INTANGIBLE ASSETS
Indefinite-Lived Intangible Assets
The following table summarizes information related to indefinite-lived intangible assets (in millions):
|
|
|
|
|
|
|
|
|
December 31, |
2012 |
|
|
2011 |
|
Trademarks |
$ |
6,527 |
|
|
$ |
6,430 |
|
Bottlers' franchise rights1
|
7,405 |
|
|
7,770 |
|
Goodwill |
12,255 |
|
|
12,219 |
|
Other |
111 |
|
|
113 |
|
Indefinite-lived intangible assets2
|
$ |
26,298 |
|
|
$ |
26,532 |
|
|
|
1 |
The decrease in 2012 was primarily related to the Company's consolidated Philippine and Brazilian bottling operations being transferred to assets held for sale as of December 31, 2012. This decrease was partially offset by the acquisition of the Sacramento bottler in 2012 and the finalization of purchase accounting related to our 2011 acquisition of Great Plains. Refer to Note 2 for additional information related to each of these transactions.
|
|
|
2 |
The distribution rights acquired from DPS are the only significant indefinite-lived intangible assets subject to renewal or extension arrangements. Refer to Note 2.
|
The following table provides information related to the carrying value of our goodwill by operating segment (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eurasia &
Africa
|
|
|
Europe |
|
|
Latin
America
|
|
|
North
America
|
|
|
Pacific |
|
|
Bottling
Investments
|
|
|
Total |
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1 |
$ |
44 |
|
|
$ |
695 |
|
|
$ |
166 |
|
|
$ |
9,861 |
|
|
$ |
112 |
|
|
$ |
787 |
|
|
$ |
11,665 |
|
Effect of foreign currency translation |
(6 |
) |
|
15 |
|
|
(3 |
) |
|
— |
|
|
2 |
|
|
11 |
|
|
19 |
|
Acquisitions1
|
— |
|
|
— |
|
|
— |
|
|
195 |
|
|
— |
|
|
— |
|
|
195 |
|
|
Adjustments related to the finalization
of purchase accounting1
|
— |
|
|
— |
|
|
— |
|
|
304 |
|
|
— |
|
|
5 |
|
|
309 |
|
Divestitures, deconsolidations and other1
|
— |
|
|
— |
|
|
— |
|
|
155 |
|
|
— |
|
|
(124 |
) |
|
31 |
|
Balance as of December 31 |
$ |
38 |
|
|
$ |
710 |
|
|
$ |
163 |
|
|
$ |
10,515 |
|
|
$ |
114 |
|
|
$ |
679 |
|
|
$ |
12,219 |
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1 |
$ |
38 |
|
|
$ |
710 |
|
|
$ |
163 |
|
|
$ |
10,515 |
|
|
$ |
114 |
|
|
$ |
679 |
|
|
$ |
12,219 |
|
Effect of foreign currency translation |
(1 |
) |
|
(19 |
) |
|
5 |
|
|
— |
|
|
6 |
|
|
(4 |
) |
|
(13 |
) |
Acquisitions1
|
— |
|
|
— |
|
|
— |
|
|
100 |
|
|
— |
|
|
157 |
|
|
257 |
|
|
Adjustments related to the finalization
of purchase accounting1
|
— |
|
|
— |
|
|
— |
|
|
(38 |
) |
|
— |
|
|
— |
|
|
(38 |
) |
Divestitures, deconsolidations and other2
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(170 |
) |
|
(170 |
) |
Balance as of December 31 |
$ |
37 |
|
|
$ |
691 |
|
|
$ |
168 |
|
|
$ |
10,577 |
|
|
$ |
120 |
|
|
$ |
662 |
|
|
$ |
12,255 |
|
|
|
1
|
Refer to Note 2 for information related to the Company's acquisitions and divestitures.
|
|
|
2
|
Relates to the transfer of goodwill associated with the Company's consolidated Philippine and Brazilian bottling operations to assets held for sale as of December 31, 2012. Refer to Note 2 for additional information related to this transaction.
|
Definite-Lived Intangible Assets
The following table summarizes information related to definite-lived intangible assets (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012 |
|
December 31, 2011 |
|
Gross Carrying Amount |
|
Accumulated Amortization |
|
Net |
|
|
Gross Carrying Amount |
|
Accumulated Amortization |
|
Net |
|
Customer relationships |
$ |
622 |
|
$ |
(166 |
) |
$ |
456 |
|
|
$ |
619 |
|
$ |
(126 |
) |
$ |
493 |
|
Bottlers' franchise rights |
730 |
|
(221 |
) |
509 |
|
|
668 |
|
(119 |
) |
549 |
|
Trademarks |
65 |
|
(43 |
) |
22 |
|
|
99 |
|
(70 |
) |
29 |
|
Other |
129 |
|
(77 |
) |
52 |
|
|
196 |
|
(130 |
) |
66 |
|
Total |
$ |
1,546 |
|
$ |
(507 |
) |
$ |
1,039 |
|
|
$ |
1,582 |
|
$ |
(445 |
) |
$ |
1,137 |
|
Total amortization expense for intangible assets subject to amortization was $173 million, $192 million and $102 million in 2012, 2011 and 2010, respectively. Based on the carrying value of definite-lived intangible assets as of December 31, 2012, we estimate our amortization expense for the next five years will be as follows (in millions):
|
|
|
|
|
|
|
|
Amortization
Expense
|
|
2013 |
|
$ |
161 |
|
2014 |
|
153 |
|
2015 |
|
148 |
|
2016 |
|
142 |
|
2017 |
|
90 |
|
|