v2.4.0.6
Property, Plant and Equipment and Intangible Assets
 12 Months Ended
Dec. 29, 2012
Property, Plant And Equipment And Intangible Assets [Abstract]  
Property, Plant and Equipment and Intangible Assets
Property, Plant and Equipment and Intangible Assets
 

Average
Useful Life (Years)
 
2012

 
2011

 
2010

Property, plant and equipment, net

 

 

 

Land and improvements
10 – 34
 
$
1,890

 
$
1,951

 

Buildings and improvements
15 – 44     
 
7,792

 
7,565

 

Machinery and equipment, including fleet and software
5 – 15
 
24,743

 
23,798

 

Construction in progress

 
1,737

 
1,826

 



 
36,162

 
35,140

 

Accumulated depreciation

 
(17,026
)
 
(15,442
)
 



 
$
19,136

 
$
19,698

 

Depreciation expense

 
$
2,489

 
$
2,476

 
$
2,124



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.


 

2012

2011
 
2010
Amortizable intangible assets, net
Average
Useful Life (Years)

Gross

Accumulated
Amortization

Net

Gross

Accumulated
Amortization

Net
 

Acquired franchise rights
56 – 60      

$
931


$
(67
)

$
864


$
916


$
(42
)

$
874

 

Reacquired franchise rights
1 – 14    

110


(68
)

42


110


(47
)

63

 

Brands
5 – 40  

1,422


(980
)

442


1,417


(945
)

472

 

Other identifiable intangibles
10 – 24     

736


(303
)

433


777


(298
)

479

 




$
3,199


$
(1,418
)

$
1,781


$
3,220


$
(1,332
)

$
1,888

 

Amortization expense






$
119






$
133

 
$
117


Amortization of intangible assets for each of the next five years, based on existing intangible assets as of December 29, 2012 and using average 2012 foreign exchange rates, is expected to be as follows:
 
 
2013


2014


2015


2016


2017

Five-year projected amortization
 
$
110

 
$
95

 
$
86

 
$
78

 
$
72


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. We recorded impairment charges on certain brands in Europe of $23 million and $14 million in 2012 and 2011, respectively. The change in the book value of nonamortizable intangible assets is as follows:
 

Balance,
Beginning
2011
 
Acquisitions/(Divestitures)
 
Translation
and Other
 
Balance,
End of
2011
 
Acquisitions/
(Divestitures)
 
Translation
and Other
 
Balance,
End of
2012
FLNA

 

 

 

 

 

 

Goodwill
$
313

 
$
—

 
$
(2
)
 
$
311

 
$
—

 
$
5

 
$
316

Brands
31

 
—

 
(1
)
 
30

 
—

 
1

 
31


344

 
—

 
(3
)
 
341

 
—

 
6

 
347

QFNA

 

 

 

 

 

 

Goodwill
175

 
—

 
—

 
175

 
—

 
—

 
175

 
 
 
 
 
 
 
 
 
 
 
 
 
 
LAF

 

 

 

 

 

 

Goodwill
497

 
331

 
(35
)
 
793

 
(61
)
 
(16
)
 
716

Brands
143

 
20

 
(6
)
 
157

 
75

 
(9
)
 
223


640

 
351

 
(41
)
 
950

 
14

 
(25
)
 
939

PAB

 

 

 

 

 

 

Goodwill
9,946

 
(27
)
 
13

 
9,932

 
23

 
33

 
9,988

Reacquired franchise rights
7,283

 
77

 
(18
)
 
7,342

 
(33
)
 
28

 
7,337

Acquired franchise rights
1,565

 
(1
)
 
(2
)

1,562

 
9

 
2

 
1,573

Brands
182

 
(20
)
 
6

 
168

 
—

 
(15
)
 
153

Other
10

 
(9
)
 
(1
)
 
—

 
—

 
—

 
—


18,986

 
20

 
(2
)
 
19,004

 
(1
)
 
48

 
19,051

Europe (a)

 

 

 

 

 

 

Goodwill
3,040

 
2,131

 
(271
)
 
4,900

 
78

 
236

 
5,214

Reacquired franchise rights
793

 
—

 
(61
)
 
732

 
—

 
40

 
772

Acquired franchise rights
227

 
—

 
(9
)
 
218

 
—

 
5

 
223

Brands
1,380

 
3,114

 
(316
)
 
4,178

 
(96
)
 
202

 
4,284


5,440

 
5,245

 
(657
)
 
10,028

 
(18
)
 
483

 
10,493

AMEA

 

 

 

 

 

 

Goodwill
690

 
—

 
(1
)
 
689

 
(142
)
 
15

 
562

Brands
169

 
—

 
1

 
170

 
(24
)
 
2

 
148


859

 
—

 
—

 
859

 
(166
)
 
17

 
710

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total goodwill
14,661

 
2,435

 
(296
)
 
16,800

 
(102
)
 
273

 
16,971

Total reacquired franchise rights
8,076

 
77

 
(79
)
 
8,074

 
(33
)
 
68

 
8,109

Total acquired franchise rights
1,792

 
(1
)
 
(11
)
 
1,780

 
9

 
7

 
1,796

Total brands
1,905

 
3,114

 
(316
)
 
4,703

 
(45
)
 
181

 
4,839

Total other
10

 
(9
)
 
(1
)
 
—

 
—

 
—

 
—


$
26,444

 
$
5,616

 
$
(703
)
 
$
31,357

 
$
(171
)
 
$
529

 
$
31,715


(a)
Net increase in 2011 relates primarily to our acquisition of WBD.