Pepsi 2007 Annual Report Download - page 68

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Balance, Translation Balance, Translation Balance,
Beginning 2006 Acquisitions and Other End of 2006 Acquisitions and Other End of 2007
FLNA
Goodwill
$ 145 $139 $ – $ 284 $ – $ 27
$ 311
PBNA
Goodwill
2,164 39 – 2,203 146 20
2,369
Brands 59 – – 59 – – 59
2,223 39 – 2,262 146 20 2,428
PI
Goodwill
1,604 183 145 1,932 236 146
2,314
Brands 1,026 – 127 1,153 – 36 1,189
2,630 183 272 3,085 236 182 3,503
QFNA
Goodwill
175 – – 175 – –
175
Corporate
Pension intangible 1 – (1) – – –
–
Total goodwill 4,088 361 145 4,594 382 193 5,169
Total brands 1,085 – 127 1,212 – 36 1,248
Total pension intangible 1 – (1) – – – –
$5,174 $361 $271 $5,806 $382 $229 $6,417
Depreciable and amortizable assets
are only evaluated for impairment upon
a signifi cant change in the operating or
macroeconomic environment. In these
circumstances, if an evaluation of the
undiscounted cash fl ows indicates impair-
ment, the asset is written down to its
estimated fair value, which is based on
discounted future cash fl ows. Useful lives
are periodically evaluated to determine
whether events or circumstances have
occurred which indicate the need for
revision. For additional unaudited infor-
mation on our amortizable brand policies,
see “Our Critical Accounting Policies” in
Management’s Discussion and Analysis.
Nonamortizable Intangible Assets
Perpetual brands and goodwill are
assessed for impairment at least annu-
ally. If the carrying amount of a perpetual
brand exceeds its fair value, as determined
by its discounted cash fl ows, an impair-
ment loss is recognized in an amount
equal to that excess. No impairment
charges resulted from the required impair-
ment evaluations. The change in the book
value of nonamortizable intangible assets
is as follows:
66