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Intangible Assets | 8 Months Ended
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Sep. 09, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets | Intangible Assets During the 36 weeks ended September 3, 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 36 weeks ended September 3, 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 36 weeks ended September 3, 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:
|  | 9/9/2023 |  | 12/31/2022
|  | Gross |  | Accumulated Amortization |  | Net |  | Gross |  | Accumulated Amortization |  | Net
Acquired franchise rights |  | $ | 833 |  |  | $ | (207) |  |  | $ | 626 |  |  | $ | 837 |  |  | $ | (200) |  |  | $ | 637 |
Customer relationships |  | 550 |  |  | (249) |  |  | 301 |  |  | 571 |  |  | (237) |  |  | 334 |
Brands |  | 1,084 |  |  | (978) |  |  | 106 |  |  | 1,097 |  |  | (973) |  |  | 124 |
Other identifiable intangibles |  | 444 |  |  | (269) |  |  | 175 |  |  | 447 |  |  | (265) |  |  | 182 |
Total |  | $ | 2,911 |  |  | $ | (1,703) |  |  | $ | 1,208 |  |  | $ | 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 9/9/2023
FLNA |  |  |  |  |  |  |  |  |
Goodwill | $ | 451 |  |  | $ | — |  |  |  |  | $ | (1) |  |  | $ | 450 |
Brands | 251 |  |  | — |  |  |  |  | — |  |  | 251 |
Total | 702 |  |  | — |  |  |  |  | (1) |  |  | 701 |
QFNA |  |  |  |  |  |  |  |  |
Goodwill | 189 |  |  | — |  |  |  |  | — |  |  | 189 |
Total | 189 |  |  | — |  |  |  |  | — |  |  | 189 |
PBNA |  |  |  |  |  |  |  |  |
Goodwill | 11,947 |  |  | 4 |  |  |  |  | (4) |  |  | 11,947 |
Reacquired franchise rights | 7,061 |  |  | 36 |  |  |  |  | (8) |  |  | 7,089 |
Acquired franchise rights (a) | 1,758 |  |  | 12 |  |  |  |  | (40) |  |  | 1,730 |
Brands | 2,508 |  |  | — |  |  |  |  | — |  |  | 2,508 |
Total | 23,274 |  |  | 52 |  |  |  |  | (52) |  |  | 23,274 |
LatAm |  |  |  |  |  |  |  |  |
Goodwill | 436 |  |  | — |  |  |  |  | 23 |  |  | 459 |
Brands | 75 |  |  | — |  |  |  |  | 7 |  |  | 82 |
Total | 511 |  |  | — |  |  |  |  | 30 |  |  | 541 |
Europe |  |  |  |  |  |  |  |  |
Goodwill (b) | 3,646 |  |  | — |  |  |  |  | (277) |  |  | 3,369 |
Reacquired franchise rights | 421 |  |  | — |  |  |  |  | (16) |  |  | 405 |
Acquired franchise rights | 148 |  |  | — |  |  |  |  | 3 |  |  | 151 |
Brands | 1,664 |  |  | — |  |  |  |  | 23 |  |  | 1,687 |
Total | 5,879 |  |  | — |  |  |  |  | (267) |  |  | 5,612 |
AMESA |  |  |  |  |  |  |  |  |
Goodwill | 1,015 |  |  | 34 |  |  |  |  | (63) |  |  | 986 |
Brands | 156 |  |  | — |  |  |  |  | (21) |  |  | 135 |
Total | 1,171 |  |  | 34 |  |  |  |  | (84) |  |  | 1,121 |
APAC |  |  |  |  |  |  |  |  |
Goodwill | 518 |  |  | — |  |  |  |  | (26) |  |  | 492 |
Brands | 267 |  |  | — |  |  |  |  | (12) |  |  | 255 |
Total | 785 |  |  | — |  |  |  |  | (38) |  |  | 747 |
Total goodwill | 18,202 |  |  | 38 |  |  |  |  | (348) |  |  | 17,892 |
Total reacquired franchise rights | 7,482 |  |  | 36 |  |  |  |  | (24) |  |  | 7,494 |
Total acquired franchise rights | 1,906 |  |  | 12 |  |  |  |  | (37) |  |  | 1,881 |
Total brands | 4,921 |  |  | — |  |  |  |  | (3) |  |  | 4,918 |
Total | $ | 32,511 |  |  | $ | 86 |  |  |  |  | $ | (412) |  |  | $ | 32,185 |
(a)Translation and other primarily reflects adjustments to previously recorded amounts related to our agreement with Celsius Holdings, Inc. (Celsius) to distribute Celsius energy drinks in the United States. (b)Translation and other primarily reflects the depreciation of the Russian ruble.

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