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Intangible Assets | 6 Months Ended
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Jun. 17, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets | Intangible Assets During the 12 weeks ended June 11, 2022, macroeconomic factors, sanctions and other regulations as a result of the Russia-Ukraine conflict indicated a material deterioration of the significant inputs used to determine the fair value of our indefinite-lived intangible assets in Russia, primarily assumptions underlying the weighted-average cost of capital. These factors required us to perform a quantitative assessment, despite the absence of a material adverse impact on these assets’ financial performance (e.g., sales, operating profit, cash flows). The fair value of our indefinite-lived intangible assets in Russia was estimated using discounted cash flows under the income approach, which we consider to be a Level 3 measurement. We determined that the carrying value exceeded the fair value, with the decrease in the fair value primarily attributable to a significant increase in the weighted-average cost of capital, which reflects the macroeconomic uncertainty in Russia. As a result of the quantitative assessment, in the 12 and 24 weeks ended June 11, 2022, we recorded pre-tax impairment charges of $1.2 billion ($958 million after-tax or $0.69 per share) in impairment of intangible assets, related to our juice and dairy brands in Russia in our Europe division. See Note 1 for further information. During the 24 weeks ended June 11, 2022, we repositioned or discontinued certain juice and dairy brands in Russia in our Europe division. As a result, we recognized pre-tax impairment charges (included in brand portfolio impairment charges) of $241 million ($193 million after-tax or $0.14 per share) in impairment of intangible assets, primarily related to indefinite-lived intangible assets. See Note 1 for further information. For further information on indefinite-lived intangible assets, see Notes 2 and 4 to our consolidated financial statements in our 2022 Form 10-K. A summary of our amortizable intangible assets is as follows:
|  | 6/17/2023 |  | 12/31/2022
|  | Gross |  | Accumulated Amortization |  | Net |  | Gross |  | Accumulated Amortization |  | Net
Acquired franchise rights |  | $ | 840 |  |  | $ | (206) |  |  | $ | 634 |  |  | $ | 837 |  |  | $ | (200) |  |  | $ | 637 |
Customer relationships |  | 555 |  |  | (245) |  |  | 310 |  |  | 571 |  |  | (237) |  |  | 334 |
Brands |  | 1,085 |  |  | (974) |  |  | 111 |  |  | 1,097 |  |  | (973) |  |  | 124 |
Other identifiable intangibles |  | 443 |  |  | (266) |  |  | 177 |  |  | 447 |  |  | (265) |  |  | 182 |
Total |  | $ | 2,923 |  |  | $ | (1,691) |  |  | $ | 1,232 |  |  | $ | 2,952 |  |  | $ | (1,675) |  |  | $ | 1,277 |
The change in the book value of indefinite-lived intangible assets is as follows:
| Balance 12/31/2022 |  | Acquisitions |  |  |  | Translation and Other |  | Balance 6/17/2023
FLNA |  |  |  |  |  |  |  |  |
Goodwill | $ | 451 |  |  | $ | — |  |  |  |  | $ | 3 |  |  | $ | 454 |
Brands | 251 |  |  | — |  |  |  |  | — |  |  | 251 |
Total | 702 |  |  | — |  |  |  |  | 3 |  |  | 705 |
QFNA |  |  |  |  |  |  |  |  |
Goodwill | 189 |  |  | — |  |  |  |  | — |  |  | 189 |
Total | 189 |  |  | — |  |  |  |  | — |  |  | 189 |
PBNA |  |  |  |  |  |  |  |  |
Goodwill | 11,947 |  |  | 3 |  |  |  |  | 10 |  |  | 11,960 |
Reacquired franchise rights | 7,061 |  |  | 62 |  |  |  |  | 20 |  |  | 7,143 |
Acquired franchise rights (a) | 1,758 |  |  | — |  |  |  |  | (34) |  |  | 1,724 |
Brands | 2,508 |  |  | — |  |  |  |  | — |  |  | 2,508 |
Total | 23,274 |  |  | 65 |  |  |  |  | (4) |  |  | 23,335 |
LatAm |  |  |  |  |  |  |  |  |
Goodwill | 436 |  |  | — |  |  |  |  | 17 |  |  | 453 |
Brands | 75 |  |  | — |  |  |  |  | 4 |  |  | 79 |
Total | 511 |  |  | — |  |  |  |  | 21 |  |  | 532 |
Europe |  |  |  |  |  |  |  |  |
Goodwill | 3,646 |  |  | — |  |  |  |  | (132) |  |  | 3,514 |
Reacquired franchise rights | 421 |  |  | — |  |  |  |  | (10) |  |  | 411 |
Acquired franchise rights | 148 |  |  | — |  |  |  |  | — |  |  | 148 |
Brands | 1,664 |  |  | — |  |  |  |  | 10 |  |  | 1,674 |
Total | 5,879 |  |  | — |  |  |  |  | (132) |  |  | 5,747 |
AMESA |  |  |  |  |  |  |  |  |
Goodwill | 1,015 |  |  | — |  |  |  |  | (91) |  |  | 924 |
Brands | 156 |  |  | — |  |  |  |  | (23) |  |  | 133 |
Total | 1,171 |  |  | — |  |  |  |  | (114) |  |  | 1,057 |
APAC |  |  |  |  |  |  |  |  |
Goodwill | 518 |  |  | — |  |  |  |  | (15) |  |  | 503 |
Brands | 267 |  |  | — |  |  |  |  | (8) |  |  | 259 |
Total | 785 |  |  | — |  |  |  |  | (23) |  |  | 762 |
Total goodwill | 18,202 |  |  | 3 |  |  |  |  | (208) |  |  | 17,997 |
Total reacquired franchise rights | 7,482 |  |  | 62 |  |  |  |  | 10 |  |  | 7,554 |
Total acquired franchise rights | 1,906 |  |  | — |  |  |  |  | (34) |  |  | 1,872 |
Total brands | 4,921 |  |  | — |  |  |  |  | (17) |  |  | 4,904 |
Total | $ | 32,511 |  |  | $ | 65 |  |  |  |  | $ | (249) |  |  | $ | 32,327 |
(a)Translation and other primarily reflects adjustments to previously recorded amounts related to our agreement with Celsius Holdings, Inc. to distribute Celsius energy drinks in the United States.

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