YUM BRANDS INC | 2013 | FY | 3

Goodwill and Intangible Assets

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

 
 
China
 
YRI
 
U.S.
 
India
 
Worldwide
Balance as of December 31, 2011
 
 
 
 
 
 
 

 
 
Goodwill, gross
 
$
88

 
$
299

 
$
311

 
$
—

 
$
698

Accumulated impairment losses
 
—

 
(17
)
 
—

 
—

 
(17
)
Goodwill, net
 
88

 
282

 
311

 
—

 
681

Acquisitions(a)
 
376

 
—

 
—

 
—

 
376

Disposals and other, net(b)
 
2

 
(11
)
 
(14
)
 
—

 
(23
)
Balance as of December 29, 2012
 
 
 
 
 
 
 

 
 
Goodwill, gross
 
466

 
288

 
297

 
—

 
1,051

Accumulated impairment losses
 
—

 
(17
)
 
—

 
—

 
(17
)
Goodwill, net
 
466

 
271

 
297

 
—

 
1,034

Acquisitions(c)
 
2

 
86

 
—

 
2

 
90

Impairment Losses(d)
 
(222
)
 
—

 
—

 
—

 
(222
)
Disposals and other, net(b)
 
10

 
(18
)
 
(5
)
 
—

 
(13
)
Balance as of December 28, 2013
 
 
 
 
 
 
 
 
 
 
Goodwill, gross
 
478

 
356

 
292

 
2

 
1,128

Accumulated impairment losses
 
(222
)
 
(17
)
 
—

 
—

 
(239
)
Goodwill,net
 
$
256

 
$
339

 
$
292

 
$
2

 
$
889


(a)
We recorded goodwill of $376 million related to our acquisition of Little Sheep. See the Little Sheep Acquisition and Subsequent Impairment section of Note 4.

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

(c)
We recorded goodwill of $86 million in our YRI segment related to the acquisition of 65 KFC and 41 Pizza Hut restaurants in Turkey.

(d)
We recorded an impairment charge of $222 million to write down Little Sheep's goodwill in 2013. See the Little Sheep Acquisition and Subsequent Impairment section of Note 4 for details.


Intangible assets, net for the years ended 2013 and 2012 are as follows:
 
 
 
2013
 
2012
 
 
Gross Carrying Amount
 
Accumulated Amortization
 
Gross Carrying Amount
 
Accumulated Amortization
Definite-lived intangible assets
 
 
 
 
 
 
 
 
Reacquired franchise rights
 
$
188

 
$
(66
)
 
$
163

 
$
(47
)
Franchise contract rights
 
130

 
(90
)
 
131

 
(84
)
Lease tenancy rights
 
71

 
(12
)
 
57

 
(12
)
Favorable operating leases
 
20

 
(12
)
 
21

 
(11
)
Other
 
52

 
(22
)
 
51

 
(19
)
 
 
$
461

 
$
(202
)
 
$
423

 
$
(173
)
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets
 
 
 
 
 
 
 
 
KFC trademark
 
$
31

 
 
 
$
31

 
 
Little Sheep trademark(a)
 
348

 
 
 
409

 
 
 
 
$
379

 
 
 
$
440

 
 


Amortization expense for all definite-lived intangible assets was $28 million in 2013, $28 million in 2012 and $31 million in 2011.  Amortization expense for definite-lived intangible assets will approximate $27 million in 2014, $26 million in 2015, $25 million in 2016, $23 million in 2017 and $22 million in 2018.

(a)
We recorded an impairment charge of $69 million to write down the Little Sheep trademark in 2013. See the Little Sheep Acquisition and Subsequent Impairment section of Note 4 for details.

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