Question

Identifiable Intangibles and Goodwill, U.S. GAAP

International Foods, a U.S. company, acquired two companies in 2019. As a result, its consolidated financial statements include the following acquired intangibles:

Intangible Asset	Date of Acquisition	Fair Value at Date of Acquisition	Useful Life
Customer relationships	January 1, 2019	$4,000,000	4 years
Favorable leaseholds	June 30, 2019	8,000,000	5 years
Brand names	June 30, 2019	18,000,000	Indefinite
Goodwill	January 1, 2019	500,000,000	Indefinite

Goodwill was assigned to the following reporting units:

Asia	$100,000,000
South America	150,000,000
Europe	250,000,000
Total	$500,000,000

It is now December 31, 2020, the end of International Foods’ accounting year. No impairment losses were reported on any intangibles in 2019. Assume that International Foods bypasses the qualitative option for impairment testing of goodwill and indefinite-life intangibles. Additional information at December 31, 2020 is as follows:

Intangible Asset	Sum of Future Expected Undiscounted Cash Flows	Sum of Future Expected Discounted Cash Flows
Customer relationships	$1,200,000	$900,000
Favorable leaseholds	6,000,000	4,400,000
Brand names	14,000,000	7,000,000

Reporting Unit	Unit Carrying Value	Unit Fair Value
Asia	$300,000,000	$400,000,000
South America	200,000,000	350,000,000
Europe	600,000,000	500,000,000

Required

Compute 2020 amortization expense and impairment losses on the above intangibles, following U.S. GAAP.

Enter answers in millions, using decimal places when applicable.

(in millions)
Amortization expense - identifiable intangibles	$Answer
Impairment losses - identifiable intangibles	Answer
Goodwill impairment loss	Answer
Total	$Answer

Answer 1