Coca Cola 2003 Annual Report Download - page 73

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Coca-Cola Company and Subsidiaries
NOTE 4: GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS (Continued)
CCEAG. The $400 million impairment also included a $50 million charge for Middle East bottlers’ franchise
rights. In our Africa operating segment, a $63 million charge was recorded for the Company’s proportionate
share of impairments related to equity method investee bottlers’ franchise rights. These Middle East and Africa
bottlers had challenges as a result of political instability and the resulting economic instability in their respective
regions, which adversely impacted financial performance.
A $96 million impairment was recorded as of January 1, 2002 for the Company’s proportionate share
related to bottlers’ franchise rights of Latin America equity method investees. In southern Latin America, the
macroeconomic conditions and devaluation of the Argentine peso significantly impacted the valuation of
bottlers’ franchise rights.
In 2003, acquisitions of intangible assets totaled approximately $142 million. Of this amount, approximately
$88 million related to the Company’s acquisition of certain intangible assets with indefinite lives, primarily
trademarks and brands in various parts of the world. None of these trademarks and brands was considered
individually significant. Additionally, the Company acquired certain brands and related contractual rights from
Panamco valued at $54 million in the Latin America operating segment with an estimated useful life of 10 years.
As discussed in Note 18, in 2002 the Company acquired certain intangible assets in connection with the
business combinations of CCEAG, Cosmos Bottling Company (‘‘CBC’’) and CCDA Waters L.L.C. (‘‘CCDA’’).
Because such assets were assigned indefinite lives, no amortization was recorded.
The following table sets forth the information for intangible assets subject to amortization and for
intangible assets not subject to amortization (in millions):
December 31, 2003 2002
Amortized intangible assets (various, principally trademarks):
Gross carrying amount $ 263 $ 201
Accumulated amortization $98$80
Unamortized intangible assets:
Trademarks $ 1,979 $ 1,724
Goodwill11,029 876
Bottlers’ franchise rights 658 580
Other 158 157
$ 3,824 $ 3,337
1During 2003, the increase in goodwill primarily resulted from translation adjustments.
Year Ended December 31, 2003 2002
Aggregate amortization expense $23 $11
Estimated amortization expense (in millions):
For the year ending:
December 31, 2004 $ 20
December 31, 2005 $ 18
December 31, 2006 $ 16
December 31, 2007 $ 15
December 31, 2008 $ 14
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