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Intangible assets
 6 Months Ended
Jun. 30, 2020
Text block [abstract]  
Intangible assets
12.
Intangible assets
 
 
 
30 June 2020
 
 
31 December 2019
 
 
Million US dollar
  
Brands
 
 
Commercial
intangibles
 
 
Software
 
 
Other
 
 
Total
 
 
Total
 
Acquisition cost
  
   
 
   
 
   
 
   
 
   
 
   
Balance at end of previous year
  
 
40 074
 
 
 
2 774
 
 
 
2 594
 
 
 
666
 
 
 
46 108
 
 
 
48 465
 
Effect of movements in foreign exchange
  
 
(2 107
) 
 
 
(132
) 
 
 
(194
) 
 
 
(37
) 
 
 
(2 470
) 
 
 
(79
) 
Acquisitions through business combinations
  
 
14
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
14
 
 
 
99
 
Acquisitions and expenditures
  
 
—  
 
 
 
174
 
 
 
19
 
 
 
94
 
 
 
287
 
 
 
631
 
Disposals
  
 
—  
 
 
 
(5
) 
 
 
(1
) 
 
 
—  
 
 
 
(6
) 
 
 
(259
) 
Disposals through the sale of subsidiaries
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(29
) 
Transfer (to)/from other asset categories and other movements
1
  
 
—  
 
 
 
130
 
 
 
115
 
 
 
(308
) 
 
 
(63
) 
 
 
(2 720
) 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at end of period
  
 
37 981
 
 
 
2 941
 
 
 
2 533
 
 
 
415
 
 
 
43 870
 
 
 
46 108
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization and impairment losses
  
   
 
   
 
   
 
   
 
   
 
   
Balance at end of previous year
  
 
(32
) 
 
 
(1 595
) 
 
 
(1 851
) 
 
 
( 178
) 
 
 
(3 656
) 
 
 
(3 634
) 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of movements in foreign exchange
  
 
—  
 
 
 
85
 
 
 
126
 
 
 
14
 
 
 
225
 
 
 
41
 
Amortization
  
 
—  
 
 
 
(148
) 
 
 
(177
) 
 
 
(27
) 
 
 
(352
) 
 
 
(622
) 
Impairment
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(150
) 
 
 
(150
) 
 
 
—  
 
Disposals
  
 
—  
 
 
 
4
 
 
 
1
 
 
 
—  
 
 
 
5
 
 
 
254
 
Disposals through the sale of subsidiaries
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
Transfer to/(from) other asset categories and other movements
1
  
 
—  
 
 
 
(9
) 
 
 
17
 
 
 
99
 
 
 
107
 
 
 
305
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at end of period
  
 
(32
) 
 
 
(1 663
) 
 
 
(1 884
) 
 
 
(241
) 
 
 
(3 821
) 
 
 
(3 656
) 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carrying value
  
   
 
   
 
   
 
   
 
   
 
   
at 31 December 2019
  
 
40 042
 
 
 
1 179
 
 
 
743
 
 
 
488
 
 
 
42 452
 
 
 
42 452
 
at 30 June 2020
  
 
37 949
 
 
 
1 278
 
 
 
649
 
 
 
173
 
 
 
40 049
 
 
   
During the
six-month
period ended 30 June 2020, AB InBev recognized intangible assets on acquisitions of subsidiaries of 14m US dollar (30 June 2019: 307m US dollar
)—
see also Note 6
Acquisitions and disposals.
In addition, the company recognized (150)m US dollar impairment on intangible assets classified as assets held for sale as of 30 June 2020 and other intangibles (30 June 2019: nil) – see also Note 7
Exceptional items.
AB InBev is the owner of some of the world’s most valuable brands in the beer industry. As a result, brands and certain distribution rights are expected to generate positive cash flows for as long as the company owns the brands and distribution rights. Given AB InBev’s more than
600-year
history, brands and certain distribution rights have been assigned indefinite lives
.
Acquisitions and expenditures of commercial intangibles mainly represent supply and distribution rights, exclusive multi-year sponsorship rights and other commercial intangibles
.
Intangible assets with indefinite useful lives are comprised primarily of brands and certain distribution rights that AB InBev purchases for its own products, and were tested for impairment during the second quarter of 2020. Based on the impairment testing results, no impairment loss was allocated to intangible assets with indefinite useful lives – refer to Note 11
Goodwill
.
 
 
1
 
The transfer (to)/from other asset categories and other movements mainly relates to transfers from assets under construction to their respective asset categories, to contributions of assets to pension plans, to the separate presentation in the balance sheet of intangible assets held for sale in accordance with IFRS 5
Non-current
assets held for sale and discontinued operations
and to the restatement of
non-monetary
assets under hyperinflation accounting in line with IAS 29
Financial reporting in hyperinflationary economies
. Accordingly, the 2019 transfers include the balances of Australian operations reclassified to assets held for sale as at at 31 December 2019 and disposed of upon the completion of the sale on 1 June 2020
.