Changes in goodwill and intangible assets account for the years ended December 31, 2020 and 2019 are as follows:

	Intangible Assets with Indefinite Life			Intangible Assets with Finite Life															Total Intangible Assets with			Total					Total Goodwill and
	Trademark			Trademark		Franchise		Licenses			Customer List			Spectrum		Others			Finite Life			Intangible Assets			Goodwill		Intangible Assets
	(in million pesos)
December 31, 2020
Costs:
Balances at beginning of the year		4,505			—		3,016		1,079			4,726			1,205		775			10,801			15,306			62,033		77,339
Reclassification		(4,505	)		4,505		—		—			—			—		—			4,505			—			—		—
Translation and other adjustments		—			—		—		(944	)		(23	)		—		(4	)		(971	)		(971	)		—		(971	)
Balances at end of the year		—			4,505		3,016		135			4,703			1,205		771			14,335			14,335			62,033		76,368
Accumulated amortization and impairment:
Balances at beginning of the year		—			—		1,520		1,059			4,301			1,205		775			8,860			8,860			654		9,514
Amortization during the year (Notes 4 and 5)		—			1,877		186		8			425			—		—			2,496			2,496			—		2,496
Translation and other adjustments		—			—		—		(944	)		(23	)		—		(4	)		(971	)		(971	)		—		(971	)
Balances at end of the year		—			1,877		1,706		123			4,703			1,205		771			10,385			10,385			654		11,039
Net balances at end of the year		—			2,628		1,310		12			—			—		—			3,950			3,950			61,379		65,329
Estimated useful lives (in years)		—			10		16		18			—			—		—			—			—			—		—
Remaining useful lives (in years)		—			1		7		2			—			—		—			—			—			—		—
December 31, 2019
Costs:
Balances at beginning and end of the year		4,505			—		3,016		1,079			4,726			1,205		775			10,801			15,306			62,033		77,339
Accumulated amortization and impairment:
Balances at beginning of the year		—			—		1,334		1,051			3,790			1,152		775			8,102			8,102			654		8,756
Amortization during the year (Notes 4 and 5)		—			—		186		8			511			53		—			758			758			—		758
Balances at end of the year		—			—		1,520		1,059			4,301			1,205		775			8,860			8,860			654		9,514
Net balances at end of the year		4,505			—		1,496		20			425			—		—			1,941			6,446			61,379		67,825
Estimated useful lives (in years)		—			—		16		18		2 – 9				15	1 – 10				—			—			—		—
Remaining useful lives (in years)		—			—		8		3			1			—		—			—			—			—		—

The consolidated goodwill and intangible assets of our reportable segments as at December 31, 2020 and 2019 are as follows:

The consolidated future amortization of intangible assets as at December 31, 2020 is as follows:

Trademark pertains to the “Sun Cellular” trademark of DMPI, resulting from PLDT’s acquisition of Digitel in 2011. It was assessed during the acquisition that the trademark would have indefinite useful life because we had no plans to fade out DMPI’s trademark. We expected the continued use of the trademark on our services and we introduced services that displayed the trademark.

In October 2020, we implemented the rebranding of Sun Prepaid into Smart Prepaid. Subscribers retained their existing Sun numbers while having access to expanded retail customer care channels, data-centric offers of Smart alongside existing select Sun top-up offers. As a result, in 2020, we amortized Php1,877 million of the “Sun Cellular” trademark, and the remaining Php2,628 million will be amortized until July 2021. See Note 2 – Summary of Significant Accounting Policies – Sun Prepaid Rebranding to Smart Prepaid and
Note 3 – Management’s Use of Accounting Judgments, Estimates and Assumptions – Estimating useful lives of intangible assets with finite lives.

The organizational structure of PLDT and its subsidiaries is designed to monitor financial operations based on fixed line and wireless segmentation. Management provides guidelines and decisions on resource allocation, such as continuing or disposing of asset and operations by evaluating the performance of each segment through review and analysis of available financial information on the fixed line and wireless segments. As at December 31, 2020, the PLDT Group’s goodwill comprised of goodwill resulting from acquisition of PLDT’s additional investment in PG1 in 2014, ePLDT’s acquisition of IPCDSI in 2012, PLDT’s acquisition of Digitel in 2011, ePLDT’s acquisition of ePDS in 2011, Smart’s acquisition of PDSI and Chikka in 2009, SBI’s acquisition of Airborne Access Corporation in 2008, and Smart’s acquisition of SBI in 2004.

Although revenue streams may be segregated among the companies within the PLDT Group, cash inflows are not considered coming from independent group of assets on a per Company basis due largely to the significant portion of shared and commonly used network/platform that generates related revenue. The same is true for Sun, wherein Smart 2G/3G network, cellular base stations and fiber optic backbone are shared for areas where Sun has limited connectivity and facilities. On the other hand, PLDT has the largest fixed line network in the Philippines. PLDT’s transport facilities are installed nationwide to cover both domestic and international IP backbone to route and transmit IP traffic generated by the customers. In the same manner, PLDT has the most Internet Gateway facilities which are composed of high capacity IP routers and switches that serve as the main gateway of the Philippines to the Internet connecting to the World Wide Web. With PLDT’s network coverage, other fixed line subsidiaries share the same facilities to leverage on a Group perspective.

Because of the significant common use of network facilities among fixed line and wireless companies within the Group, management deems that the Wireless and Fixed Line units are

the lowest CGUs to which goodwill is to be allocated and tested for impairment given that the Fixed Line and Wireless operations generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

The recoverable amount of the Wireless and Fixed Line CGUs have been determined using the value- in-use approach calculated using cash flow projections based on the financial budgets approved by the Board of Directors. The post-tax discount rates applied to cash flow projections are 8.08% for the Wireless and Fixed Line CGUs. Cash flows beyond the projection period of three years are determined using a 2% growth rate for the Wireless and Fixed Line CGUs, which is the same as the long-term average growth rate for the telecommunications industry. Other key assumptions used in the cash flow projections include revenue growth rate and capital expenditures.

Based on the assessment of the VIU of the Wireless and Fixed Line CGUs, the recoverable amount of the Wireless and Fixed Line CGUs exceeded their carrying amounts, hence, no impairment was recognized in relation to goodwill as at December 31, 2020 and 2019.

The accumulated impairment balance as at December 31, 2020 and 2019 is comprised of Php438 million from PLDT’s acquisition of Digitel and Php216 million from ePLDT’s acquisition of AGS.