| INTANGIBLE ASSETS |
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):
|
|
|
|
|
|
|
|
December 31, |
2018 |
|
2017 |
|
Trademarks |
$ |
6,682 |
|
$ |
6,729 |
|
Bottlers' franchise rights |
51 |
|
138 |
|
Goodwill |
14,109 |
|
13,649 |
|
Other |
106 |
|
106 |
|
Indefinite-lived intangible assets |
$ |
20,948 |
|
$ |
20,622 |
|
The following table provides information related to the carrying value of our goodwill by operating segment (in millions):
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|
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|
|
Europe, Middle East & Africa |
|
Latin
America
|
|
North
America
|
|
Asia Pacific |
|
Global Ventures |
|
Bottling
Investments
|
|
Total |
|
2017 |
|
|
|
|
|
|
|
Balance at beginning of year |
$ |
614 |
|
$ |
117 |
|
$ |
7,926 |
|
$ |
126 |
|
$ |
411 |
|
$ |
1,435 |
|
$ |
10,629 |
|
Effect of foreign currency translation |
75 |
|
8 |
|
— |
|
(1 |
) |
— |
|
(9 |
) |
73 |
|
Acquisitions1,3
|
— |
|
25 |
|
28 |
|
— |
|
— |
|
4,265 |
|
4,318 |
|
|
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 |
$ |
689 |
|
$ |
150 |
|
$ |
7,954 |
|
$ |
143 |
|
$ |
411 |
|
$ |
4,302 |
|
$ |
13,649 |
|
2018 |
|
|
|
|
|
|
|
Balance at beginning of year |
$ |
689 |
|
$ |
150 |
|
$ |
7,954 |
|
$ |
143 |
|
$ |
411 |
|
$ |
4,302 |
|
$ |
13,649 |
|
Effect of foreign currency translation |
(58 |
) |
(9 |
) |
— |
|
(4 |
) |
— |
|
(202 |
) |
(273 |
) |
Acquisitions1,3
|
12 |
|
— |
|
— |
|
13 |
|
— |
|
773 |
|
798 |
|
|
Adjustments related to the
finalization of purchase accounting1,4
|
408 |
|
27 |
|
(11 |
) |
— |
|
3 |
|
(487 |
) |
(60 |
) |
|
Divestitures, deconsolidations
and other1
|
— |
|
— |
|
— |
|
— |
|
— |
|
(5 |
) |
(5 |
) |
Balance at end of year |
$ |
1,051 |
|
$ |
168 |
|
$ |
7,943 |
|
$ |
152 |
|
$ |
414 |
|
$ |
4,381 |
|
$ |
14,109 |
|
|
|
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 2017 was primarily due to the consolidation of CCBA. The increase in 2018 was primarily due to the acquisition of controlling interests in bottling operations in the Philippines, Zambia and Botswana. Refer to Note 2.
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4 |
Includes the allocation of goodwill from the Bottling Investments segment to other reporting units expected to benefit from the consolidation 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 |
$ |
290 |
|
$ |
(151 |
) |
$ |
139 |
|
|
$ |
205 |
|
$ |
(143 |
) |
$ |
62 |
|
Bottlers' franchise rights1
|
396 |
|
(18 |
) |
378 |
|
|
1,076 |
|
(152 |
) |
924 |
|
Trademarks |
186 |
|
(91 |
) |
95 |
|
|
182 |
|
(73 |
) |
109 |
|
Other |
88 |
|
(61 |
) |
27 |
|
|
94 |
|
(64 |
) |
30 |
|
Total |
$ |
960 |
|
$ |
(321 |
) |
$ |
639 |
|
|
$ |
1,557 |
|
$ |
(432 |
) |
$ |
1,125 |
|
|
|
1 |
The 2018 decrease in bottlers' franchise rights was primarily driven by the allocation of a portion of the impairment charge on assets held by CCBA and the refranchising of North America bottling operations. Refer to Note 2.
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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 |
|
$ |
119 |
|
2020 |
|
163 |
|
2021 |
|
99 |
|
2022 |
|
43 |
|
2023 |
|
43 |
|
|