Snapple 2009 Annual Report Download - page 96

The net carrying amounts of intangible assets other than goodwill as of December 31, 2009 and 2008, are as
follows (in millions):
Gross
Amount
Accumulated
Amortization
Net
Amount
Gross
Amount
Accumulated
Amortization
Net
Amount
December 31, 2009 December 31, 2008
Intangible assets with indefinite
lives:
Brands(1) .................. $ 2,652 $ — $ 2,652 $ 2,647 $ — $ 2,647
Bottler agreements(2) ......... — — — 4 — 4
Distributor rights(2) .......... 8 — 8 — — —
Intangible assets with finite lives:
Brands .................... 29 (22) 7 29 (21) 8
Customer relationships ........ 76 (45) 31 76 (33) 43
Bottler agreements(2) ......... 21 (17) 4 24 (14) 10
Distributor rights............. 2 (2) — 2 (2) —
Total ....................... $ 2,788 $ (86) $ 2,702 $ 2,782 $ (70) $ 2,712
(1) In 2009, intangible brands with indefinite lives increased due to a $5 million change in foreign currency.
(2) In 2009, the Company sold indefinite lived bottler agreements and acquired indefinite lived distribution rights
as well as terminated a finite-lived agreement to distribute a third party’s branded beverages. The Company
recorded one-time gains of $62 million in 2009 as a component of other operating income in the audited
Consolidated Statement of Operations.
As of December 31, 2009, the weighted average useful lives of intangible assets with finite lives were 10 years,
8 years and 8 years for brands, customer relationships and bottler agreements, respectively. Amortization expense
for intangible assets was $17 million, $28 million and $30 million for the years ended December 31, 2009, 2008 and
2007, respectively.
Amortization expense of these intangible assets over the next five years is expected to be the following (in
millions):
2010 .......................................................................... $ 17
2011 .......................................................................... 8
2012 .......................................................................... 4
2013 .......................................................................... 4
2014 .......................................................................... 4
In 2007, following the termination of the Company’s distribution agreements for glaceau products, DPS
received a payment of approximately $92 million and recognized a net gain of $71 million after the write-off of
associated assets.
In accordance with U.S. GAAP, the Company conducts impairment tests of goodwill and indefinite lived
intangible assets annually, as of December 31, or more frequently if circumstances indicate that the carrying amount
of an asset may not be recoverable. For purposes of impairment testing, DPS assigns goodwill to the reporting unit
that benefits from the synergies arising from each business combination and also assigns indefinite lived intangible
assets to its reporting units. The Company defines reporting units as Beverage Concentrates, Latin America
Beverages and Packaged Beverages’ two reporting units, DSD and WD.
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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)