Pepsi 2012 Annual Report Download - page 85

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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 flows, 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. We recorded impairment charges on certain
brands in Europe of $23million and $14million in 2012 and 2011, respectively. The change in the book value of nonamortizable
intangible assets is as follows:
Balance,
Beginning
2011
Acquisitions/
(Divestitures)
Translation
and Other
Balance,
End of
2011
Acquisitions/
(Divestitures)
Translation
and Other
Balance,
End of
2012
FLNA
Goodwill $ 313 $ –  $ (2) $ 311 $ –  $ 5 $ 316
Brands 31 – (1) 30 – 1 31
344 – (3) 341 – 6 347
QFNA
Goodwill 175 – – 175 – – 175
LAF
Goodwill 497 331 (35) 793 (61) (16) 716
Brands 143 20 (6) 157 75 (9) 223
640 351 (41) 950 14 (25) 939
PAB
Goodwill 9,946 (27) 13 9,932 23 33 9,988
Reacquired franchise rights 7,283 77 (18) 7,342 (33) 28 7,337
Acquired franchise rights 1,565 (1) (2) 1,562 9 2 1,573
Brands 182 (20) 6 168 – (15) 153
Other 10 (9) (1) – – – –
18,986 20 (2) 19,004 (1) 48 19,051
Europe(a)
Goodwill 3,040 2,131 (271) 4,900 78 236 5,214
Reacquired franchise rights 793 – (61) 732 – 40 772
Acquired franchise rights 227 – (9) 218 – 5 223
Brands 1,380 3,114 (316) 4,178 (96) 202 4,284
5,440 5,245 (657) 10,028 (18) 483 10,493
AMEA
Goodwill 690 – (1) 689 (142) 15 562
Brands 169 – 1 170 (24) 2 148
859 – – 859 (166) 17 710
Total goodwill 14,661 2,435 (296) 16,800 (102) 273 16,971
Total reacquired franchise rights 8,076 77 (79) 8,074 (33) 68 8,109
Total acquired franchise rights 1,792 (1) (11) 1,780 9 7 1,796
Total brands 1,905 3,114 (316) 4,703 (45) 181 4,839
Total other 10 (9) (1) – – – –
$ 26,444 $ 5,616 $ (703) $ 31,357 $ (171) $ 529 $ 31,715
(a) Net increase in 2011 relates primarily to our acquisition of WBD.
2012 PEPSICO ANNUAL REPORT 83
Notes to Consolidated Financial Statements