Pepsi 2005 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 2005 Pepsi annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 80

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80

59
Nonamortizable Intangible Assets
Perpetual brands and goodwill are assessed for impairment at least annually to ensure that discounted future cash flows continue to
exceed the related book value. A perpetual brand is impaired if its book value exceeds its fair value. Goodwill is evaluated for
impairment if the book value of its reporting unit exceeds its fair value. A reporting unit can be a division or business within a division.
If the fair value of an evaluated asset is less than its book value, the asset is written down based on its discounted future cash flows to
fair value. No impairment charges resulted from the required impairment evaluations. The change in the book value of nonamortizable
intangible assets is as follows:
Balance, Translation Balance, Translation Balance,
Beginning 2004 Acquisition and Other End of 2004 Acquisition and Other End of 2005
Frito-Lay North America
Goodwill $ 130 $ – $ 8 $ 138 $ – $ 7 $ 145
PepsiCo Beverages North America
Goodwill 2,157 – 4 2,161 – 3 2,164
Brands 59 – – 59 – – 59
2,216 – 4 2,220 – 3 2,223
PepsiCo International
Goodwill 1,334 29 72 1,435 278 (109) 1,604
Brands 808 – 61 869 263 (106) 1,026
2,142 29 133 2,304 541 (215) 2,630
Quaker Foods North America
Goodwill 175 – – 175 – – 175
Corporate
Pension intangible 2 – 3 5 – (4) 1
Total goodwill 3,796 29 84 3,909 278 (99) 4,088
Total brands 867 – 61 928 263 (106) 1,085
Total pension intangible 2 – 3 5 – (4) 1
$4,665 $29 $148 $4,842 $541 $(209) $5,174