CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
TRICON Global Restaurants, Inc. and Subsidiaries
Fiscal years ended December 27, 1997, December 28, 1996, and December 30, 1995

1997 1996 1995
Cash Flows - Operating Activities
Net Loss

$ (111)

$(53) $(132)
Adjustments to reconcile net loss to net cash
  provided by operating activities

Depreciation and amortization

536 621 671

Facility actions net loss (gain)

247 (37) 402

Unusual charges

174 246

Deferred income taxes

(138) (150) (233)

Other noncash charges and credits, net

65 73 68
Changes in operating working capital,
  excluding effects of acquisitions and dispositions

Accounts and notes receivable

(22) (16) (12)

Inventories

3 27 (22)

Prepaid expenses, deferred income taxes and other current assets

(2) 10

Accounts payable and other current liabilities

13 85 25

Income taxes payable

43
_____
(81)
_____
36
_____

Net change in operating working capital

37
_____
13
_____
37
_____
Net Cash Provided by Operating Activities 810
_____
713
_____
813
_____
Cash Flows - Investing Activities
Capital spending (541) (620) (701)
Refranchising of restaurants 770 355 165
Sales of non-core businesses 186
Sales of property, plant and equipment 40 45 43
Other, net 11
_____
(29)
_____
(104)
_____
Net Cash Provided by (Used for) Investing Activities 466
_____
(249)
_____
(597)
_____
Cash Flows - Financing Activities
Proceeds from Long Term Loan Facility 2,000
Proceeds from Revolving Credit Facility 2,550
Payments on Revolving Credit Facility (115)
Payments of long-term debt (65) (57) (17)
Short-term borrowings-three months or less, net 83 (80) 25
Decrease in investments by and advances from PepsiCo (3,281) (285) (226)
Dividend to PepsiCo (2,369)
Other, net 59
_____

_____

_____
Net Cash Used for Financing Activities (1,138)
_____
(422)
_____
(218)
_____
Effect of Exchange Rate Changes on Cash and Cash Equivalents (7)
_____
1
_____
(2)
_____
Net Increase (Decrease) in Cash and Cash Equivalents 131 43 (4)
Cash and Cash Equivalents - Beginning of Year 137
_____
94
_____
98
_____
Cash and Cash Equivalents - End of Year $ 268 $137 $94

Supplemental Cash Flow Information

Interest paid

$ 64 $ 34 $ 48

Income taxes paid

210 325 253

See accompanying Notes to Combined Financial Statements


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