GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets [Text Block]

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill, intangible assets subject to amortization, consisting primarily of customer relationships, and indefinite-lived intangible assets, consisting of brands and distribution agreements, are presented in the following tables:

Carrying amount of goodwill

(millions)	North America		Europe		Latin America		AMEA		Consolidated
January 2, 2021	$	4,423	$	367	$	180	$	829	$	5,799
Acquisition	—		—		—		33		33
Currency translation adjustment	—		(17)		(9)		(35)		(61)
January 1, 2022	$	4,423	$	350	$	171	$	827	$	5,771
Currency translation adjustment	(3)		(22)		6		(66)		(85)
December 31, 2022	$	4,420	$	328	$	177	$	761	$	5,686

Other intangible assets

	2022						2021
(millions)	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Intangibles subject to amortization (a)	$	489	$	(162)	$	327	$	521	$	(143)	$	378
Intangibles not subject to amortization	$	1,969	$	—	$	1,969	$	2,031	$	—	$	2,031

(a) The currently estimated aggregate amortization expense for each of the next five succeeding fiscal periods is approximately $25 million per year through 2027.

The change in intangible asset values presented in the table above include the impact of foreign currency translation adjustments.

Annual impairment testing

At December 31, 2022, goodwill and other intangible assets amounted to $8.0 billion, consisting primarily of goodwill and brands. Within this total, approximately $2.0 billion of non-goodwill intangible assets were classified as indefinite-lived, including $1.7 billion related to trademarks, comprised principally of Pringles and cracker-related trademarks. The majority of all goodwill and other intangible assets are recorded in our North America reporting unit. The Company currently believes the fair value of goodwill and other significant intangible assets exceeds their carrying value and that those intangibles so classified will contribute indefinitely to cash flows. The Company's impairment testing performed through the fourth quarter of 2022 consisted of qualitative testing for all reporting unit goodwill and all significant indefinite-lived intangible assets, except for one brand, for which quantitative testing was performed. No heightened risk or qualitative indicators of impairment of any significant individual intangible assets or reporting units was identified.

The Company has $184 million at December 31, 2022 related to one brand in the North America operating segment that primarily relates to snack category products. In performing the quantitative test of this brand, fair value was determined using a relief from royalty valuation method that includes estimates, and significant assumptions, of future cash flows to be generated from that asset based on estimates of future sales, royalty rate and discount rate consistent with rates used by market participants. The Company determined the fair value of this brand exceeds its carrying value and no heightened risk of impairment exists for the asset.