Intangible Assets

3 Months Ended

Mar. 19, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

During the 12 weeks ended March 19, 2022, we discontinued or repositioned certain juice and dairy brands in Russia in our Europe division. As a result, we recognized pre-tax impairment charges (Brand Portfolio Impairment Charges) of $241 million ($193 million after-tax or $0.14 per share) in selling, general and administrative expenses, primarily related to indefinite-lived intangible assets. In light of the current political and economic environment, we will continue to review and analyze our brand portfolio worldwide.

For further information on our policies for indefinite-lived intangible assets, refer to Note 2 to our consolidated financial statements in our 2021 Form 10-K.

A summary of our amortizable intangible assets is as follows:


	3/19/2022						12/25/2021
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Acquired franchise rights (a)	$	975	$	(189)	$	786	$	976	$	(187)	$	789
Customer relationships	608		(222)		386		623		(227)		396
Brands	1,120		(984)		136		1,151		(989)		162
Other identifiable intangibles	450		(261)		189		451		(260)		191
Total	$	3,153	$	(1,656)	$	1,497	$	3,201	$	(1,663)	$	1,538

(a)Acquired franchise rights includes our distribution agreement with Vital Pharmaceuticals, Inc., with an expected residual value higher than our carrying value. In the fourth quarter of 2020, we received notice of termination without cause, which would end our distribution rights, effective in the fourth quarter of 2023. The distribution agreement’s useful life is three years, in accordance with the three-year termination notice issued.

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


	Balance 12/25/2021		Translation and Other		Balance 3/19/2022

FLNA
Goodwill	$	458	$	2	$	460
Brands	340		—		340
Total	798		2		800
QFNA
Goodwill	189		—		189
Total	189		—		189
PBNA
Goodwill	11,974		6		11,980
Reacquired franchise rights	7,107		13		7,120
Acquired franchise rights	1,538		2		1,540
Brands	2,508		—		2,508
Total	23,127		21		23,148
LatAm
Goodwill	433		15		448
Brands	100		5		105
Total	533		20		553
Europe (a)
Goodwill	3,700		(308)		3,392
Reacquired franchise rights	441		(36)		405
Acquired franchise rights	158		(2)		156
Brands	4,254		(513)		3,741
Total	8,553		(859)		7,694
AMESA
Goodwill	1,063		16		1,079
Brands	205		6		211
Total	1,268		22		1,290
APAC
Goodwill	564		—		564
Brands	476		1		477
Total	1,040		1		1,041

Total goodwill	18,381		(269)		18,112
Total reacquired franchise rights	7,548		(23)		7,525
Total acquired franchise rights	1,696		—		1,696
Total brands	7,883		(501)		7,382
Total	$	35,508	$	(793)	$	34,715

(a)The change in translation and other primarily represents the depreciation of the Russian ruble and the Brand Portfolio Impairment Charges.