Property, Plant and Equipment and Intangible Assets

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



	Average Useful Life (Years)	2018			2017			2016
Property, plant and equipment, net
Land		$	1,078		$	1,148
Buildings and improvements	15 - 44	8,941			8,796
Machinery and equipment, including fleet and software	5 - 15	27,715			27,018
Construction in progress		2,430			2,144
		40,164			39,106
Accumulated depreciation		(22,575		)	(21,866		)
		$	17,589		$	17,240
Depreciation expense		$	2,241		$	2,227		$	2,217

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:



		2018							2017							2016
Amortizable intangible assets, net	Average Useful Life (Years)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Acquired franchise rights	56 – 60	$	838	$	(140	)	$	698	$	858	$	(128	)	$	730
Reacquired franchise rights	5 – 14	106		(105		)	1		106		(104		)	2
Brands	20 – 40	1,306		(1,032		)	274		1,322		(1,026		)	296
Other identifiable intangibles ^(a)	10 – 24	959		(288		)	671		521		(281		)	240
		$	3,209	$	(1,565	)	$	1,644	$	2,807	$	(1,539	)	$	1,268
Amortization expense							$	69						$	68	$	70


(a)	The change in 2018 is primarily related to our acquisition of SodaStream.

Amortization of intangible assets for each of the next five years, based on existing intangible assets as of December 29, 2018 and using average 2018 foreign exchange rates, is expected to be as follows:



	2019		2020		2021		2022		2023
Five-year projected amortization	$	89	$	89	$	87	$	85	$	83

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.

Indefinite-Lived Intangible Assets

We did not recognize any impairment charges for goodwill in each of the fiscal years ended December 29, 2018, December 30, 2017 and December 31, 2016. We recognized no material impairment charges for indefinite-lived intangible assets in each of the fiscal years ended December 29, 2018, December 30, 2017 and December 31, 2016. As of December 29, 2018, 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 were no material impairments for the year ended December 29, 2018. 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, if there are significant changes in the decisions regarding assets that do not perform consistent with our expectations, 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 indefinite-lived intangible assets, see Note 2.

The change in the book value of indefinite-lived intangible assets is as follows:



	Balance, Beginning 2017		Translation and Other			Balance, End of 2017		Acquisitions/ (Divestitures)			Translation and Other			Balance, End of 2018
FLNA
Goodwill	$	270	$	10		$	280	$	28		$	(11	)	$	297
Brands	23		2			25		138			(2		)	161
	293		12			305		166			(13		)	458
QFNA
Goodwill	175		—			175		9			—			184
Brands	—		—			—		25			—			25
	175		—			175		34			—			209
NAB ^(a)
Goodwill	9,843		11			9,854		—			(41		)	9,813
Reacquired franchise rights	7,064		62			7,126		—			(68		)	7,058
Acquired franchise rights	1,512		13			1,525		—			(15		)	1,510
Brands	314		39			353		—			—			353
	18,733		125			18,858		—			(124		)	18,734
Latin America
Goodwill	553		2			555		—			(46		)	509
Brands	150		(9		)	141		—			(14		)	127
	703		(7		)	696		—			(60		)	636
ESSA ^(b)
Goodwill	3,177		275			3,452		526			(367		)	3,611
Reacquired franchise rights	488		61			549		(1		)	(51		)	497
Acquired franchise rights	184		11			195		(25		)	(9		)	161
Brands	2,358		187			2,545		1,993			(350		)	4,188
	6,207		534			6,741		2,493			(777		)	8,457
AMENA
Goodwill	412		16			428		—			(34		)	394
Brands	103		8			111		—			(10		)	101
	515		24			539		—			(44		)	495

Total goodwill	14,430		314			14,744		563			(499		)	14,808
Total reacquired franchise rights	7,552		123			7,675		(1		)	(119		)	7,555
Total acquired franchise rights	1,696		24			1,720		(25		)	(24		)	1,671
Total brands	2,948		227			3,175		2,156			(376		)	4,955
	$	26,626	$	688		$	27,314	$	2,693		$	(1,018	)	$	28,989


(a)	The change in translation and other in 2018 primarily reflects the depreciation of the Canadian dollar.

(b)

The change in acquisitions/(divestitures) in 2018 is primarily related to the preliminary allocation of the purchase price for our acquisition of SodaStream. See Note 14 for further information. The change in translation and other in 2018 primarily reflects the depreciation of the Russian ruble, euro and Pound sterling. The change in translation and other in 2017 primarily reflects the appreciation of the Russian ruble and euro.