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Intangible Assets | 12 Months Ended
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Dec. 25, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets Disclosure [Text Block] | Intangible Assets A summary of our amortizable intangible assets is as follows:
|  |  | 2021 |  | 2020 |  | 2019
| Average Useful Life (Years) |  | Gross |  | Accumulated Amortization |  | Net |  | Gross |  | Accumulated Amortization |  | Net |  |
Acquired franchise rights (a) | 56 – 60 |  | $ | 976 |  |  | $ | (187) |  |  | $ | 789 |  |  | $ | 976 |  |  | $ | (173) |  |  | $ | 803 |  |  |
Customer relationships | 10 – 24 |  | 623 |  |  | (227) |  |  | 396 |  |  | 642 |  |  | (204) |  |  | 438 |  |  |
Brands (b) | 20 – 40 |  | 1,151 |  |  | (989) |  |  | 162 |  |  | 1,348 |  |  | (1,099) |  |  | 249 |  |  |
Other identifiable intangibles | 10 – 24 |  | 451 |  |  | (260) |  |  | 191 |  |  | 474 |  |  | (261) |  |  | 213 |  |  |
Total |  |  | $ | 3,201 |  |  | $ | (1,663) |  |  | $ | 1,538 |  |  | $ | 3,440 |  |  | $ | (1,737) |  |  | $ | 1,703 |  |  |
Amortization expense |  |  |  |  |  |  | $ | 91 |  |  |  |  |  |  | $ | 90 |  |  | $ | 81 |
(a)Acquired franchise rights includes our distribution agreement with Vital Pharmaceuticals, Inc., with an expected residual value higher than our carrying value. The distribution agreement’s useful life is three years, in accordance with the three-year termination notice issued, and is not reflected in the average useful life above. (b)The change primarily reflects assets reclassified as held for sale in connection with our Juice Transaction. See Note 13 for further information. Amortization is recognized on a straight-line basis over an intangible asset’s estimated useful life. Amortization of intangible assets for each of the next five years, based on existing intangible assets as of December 25, 2021 and using average 2021 foreign exchange rates, is expected to be as follows:
| 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026
Five-year projected amortization | $ | 84 |  |  | $ | 84 |  |  | $ | 83 |  |  | $ | 81 |  |  | $ | 72 |
Depreciable and amortizable assets are 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. Indefinite-Lived Intangible Assets We did not recognize any impairment charges for goodwill in each of the years ended December 25, 2021, December 26, 2020 and December 28, 2019. We did not recognize any impairment charges for indefinite-lived intangible assets in the year ended December 25, 2021. In 2020, we recognized a pre-tax impairment charge of $41 million related to a coconut water brand in PBNA. We did not recognize any material impairment charges for indefinite-lived intangible assets in the year ended December 28, 2019. As of December 25, 2021, the estimated fair values of our indefinite-lived reacquired and acquired franchise rights recorded at PBNA exceeded their carrying values. However, there could be an impairment of the carrying value of PBNA’s reacquired and acquired franchise rights if future revenues and their contribution to the operating results of PBNA’s CSD business do not achieve our expected 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 macroeconomic conditions in Russia on the estimated fair value of our indefinite-lived intangible assets in Russia and have concluded that there are no impairments for the year ended December 25, 2021. The estimated fair value of indefinite-lived intangible assets is dependent on macroeconomic conditions (including a resulting increase in the weighted-average cost of capital used to estimate fair value), future revenues and their contributions to operating results and expected future cash flows (including perpetuity growth assumptions), and significant changes in the decisions regarding assets that do not perform consistent with our expectations. Subsequent to December 25, 2021, we discontinued or repositioned certain juice and dairy brands in Russia in our Europe segment. As a result, we will recognize pre-tax impairment charges of approximately $0.2 billion in the first quarter of 2022 in selling, general and administrative expenses. For further information on our policies for indefinite-lived intangible assets, see Note 2. The change in the book value of indefinite-lived intangible assets is as follows:
| Balance, Beginning 2020 |  | Acquisitions |  | Translation and Other |  | Balance, End of 2020 |  | Acquisitions/(Divestitures) |  | Translation and Other |  | Balance, End of 2021
FLNA (a) |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill | $ | 299 |  |  | $ | 164 |  |  | $ | 2 |  |  | $ | 465 |  |  | $ | (8) |  |  | $ | 1 |  |  | $ | 458 |
Brands | 162 |  |  | 179 |  |  | (1) |  |  | 340 |  |  | — |  |  | — |  |  | 340 |
Total | 461 |  |  | 343 |  |  | 1 |  |  | 805 |  |  | (8) |  |  | 1 |  |  | 798 |
QFNA |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill | 189 |  |  | — |  |  | — |  |  | 189 |  |  | — |  |  | — |  |  | 189 |
Brands | 11 |  |  | — |  |  | (11) |  |  | — |  |  | — |  |  | — |  |  | — |
Total | 200 |  |  | — |  |  | (11) |  |  | 189 |  |  | — |  |  | — |  |  | 189 |
PBNA (b) (c) |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill | 9,898 |  |  | 2,280 |  |  | 11 |  |  | 12,189 |  |  | (216) |  |  | 1 |  |  | 11,974 |
Reacquired franchise rights | 7,089 |  |  | — |  |  | 18 |  |  | 7,107 |  |  | — |  |  | — |  |  | 7,107 |
Acquired franchise rights | 1,517 |  |  | 16 |  |  | 3 |  |  | 1,536 |  |  | 1 |  |  | 1 |  |  | 1,538 |
Brands (d) | 763 |  |  | 2,400 |  |  | (41) |  |  | 3,122 |  |  | (290) |  |  | (324) |  |  | 2,508 |
Total | 19,267 |  |  | 4,696 |  |  | (9) |  |  | 23,954 |  |  | (505) |  |  | (322) |  |  | 23,127 |
LatAm |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill | 501 |  |  | — |  |  | (43) |  |  | 458 |  |  | — |  |  | (25) |  |  | 433 |
Brands | 125 |  |  | — |  |  | (17) |  |  | 108 |  |  | (1) |  |  | (7) |  |  | 100 |
Total | 626 |  |  | — |  |  | (60) |  |  | 566 |  |  | (1) |  |  | (32) |  |  | 533 |
Europe (b) |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill (e) | 3,961 |  |  | (2) |  |  | (153) |  |  | 3,806 |  |  | (28) |  |  | (78) |  |  | 3,700 |
Reacquired franchise rights (e) | 505 |  |  | — |  |  | (9) |  |  | 496 |  |  | (23) |  |  | (32) |  |  | 441 |
Acquired franchise rights (e) | 157 |  |  | — |  |  | 15 |  |  | 172 |  |  | — |  |  | (14) |  |  | 158 |
Brands (f) | 4,181 |  |  | — |  |  | (109) |  |  | 4,072 |  |  | — |  |  | 182 |  |  | 4,254 |
Total | 8,804 |  |  | (2) |  |  | (256) |  |  | 8,546 |  |  | (51) |  |  | 58 |  |  | 8,553 |
AMESA (g) |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill | 446 |  |  | 560 |  |  | 90 |  |  | 1,096 |  |  | (2) |  |  | (31) |  |  | 1,063 |
Brands | — |  |  | 183 |  |  | 31 |  |  | 214 |  |  | — |  |  | (9) |  |  | 205 |
Total | 446 |  |  | 743 |  |  | 121 |  |  | 1,310 |  |  | (2) |  |  | (40) |  |  | 1,268 |
APAC (h) |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill | 207 |  |  | 306 |  |  | 41 |  |  | 554 |  |  | 3 |  |  | 7 |  |  | 564 |
Brands (d) | 100 |  |  | 309 |  |  | 36 |  |  | 445 |  |  | — |  |  | 31 |  |  | 476 |
Total | 307 |  |  | 615 |  |  | 77 |  |  | 999 |  |  | 3 |  |  | 38 |  |  | 1,040 |
Total goodwill | 15,501 |  |  | 3,308 |  |  | (52) |  |  | 18,757 |  |  | (251) |  |  | (125) |  |  | 18,381 |
Total reacquired franchise rights | 7,594 |  |  | — |  |  | 9 |  |  | 7,603 |  |  | (23) |  |  | (32) |  |  | 7,548 |
Total acquired franchise rights | 1,674 |  |  | 16 |  |  | 18 |  |  | 1,708 |  |  | 1 |  |  | (13) |  |  | 1,696 |
Total brands | 5,342 |  |  | 3,071 |  |  | (112) |  |  | 8,301 |  |  | (291) |  |  | (127) |  |  | 7,883 |
Total | $ | 30,111 |  |  | $ | 6,395 |  |  | $ | (137) |  |  | $ | 36,369 |  |  | $ | (564) |  |  | $ | (297) |  |  | $ | 35,508 |
(a)Acquisitions/divestitures in 2021 and acquisitions in 2020 primarily reflect our acquisition of BFY Brands. (b)Acquisitions/divestitures in 2021 primarily reflects assets reclassified as held for sale in connection with our Juice Transaction. See Note 13 for further information. (c)Acquisitions in 2020 primarily reflects our acquisition of Rockstar. See Note 13 for further information. (d)Translation and other in 2021 primarily reflects the allocation of the Rockstar brand to the respective divisions, which was finalized in 2021 as part of purchase price allocation. (e)Translation and other primarily reflects the depreciation of the euro in 2021 and depreciation of the Russian ruble in 2020. (f)Translation and other in 2021 reflects the allocation of the Rockstar brand from PBNA, which was finalized in 2021 as part of purchase price allocation, partially offset by the depreciation of the euro. Translation and other in 2020 primarily reflects the depreciation of the Russian ruble. (g)Acquisitions in 2020 primarily reflects our acquisition of Pioneer Foods. See Note 13 for further information. (h)Acquisitions in 2020 primarily reflects our acquisition of Be & Cheery. See Note 13 for further information.

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