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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Note 6. Goodwill and Intangible Assets Goodwill by operating segment was:
| As of December 31,
| 2021 |  | 2020
| (in millions)
Latin America | $ | 674 |  |  | $ | 706 |
AMEA | 3,365 |  |  | 3,250 |
Europe | 7,830 |  |  | 8,038 |
North America | 10,109 |  |  | 9,901 |
Goodwill | $ | 21,978 |  |  | $ | 21,895 |
Intangible assets consisted of the following:
| As of December 31,
| 2021 |  | 2020
| (in millions)
Indefinite-life intangible assets | $ | 17,299 |  |  | $ | 17,492 |
Definite-life intangible assets | 2,991 |  |  | 2,907 |
| 20,290 |  |  | 20,399 |
Accumulated amortization | (1,999) |  |  | (1,917) |
Intangible assets, net | $ | 18,291 |  |  | $ | 18,482 |
Indefinite-life intangible assets consist principally of brand names purchased through our acquisitions of Nabisco Holdings Corp., the Spanish and Portuguese operations of United Biscuits, the global LU biscuit business of Groupe Danone S.A. and Cadbury Limited. Definite-life intangible assets consist primarily of trademarks, customer-related intangibles, process technology, licenses and non-compete agreements. Amortization expense for intangible assets was $134 million in 2021, $194 million in 2020 and $174 million in 2019. For the next five years, we estimate annual amortization expense of approximately $125 million in years one to three, approximately $100 million in year four and approximately $60 million in year five, reflecting December 31, 2021 exchange rates. Changes in goodwill and intangible assets consisted of:
| 2021 |  | 2020
| Goodwill |  | Intangible Assets, at cost |  | Goodwill |  | Intangible Assets, at cost
| (in millions)
Balance at January 1 | $ | 21,895 |  |  | $ | 20,399 |  |  | $ | 20,848 |  |  | $ | 19,670 |
Changes due to: |  |  |  |  |  |  |
Currency | (464) |  |  | (465) |  |  | 516 |  |  | 320 |
Divestitures | — |  |  | (17) |  |  | — |  |  | — |
Acquisitions | 547 |  |  | 405 |  |  | 531 |  |  | 553 |
Asset impairments | — |  |  | (32) |  |  | — |  |  | (144) |
Balance at December 31 | $ | 21,978 |  |  | $ | 20,290 |  |  | $ | 21,895 |  |  | $ | 20,399 |
Changes to goodwill and intangibles were: •Divestitures – During the fourth quarter of 2021, we completed the sale of MaxFoods Pty Ltd, an Australian packaged seafood business that we had acquired as part of our acquisition of Gourmet Food, resulting in a decrease in intangible assets of $17 million. See Note 2, Acquisitions and Divestitures, for additional information. •Acquisitions – In connection with our 2021 acquisitions of Gourmet Food, Grenade and the remaining interest in Hu, we recorded preliminary purchase price allocations totaling $547 million of goodwill and $405 million of intangible assets. In connection with our 2020 acquisition of a majority interest in Give & Go, we recorded a purchase price allocation of $531 million to goodwill and $553 million to intangible assets. See Note 2, Acquisitions and Divestitures, for additional information. •Asset impairments – As further discussed below, we recorded $32 million of intangible asset impairments in 2021 and $144 million in 2020. In 2021, 2020 and 2019, there were no goodwill impairments and each of our reporting units had sufficient fair value in excess of its carrying value. While all reporting units passed our annual impairment testing, if planned business performance expectations are not met or specific valuation factors outside of our control, such as discount rates, change significantly, then the estimated fair values of a reporting unit or reporting units might decline and lead to a goodwill impairment in the future. In 2021, we recorded $32 million of intangible asset impairment charges related to one biscuit brand in North America. We also identified eight brands with $1,146 million of aggregate book value as of December 31, 2021 that each had a fair value in excess of book value of 10% or less. We continue to monitor our brand performance, particularly in light of the significant uncertainty due to the COVID-19 pandemic and related impacts to our business. If a brand's earnings expectations, including the timing of the expected recovery from the COVID-19 pandemic impacts, are not met or specific valuation factors outside of our control, such as discount rates, change significantly, then a brand or brands could become impaired in the future. In 2020, we recorded $144 million of impairment charges for gum, chocolate, biscuits and candy brands of $83 million in North America, $53 million in Europe, $5 million in AMEA and $3 million in Latin America. In 2019, we recorded $57 million of impairment charges for gum, chocolate, biscuits and candy brands of $39 million in Europe, $15 million in AMEA and $3 million in Latin America.

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