Pepsi 2014 Annual Report Download - page 104
Download and view the complete annual report
Please find page 104 of the 2014 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.-
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
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94 -
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
 |
 |
84
Note 4 — Property, Plant and Equipment and Intangible Assets
A summary of our property, plant and equipment is as follows:
Average
Useful Life
(Years) 2014 2013 2012
Property, plant and equipment, net
Land $ 1,288 $ 1,340
Buildings and improvements 15 – 44 8,114 8,375
Machinery and equipment, including fleet and software 5 – 15 25,146 25,415
Construction in progress 1,752 1,831
36,300 36,961
Accumulated depreciation (19,056) (18,386)
$ 17,244 $ 18,575
Depreciation expense $ 2,441 $ 2,472 $ 2,489
Property, plant and equipment is recorded at historical cost. Depreciation and amortization are recognized
on a straight-line basis over an asset’s estimated useful life. Land is not depreciated and construction in
progress is not depreciated until ready for service.
A summary of our amortizable intangible assets is as follows:
2014 2013 2012
Amortizable intangible assets, net
Average
Useful Life
(Years) Gross
Accumulated
Amortization Net Gross
Accumulated
Amortization Net
Acquired franchise rights 56 – 60 $ 879 $ (89) $ 790 $ 910 $ (83) $ 827
Reacquired franchise rights 5 – 14 107 (95) 12 108 (86) 22
Brands 20 – 40 1,361 (1,004) 357 1,400 (996) 404
Other identifiable intangibles 10 – 24 595 (305) 290 686 (301) 385
$ 2,942 $ (1,493) $ 1,449 $ 3,104 $ (1,466) $ 1,638
Amortization expense $ 92 $ 110 $ 119
Amortization of intangible assets for each of the next five years, based on existing intangible assets as of
December 27, 2014 and using average 2014 foreign exchange rates, is expected to be as follows:
2015 2016 2017 2018 2019
Five-year projected amortization $ 82 $ 74 $ 68 $ 66 $ 63
Depreciable and amortizable assets are only evaluated for impairment upon a significant change in the
operating or macroeconomic environment. In these circumstances, if an evaluation of the undiscounted cash
flows indicates impairment, the asset is written down to its estimated fair value, which is based on discounted
future cash flows. Useful lives are periodically evaluated to determine whether events or circumstances have
occurred which indicate the need for revision. For additional unaudited information on our policies for
amortizable brands, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of
Financial Condition and Results of Operations.
Table of Contents