Pepsi 2015 Annual Report Download - page 109
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Table of Contents
92
Nonamortizable Intangible Assets
We did not recognize any impairment charges for goodwill in each of the fiscal years ended December 26,
2015, December 27, 2014 and December 28, 2013. In 2015, we performed the impairment analysis for
goodwill for all of our reporting units using the qualitative approach and concluded that it was more likely
than not that the estimated fair values of our reporting units were greater than their carrying amounts. After
reaching this conclusion, no further testing was performed.
We recognized no material impairment charges for nonamortizable intangible assets in each of the fiscal
years ended December 26, 2015, December 27, 2014 and December 28, 2013. In 2014, we recognized pre-
tax impairment charges in ESSA for nonamortizable intangible assets of $23 million. Based on our year-end
assessment, the estimated fair values of our indefinite-lived reacquired and acquired franchise rights recorded
at NAB exceed their carrying values. However, there could be an impairment of the carrying value of NAB’s
reacquired and acquired franchise rights if future revenues and their contribution to the operating results of
NAB’s CSD business do not achieve our estimated future cash flows or if macroeconomic conditions result
in a future increase in the weighted-average cost of capital used to estimate fair value. We have also analyzed
the impact of the recent economic and political developments in Russia on the estimated fair value of our
indefinite-lived intangible assets in Russia and have concluded that there is no impairment as of December
26, 2015. However, a further deterioration in these conditions in Russia could potentially require us to record
an impairment charge for these assets in the future. For additional information on our policies for
nonamortizable intangible assets, see Note 2 to our consolidated financial statements.