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Goodwill and Intangible Assets (Tables) | 12 Months Ended
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Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill are as follows:
|  | KFC |  | Pizza Hut |  | Taco Bell |  | Worldwide
Goodwill, net as of December 31, 2017(a) |  | $ | 247 |  |  | $ | 162 |  |  | $ | 103 |  |  | $ | 512 |
Disposal and other, net(b) |  | (17 | ) |  | (5 | ) |  | (4 | ) |  | (26 | )
QuikOrder acquisition(c) |  | — |  |  | 39 |  |  | — |  |  | 39 |
Goodwill, net as of December 31, 2018(a) |  | $ | 230 |  |  | $ | 196 |  |  | $ | 99 |  |  | $ | 525 |
Disposal and other, net(b) |  | 3 |  |  | 3 |  |  | (1 | ) |  | 5 |
Goodwill, net as of December 31, 2019(a) |  | $ | 233 |  |  | $ | 199 |  |  | $ | 98 |  |  | $ | 530 |
(a) | Goodwill, net includes $17 million of accumulated impairment losses for each year presented related to our Pizza Hut segment.
(b) | Disposals and other, net includes the impact of foreign currency translation on existing balances and goodwill write-offs associated with refranchising.
(c) | In December 2018, we completed the acquisition of QuikOrder, LLC, an online ordering software and service provider for the restaurant industry (“QuikOrder”), who was a provider of services to Company and franchise restaurants of our Pizza Hut U.S. business for nearly two decades. The purchase price allocated for accounting purposes of $77 million consisted of cash, net of cash acquired, in the amount of $66 million, settlement of a prepaid asset of $6 million related to our preexisting contractual relationship with QuikOrder and contingent consideration of $5 million. The contingent consideration was paid in the year ended December 31, 2019. The acquisition was part of our strategy to deliver an easy and personalized online ordering experience and accelerate digital innovation. Subsequent to the acquisition, fees paid by franchisees for use of the QuikOrder software are being presented within Franchise contributions for advertising and other services. Associated costs we incur are being presented within Franchise advertising and other services expense and G&A.
The primary assets recorded as a result of the purchase price allocation were goodwill of $39 million and amortizable intangible assets (primarily software) of $33 million. The goodwill recorded resulted from increased synergies expected to be achieved through leveraging our scale and resources to enhance the services previously offered by QuikOrder. The goodwill amortization is deductible for tax purposes and has been allocated to the Pizza Hut U.S. reporting unit. The pro forma impact on our results of operations if the acquisition had been completed as of the beginning of 2017 would not have been significant. The direct transaction costs associated with the acquisition were also not material and were expensed as incurred.
Schedule Of Finite And Indefinite Lived Intangible Assets By Major Class | Intangible assets, net for the years ended 2019 and 2018 are as follows:
|  | 2019 |  | 2018
|  | Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Definite-lived intangible assets |  |  |  |  |  |  |  |
Capitalized software costs |  | $ | 306 |  |  | $ | (130 | ) |  | $ | 319 |  |  | $ | (156 | )
Reacquired franchise rights |  | 38 |  |  | (32 | ) |  | 37 |  |  | (30 | )
Franchise contract rights |  | 100 |  |  | (83 | ) |  | 99 |  |  | (79 | )
Lease tenancy rights |  | 5 |  |  | (1 | ) |  | 11 |  |  | (1 | )
Other |  | 38 |  |  | (28 | ) |  | 38 |  |  | (27 | )
|  | $ | 487 |  |  | $ | (274 | ) |  | $ | 504 |  |  | $ | (293 | )
Indefinite-lived intangible assets |  |  |  |  |  |  |  |
KFC trademark |  | $ | 31 |  |  |  |  | $ | 31 |  |  |

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