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Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2019
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
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.

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

 
 
 
 
 
 
 
 
 
 
 


Amortization expense for all definite-lived intangible assets was $52 million in 2019, $37 million in 2018 and $33 million in 2017.  Amortization expense for definite-lived intangible assets is expected to approximate $53 million in 2020, $42 million in 2021, $25 million in 2022, $19 million in 2023 and $14 million in 2024.