YUM! Brands Inc. (NYSE:YUM)

The analysis of the annual financial data reveals several notable trends in the asset composition over the five-year period.

Cash and cash equivalents

These decreased significantly from 13.56% of total assets in 2011 to a low of 6.59% in 2013, before gradually increasing to 9.13% by 2015. This suggests a reduction in liquid assets during the early years followed by partial recovery.

Accounts and notes receivable, net

A steady increase is observed, rising from 3.24% in 2011 to 4.67% in 2015. This indicates growth in amounts owed to the company, which may reflect higher sales on credit or changes in credit policy.

Inventories

The proportion of inventories fluctuated slightly but showed an overall decline from 3.09% in 2011 to 2.84% in 2015, with a peak in 2014 at 3.61%. This decrease could indicate improved inventory management or shifts in product mix.

Income tax receivable

This category declined steadily from 1.7% in 2011 to 0.51% in 2015, suggesting reduced recoverable taxes or more efficient tax payment and collection processes.

Assets held for sale

These assets remained minimal and relatively stable, fluctuating modestly between 0.17% and 0.62%, indicating occasional disposals or reclassifications but no major impact.

Other prepaid expenses and current assets

Values here remained fairly consistent, around the 2% range, with a slight increase from 1.86% in 2011 to 2.14% in 2015, reflecting stable prepayments and current asset management.

Prepaid expenses and other current assets

Showing a slight decline from 3.83% in 2011 to 3.00% in 2015, the data suggests a modest reduction in prepaid expenses relative to total assets.

Deferred income taxes (current)

Displayed slight variability, starting at 1.27% in 2011, peaking at 1.41% in 2013, then decreasing before becoming unreported in 2015, indicating changes in timing differences for tax purposes in current assets.

Advertising cooperative assets, restricted

These assets remained relatively stable fluctuating slightly around the 1.1% to 1.5% range across the five years, which implies consistent amounts allocated for cooperative advertising purposes.

Current assets

A downward trend is evident, decreasing from 26.27% in 2011 to 19.45% in 2013, then slightly rising to 20.90% by 2015. This overall decline suggests reduced short-term asset holdings relative to total assets.

Property, plant and equipment, net

There is a notable increase from 45.76% in 2011 to a peak of 53.90% in 2014, followed by a slight decline to 51.88% in 2015. This indicates significant investment in fixed assets with slight reallocation or depreciation effects near the end of the period.

Goodwill

Goodwill surged from 7.71% in 2011 to 11.47% in 2012, then exhibited a declining trend to 8.12% in 2015. This pattern may reflect acquisitions followed by impairment or amortization adjustments.

Intangible assets, net

Intangible assets rose sharply from 3.38% in 2011 to 7.66% in 2012, then steadily declined to 3.36% by 2015. Similar to goodwill, this points to initial increases due to acquisitions or investments, succeeded by write-offs or amortizations over time.

Investments in unconsolidated affiliates

This asset class decreased from 1.89% in 2011 to 0.61% in 2013, then slightly increased to 0.76% in 2015, indicating divestitures followed by minor new investments or revaluations.

Restricted cash

Reported only in 2011 at 3.4%, absence in subsequent years suggests either reclassification or liquidation of restricted cash balances.

Other assets

Gradual increase from 5.38% in 2011 to 6.71% in 2014, followed by a slight decrease to 6.61% in 2015, indicating a growing but relatively stable portfolio of miscellaneous assets.

Deferred income taxes (noncurrent)

This category declined from 6.21% in 2011 to 4.59% in 2013, then rose markedly to 8.37% in 2015. The initial decrease followed by a sharp increase may indicate shifting recognition timing of tax obligations or benefits in noncurrent asset classification.

Noncurrent assets

Noncurrent assets increased from 73.73% in 2011 to a peak of 80.55% in 2013, then maintained a high level around 79%-80%, indicating a strategic emphasis on long-term asset holdings.

Total assets

Remained constant at 100% throughout, serving as the base for all relative measurements and confirming that changes are internal reallocations among asset categories.

Overall, the company shows a trend toward higher investment in long-term assets, especially property, plant, and equipment, accompanied by a reduction in liquid and current assets from 2011 to 2013, with some recovery in later years. Asset categories related to acquisitions such as goodwill and intangible assets experienced early increases followed by declines, possibly due to impairments or amortization. Deferred tax assets present variable trends suggesting adjustments in tax timing differences. The stability in other categories points to consistent asset management practices across the periods.