Property, Plant and Equipment and Intangible Assets

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



	Average Useful Life (Years)	2017			2016			2015
Property, plant and equipment, net
Land		$	1,148		$	1,153
Buildings and improvements	15 - 44	8,796			8,306
Machinery and equipment, including fleet and software	5 - 15	27,018			25,277
Construction in progress		2,144			2,082
		39,106			36,818
Accumulated depreciation		(21,866		)	(20,227		)
		$	17,240		$	16,591
Depreciation expense		$	2,227		$	2,217		$	2,248

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:



		2017							2016							2015
Amortizable intangible assets, net	Average Useful Life (Years)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Acquired franchise rights	56 – 60	$	858	$	(128	)	$	730	$	827	$	(108	)	$	719
Reacquired franchise rights	5 – 14	106		(104		)	2		106		(102		)	4
Brands	20 – 40	1,322		(1,026		)	296		1,277		(977		)	300
Other identifiable intangibles	10 – 24	521		(281		)	240		522		(308		)	214
		$	2,807	$	(1,539	)	$	1,268	$	2,732	$	(1,495	)	$	1,237
Amortization expense							$	68						$	70	$	75

Amortization of intangible assets for each of the next five years, based on existing intangible assets as of December 30, 2017 and using average 2017 foreign exchange rates, is expected to be as follows:



	2018		2019		2020		2021		2022
Five-year projected amortization	$	69	$	64	$	64	$	62	$	60

Depreciable and amortizable assets are 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 30, 2017, December 31, 2016 and December 26, 2015. We recognized no material impairment charges for nonamortizable intangible assets in each of the fiscal years ended December 30, 2017, December 31, 2016 and December 26, 2015. As of December 30, 2017, 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 30, 2017. However, there could be an impairment of the carrying value of certain brands in these countries if there is a 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 2016		Translation and Other			Balance, End of 2016		Translation and Other			Balance, End of 2017
FLNA
Goodwill	$	267	$	3		$	270	$	10		$	280
Brands	22		1			23		2			25
	289		4			293		12			305
QFNA
Goodwill	175		—			175		—			175
NAB
Goodwill ^(a)	9,754		89			9,843		11			9,854
Reacquired franchise rights	7,042		22			7,064		62			7,126
Acquired franchise rights	1,507		5			1,512		13			1,525
Brands ^(a)	108		206			314		39			353
	18,411		322			18,733		125			18,858
Latin America
Goodwill	521		32			553		2			555
Brands	137		13			150		(9		)	141
	658		45			703		(7		)	696
ESSA ^(b)
Goodwill	3,042		135			3,177		275			3,452
Reacquired franchise rights	488		—			488		61			549
Acquired franchise rights	190		(6		)	184		11			195
Brands	2,212		146			2,358		187			2,545
	5,932		275			6,207		534			6,741
AMENA
Goodwill	418		(6		)	412		16			428
Brands	105		(2		)	103		8			111
	523		(8		)	515		24			539

Total goodwill	14,177		253			14,430		314			14,744
Total reacquired franchise rights	7,530		22			7,552		123			7,675
Total acquired franchise rights	1,697		(1		)	1,696		24			1,720
Total brands	2,584		364			2,948		227			3,175
	$	25,988	$	638		$	26,626	$	688		$	27,314


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


(b)	The change in 2017 primarily reflects the currency appreciation of the Russian ruble and euro. The change in 2016 primarily reflects the currency appreciation of the Russian ruble.