Property, Plant and Equipment and Intangible Assets

A summary of our property, plant and equipment is as follows:



	Average Useful Life (Years)	2016			2015			2014
Property, plant and equipment, net
Land		$	1,153		$	1,184
Buildings and improvements	15 - 44	8,306			8,061
Machinery and equipment, including fleet and software	5 - 15	25,277			24,764
Construction in progress		2,082			1,738
		36,818			35,747
Accumulated depreciation		(20,227		)	(19,430		)
		$	16,591		$	16,317
Depreciation expense		$	2,217		$	2,248		$	2,441

Property, plant and equipment is recorded at historical cost. Depreciation and amortization are recognized on a straight-line basis over an asset’s estimated useful life. Land is not depreciated and construction in progress is not depreciated until ready for service.

A summary of our amortizable intangible assets is as follows:



		2016							2015							2014
Amortizable intangible assets, net	Average Useful Life (Years)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Acquired franchise rights	56 – 60	$	827	$	(108	)	$	719	$	820	$	(92	)	$	728
Reacquired franchise rights	5 – 14	106		(102		)	4		105		(99		)	6
Brands	20 – 40	1,277		(977		)	300		1,298		(987		)	311
Other identifiable intangibles	10 – 24	522		(308		)	214		526		(301		)	225
		$	2,732	$	(1,495	)	$	1,237	$	2,749	$	(1,479	)	$	1,270
Amortization expense							$	70						$	75	$	92

Amortization of intangible assets for each of the next five years, based on existing intangible assets as of December 31, 2016 and using average 2016 foreign exchange rates, is expected to be as follows:



	2017		2018		2019		2020		2021
Five-year projected amortization	$	62	$	60	$	57	$	57	$	55

Depreciable and amortizable assets are only evaluated for impairment upon a significant change in the operating or macroeconomic environment. In these circumstances, if an evaluation of the undiscounted cash flows indicates impairment, the asset is written down to its estimated fair value, which is based on discounted future cash flows. Useful lives are periodically evaluated to determine whether events or circumstances have occurred which indicate the need for revision. For additional unaudited information on our policies for amortizable brands, see “Our Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Nonamortizable Intangible Assets

We did not recognize any impairment charges for goodwill in each of the fiscal years ended December 31, 2016, December 26, 2015 and December 27, 2014. We recognized no material impairment charges for nonamortizable intangible assets in each of the fiscal years ended December 31, 2016, December 26, 2015 and December 27, 2014. As of December 31, 2016, the estimated fair values of our indefinite-lived reacquired and acquired franchise rights recorded at NAB exceeded their carrying values. However, there could be an impairment of the carrying value of NAB’s reacquired and acquired franchise rights if future revenues and their contribution to the operating results of NAB’s CSD business do not achieve our expected future cash flows or if macroeconomic conditions result in a future increase in the weighted-average cost of capital used to estimate fair value. We have also analyzed the impact of the macroeconomic conditions in Russia and Brazil on the estimated fair value of our indefinite-lived intangible assets in these countries and have concluded that there is no impairment as of December 31, 2016. However, there could be an impairment of the carrying value of certain brands in these countries if there is a further deterioration in these conditions, if future revenues and their contributions to the operating results do not achieve our expected future cash flows or if macroeconomic conditions result in a future increase in the weighted-average cost of capital used to estimate fair value. For additional information on our policies for nonamortizable intangible assets, see Note 2.

The change in the book value of nonamortizable intangible assets is as follows:



	Balance, Beginning 2015		Translation and Other			Balance, End of 2015		Translation and Other			Balance, End of 2016
FLNA
Goodwill	$	291	$	(24	)	$	267	$	3		$	270
Brands	27		(5		)	22		1			23
	318		(29		)	289		4			293
QFNA
Goodwill	175		—			175		—			175

NAB
Goodwill ^(a)	9,846		(92		)	9,754		89			9,843
Reacquired franchise rights	7,193		(151		)	7,042		22			7,064
Acquired franchise rights	1,538		(31		)	1,507		5			1,512
Brands ^(a)	108		—			108		206			314
	18,685		(274		)	18,411		322			18,733
Latin America
Goodwill	644		(123		)	521		32			553
Brands ^(b)	223		(86		)	137		13			150
	867		(209		)	658		45			703
ESSA ^(c)
Goodwill	3,539		(497		)	3,042		135			3,177
Reacquired franchise rights	571		(83		)	488		—			488
Acquired franchise rights	199		(9		)	190		(6		)	184
Brands	2,663		(451		)	2,212		146			2,358
	6,972		(1,040		)	5,932		275			6,207
AMENA
Goodwill	470		(52		)	418		(6		)	412
Brands	117		(12		)	105		(2		)	103
	587		(64		)	523		(8		)	515

Total goodwill	14,965		(788		)	14,177		253			14,430
Total reacquired franchise rights	7,764		(234		)	7,530		22			7,552
Total acquired franchise rights	1,737		(40		)	1,697		(1		)	1,696
Total brands	3,138		(554		)	2,584		364			2,948
	$	27,604	$	(1,616	)	$	25,988	$	638		$	26,626


(a)	The change in 2016 is primarily related to our acquisition of KeVita, Inc.


(b)	The change in 2015 includes a reduction of $41 million of nonamortizable brands arising from the Venezuela deconsolidation.


(c)	The change in 2016 and 2015 primarily reflects the currency fluctuation of the Russian ruble.