Pepsi 2013 Annual Report Download - page 103

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85
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. For additional unaudited information on our policies for
nonamortizable intangible assets, see “Our Critical Accounting Policies” in Management’s Discussion and
Analysis of Financial Condition and Results of Operations.
The change in the book value of nonamortizable intangible assets is as follows:
Balance,
Beginning
2012
Acquisitions/
(Divestitures)
Translation
and Other
Balance,
End of
2012
Acquisitions/
(Divestitures)
Translation
and Other
Balance,
End of
2013
FLNA
Goodwill $ 311 $ — $ 5 $ 316 $ — $ (11) $ 305
Brands 30 — 1 31 — (2) 29
341 — 6 347 — (13) 334
QFNA
Goodwill 175 — — 175 — — 175
LAF
Goodwill 793 (61) (16) 716 — (56) 660
Brands 157 75 (9) 223 — (17) 206
950 14 (25) 939 — (73) 866
PAB
Goodwill 9,932 23 33 9,988 5 (50) 9,943
Reacquired franchise rights 7,342 (33) 28 7,337 16 (72) 7,281
Acquired franchise rights 1,562 9 2 1,573 (8) (14) 1,551
Brands 168 — (15) 153 — (7) 146
19,004 (1) 48 19,051 13 (143) 18,921
Europe
Goodwill 4,900 78 236 5,214 — (187) 5,027
Reacquired franchise rights 732 — 40 772 — (12) 760
Acquired franchise rights 218 — 5 223 — 7 230
Brands 4,178 (96) 202 4,284 — (213) 4,071
10,028 (18) 483 10,493 — (405) 10,088
AMEA
Goodwill 689 (142) 15 562 (4) (55) 503
Brands 170 (24) 2 148 — (21) 127
859 (166) 17 710 (4) (76) 630
Total goodwill 16,800 (102) 273 16,971 1 (359) 16,613
Total reacquired franchise rights 8,074 (33) 68 8,109 16 (84) 8,041
Total acquired franchise rights 1,780 9 7 1,796 (8) (7) 1,781
Total brands 4,703 (45) 181 4,839 — (260) 4,579
$ 31,357 $ (171) $ 529 $ 31,715 $ 9 $ (710) $ 31,014