The Company’s receivables are primarily generated from ongoing business relationships with our franchisees as a result of franchise and lease agreements. Trade receivables consisting of royalties from franchisees are generally due within 30 days of the period in which the corresponding sales occur and are classified as Accounts and notes receivable, net in our Condensed Consolidated Balance Sheets. Accounts and notes receivable, net also includes receivables generated from advertising cooperatives that we consolidate.


	6/30/2026		12/31/2025
Accounts and notes receivable, gross	$	667	$	901
Allowance for doubtful accounts	(45)		(60)
Accounts and notes receivable, net	$	623	$	841


	6/30/2026		12/31/2025
Income tax receivable	$	111	$	114
Restricted cash	187		192
Prepaid expenses	127		119
Other current assets	72		64
Prepaid expenses and other current assets	$	498	$	489


	6/30/2026		12/31/2025
Property, plant and equipment, gross	$	3,109	$	3,091
Accumulated depreciation and amortization	(1,495)		(1,485)
Property, plant and equipment, net	$	1,614	$	1,605


Other Assets	6/30/2026		12/31/2025
Operating lease right-of-use assets(a)	$	1,177	$	1,213
Franchise incentives	172		209
Other	281		286
Other assets	$	1,629	$	1,708

(a) Non-current operating lease liabilities of $1,139 million and $1,174 million as of June 30, 2026 and December 31, 2025, respectively, are included in Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets.


	6/30/2026		12/31/2025
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets	$	674	$	709
Restricted cash included in Prepaid expenses and other current assets(a)	187		192
Restricted cash and restricted cash equivalents included in Other assets(b)	22		23
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents as presented in Condensed Consolidated Statements of Cash Flows	$	884	$	923

(a) Restricted cash within Prepaid expenses and other current assets reflects the cash related to advertising cooperatives which we consolidate that can only be used to settle obligations of the respective cooperatives and cash held in reserve for Taco Bell Securitization interest payments.