the quarter and year ended December 31, 2024. We recorded a charge of $1 million and a credit of $1 million to Unallocated Other (income) expense during the quarter and year ended December 31, 2025, respectively, and charges of $1 million to Unallocated Franchise and property revenues and $9 million to Corporate and unallocated General and administrative expenses during the year ended December 31, 2025, consisting primarily of transaction costs associated with re-acquiring the master franchise rights in Germany including severance. Due to their scope and size, these charges have been reflected as Special Items.

(e)We recorded charges of $1 million and $38 million during the quarter and year ended December 31, 2025, respectively, and $21 million and $79 million during the quarter and year ended December 31, 2024, respectively, primarily to Corporate and unallocated General and administrative expenses related to a resource optimization program initiated in the third quarter of 2020. Over the past several years, this program has allowed us to reallocate significant resources to accelerate our digital, technology and innovation capabilities to deliver a modern, world-class team member and customer experience and improve unit economics. We expanded the program in 2024 to identify further opportunities to optimize the Company’s spending and identify additional, critical areas in which to potentially allocate resources, both with a goal to
20

enable the acceleration of the Company’s growth rate. Costs incurred to date related to the program primarily include severance associated with positions that have been eliminated or relocated and consultant fees. Due to their scope and size, these charges have been reflected as Special Items.

(f)During the quarter and year ended December 31, 2025, we recorded charges of approximately $6 million and $7 million, respectively, to Corporate and unallocated General and administrative expenses related to an acquisition of 128 Taco Bell U.S. restaurants from a franchisee for approximately $670 million. Due to the size of the acquisition and the related legal and professional fees, these fees have been reflected as Special Items.

(g)The below table includes the detail of Special Items Tax (Benefit) Expense:

Quarter endedYear ended
2025202420252024
Tax (Benefit) on Special Items Expense - Operating Profit$(11)$(13)$(29)$(28)
Tax Expense - Foreign tax reserve3 — 108 — 
Tax Expense - U.S. OBBBA— — 76 — 
Tax (Benefit) - Tax audit— — (47)— 
Tax (Benefit) - Intra-entity transfers and valuations of intellectual property(89)(32)(89)(32)
Tax (Benefit) - Other Income tax impacts recorded as Special(2)(2)(2)(6)
Special Items Tax (Benefit) Expense$(98)$(47)$18 $(66)

Tax Expense on Special Items Operating Profit was determined by assessing the tax impact of each individual component within Special Items based upon the nature of the item and jurisdictional tax law.

Tax Expense - Foreign tax reserve in the year ended December 31, 2025, is associated with a reserve, and the ongoing foreign exchange and inflationary adjustments, associated with a change in management's judgment around a Mexican subsidiary's ability to utilize losses to offset recapture gains triggered by a historical tax deconsolidation. This tax expense was reflected as a Special Item due to its size and the time elapsed since the years to which the reserve relates.

Tax Expense - U.S. OBBBA in the year ended December 31, 2025, reflects the tax expense recorded upon the Juy 4, 2025 enactment of H.R.1, commonly known as the One Big Beautiful Bill Act ("OBBBA") in the United States. The tax expense was primarily associated with a change in management's judgment regarding our ability to utilize U.S. foreign tax credit related deferred tax assets that existed at the date of enactment and has been reflected as a Special Item due to the size of the non-recurring adjustment necessary upon enactment of the legislation.

Tax (Benefit) - Tax audit in the year ended December 31, 2025, reflects the tax benefit associated with the reversal of a reserve due to a favorable audit resolution. Such reserve was established in prior years and was originally recorded as a Special Item.

Tax (Benefit) - Intra-entity transfers and valuations of intellectual property includes:

•The tax benefit recorded in the year ended December 31, 2025, which resulted from an internal reorganization to consolidate the Pizza Hut entities and assets into a single ownership structure by aligning the legal ownership, simplifying the organizational footprint and consolidating the Pizza Hut domestic and international business in connection with our strategic options review. As part of this reorganization, certain Pizza Hut intellectual property ("IP") rights from subsidiaries in the U.S. were transferred to international subsidiaries resulting in a step-up in amortizable tax basis of those IP rights.

◦The tax benefit recorded in the year ended December 31, 2024, resulted primarily from the tax liquidation of certain subsidiaries in Israel and Australia as well as the intra-entity transfer of software from those subsidiaries to subsidiaries in the U.S.
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