Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSETS

v3.19.3.a.u2
INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2019
INTANGIBLE ASSETS [Abstract]  
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,
2019

2018

Trademarks1
$
9,266

$
6,682

Bottlers' franchise rights
109

51

Goodwill1
16,764

14,109

Other
110

106

Indefinite-lived intangible assets
$
26,249

$
20,948

1 Refer to Note 2 for information related to the Company's acquisitions and divestitures.
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

Global Ventures

Bottling
Investments

Total

2018
 
 
 
 
 
 
 
Balance at beginning of year
$
689

$
150

$
7,954

$
143

$
411

$
4,302

$
13,649

Effect of foreign currency translation
(58
)
(9
)
—

(4
)
—

(202
)
(273
)
Acquisitions1
12

—

—

13

—

773

798

Purchase accounting adjustments1,2
408

27

(11
)
—

3

(487
)
(60
)
Divestitures, deconsolidations and
  other1
—

—

—

—

—

(5
)
(5
)
Balance at end of year
$
1,051

$
168

$
7,943

$
152

$
414

$
4,381

$
14,109

2019
 
 
 
 
 
 
 
Balance at beginning of year
$
1,051

$
168

$
7,943

$
152

$
414

$
4,381

$
14,109

Effect of foreign currency translation
(8
)
2

—

1

1

79

75

Acquisitions1
141

—

—

—

2,505

173

2,819

Purchase accounting adjustments1,3
110

—

—

17

(114
)
(252
)
(239
)
Balance at end of year
$
1,294

$
170

$
7,943

$
170

$
2,806

$
4,381

$
16,764

1 
For information related to the Company's acquisitions and divestitures, refer to Note 2.
2 Includes the allocation of goodwill from the Bottling Investments segment to other reporting units expected to benefit from the consolidation of CCBA. Refer to Note 2.
3 Includes the allocation of goodwill from the Global Ventures segment to other reporting units expected to benefit from the Costa acquisition as well as the finalization of purchase accounting related to CCBA and the Philippine bottling operations. Refer to Note 2.


Definite-Lived Intangible Assets
The following table provides information related to definite-lived intangible assets (in millions):
 
December 31, 2019
 
December 31, 2018
 
Gross Carrying Value

Accumulated Amortization

Net
Carrying
Value

 
Gross Carrying
Value

Accumulated Amortization

Net
Carrying
Value

Customer relationships
$
344

$
(177
)
$
167

 
$
290

$
(151
)
$
139

Bottlers' franchise rights
341

(94
)
247

 
396

(18
)
378

Trademarks
177

(99
)
78

 
186

(91
)
95

Other
55

(30
)
25

 
88

(61
)
27

Total
$
917

$
(400
)
$
517

 
$
960

$
(321
)
$
639


Total amortization expense for intangible assets subject to amortization was $120 million, $49 million and $68 million in 2019, 2018 and 2017, respectively. The increase in amortization expense in 2019 was due to the amortization of CCBA's definite-lived intangible assets that were previously classified as held for sale.
Based on the carrying value of definite-lived intangible assets as of December 31, 2019, we estimate our amortization expense for the next five years will be as follows (in millions):
 
 
Amortization
Expense

2020
 
$
180

2021
 
112

2022
 
56

2023
 
52

2024
 
40