Intangible Assets, net and Goodwill

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets, net and goodwill consist of the following (in millions):


	As of
	September 30, 2020						December 31, 2019
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Identifiable assets subject to amortization:
Franchise agreements	$	724	$	(252)	$	472	$	720	$	(225)	$	495
Favorable leases	116		(63)		53		127		(65)		62
Subtotal	840		(315)		525		847		(290)		557
Indefinite-lived intangible assets:
Tim Hortons brand	$	6,390	$	—	$	6,390	$	6,534	$	—	$	6,534
Burger King brand	2,145		—		2,145		2,117		—		2,117
Popeyes brand	1,355		—		1,355		1,355		—		1,355
Subtotal	9,890		—		9,890		10,006		—		10,006
Intangible assets, net					$	10,415					$	10,563

Goodwill
Tim Hortons segment	$	4,119					$	4,207
Burger King segment	606						598
Popeyes segment	846						846
Total	$	5,571					$	5,651

Amortization expense on intangible assets totaled $11 million and $12 million for the three months ended September 30, 2020 and 2019, respectively, and $33 million and $33 million for the nine months ended September 30, 2020 and 2019, respectively. The change in the brands and goodwill balances during the nine months ended September 30, 2020 was due to the impact of foreign currency translation.