Snapple 2008 Annual Report Download - page 96

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The net carrying amounts of intangible assets other than goodwill as of December 31, 2008, and December 31,
2007, are as follows (in millions):
Gross
Amount
Accumulated
Amortization
Net
Amount
Gross
Amount
Accumulated
Amortization
Net
Amount
December 31, 2008 December 31, 2007
Intangible assets with indefinite lives:
Brands(1)(2) ................... $2,647 $ — $2,647 $3,087 $ — $3,087
Bottler agreements(3)............. 4 — 4 398 — 398
Distributor rights(4) .............. — — — 25 — 25
Intangible assets with finite lives:
Brands ....................... 29 (21) 8 29 (17) 12
Customer relationships ............ 76 (33) 43 76 (20) 56
Bottler agreements(5)............. 24 (14) 10 57 (19) 38
Distributor rights ................ 2 (2) — 2 (1) 1
Total ........................... $2,782 $(70) $2,712 $3,674 $(57) $3,617
(1) Brands consisted of indefinite lived brands of $2,647 million and $2,943 million and indefinite lived brand
franchise rights of zero and $144 million as of December 31, 2008 and 2007, respectively.
(2) In 2008, intangible brands with indefinite lives decreased due to a $278 million impairment of the Snapple
brand, $144 million impairment of brand franchise rights and an $18 million change in foreign currency. Refer
to Note 3 for further information.
(3) In 2008, intangible bottler agreements with indefinite lives decreased primarily due to a $412 million
impairment of the bottler agreements. Refer to Note 3 for further information.
(4) In 2008, distribution rights with indefinite lives decreased due to a $25 million impairment of distribution
rights. Refer to Note 3 for further information.
(5) Certain reclassifications of bottler agreements were made in 2008 based on a change in estimate which
impacted both the intangible balances and related accumulated amortization.
As of December 31, 2008, the weighted average useful lives of intangible assets with finite lives were 10 years,
7 years and 7 years for brands, customer relationships and bottler agreements, respectively. Amortization expense
for intangible assets was $28 million, $30 million and $19 million for the years ended December 31, 2008, 2007 and
2006, respectively.
Amortization expense of these intangible assets over the next five years is expected to be the following (in
millions):
2009 . .................................................................. $18
2010 . .................................................................. 18
2011 . .................................................................. 9
2012 . .................................................................. 4
2013 . .................................................................. 4
In 2007, following the termination of the Company’s distribution agreements for glaceau products, DPS
received a payment of approximately $92 million and recognized a net gain of $71 million after the write-off of
associated assets.
72
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)