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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
67
The net carrying amounts of intangible assets other than goodwill as of December 31, 2013 and 2012 are as follows (in
millions):
December 31, 2013 December 31, 2012
Gross Accumulated Net Gross Accumulated Net
Amount Amortization Amount Amount Amortization Amount
Intangible assets with
indefinite lives:
Brands $ 2,652 $ — $ 2,652 $ 2,652 $ — $ 2,652
Distribution rights(1) 24 — 24 14 — 14
Intangible assets with finite
lives:
Brands 29 (27) 2 29 (25) 4
Distribution rights(1)(2) 12 (3) 9 5(1) 4
Customer relationships 76 (69) 7 76 (67) 9
Bottler agreements 19 (19) — 19 (18) 1
Total $ 2,812 $ (118) $ 2,694 $ 2,795 $ (111) $ 2,684
____________________________
(1) In 2013, distribution rights included $10 million and $2 million in indefinite-lived and finite-lived distribution rights,
respectively, associated with the purchase of DP/7UP West. See Note 3 for further information related to the acquisition.
(2) In 2013, distribution rights also included the reacquired distribution rights for Snapple and several other NCB brands in parts
of the Asia-Pacific region from
As of December 31, 2013, the weighted average useful life of intangible assets with finite lives was 10 years for distribution
rights, brands, customer relationships and in total. Amortization expense for intangible assets was $7 million, $5 million and $9
million for the years ended December 31, 2013, 2012 and 2011, respectively.
Amortization expense of these intangible assets over the next five years is expected to be the following (in millions):
Year
Aggregate
Amortization
Expense
2014 $ 6
2015 6
2016 3
2017 1
2018 1
On October 1, 2013, DPS changed the date of its annual impairment tests for goodwill and indefinite-lived intangible assets
from December 31 to October 1. The change in date for the goodwill impairment test is a change in accounting principle, which
management believes is preferable as the new measurement date, while remaining in the fourth quarter, will lessen resource
constraints in connection with the year-end close and financial reporting process. The change in accounting principle does not
delay, accelerate or avoid an impairment charge. DPS determined it was impracticable to objectively determine projected cash
flows and related valuation estimates that would have been used as of each October 1 for periods prior to October 1, 2013 without
the use of hindsight. As such, the Company has prospectively applied the change in annual impairment testing date from October
1, 2013.
There is no material impact of this accounting principle change on the previous periods and, therefore, there is no need to
retrospectively adjust prior period information.