Pepsi 2011 Annual Report Download - page 65

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Nonamortizable Intangible Assets
Perpetual brands and goodwill are assessed for impairment at least annually. If the carrying amount of a perpetual brand exceeds its fair
value, as determined by its discounted cash ows, an impairment loss is recognized in an amount equal to that excess. We did not recognize
any impairment charges for goodwill in the years presented. In connection with the merger and integration of WBD in 2011, we recorded a
$14million impairment charge for discontinued brands. We did not recognize any impairment charges for other nonamortizable intangible
assets in 2010. The change in the book value of nonamortizable intangible assets is as follows:
Balance,
Beginning
2010 Acquisitions
Translation
and Other
Balance,
End of
2010
Acquisitions/
(Divestitures)
Translation
and Other
Balance,
End of
2011
FLNA
Goodwill $ 306 $ – $ 7 $ 313 $ – $ (2) $ 311
Brands 30 – 1 31 – (1) 30
336 – 8 344 – (3) 341
QFNA
Goodwill 175 – – 175 – – 175
LAF
Goodwill 479 – 18 497 331 (35) 793
Brands 136 – 7 143 20 (6) 157
615 – 25 640 351 (41) 950
PAB(a)
Goodwill 2,431 7,476 39 9,946 (27) 13 9,932
Reacquired franchise rights – 7,229 54 7,283 77 (18) 7,342
Acquired franchise rights – 660 905(b) 1,565 (1) (2) 1,562
Brands 112 66 4 182 (20) 6 168
Other – 10 – 10 (9) (1) –
2,543 15,441 1,002 18,986 20 (2) 19,004
Europe(a) (c)
Goodwill 2,625 583 (168) 3,040 2,131 (271) 4,900
Reacquired franchise rights – 810 (17) 793 – (61) 732
Acquired franchise rights – 232 (5) 227 – (9) 218
Brands 1,378 88 (86) 1,380 3,114 (316) 4,178
4,003 1,713 (276) 5,440 5,245 (657) 10,028
AMEA
Goodwill 518 116 56 690 – (1) 689
Brands 126 26 17 169 – 1 170
644 142 73 859 – – 859
Total goodwill 6,534 8,175 (48) 14,661 2,435 (296) 16,800
Total reacquired franchise rights – 8,039 37 8,076 77 (79) 8,074
Total acquired franchise rights – 892 900 1,792 (1) (11) 1,780
Total brands 1,782 180 (57) 1,905 3,114 (316) 4,703
Total other – 10 – 10 (9) (1) –
$ 8,316 $ 17,296 $ 832 $ 26,444 $ 5,616 $ (703) $ 31,357
(a) Net increases in 2010 relate primarily to our acquisitions of PBG and PAS.
(b) Includes $900million related to our upfront payment to DPSG to manufacture and distribute Dr Pepper and certain other DPSG products.
(c) Net increases in 2011 relate primarily to our acquisition of WBD.
PepsiCo, Inc.  Annual Report
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Notes to Consolidated Financial Statements