Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 9 – Goodwill and Intangible Assets

The changes in the carrying amount of goodwill are as follows:

	Total Company			KFC			Pizza Hut		All Other Segments
Balance as of December 31, 2020
Goodwill, gross	$	1,223		$	748		$	20	$	455
Accumulated impairment losses(a)		(391	)		—			—		(391	)
Goodwill, net		832			748			20		64
Effect of currency translation adjustment		(3	)		(3	)		—		—
Balance as of March 31, 2021
Goodwill, gross		1,220			745			20		455
Accumulated impairment losses(a)		(391	)		—			—		(391	)
Goodwill, net	$	829		$	745		$	20	$	64

(a) Accumulated impairment losses represent goodwill impairment attributable to the reporting units of Little Sheep and Daojia.

Intangible assets, net as of March 31, 2021 and December 31, 2020 are as follows:

	3/31/2021										12/31/2020
	Gross Carrying Amount(a)		Accumulated Amortization			Accumulated Impairment Losses(b)			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment Losses(b)			Net Carrying Amount
Finite-lived intangible assets
Reacquired franchise rights	$	222	$	(153	)	$	—		$	69	$	223	$	(144	)	$	—		$	79
Huang Ji Huang franchise related assets		23		(1	)		—			22		23		(1	)		—			22
Daojia platform		16		(4	)		(12	)		—		16		(4	)		(12	)		—
Customer-related assets		12		(9	)		(2	)		1		12		(8	)		(2	)		2
Others		9		(4	)		—			5		9		(4	)		—			5
	$	282	$	(171	)	$	(14	)	$	97	$	283	$	(161	)	$	(14	)	$	108
Indefinite-lived intangible assets
Little Sheep trademark	$	55	$	—		$	—		$	55	$	56	$	—		$	—		$	56
Huang Ji Huang trademark		82		—			—			82		82		—			—			82
	$	137	$	—		$	—		$	137	$	138	$	—		$	—		$	138
Total intangible assets	$	419	$	(171	)	$	(14	)	$	234	$	421	$	(161	)	$	(14	)	$	246

(a) Changes in gross carrying amount include effect of currency translation adjustment.

(b) Accumulated impairment losses represent impairment charges on intangible assets acquired from Daojia primarily attributable to the Daojia platform.

Amortization expense of finite-lived intangible assets was $10 million and $3 million for the quarters ended March 31, 2021 and 2020, respectively. As of March 31, 2021, expected amortization expense for the unamortized finite-lived intangible assets is approximately $31 million for the remainder of 2021, $41 million in 2022, $4 million in 2023, $2 million in 2024 and $2 million in 2025.