Coca Cola 2007 Annual Report Download - page 88
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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 6: GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS (Continued)
Total amortization expense for intangible assets subject to amortization was approximately $33 million,
$18 million and $29 million for the years ended December 31, 2007, 2006 and 2005, respectively.
Information about estimated amortization expense for intangible assets subject to amortization for the five years
succeeding December 31, 2007, is as follows (in millions):
Amortization
Expense
2008 $52
2009 48
2010 47
2011 44
2012 40
Goodwill by operating segment was as follows (in millions):
December 31, 2007 2006
Africa $—$—
Eurasia 36 14
European Union 780 696
Latin America 207 119
North America 2,412 141
Pacific 30 29
Bottling Investments 791 404
$ 4,256 $ 1,403
In 2006, our Company recorded impairment charges of approximately $41 million primarily related to trademarks
for beverages sold in the Philippines and Indonesia. The Philippines and Indonesia are components of our Pacific
operating segment. The amount of these impairment charges was determined by comparing the fair values of the
intangible assets to their respective carrying values. The fair values were determined using discounted cash flow
analyses. Because the fair values were less than the carrying values of the assets, we recorded impairment charges to
reduce the carrying values of the assets to their respective fair values. These impairment charges were recorded in the
line item other operating charges in the consolidated statement of income. Refer to Note 19.
In 2005, our Company recorded an impairment charge related to trademarks for beverages sold in the Philippines
of approximately $84 million. The carrying value of our trademarks in the Philippines, prior to the recording of the
impairment charges in 2005, was approximately $268 million. The impairment was the result of our revised outlook for
the Philippines, which had been unfavorably impacted by declines in volume and income before income taxes resulting
from the continued lack of an affordable package offering and the continued limited availability of these trademark
beverages in the marketplace. We determined the amount of this impairment charge by comparing the fair value of the
intangible assets to the carrying value. Fair values were derived using discounted cash flow analyses with a number of
scenarios that were weighted based on the probability of different outcomes. Because the fair value was less than the
carrying value of the assets, we recorded an impairment charge to reduce the carrying value of the assets to fair value.
This impairment charge was recorded in the line item other operating charges in the consolidated statement of income.
Refer to Note 19.
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