XML 25 R11.htm IDEA: XBRL DOCUMENT v3.20.2
Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
GOODWILL
Changes in the carrying amount of goodwill by reportable segment are as follows:
(in millions)
Coffee Systems
 
Packaged Beverages
 
Beverage Concentrates
 
Latin America Beverages
 
Total
Balance as of January 1, 2020
$
9,775

 
$
5,301

 
$
4,526

 
$
570

 
$
20,172

Foreign currency translation
(51
)
 
(29
)
 
(19
)
 
(105
)
 
(204
)
Balance as of June 30, 2020
$
9,724

 
$
5,272

 
$
4,507

 
$
465

 
$
19,968


INTANGIBLE ASSETS OTHER THAN GOODWILL
The net carrying amounts of intangible assets other than goodwill with indefinite lives are as follows:
(in millions)
 
June 30, 2020
 
December 31, 2019
Brands(1)
 
$
19,673

 
$
19,948

Trade names
 
2,479

 
2,479

Contractual arrangements
 
121

 
122

Distribution rights
 
19

 
16

Total
 
$
22,292

 
$
22,565


(1)
The decrease of $275 million in brands with indefinite lives was due to foreign currency translation during the first six months of 2020.
The net carrying amounts of intangible assets other than goodwill with definite lives are as follows:
 
June 30, 2020
 
December 31, 2019
(in millions)
 Gross Amount
 
Accumulated Amortization
 
Net Amount
 
 Gross Amount
 
Accumulated Amortization
 
Net Amount
Acquired technology
$
1,146

 
$
(292
)
 
$
854

 
$
1,146

 
$
(255
)
 
$
891

Customer relationships
633

 
(118
)
 
515

 
638

 
(102
)
 
536

Trade names
127

 
(62
)
 
65

 
128

 
(55
)
 
73

Contractual arrangements
24

 
(4
)
 
20

 
24

 
(3
)
 
21

Brands
21

 
(3
)
 
18

 
10

 
(2
)
 
8

Distribution rights
24

 
(3
)
 
21

 
24

 
(1
)
 
23

Total
$
1,975

 
$
(482
)
 
$
1,493

 
$
1,970

 
$
(418
)
 
$
1,552


Amortization expense for intangible assets with definite lives was as follows:
 
Second Quarter
 
First Six Months
(in millions)
2020
 
2019
 
2020
 
2019
Amortization expense for intangible assets with definite lives
$
33

 
$
32

 
$
66

 
$
63


Amortization expense of these intangible assets over the remainder of 2020 and the next five years is expected to be as follows:
 
Remainder of 2020
 
For the Years Ending December 31,
(in millions)
 
2021
 
2022
 
2023
 
2024
 
2025
Expected amortization expense for intangible assets with definite lives
$
66

 
$
132

 
$
132

 
$
131

 
$
122

 
$
111

IMPAIRMENT TESTING
KDP conducts impairment tests on goodwill and all indefinite lived intangible assets annually, or more frequently if circumstances indicate that the carrying amount of an asset may not be recoverable. The Company did not identify any circumstances, including the ongoing COVID-19 pandemic, that indicated that the carrying amount of any goodwill or any intangible asset may not be recoverable as of June 30, 2020.