v3.26.1
Fair Value Disclosures
6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Disclosures
As of June 30, 2026, the carrying values of cash and cash equivalents, restricted cash, accounts receivable, short-term borrowings, accounts payable and borrowings under our Revolving Facility approximated their fair values because of the short-term nature of these instruments. The fair value of our notes receivable, net of allowances, and lease guarantees, less reserves for expected losses, approximates their carrying value. The following table presents the carrying value and estimated fair value of the Company’s debt obligations:

6/30/202612/31/2025
Carrying ValueFair Value (Level 2)Carrying ValueFair Value (Level 2)
Securitization Notes(a)
$4,306 $4,157 $4,306 $4,160 
Subsidiary Senior Unsecured Notes(b)
750 751 750 753 
Term Loan A Facility(b)
488 486 494 492 
Term Loan B Facility(b)
1,421 1,430 1,429 1,440 
YUM Senior Unsecured Notes(b)
4,550 4,494 4,550 4,581 
(a)    We estimated the fair value of the Securitization Notes using market quotes and calculations. The markets in which the Securitization Notes trade are not considered active markets.

(b)    We estimated the fair value of the YUM and Subsidiary Senior Unsecured Notes, Term Loan A Facility and Term Loan B Facility using market quotes and calculations based on market rates.

Recurring Fair Value Measurements

The Company has interest rate swaps which are required to be measured at fair value on a recurring basis (see Note 13 for discussion regarding derivative instruments). The following table presents the fair values for those interest rate swaps measured at fair value on a recurring basis and the level within the fair value hierarchy in which the measurements fall.

Fair Value
Condensed Consolidated Balance SheetLevel6/30/202612/31/2025
Assets
Interest Rate SwapsPrepaid expenses and other current assets$$
Interest Rate SwapsOther assets— 
Liabilities
Interest Rate SwapsOther liabilities and deferred credits— (3)

The fair value of the Company's interest rate swaps was determined based on the present value of expected future cash flows considering the risks involved, including nonperformance risk, and using discount rates appropriate for the duration based on observable inputs.