Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSETS

v3.10.0.1
INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2018
INTANGIBLE ASSETS [Abstract]  
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
10,263

 
9,401

Other
106

 
106

Indefinite-lived intangible assets
$
17,102

 
$
16,374

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

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 charges

 

 

 

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

 

 

 

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

 
$
150

 
$
8,349

 
$
145

 
$
54

 
$
9,401

2018
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of year
$
703

 
$
150

 
$
8,349

 
$
145

 
$
54

 
$
9,401

Effect of foreign currency translation
(58
)
 
(9
)
 

 
(4
)
 
(2
)
 
(73
)
Acquisitions1,3
12

 

 

 
13

 
488

 
513

Adjustments related to the finalization
   of purchase accounting1,4
411

 
27

 
(11
)
 

 

 
427

Divestitures, deconsolidations and other1

 

 

 

 
(5
)
 
(5
)
Balance at end of year
$
1,068

 
$
168

 
$
8,338

 
$
154

 
$
535

 
$
10,263

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 North America bottling operations being refranchised. Refer to Note 2.
3 
The increase in 2018 was primarily due to the acquisition of the Philippine bottling operations. Refer to Note 2.
4 
The increase in 2018 was primarily due to the allocation of goodwill from CCBA to other reporting units expected to benefit from the acquisition of CCBA. Refer to Note 2.
Definite-Lived Intangible Assets
The following table provides information related to definite-lived intangible assets (in millions):
 
December 31, 2018
 
December 31, 2017
 
Gross Carrying Value

Accumulated Amortization

Net
Carrying
Value

 
Gross Carrying
Value

Accumulated Amortization

Net
Carrying
Value

Customer relationships
$
185

$
(151
)
$
34

 
$
205

$
(143
)
$
62

Bottlers' franchise rights
30

(18
)
12

 
213

(152
)
61

Trademarks
186

(91
)
95

 
182

(73
)
109

Other
88

(61
)
27

 
94

(64
)
30

Total
$
489

$
(321
)
$
168

 
$
694

$
(432
)
$
262


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):
 
 
Amortization
Expense

2019
 
$
44

2020
 
34

2021
 
26

2022
 
25

2023
 
25