Goodwill

The changes in the carrying amount of goodwill during the nine months ended September 30, 2020 are shown in the table below.



(Dollars in millions)	Regional Bank			Global Corporate & Investment Banking - U.S.			Transaction Banking			MUFG Fund Services		Total
Goodwill, December 31, 2019	$	770		$	667		$	251		$	76	$	1,764
Transfers	—			86			(86		)	—		—
Impairment losses	(87		)	(270		)	—			—		(357		)
Goodwill, September 30, 2020	$	683		$	483		$	165		$	76	$	1,407

Goodwill	$	2,193		$	944		$	165		$	76	$	3,378
Accumulated impairment losses	(1,510		)	(461		)	—			—		(1,971		)
Balance at September 30, 2020	$	683		$	483		$	165		$	76	$	1,407

The Company performs goodwill impairment tests on an annual basis as of April 1, and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. The Company estimates the fair value of its reporting units using a combination of income and market approaches. The income approach estimates the fair value of the reporting units by discounting management’s projections of each reporting unit’s cash flows, including a terminal value to estimate the fair value of cash flows beyond the final year of projected results, using a discount rate derived from the Capital Asset Pricing Model. The market approach incorporates comparable public company price to tangible book value and price to earnings multiples.

During the third quarter of 2020, due to revisions to multiples used in the market approach component of its fair value estimation, the Company initiated an interim quantitative impairment test of goodwill allocated to two of its reporting units: Commercial Banking and Real Estate Industries and Global Corporate & Investment Banking - U.S. Due largely to increases in observed market discount rates, the Company recorded an impairment charge of $357 million, which represented a portion of the goodwill allocated to the Global Corporate & Investment Banking - U.S. and Commercial Banking and Real Estate Industries reporting units, which have $483 million and $640 million allocated goodwill remaining after the impairment, respectively. The impairment charge did not result in a cash outflow and did not significantly affect the regulatory capital ratios or the Company’s liquidity position as of September 30, 2020.