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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Note 6. Goodwill and Intangible Assets Goodwill Changes in goodwill consisted of (in millions):
| Latin America |  | AMEA |  | Europe |  | North America |  | Total
January 1, 2022 | $ | 674 |  |  | $ | 3,365 |  |  | $ | 7,830 |  |  | $ | 10,109 |  |  | $ | 21,978 |
Currency | 41 |  |  | (233) |  |  | (550) |  |  | (15) |  |  | (757) |
Acquisitions (1) | 714 |  |  | — |  |  | 795 |  |  | 1,020 |  |  | 2,529 |
Held for Sale (2) | — |  |  | — |  |  | (66) |  |  | (226) |  |  | (292) |
Divestitures | (8) |  |  | — |  |  | — |  |  | — |  |  | (8) |
Balance at December 31, 2022 | $ | 1,421 |  |  | $ | 3,132 |  |  | $ | 8,009 |  |  | $ | 10,888 |  |  | $ | 23,450 |
Currency | 180 |  |  | (67) |  |  | 341 |  |  | 19 |  |  | 473 |
Acquisitions (1) (3) | 6 |  |  | — |  |  | — |  |  | (33) |  |  | (27) |
Balance at December 31, 2023 | $ | 1,607 |  |  | $ | 3,065 |  |  | $ | 8,350 |  |  | $ | 10,874 |  |  | $ | 23,896 |
(1)Refer to Note 2, Acquisitions and Divestitures for more information. (2)During the fourth quarter of 2022, we agreed to sell our gum business in North America and Europe. As a result, we reclassified $292 million of goodwill to held for sale as of December 31, 2022. On October 1, 2023, we completed the sale of our gum business including the related goodwill. Refer to Note 2, Acquisitions and Divestitures for more information. (3)Relates to purchase price allocation adjustments for Ricolino and Clif Bar during 2023. Intangible Assets Intangible assets consisted of the following (in millions):
| As of December 31, 2023 |  | As of December 31, 2022
| Gross carrying amount |  | Accumulated amortization |  | Net carrying amount |  | Gross carrying amount |  | Accumulated amortization |  | Net carrying amount
Definite-life intangible assets (1) | $ | 3,322 |  |  | $ | (2,155) |  |  | $ | 1,167 |  |  | $ | 3,354 |  |  | $ | (2,057) |  |  | $ | 1,297 |
Indefinite-life intangible assets (1) (2) | 18,669 |  |  | — |  |  | 18,669 |  |  | 18,413 |  |  | — |  |  | 18,413 |
Total | $ | 21,991 |  |  | $ | (2,155) |  |  | $ | 19,836 |  |  | $ | 21,767 |  |  | $ | (2,057) |  |  | $ | 19,710 |
(1)During the fourth quarter of 2022, we agreed to sell our gum business in North America and Europe. As a result, we reclassified $671 million of intangible assets to held for sale as of December 31, 2022. On October 1, 2023, we completed the sale of our gum business including these intangibles. Refer to Note 2, Acquisitions and Divestitures for more information. (2)We recorded intangible asset impairments of $26 million in 2023 and $101 million in 2022 within asset impairment and exit costs. Definite-life intangible assets consist primarily of trademarks, customer-related intangibles, process technology, licenses and non-compete agreements. Indefinite-life intangible assets consist principally of brand names purchased through our acquisitions of Nabisco Holdings Corp., the global LU biscuit business of Groupe Danone S.A., Cadbury Limited and Clif Bar. Amortization expense for intangible assets was $151 million in 2023, $132 million in 2022 and $134 million in 2021. For the next five years, we estimate annual amortization expense of approximately $125 million in 2024-2026, approximately $90 million in 2027 and in 2028 (reflecting December 31, 2023 exchange rates). In 2023, 2022 and 2021, 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 2023, we recorded $26 million of intangible asset impairment charges related to a chocolate brand in North America and a biscuit brand in Europe. We identified thirteen brands, as part of our annual test, that each had a fair value in excess of book value of 10% or less. The aggregate value of the thirteen brands was $3.7 billion as of December 31, 2023, of which $1.8 billion is related to five recently acquired brands. We believe our current plans for each of these brands will allow them to not be impaired, but if the plans to grow brand earnings and expand margin 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 2022, we recorded $101 million of intangible asset impairment charges related to two biscuit brands in AMEA. In 2021, we recorded a $32 million of intangible asset impairment charge related to one biscuit brand in North America.

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