Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSETS (Tables)

v2.4.0.6
INTANGIBLE ASSETS (Tables)
 12 Months Ended
Dec. 31, 2012
INTANGIBLE ASSETS [Abstract]  
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.
Carrying value of goodwill by operating segment
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

Estimated amortization expense for the next five years
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