XML 33 R18.htm IDEA: XBRL DOCUMENT v3.6.0.2
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets

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

 
 
KFC
 
Pizza Hut
 
Taco Bell
 
Worldwide
Balance as of December 27, 2014
 
 
 
 
 
 
 
 
Goodwill, gross
 
$
314

 
$
200

 
$
114

 
$
628

Accumulated impairment losses
 

 
(17
)
 

 
(17
)
Goodwill, net
 
314

 
183

 
114

 
611

Acquisitions
 
1

 

 
1

 
2

Disposals and other, net(a)
 
(33
)
 
(7
)
 
(2
)
 
(42
)
Balance as of December 26, 2015
 
 
 
 
 
 
 
 
Goodwill, gross
 
282

 
193

 
113

 
588

Accumulated impairment losses
 

 
(17
)
 

 
(17
)
Goodwill, net
 
282

 
176

 
113

 
571

Disposals and other, net(a)
 
(12
)
 
(16
)
 
(2
)
 
(30
)
Balance as of December 31, 2016
 
 
 
 
 
 
 
 
Goodwill, gross
 
270

 
177

 
111

 
558

Accumulated impairment losses
 

 
(17
)
 

 
(17
)
Goodwill, net
 
$
270

 
$
160

 
$
111

 
$
541



(a)
Disposals and other, net includes the impact of foreign currency translation on existing balances and goodwill write-offs associated with refranchising.

Intangible assets, net for the years ended 2016 and 2015 are as follows:
 
 
 
2016
 
2015
 
 
Gross Carrying Amount
 
Accumulated Amortization
 
Gross Carrying Amount
 
Accumulated Amortization
Definite-lived intangible assets
 
 
 
 
 
 
 
 
Reacquired franchise rights
 
$
84

 
$
(49
)
 
$
92

 
$
(49
)
Franchise contract rights
 
99

 
(73
)
 
99

 
(70
)
Lease tenancy rights
 
56

 
(9
)
 
55

 
(9
)
Other
 
36

 
(24
)
 
37

 
(22
)
 
 
$
275

 
$
(155
)
 
$
283

 
$
(150
)
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets
 
 
 
 
 
 
 
 
KFC trademark
 
$
31

 
 
 
$
31

 
 
 
 
 
 
 
 
 
 
 


Amortization expense for all definite-lived intangible assets was $12 million in 2016, $13 million in 2015 and $13 million in 2014.  Amortization expense for definite-lived intangible assets is expected to approximate $10 million in 2017, $9 million in 2018, $7 million in 2019, $7 million in 2020 and $6 million in 2021.