INTANGIBLE ASSETS
Indefinite-Lived Intangible Assets
The following table presents the carrying values of indefinite-lived intangible assets included in our consolidated balance sheets (in millions):
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|
|
|
|
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|
December 31, |
2018 |
|
|
2017 |
|
Trademarks |
$ |
6,682 |
|
|
$ |
6,729 |
|
Bottlers' franchise rights |
51 |
|
|
138 |
|
Goodwill |
10,263 |
|
|
9,401 |
|
Other |
106 |
|
|
106 |
|
Indefinite-lived intangible assets |
$ |
17,102 |
|
|
$ |
16,374 |
|
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 |
|
|
Latin
America
|
|
|
North
America
|
|
|
Asia Pacific |
|
|
Bottling
Investments
|
|
|
Total |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of year |
$ |
628 |
|
|
$ |
117 |
|
|
$ |
8,321 |
|
|
$ |
128 |
|
|
$ |
1,435 |
|
|
$ |
10,629 |
|
Effect of foreign currency translation |
75 |
|
|
8 |
|
|
— |
|
|
(1 |
) |
|
5 |
|
|
87 |
|
Acquisitions1
|
— |
|
|
25 |
|
|
28 |
|
|
— |
|
|
3 |
|
|
56 |
|
|
Adjustments related to the finalization
of purchase accounting1
|
— |
|
|
— |
|
|
— |
|
|
18 |
|
|
— |
|
|
18 |
|
Impairment charges |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(390 |
) |
|
(390 |
) |
Divestitures, deconsolidations and other1,2
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(999 |
) |
|
(999 |
) |
Balance at end of year |
$ |
703 |
|
|
$ |
150 |
|
|
$ |
8,349 |
|
|
$ |
145 |
|
|
$ |
54 |
|
|
$ |
9,401 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of year |
$ |
703 |
|
|
$ |
150 |
|
|
$ |
8,349 |
|
|
$ |
145 |
|
|
$ |
54 |
|
|
$ |
9,401 |
|
Effect of foreign currency translation |
(58 |
) |
|
(9 |
) |
|
— |
|
|
(4 |
) |
|
(2 |
) |
|
(73 |
) |
Acquisitions1,3
|
12 |
|
|
— |
|
|
— |
|
|
13 |
|
|
488 |
|
|
513 |
|
|
Adjustments related to the finalization
of purchase accounting1,4
|
411 |
|
|
27 |
|
|
(11 |
) |
|
— |
|
|
— |
|
|
427 |
|
Divestitures, deconsolidations and other1
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(5 |
) |
|
(5 |
) |
Balance at end of year |
$ |
1,068 |
|
|
$ |
168 |
|
|
$ |
8,338 |
|
|
$ |
154 |
|
|
$ |
535 |
|
|
$ |
10,263 |
|
|
|
1
|
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 North America bottling operations being refranchised. Refer to Note 2.
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3 |
The increase in 2018 was primarily due to the acquisition of the Philippine bottling operations. Refer to Note 2.
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4 |
The increase in 2018 was primarily due to the allocation of goodwill from CCBA to other reporting units expected to benefit from the acquisition of CCBA. Refer to Note 2.
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Definite-Lived Intangible Assets
The following table provides information related to definite-lived intangible assets (in millions):
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December 31, 2018 |
|
December 31, 2017 |
|
Gross Carrying Value |
|
Accumulated Amortization |
|
Net
Carrying
Value
|
|
|
Gross Carrying
Value
|
|
Accumulated Amortization |
|
Net
Carrying
Value
|
|
Customer relationships |
$ |
185 |
|
$ |
(151 |
) |
$ |
34 |
|
|
$ |
205 |
|
$ |
(143 |
) |
$ |
62 |
|
Bottlers' franchise rights |
30 |
|
(18 |
) |
12 |
|
|
213 |
|
(152 |
) |
61 |
|
Trademarks |
186 |
|
(91 |
) |
95 |
|
|
182 |
|
(73 |
) |
109 |
|
Other |
88 |
|
(61 |
) |
27 |
|
|
94 |
|
(64 |
) |
30 |
|
Total |
$ |
489 |
|
$ |
(321 |
) |
$ |
168 |
|
|
$ |
694 |
|
$ |
(432 |
) |
$ |
262 |
|
Total amortization expense for intangible assets subject to amortization was $49 million, $68 million and $139 million in 2018, 2017 and 2016, respectively.
Based on the carrying value of definite-lived intangible assets as of December 31, 2018, we estimate our amortization expense for the next five years will be as follows (in millions):
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Amortization
Expense
|
|
2019 |
|
$ |
44 |
|
2020 |
|
34 |
|
2021 |
|
26 |
|
2022 |
|
25 |
|
2023 |
|
25 |
|
|