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Goodwill and Intangible Assets | 3 Months Ended
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Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets Goodwill Changes in goodwill consisted of:
| Latin America |  | AMEA |  | Europe |  | North America |  | Total
| (in millions)
January 1, 2023 | $ | 1,421 |  |  | $ | 3,132 |  |  | $ | 8,009 |  |  | $ | 10,888 |  |  | $ | 23,450 |
Currency | 180 |  |  | (67) |  |  | 341 |  |  | 19 |  |  | 473 |
Acquisitions (1) | 6 |  |  | — |  |  | — |  |  | (33) |  |  | (27) |
Balance at December 31, 2023 | $ | 1,607 |  |  | $ | 3,065 |  |  | $ | 8,350 |  |  | $ | 10,874 |  |  | $ | 23,896 |
Currency | 18 |  |  | (80) |  |  | (279) |  |  | (16) |  |  | (357) |
Balance at March 31, 2024 | $ | 1,625 |  |  | $ | 2,985 |  |  | $ | 8,071 |  |  | $ | 10,858 |  |  | $ | 23,539 |
(1)Purchase price allocation adjustments for Ricolino and Clif Bar during 2023. Intangible Assets Intangible assets consisted of the following:
| As of March 31, 2024 |  | As of December 31, 2023
| Gross carrying amount |  | Accumulated amortization |  | Net carrying amount |  | Gross carrying amount |  | Accumulated amortization |  | Net carrying amount
| (in millions)
Definite-life intangible assets | $ | 3,304 |  |  | $ | (2,174) |  |  | $ | 1,130 |  |  | $ | 3,322 |  |  | $ | (2,155) |  |  | $ | 1,167 |
Indefinite-life intangible assets (1) | 18,484 |  |  | — |  |  | 18,484 |  |  | 18,669 |  |  | — |  |  | 18,669 |
Total | $ | 21,788 |  |  | $ | (2,174) |  |  | $ | 19,614 |  |  | $ | 21,991 |  |  | $ | (2,155) |  |  | $ | 19,836 |
(1)In 2023, we recorded $26 million of intangible asset impairment charges related to a chocolate brand in the North America segment for $20 million and a biscuit brand in the Europe segment for $6 million in the third quarter. 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. Definite-life intangible assets consist primarily of trademarks, customer-related intangibles, process technology, licenses and non-compete agreements. Amortization expense for intangible assets was $38 million for the three months ended March 31, 2024 and $39 million for the three months ended March 31, 2023. For the next five years, we currently estimate annual amortization expense of approximately $125 million in 2024-2026 and approximately $90 million in 2027 and 2028 (reflecting March 31, 2024 exchange rates). Impairment Assessment: We test our reporting units and brands for impairment annually as of July 1, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit or brand is less than its carrying amount. During the first quarter of 2024, we evaluated our goodwill impairment and intangible asset impairment risk through an assessment of potential triggering events. We considered qualitative and quantitative information in our assessment. We concluded there were no impairment indicators. During our 2023 annual indefinite-life intangible asset testing, we identified thirteen brands that each had a fair value in excess of book value of 10% or less. The aggregate book value of the thirteen brands was $3.6 billion as of March 31, 2024, of which $1.9 billion is related to five recently acquired brands. We believe our current plans for each of these brands will support the current carrying values, but if plans to grow brand earnings and expand margin are not met or specific valuation factors outside of our control, such as discount rates, change then a brand or brands could become impaired in the future.

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