Note 4 — Property, Plant and Equipment and Intangible Assets


	Average Useful Life	2011			2010			2009
*Property, plant and equipment, net*
Land and improvements	10 – 34 yrs.	$	1,951		$	1,976
Buildings and improvements	15 – 44		7,565			7,054
Machinery and equipment, including fleet and software	5 – 15		23,798			22,091
Construction in progress			1,826			1,920

			35,140			33,041
Accumulated depreciation			(15,442	)		(13,983	)

		$	19,698		$	19,058

Depreciation expense		$	2,476		$	2,124		$	1,500

*Amortizable intangible assets, net*
Acquired franchise rights	56 – 60	$	916		$	949
Reacquired franchise rights	1 – 14		110			110
Brands	5 – 40		1,417			1,463
Other identifiable intangibles	10 – 24		777			747

			3,220			3,269
Accumulated amortization			(1,332	)		(1,244	)

		$	1,888		$	2,025

Amortization expense		$	133		$	117		$	63

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. Amortization of intangible assets for each of the next five years, based on existing intangible assets as of December 31, 2011 and using average 2011 foreign exchange rates, is expected to be $122 million in 2012, $113 million in 2013, $98 million in 2014, $89 million in 2015 and $81 million in 2016.

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

Perpetual brands and goodwill are assessed for impairment at least annually. If the carrying amount of a perpetual brand exceeds its fair value, as determined by its discounted cash flows, an impairment loss is recognized in an amount equal to that excess. We did not recognize any impairment charges for goodwill in the years presented. In connection with the merger and integration of WBD in 2011, we recorded a $14 million impairment charge for discontinued brands. We did not recognize any impairment charges for other nonamortizable intangible assets in 2010.

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


	Balance, Beginning 2010		Acquisitions		Translation and Other			Balance, End of 2010		Acquisitions/ (Divestitures)			Translation and Other			Balance, End of 2011
*FLNA*
Goodwill	$	306	$	—	$	7		$	313	$	—		$	(2	)	$	311
Brands		30		—		1			31		—			(1	)		30

		336		—		8			344		—			(3	)		341

*QFNA*
Goodwill		175		—		—			175		—			—			175

*LAF*
Goodwill		479		—		18			497		331			(35	)		793
Brands		136		—		7			143		20			(6	)		157

		615		—		25			640		351			(41	)		950

*PAB* ^(a)
Goodwill		2,431		7,476		39			9,946		(27	)		13			9,932
Reacquired franchise rights		—		7,229		54			7,283		77			(18	)		7,342
Acquired franchise rights		—		660		905	^(b)		1,565		(1	)		(2	)		1,562
Brands		112		66		4			182		(20	)		6			168
Other		—		10		—			10		(9	)		(1	)		—

		2,543		15,441		1,002			18,986		20			(2	)		19,004

**Europe^(a)(c)**
Goodwill		2,625		583		(168	)		3,040		2,131			(271	)		4,900
Reacquired franchise rights		—		810		(17	)		793		—			(61	)		732
Acquired franchise rights		—		232		(5	)		227		—			(9	)		218
Brands		1,378		88		(86	)		1,380		3,114			(316	)		4,178

		4,003		1,713		(276	)		5,440		5,245			(657	)		10,028

*AMEA*
Goodwill		518		116		56			690		—			(1	)		689
Brands		126		26		17			169		—			1			170

		644		142		73			859		—			—			859


Total goodwill		6,534		8,175		(48	)		14,661		2,435			(296	)		16,800
Total reacquired franchise rights		—		8,039		37			8,076		77			(79	)		8,074
Total acquired franchise rights		—		892		900			1,792		(1	)		(11	)		1,780
Total brands		1,782		180		(57	)		1,905		3,114			(316	)		4,703
Total other		—		10		—			10		(9	)		(1	)		—

	$	8,316	$	17,296	$	832		$	26,444	$	5,616		$	(703	)	$	31,357

(a)	Net increases in 2010 relate primarily to our acquisitions of PBG and PAS.

(b)	Includes $900 million related to our upfront payment to DPSG to manufacture and distribute Dr Pepper and certain other DPSG products.

(c)	Net increases in 2011 relate primarily to our acquisition of WBD.