Snapple 2011 Annual Report Download - page 86

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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
66
The net carrying amounts of intangible assets other than goodwill as of December 31, 2011, and 2010, are as follows (in
millions):
Intangible assets with
indefinite lives:
Brands(1)
Distribution Rights
Intangible assets with finite
lives:
Brands
Distribution Rights
Customer relationships
Bottler agreements
Total
December 31, 2011
Gross
Amount
$ 2,648
8
29
3
76
19
$ 2,783
Accumulated
Amortization
$ —
—
(24)
—
(64)
(18)
$ (106)
Net
Amount
$ 2,648
8
5
3
12
1
$ 2,677
December 31, 2010
Gross
Amount
$ 2,656
8
29
—
76
19
$ 2,788
Accumulated
Amortization
$ —
—
(23)
—
(57)
(17)
$(97)
Net
Amount
$ 2,656
8
6
—
19
2
$ 2,691
____________________________
(1) In 2011, intangible brands with indefinite lives decreased due to a $8 million change in foreign currency translation rates.
As of December 31, 2011, the weighted average useful life of intangible assets with finite lives was 9 years in total, consisting
of 5 years for distribution rights, 10 years for both brands and customer relationships and 15 years for bottler agreements.
Amortization expense for intangible assets was $9 million, $16 million and $17 million for the years ended December 31, 2011,
2010 and 2009, respectively.
Amortization expense of these intangible assets over the the next five years is expected to be the following (in millions):
Year
2012
2013
2014
2015
2016
Aggregate
Amortization
Expense
$ 5
5
5
4
2
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.
The impairment test for indefinite lived intangible assets encompasses calculating a fair value of an indefinite lived intangible
asset and comparing the fair value to its carrying value. If the carrying value exceeds the estimated fair value, impairment is
recorded. The impairment tests for goodwill include comparing a fair value of the respective reporting unit with its carrying value,
including goodwill and considering any indefinite lived intangible asset impairment charges ("Step 1"). If the carrying value
exceeds the estimated fair value, impairment is indicated and a second step analysis ("Step 2") must be performed.