Consolidated Statements of Cash Flows

YUM! Brands, Inc. and Subsidiaries

Fiscal years ended December 27, 2014 and December 28, 2013

(in millions)

Cash Flows – Operating Activities 2014 2013
Net Income - including noncontrolling interests $1,021 $1,064
Depreciation and amortization 739 721
Closures and impairment (income) expenses 535 331
Refranchising (gain) loss (33) (100)
Losses and other costs related to the extinguishment of debt 120
Gain upon acquisition of Little Sheep
Deferred income taxes (172) (24)
Equity income from investments in unconsolidated affiliates (30) (26)
Distributions of income received from unconsolidated affiliates 28 43
Excess tax benefit from share-based compensation (42) (44)
Share-based compensation expense 55 49
Changes in accounts and notes receivable (21) (12)
Changes in inventories (22) 18
Changes in prepaid expenses and other current assets (10) (21)
Changes in accounts payable and other current liabilities 60 (102)
Changes in income taxes payable (143) 14
Other, net 84 108
Net Cash Provided by Operating Activities 2,049 2,139
 
Cash Flows — Investing Activities
Capital Spending (1,033) (1,049)
Proceeds from refranchising of restaurants 114 260
Acquisition (28) (99)
Changes in resticted cash
Other, net 11 2
Net Cash Used In Investing Activities (936) (886)
 
Cash Flows — Financing Activities
Proceeds from long-term debt 599
Repayments of long-term debt (66) (666)
Short-term borrowings by original maturity:
More than three months - proceeds 2 56
More than three months - payments (2) (56)
Three months or less, net
Revolving Credit Facilities, three month or less, net 416
Repurchase shares of Common Stock (820) (770)
Excess tax benefit from share–based compensation 42 44
Employee stock option proceeds 29 37
Dividends paid on Common Stock (669) (615)
Other, net (46) (80)
     
Net Cash Used in Financing Activities (1,114) (1,451)
Effect of Exchange Rates on Cash and Cash Equivalents 6 (5)
Net Increase (Decrease) in Cash and Cash Equivalents 5 (203)
Cash and Cash Equivalents — Beginning of Year 573 776
Cash and Cash Equivalents — End of Year 578 573

Note 1: You should consult our filings with the Securities and Exchange Commission for additional detail about our financial and other results.

Note 2: We have reclassified certain items in the Consolidated Statement of Cash Flows for prior periods to be comparable with the classification for current quarter/fiscal year.