four growth drivers will form the basis of yum 's strategic plans and repeatable business model to accelerate same-store sales growth and net-new restaurant development at kfc , pizza hut and taco bell around the world over the long term . the company will focus on becoming best-in-class in : building distinctive , relevant brands developing unmatched franchise operating capability driving bold restaurant development growing unrivaled culture and talent more franchised . yum intends to increase franchise restaurant ownership to at least 98 % by the end of 2018. more efficient . the company intends to revamp its financial profile , improving the efficiency of its organization and cost structure globally , by : reducing annual capital expenditures to approximately $ 100 million in 2019 ; reducing general and administrative ( `` g & a `` ) expenses by a cumulative ~ $ 300 million over the next three years ; and 23 maintaining an optimized capital structure of ~5.0x earnings before interest , taxes , depreciation and amortization ( “ ebitda ” ) leverage . since the fourth quarter of 2015 , we have returned approximately $ 7.2 billion of capital to shareholders through share repurchases and cash dividends , funding the repurchases through a recapitalization and issuance of $ 5.2 billion of incremental borrowings in 2016. over the next 3 years , we intend to return an additional $ 6.5 - $ 7.0 billion to shareholders through share repurchases and cash dividends . we intend to fund these shareholder returns through a combination of refranchising proceeds , free cash flow generation and maintenance of our five times ebitda leverage . we anticipate generating proceeds in excess of $ 2 billion , net of tax , through our refranchising initiatives . refer to the liquidity and capital resources section of this md & a for additional details . we intend for this md & a to provide the reader with information that will assist in understanding our results of operations , including performance metrics that management uses to assess the company 's performance . throughout this md & a , we commonly discuss the following performance metrics : the company provides certain percentage changes excluding the impact of foreign currency translation ( “ fx ” or “ forex ” ) . these amounts are derived by translating current year results at prior year average exchange rates . we believe the elimination of the foreign currency translation impact provides better year-to-year comparability without the distortion of foreign currency fluctuations . system sales growth includes the results of all restaurants regardless of ownership , including company-owned and franchise restaurants that operate our concepts . sales of franchise restaurants typically generate ongoing franchise and license fees for the company at a rate of 3 % to 6 % of sales . franchise restaurant sales are not included in company sales on the consolidated statements of income ; however , the franchise and license fees are included in the company 's revenues . we believe system sales growth is useful to investors as a significant indicator of the overall strength of our business as it incorporates all of our revenue drivers , company and franchise same-store sales as well as net unit growth . same-store sales growth is the estimated percentage change in sales of all restaurants that have been open and in the yum system one year or more . company restaurant profit ( `` restaurant profit `` ) is defined as company sales less expenses incurred directly by our company-owned restaurants in generating company sales . company restaurant margin as a percentage of sales is defined as restaurant profit divided by company sales . within the company sales and restaurant profit sections of this md & a , store portfolio actions represent the net impact of new unit openings , acquisitions , refranchising and store closures , and other primarily represents the impact of same-store sales as well as the impact of changes in costs such as inflation/deflation . operating margin is operating profit divided by total revenues . in addition to the results provided in accordance with u.s. generally accepted accounting principles ( `` gaap `` ) , the company has provided non-gaap measurements which present diluted earnings per share from continuing operations excluding special items , our effective tax rate excluding special items , core operating profit and core operating profit excluding 53 rd week . core operating profit excludes special items and foreign currency translation and we use core operating profit for the purposes of evaluating performance internally . special items are not included in any of our externally reported segment results , and we believe the elimination of the foreign currency translation impact provides better year-to-year comparability without the distortion of foreign currency fluctuations . we provide core operating profit excluding 53 rd week to further enhance the comparability of fiscal 2016 , which had a 53 rd week , with prior year results . these non-gaap measurements are not intended to replace the presentation of our financial results in accordance with gaap . rather , the company believes that the presentation of diluted earnings per share from continuing operations excluding special items , our effective tax rate excluding special items , core operating profit and core operating profit excluding 53 rd week , provide additional information to investors to facilitate the comparison of past and present operations , excluding items that the company does not believe are indicative of our ongoing operations due to their size and or nature . all note references herein refer to the notes to the financial statements . tabular amounts are displayed in millions of u.s. dollars except per share and unit count amounts , or as otherwise specifically identified . unless otherwise stated , financial results herein reflect continuing operations of the company . percentages may not recompute due to rounding . story_separator_special_tag in june 2016 , three wholly-owned subsidiaries of the company , kfc holding co. , pizza hut holdings , llc and taco bell of america , llc , as co-borrowers ( the `` borrowers `` ) entered into a new credit agreement ( the “ credit agreement ” ) providing for ( i ) a $ 500 million term loan a facility ( the “ term loan a facility ” ) , ( ii ) a $ 2 billion term loan b facility ( the “ term loan b facility ” ) and ( iii ) a $ 1 billion revolving facility ( the “ revolving facility ” ) which has no outstanding borrowings 39 and has $ 5 million in letters of credit outstanding as of december 31 , 2016 , each of which may be increased subject to certain conditions . our term loan a facility and term loan b facility contain cross-default provisions whereby the failure to pay principal of or otherwise perform any agreement or condition under indebtedness of certain subsidiaries with a principal amount in excess of $ 100 million will constitute an event of default under the credit agreement . subsidiary senior unsecured notes . on june 16 , 2016 , the borrowers issued an aggregate of $ 1.05 billion senior unsecured notes due 2024 and an aggregate of $ 1.05 billion senior unsecured notes due 2026 ( together , the “ subsidiary senior unsecured notes ” ) . our subsidiary senior unsecured notes contain cross-default provisions whereby the acceleration of the maturity of the indebtedness of certain subsidiaries with a principal amount in excess of $ 100 million or the failure to pay principal of such indebtedness will constitute an event of default under the subsidiary senior unsecured notes . we used certain of the proceeds from the subsidiary senior unsecured notes and the term loan a facility and the term loan b facility to repay all outstanding amounts under our senior unsecured revolving credit facility ( the “ senior unsecured revolving credit facility ” ) which had outstanding borrowings of $ 701 million as of december 26 , 2015. concurrent with this repayment the senior unsecured revolving credit facility was terminated . the remaining proceeds are being used to return capital to shareholders through share repurchases and for general corporate purposes . the majority of our remaining long-term debt primarily comprises senior , unsecured obligations ( `` yum senior unsecured notes `` ) which ranks equally in right of payment with all of our existing and future unsecured unsubordinated indebtedness . the yum senior unsecured notes have varying maturity dates from 2018 through 2043 and stated interest rates ranging from 3.75 % to 6.88 % . amounts outstanding under yum senior unsecured notes were $ 2.2 billion at december 31 , 2016. our yum senior unsecured notes contain cross-default provisions whereby the acceleration of the maturity of any of our indebtedness in a principal amount in excess of $ 50 million will constitute a default under the yum senior unsecured notes unless such indebtedness is discharged , or the acceleration of the maturity of that indebtedness is annulled , within 30 days after notice . the following table summarizes the future maturities of our outstanding long-term debt , excluding capital leases , as of december 31 , 2016. replace_table_token_34_th as a result of issuing the securitization notes and the subsidiary senior unsecured notes and executing the credit agreement we have completed our recapitalization plan . full year 2016 interest expense was $ 333 million and we currently expect annualized interest expense of approximately $ 430 million based on existing debt levels and current interest rates on our variable-rate debt . see note 11 for details on the the securitization notes , subsidiary senior unsecured notes , the credit agreement and yum senior unsecured notes . contractual obligations our significant contractual obligations and payments as of december 31 , 2016 included : replace_table_token_35_th 40 ( a ) amounts include maturities of debt outstanding as of december 31 , 2016 and expected interest payments on those outstanding amounts on a nominal basis . see note 11 . ( b ) these obligations , which are shown on a nominal basis , relate primarily to approximately 2,000 company-owned restaurants . see note 12 . ( c ) purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on us and that specify all significant terms , including : fixed or minimum quantities to be purchased ; fixed , minimum or variable price provisions ; and the approximate timing of the transaction . we have excluded agreements that are cancelable without penalty . purchase obligations relate primarily to supply agreements , marketing , information technology , purchases of property , plant and equipment ( `` pp & e `` ) as well as consulting , maintenance and other agreements . ( d ) includes actuarially-determined timing of payments from our most significant unfunded pension plan as well as scheduled payments from our deferred compensation plan and other unfunded benefit plans where payment dates are determinable . this table excludes $ 37 million of future benefit payments for deferred compensation and other unfunded benefit plans to be paid upon separation of employee 's service or retirement from the company , as we can not reasonably estimate the dates of these future cash payments . we sponsor noncontributory defined benefit pension plans covering certain salaried and hourly employees , the most significant of which are in the u.s. and uk . the most significant of the u.s. plans , the yum retirement plan ( the “ plan ” ) , is funded while benefits from our other significant u.s. plan are paid by the company as incurred ( see footnote ( d ) above ) . our funding policy for the plan is to contribute annually amounts that will at least equal the minimum amounts required to comply with the pension protection act

liquidity and capital resources in october 2015 , we announced our intent to separate our former china business into an independent publicly-traded company and become more of a pure play franchisor with more stable earnings , higher profit margins , lower capital requirements and stronger cash flow conversion . additionally , we announced our intention to return substantial capital to shareholders , the majority of which was to be funded by incremental borrowings . since the fourth quarter of 2015 , through december 31 , 2016 , we have repurchased 79 million shares of our common stock for $ 6.3 billion , including $ 5.4 billion in 2016. over the same period , we have paid cash dividends of $ 942 million , including $ 744 million in 2016 , for a total return to shareholders of $ 7.2 billion . replace_table_token_33_th ( a ) includes the effect of $ 45 million in share repurchases ( 0.7 million shares ) with trade dates prior to december 31 , 2016 but settlement dates subsequent to december 31 , 2016. see note 17 for additional details related to our share repurchase activity . we completed $ 6.9 billion of debt financing transactions during 2016 to assist in funding the shareholder returns noted above . as of december 31 , 2016 , approximately 90 % , including the impact of interest rate swaps , of our $ 9.1 billion of total debt outstanding is fixed with an effective overall interest rate of approximately 4.7 % . we have transitioned to non-investment grade credit ratings 38 of bb ( standard & poor 's ) /ba3 ( moody 's ) with a balance sheet more consistent with highly-levered peer restaurant franchise companies . we are now managing a capital structure which is levered in-line with our target of approximately five times ebitda , and which we believe provides an attractive balance between optimized interest rates , duration and flexibility with diversified sources of liquidity and maturities spread over multiple years .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources in october 2015 , we announced our intent to separate our former china business into an independent publicly-traded company and become more of a pure play franchisor with more stable earnings , higher profit margins , lower capital requirements and stronger cash flow conversion . additionally , we announced our intention to return substantial capital to shareholders , the majority of which was to be funded by incremental borrowings . since the fourth quarter of 2015 , through december 31 , 2016 , we have repurchased 79 million shares of our common stock for $ 6.3 billion , including $ 5.4 billion in 2016. over the same period , we have paid cash dividends of $ 942 million , including $ 744 million in 2016 , for a total return to shareholders of $ 7.2 billion . replace_table_token_33_th ( a ) includes the effect of $ 45 million in share repurchases ( 0.7 million shares ) with trade dates prior to december 31 , 2016 but settlement dates subsequent to december 31 , 2016. see note 17 for additional details related to our share repurchase activity . we completed $ 6.9 billion of debt financing transactions during 2016 to assist in funding the shareholder returns noted above . as of december 31 , 2016 , approximately 90 % , including the impact of interest rate swaps , of our $ 9.1 billion of total debt outstanding is fixed with an effective overall interest rate of approximately 4.7 % . we have transitioned to non-investment grade credit ratings 38 of bb ( standard & poor 's ) /ba3 ( moody 's ) with a balance sheet more consistent with highly-levered peer restaurant franchise companies . we are now managing a capital structure which is levered in-line with our target of approximately five times ebitda , and which we believe provides an attractive balance between optimized interest rates , duration and flexibility with diversified sources of liquidity and maturities spread over multiple years .
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 Suspicious Activity Report : four growth drivers will form the basis of yum 's strategic plans and repeatable business model to accelerate same-store sales growth and net-new restaurant development at kfc , pizza hut and taco bell around the world over the long term . the company will focus on becoming best-in-class in : building distinctive , relevant brands developing unmatched franchise operating capability driving bold restaurant development growing unrivaled culture and talent more franchised . yum intends to increase franchise restaurant ownership to at least 98 % by the end of 2018. more efficient . the company intends to revamp its financial profile , improving the efficiency of its organization and cost structure globally , by : reducing annual capital expenditures to approximately $ 100 million in 2019 ; reducing general and administrative ( `` g & a `` ) expenses by a cumulative ~ $ 300 million over the next three years ; and 23 maintaining an optimized capital structure of ~5.0x earnings before interest , taxes , depreciation and amortization ( “ ebitda ” ) leverage . since the fourth quarter of 2015 , we have returned approximately $ 7.2 billion of capital to shareholders through share repurchases and cash dividends , funding the repurchases through a recapitalization and issuance of $ 5.2 billion of incremental borrowings in 2016. over the next 3 years , we intend to return an additional $ 6.5 - $ 7.0 billion to shareholders through share repurchases and cash dividends . we intend to fund these shareholder returns through a combination of refranchising proceeds , free cash flow generation and maintenance of our five times ebitda leverage . we anticipate generating proceeds in excess of $ 2 billion , net of tax , through our refranchising initiatives . refer to the liquidity and capital resources section of this md & a for additional details . we intend for this md & a to provide the reader with information that will assist in understanding our results of operations , including performance metrics that management uses to assess the company 's performance . throughout this md & a , we commonly discuss the following performance metrics : the company provides certain percentage changes excluding the impact of foreign currency translation ( “ fx ” or “ forex ” ) . these amounts are derived by translating current year results at prior year average exchange rates . we believe the elimination of the foreign currency translation impact provides better year-to-year comparability without the distortion of foreign currency fluctuations . system sales growth includes the results of all restaurants regardless of ownership , including company-owned and franchise restaurants that operate our concepts . sales of franchise restaurants typically generate ongoing franchise and license fees for the company at a rate of 3 % to 6 % of sales . franchise restaurant sales are not included in company sales on the consolidated statements of income ; however , the franchise and license fees are included in the company 's revenues . we believe system sales growth is useful to investors as a significant indicator of the overall strength of our business as it incorporates all of our revenue drivers , company and franchise same-store sales as well as net unit growth . same-store sales growth is the estimated percentage change in sales of all restaurants that have been open and in the yum system one year or more . company restaurant profit ( `` restaurant profit `` ) is defined as company sales less expenses incurred directly by our company-owned restaurants in generating company sales . company restaurant margin as a percentage of sales is defined as restaurant profit divided by company sales . within the company sales and restaurant profit sections of this md & a , store portfolio actions represent the net impact of new unit openings , acquisitions , refranchising and store closures , and other primarily represents the impact of same-store sales as well as the impact of changes in costs such as inflation/deflation . operating margin is operating profit divided by total revenues . in addition to the results provided in accordance with u.s. generally accepted accounting principles ( `` gaap `` ) , the company has provided non-gaap measurements which present diluted earnings per share from continuing operations excluding special items , our effective tax rate excluding special items , core operating profit and core operating profit excluding 53 rd week . core operating profit excludes special items and foreign currency translation and we use core operating profit for the purposes of evaluating performance internally . special items are not included in any of our externally reported segment results , and we believe the elimination of the foreign currency translation impact provides better year-to-year comparability without the distortion of foreign currency fluctuations . we provide core operating profit excluding 53 rd week to further enhance the comparability of fiscal 2016 , which had a 53 rd week , with prior year results . these non-gaap measurements are not intended to replace the presentation of our financial results in accordance with gaap . rather , the company believes that the presentation of diluted earnings per share from continuing operations excluding special items , our effective tax rate excluding special items , core operating profit and core operating profit excluding 53 rd week , provide additional information to investors to facilitate the comparison of past and present operations , excluding items that the company does not believe are indicative of our ongoing operations due to their size and or nature . all note references herein refer to the notes to the financial statements . tabular amounts are displayed in millions of u.s. dollars except per share and unit count amounts , or as otherwise specifically identified . unless otherwise stated , financial results herein reflect continuing operations of the company . percentages may not recompute due to rounding . story_separator_special_tag in june 2016 , three wholly-owned subsidiaries of the company , kfc holding co. , pizza hut holdings , llc and taco bell of america , llc , as co-borrowers ( the `` borrowers `` ) entered into a new credit agreement ( the “ credit agreement ” ) providing for ( i ) a $ 500 million term loan a facility ( the “ term loan a facility ” ) , ( ii ) a $ 2 billion term loan b facility ( the “ term loan b facility ” ) and ( iii ) a $ 1 billion revolving facility ( the “ revolving facility ” ) which has no outstanding borrowings 39 and has $ 5 million in letters of credit outstanding as of december 31 , 2016 , each of which may be increased subject to certain conditions . our term loan a facility and term loan b facility contain cross-default provisions whereby the failure to pay principal of or otherwise perform any agreement or condition under indebtedness of certain subsidiaries with a principal amount in excess of $ 100 million will constitute an event of default under the credit agreement . subsidiary senior unsecured notes . on june 16 , 2016 , the borrowers issued an aggregate of $ 1.05 billion senior unsecured notes due 2024 and an aggregate of $ 1.05 billion senior unsecured notes due 2026 ( together , the “ subsidiary senior unsecured notes ” ) . our subsidiary senior unsecured notes contain cross-default provisions whereby the acceleration of the maturity of the indebtedness of certain subsidiaries with a principal amount in excess of $ 100 million or the failure to pay principal of such indebtedness will constitute an event of default under the subsidiary senior unsecured notes . we used certain of the proceeds from the subsidiary senior unsecured notes and the term loan a facility and the term loan b facility to repay all outstanding amounts under our senior unsecured revolving credit facility ( the “ senior unsecured revolving credit facility ” ) which had outstanding borrowings of $ 701 million as of december 26 , 2015. concurrent with this repayment the senior unsecured revolving credit facility was terminated . the remaining proceeds are being used to return capital to shareholders through share repurchases and for general corporate purposes . the majority of our remaining long-term debt primarily comprises senior , unsecured obligations ( `` yum senior unsecured notes `` ) which ranks equally in right of payment with all of our existing and future unsecured unsubordinated indebtedness . the yum senior unsecured notes have varying maturity dates from 2018 through 2043 and stated interest rates ranging from 3.75 % to 6.88 % . amounts outstanding under yum senior unsecured notes were $ 2.2 billion at december 31 , 2016. our yum senior unsecured notes contain cross-default provisions whereby the acceleration of the maturity of any of our indebtedness in a principal amount in excess of $ 50 million will constitute a default under the yum senior unsecured notes unless such indebtedness is discharged , or the acceleration of the maturity of that indebtedness is annulled , within 30 days after notice . the following table summarizes the future maturities of our outstanding long-term debt , excluding capital leases , as of december 31 , 2016. replace_table_token_34_th as a result of issuing the securitization notes and the subsidiary senior unsecured notes and executing the credit agreement we have completed our recapitalization plan . full year 2016 interest expense was $ 333 million and we currently expect annualized interest expense of approximately $ 430 million based on existing debt levels and current interest rates on our variable-rate debt . see note 11 for details on the the securitization notes , subsidiary senior unsecured notes , the credit agreement and yum senior unsecured notes . contractual obligations our significant contractual obligations and payments as of december 31 , 2016 included : replace_table_token_35_th 40 ( a ) amounts include maturities of debt outstanding as of december 31 , 2016 and expected interest payments on those outstanding amounts on a nominal basis . see note 11 . ( b ) these obligations , which are shown on a nominal basis , relate primarily to approximately 2,000 company-owned restaurants . see note 12 . ( c ) purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on us and that specify all significant terms , including : fixed or minimum quantities to be purchased ; fixed , minimum or variable price provisions ; and the approximate timing of the transaction . we have excluded agreements that are cancelable without penalty . purchase obligations relate primarily to supply agreements , marketing , information technology , purchases of property , plant and equipment ( `` pp & e `` ) as well as consulting , maintenance and other agreements . ( d ) includes actuarially-determined timing of payments from our most significant unfunded pension plan as well as scheduled payments from our deferred compensation plan and other unfunded benefit plans where payment dates are determinable . this table excludes $ 37 million of future benefit payments for deferred compensation and other unfunded benefit plans to be paid upon separation of employee 's service or retirement from the company , as we can not reasonably estimate the dates of these future cash payments . we sponsor noncontributory defined benefit pension plans covering certain salaried and hourly employees , the most significant of which are in the u.s. and uk . the most significant of the u.s. plans , the yum retirement plan ( the “ plan ” ) , is funded while benefits from our other significant u.s. plan are paid by the company as incurred ( see footnote ( d ) above ) . our funding policy for the plan is to contribute annually amounts that will at least equal the minimum amounts required to comply with the pension protection act

