INTANGIBLE ASSETS
Indefinite-Lived Intangible Assets
The following table summarizes information related to indefinite-lived intangible assets (in millions):
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December 31, |
2017 |
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2016 |
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Trademarks1
|
$ |
6,729 |
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|
$ |
6,097 |
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Bottlers' franchise rights2
|
138 |
|
|
3,676 |
|
Goodwill |
9,401 |
|
|
10,629 |
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Other |
106 |
|
|
128 |
|
Indefinite-lived intangible assets |
$ |
16,374 |
|
|
$ |
20,530 |
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1 The increase in 2017 was primarily due to the acquisitions of AdeS and the U.S. rights to Topo Chico. Refer to Note 2.
2 The decrease in 2017 was primarily the result of additional North America bottling territories being refranchised. Refer to Note 2.
The following table provides information related to the carrying value of our goodwill by operating segment (in millions):
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Europe, Middle East & Africa |
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Latin
America
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North
America
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Asia Pacific |
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Bottling
Investments
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Total |
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2016 |
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Balance at beginning of year |
$ |
638 |
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|
$ |
123 |
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$ |
8,311 |
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|
$ |
133 |
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|
$ |
2,084 |
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$ |
11,289 |
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Effect of foreign currency translation |
(10 |
) |
|
(6 |
) |
|
— |
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|
(11 |
) |
|
(6 |
) |
|
(33 |
) |
Acquisitions1
|
— |
|
|
— |
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— |
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|
6 |
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|
— |
|
|
6 |
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Adjustments related to the finalization
of purchase accounting1
|
— |
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|
— |
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|
10 |
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— |
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|
— |
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|
10 |
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Impairment |
— |
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|
— |
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|
— |
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|
— |
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|
(10 |
) |
|
(10 |
) |
Divestitures, deconsolidations and other1
|
— |
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|
— |
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|
— |
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— |
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|
(633 |
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|
(633 |
) |
Balance at end of year |
$ |
628 |
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|
$ |
117 |
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$ |
8,321 |
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$ |
128 |
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$ |
1,435 |
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$ |
10,629 |
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2017 |
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|
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|
|
|
|
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Balance at beginning of year |
$ |
628 |
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|
$ |
117 |
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|
$ |
8,321 |
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|
$ |
128 |
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|
$ |
1,435 |
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$ |
10,629 |
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Effect of foreign currency translation |
75 |
|
|
8 |
|
|
— |
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|
(1 |
) |
|
5 |
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|
87 |
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Acquisitions1
|
— |
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|
25 |
|
|
28 |
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|
— |
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|
3 |
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|
56 |
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Adjustments related to the finalization
of purchase accounting1
|
— |
|
|
— |
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|
— |
|
|
18 |
|
|
— |
|
|
18 |
|
Impairment |
— |
|
|
— |
|
|
— |
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|
— |
|
|
(390 |
) |
|
(390 |
) |
Divestitures, deconsolidations and other1,2
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(999 |
) |
|
(999 |
) |
Balance at end of year |
$ |
703 |
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|
$ |
150 |
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$ |
8,349 |
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$ |
145 |
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$ |
54 |
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$ |
9,401 |
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1
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Refer to Note 2 for information related to the Company's acquisitions and divestitures.
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2 |
The 2017 decrease in the Bottling Investments segment was primarily a result of additional North America bottling territories being refranchised. Refer to Note 2.
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Definite-Lived Intangible Assets
The following table summarizes information related to definite-lived intangible assets (in millions):
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December 31, 2017 |
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December 31, 2016 |
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Gross Carrying Amount |
|
Accumulated Amortization |
|
Net |
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|
Gross Carrying Amount |
|
Accumulated Amortization |
|
Net |
|
Customer relationships1
|
$ |
205 |
|
$ |
(143 |
) |
$ |
62 |
|
|
$ |
392 |
|
$ |
(185 |
) |
$ |
207 |
|
Bottlers' franchise rights1
|
213 |
|
(152 |
) |
61 |
|
|
487 |
|
(381 |
) |
106 |
|
Trademarks |
182 |
|
(73 |
) |
109 |
|
|
228 |
|
(64 |
) |
164 |
|
Other |
94 |
|
(64 |
) |
30 |
|
|
179 |
|
(58 |
) |
121 |
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Total |
$ |
694 |
|
$ |
(432 |
) |
$ |
262 |
|
|
$ |
1,286 |
|
$ |
(688 |
) |
$ |
598 |
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1 |
The decrease in 2017 was primarily due to the derecognition of intangible assets as a result of the North America refranchising. Refer to Note 2.
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Total amortization expense for intangible assets subject to amortization was $68 million, $139 million and $156 million in 2017, 2016 and 2015, respectively.
Based on the carrying value of definite-lived intangible assets as of December 31, 2017, we estimate our amortization expense for the next five years will be as follows (in millions):
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Amortization
Expense
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2018 |
|
$ |
57 |
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2019 |
|
44 |
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2020 |
|
38 |
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2021 |
|
28 |
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2022 |
|
28 |
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