Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSETS (Tables)

v3.8.0.1
INTANGIBLE ASSETS (Tables)
 12 Months Ended
Dec. 31, 2017
INTANGIBLE ASSETS [Abstract]  
Indefinite-lived intangible assets
The following table summarizes information related to indefinite-lived intangible assets (in millions):
December 31,
2017

 
2016

Trademarks1
$
6,729

 
$
6,097

Bottlers' franchise rights2
138

 
3,676

Goodwill
9,401

 
10,629

Other
106

 
128

Indefinite-lived intangible assets
$
16,374

 
$
20,530

1 The increase in 2017 was primarily due to the acquisitions of AdeS and the U.S. rights to Topo Chico. Refer to Note 2.
2 The decrease in 2017 was primarily the result of additional North America bottling territories being refranchised. 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):
 
Europe, Middle East & Africa

 
Latin
America

 
North
America

 
Asia Pacific

 
Bottling
Investments

 
Total

2016
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of year
$
638

 
$
123

 
$
8,311

 
$
133

 
$
2,084

 
$
11,289

Effect of foreign currency translation
(10
)
 
(6
)
 
—

 
(11
)
 
(6
)
 
(33
)
Acquisitions1
—

 
—

 
—

 
6

 
—

 
6

Adjustments related to the finalization
   of purchase accounting1
—

 
—

 
10

 
—

 
—

 
10

Impairment
—

 
—

 
—

 
—

 
(10
)
 
(10
)
Divestitures, deconsolidations and other1
—

 
—

 
—

 
—

 
(633
)
 
(633
)
Balance at end of year
$
628

 
$
117

 
$
8,321

 
$
128

 
$
1,435

 
$
10,629

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
—

 
—

 
—

 
—

 
(390
)
 
(390
)
Divestitures, deconsolidations and other1,2
—

 
—

 
—

 
—

 
(999
)
 
(999
)
Balance at end of year
$
703

 
$
150

 
$
8,349

 
$
145

 
$
54

 
$
9,401

1
Refer to Note 2 for information related to the Company's acquisitions and divestitures.
2 
The 2017 decrease in the Bottling Investments segment was primarily a result of additional North America bottling territories being refranchised. Refer to Note 2.
Definite-lived intangible assets
The following table summarizes information related to definite-lived intangible assets (in millions):
 
December 31, 2017
 
December 31, 2016
 
Gross Carrying Amount

Accumulated Amortization

Net

 
Gross Carrying Amount

Accumulated Amortization

Net

Customer relationships1
$
205

$
(143
)
$
62

 
$
392

$
(185
)
$
207

Bottlers' franchise rights1
213

(152
)
61

 
487

(381
)
106

Trademarks
182

(73
)
109

 
228

(64
)
164

Other
94

(64
)
30

 
179

(58
)
121

Total
$
694

$
(432
)
$
262

 
$
1,286

$
(688
)
$
598


1 
The decrease in 2017 was primarily due to the derecognition of intangible assets as a result of the North America refranchising. Refer to Note 2.
Estimated amortization expense for the next five years
Based on the carrying value of definite-lived intangible assets as of December 31, 2017, we estimate our amortization expense for the next five years will be as follows (in millions):
 
 
Amortization
Expense

2018
 
$
57

2019
 
44

2020
 
38

2021
 
28

2022
 
28