Coca Cola 2004 Annual Report Download - page 83

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Coca-Cola Company and Subsidiaries
NOTE 4: GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS (Continued)
macroeconomic conditions and devaluation of the Argentine peso significantly impacted the valuation of
bottlers’ franchise rights.
The following tables set forth the information for intangible assets subject to amortization and for
intangible assets not subject to amortization (in millions):
December 31, 2004 2003
Amortized intangible assets (various, principally trademarks):
Gross carrying amount $ 292 $ 263
Accumulated amortization $ 128 $98
Unamortized intangible assets:
Trademarks $ 2,037 $ 1,979
Goodwill11,097 1,029
Bottlers’ franchise rights2374 658
Other 164 158
$ 3,672 $ 3,824
1During 2004, the increase in goodwill primarily resulted from translation adjustments.
2During 2004, the decrease in franchise rights primarily related to the impairment charge of $354
million related to CCEAG’s franchise rights (see discussion below).
Year Ended December 31, 2004 2003
Aggregate amortization expense $40 $23
Estimated amortization expense:
For the year ending:
December 31, 2005 $ 28
December 31, 2006 $ 16
December 31, 2007 $ 16
December 31, 2008 $ 16
December 31, 2009 $ 15
The goodwill by applicable operating segment as of December 31, 2004 was as follows (in millions):
December 31, 2004 2003
North America $ 140 $ 142
Asia 37 45
Europe, Eurasia and Middle East 828 742
Latin America 92 100
$ 1,097 $ 1,029
In 2004, acquisition of intangible assets totaled approximately $89 million. This amount is primarily related
to the Company’s acquisition of trademarks with indefinite lives in the Latin America operating segment.
In 2004, our Company recorded impairment charges related to intangible assets of approximately
$374 million. The decrease in franchise rights in 2004 was primarily due to this impairment charge, offset by an
increase due to translation adjustment. These impairment charges primarily were in the Europe, Eurasia and
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