Item 7.01 Regulation FD.
As disclosed in Note 2 to the Company's Form 10-Q filed onApril 30, 2021 for period endedMarch 31, 2021 , certain prior year amounts in the statement of operations and accompanying segment results have been reclassified in order to be comparable with the current year classifications. These consist of the reclassification of advertising fund contributions from Franchise and property revenues to Advertising revenues and advertising fund expenses from Selling, general and administrative expenses to Advertising expenses, with General and administrative expenses now presented separately. Depreciation and amortization expenses related to the advertising funds have also been reclassified from Franchise and property expenses to Advertising expenses. These reclassifications did not arise as a result of any changes to accounting policies and relate entirely to presentation with no effect on previously reported net income. The following information reflects these reclassifications in the results of operations for the twelve months ended 2019 and 2018. Results of Operations for the twelve months ended 2019 and 2018 Tabular amounts in millions ofU.S. dollars unless noted otherwise. Segment income may not calculate exactly due to rounding. Consolidated Twelve Months Ended December 31, 2019 2018 Revenues: Sales $ 2,362$ 2,355 Franchise and property revenues 2,381 2,196 Advertising revenues 860 806 Total revenues 5,603 5,357 Operating costs and expenses: Cost of sales 1,813 1,818 Franchise and property expenses 533 409 Advertising expenses 865 806 General and administrative expenses 406 421 (Income) loss from equity method investments (11) (22) Other operating expenses (income), net (10) 8 Total operating costs and expenses 3,596 3,440 Income from operations 2,007 1,917 Interest expense, net 532 535 Loss on early extinguishment of debt 23 - Income before income taxes 1,452 1,382 Income tax expense 341 238 Net income $ 1,111$ 1,144
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