truth, we should be going back a lot longer, but data
limitations get in the way.)
Weassumethat50%ofthesellingandadvertisingexpenses
eachyearareassociatedwithbuildingupbrandname,with
thebalance used to generaterevenues in that year.In the
second-to-lastcolumn,wecomputetheamortizationthisyear
of the prior year’s expenditure, using straight-line
amortizationover 25 years.Inthelastcolumn,wekeeptrack
oftheunamortizedportionoftheprioryear’sexpenditures.
Thecumulatedvalueofthiscolumn($26.15billion)canbe
considered the value of the brand name.
There are potential refinements that will improve this
estimate.Oneisto usealongeramortizablelifeandto go
backfurtherintimetoobtainadvertisingexpenses.Theother