Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSETS

v2.4.1.9
INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2014
INTANGIBLE ASSETS [Abstract]  
INTANGIBLE ASSETS
INTANGIBLE ASSETS
Indefinite-Lived Intangible Assets
The following table summarizes information related to indefinite-lived intangible assets (in millions):
December 31,
2014

 
2013

Trademarks1
$
6,533

 
$
6,744

Bottlers' franchise rights2,3
6,689

 
7,415

Goodwill
12,100

 
12,312

Other
170

 
171

Indefinite-lived intangible assets
$
25,492

 
$
26,642

1 The decrease in 2014 was primarily the result of changes in brand strategies causing certain trademarks to become definite-lived, the transfer of the Company's energy brands to assets held for sale and the effect of translation adjustments. This decrease was partially offset by the finalization of purchase accounting related to the Company's consolidation of innocent in 2013. Refer to Note 2 for additional information.
2 
The decrease in 2014 was primarily related to North America refranchising. Refer to Note 2 for additional information.
3 The Company has agreements with Dr Pepper Snapple Group, Inc. ("DPSG") to distribute Dr Pepper trademark brands in the United States, Canada Dry in the Northeastern United States, and Canada Dry and C' Plus in Canada. As of December 31, 2014, the agreements have remaining terms of 16 years, with automatic 20-year renewal periods unless otherwise terminated under the terms of the agreements and there are no significant costs to renew the agreements. The Company anticipates using the assets indefinitely. The distribution rights acquired from DPSG are the only significant indefinite-lived intangible assets subject to renewal or extension arrangements. The carrying values of these rights as of December 31, 2014 and 2013, were $784 million and $865 million, respectively. The decrease is related to North America refranchising. Refer to Note 2 for additional information.
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

 
Asia Pacific

 
Bottling
Investments

 
Total

2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of January 1
$
34

 
$
691

 
$
168

 
$
10,577

 
$
123

 
$
662

 
$
12,255

Effect of foreign currency translation
(3
)
 
29

 
(12
)
 
—

 
(6
)
 
10

 
18

Acquisitions1
5

 
102

 
—

 
—

 
—

 
20

 
127

Adjustments related to the finalization
   of purchase accounting1
—

 
—

 
—

 
(4
)
 
—

 
(1
)
 
(5
)
Impairment2
—

 
—

 
—

 
—

 
—

 
(82
)
 
(82
)
Divestitures, deconsolidations and other
—

 
—

 
—

 
(1
)
 
—

 
—

 
(1
)
Balance as of December 31
$
36

 
$
822

 
$
156

 
$
10,572

 
$
117

 
$
609

 
$
12,312

2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of January 1
$
36

 
$
822

 
$
156

 
$
10,572

 
$
117

 
$
609

 
$
12,312

Effect of foreign currency translation
(2
)
 
(60
)
 
(9
)
 
—

 
(2
)
 
(26
)
 
(99
)
Acquisitions1
—

 
—

 
—

 
11

 
16

 
3

 
30

Adjustments related to the finalization
   of purchase accounting1
(4
)
 
(43
)
 
—

 
—

 
—

 
(14
)
 
(61
)
Divestitures, deconsolidations and other1
(3
)
 
—

 
—

 
(79
)
 
—

 
—

 
(82
)
Balance as of December 31
$
27

 
$
719

 
$
147

 
$
10,504

 
$
131

 
$
572

 
$
12,100

1
Refer to Note 2 for information related to the Company's acquisitions and divestitures.
2
Refer to Note 17 for information related to the Company's impairment of goodwill.
Definite-Lived Intangible Assets
The following table summarizes information related to definite-lived intangible assets (in millions):
 
December 31, 2014
 
December 31, 2013
 
Gross Carrying Amount

Accumulated Amortization

Net

 
Gross Carrying Amount

Accumulated Amortization

Net

Customer relationships1
$
597

$
(229
)
$
368

 
$
642

$
(202
)
$
440

Bottlers' franchise rights1
664

(375
)
289

 
722

(317
)
405

Trademarks2
222

(39
)
183

 
105

(26
)
79

Other
96

(56
)
40

 
128

(83
)
45

Total
$
1,579

$
(699
)
$
880

 
$
1,597

$
(628
)
$
969


1 
The decrease in 2014 was primarily due to the derecognition of intangible assets as a result of the North America refranchising. Refer to Note 2 for additional information.
2 
The increase in 2014 was the result of changes in brand strategies causing certain indefinite-lived trademarks to become definite-lived.
Total amortization expense for intangible assets subject to amortization was $168 million, $165 million and $173 million in 2014, 2013 and 2012, respectively.
Based on the carrying value of definite-lived intangible assets as of December 31, 2014, we estimate our amortization expense for the next five years will be as follows (in millions):
 
 
Amortization
Expense

2015
 
$
156

2016
 
149

2017
 
121

2018
 
61

2019
 
59