Annual report pursuant to Section 13 and 15(d)

Intangible Assets (Tables)

v3.22.0.1
Intangible Assets (Tables)
 3 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]    
Schedule of Intangible Assets and Goodwill  
Intangible assets as of December 31, 2021 and December 31, 2020 consisted of the following:
December 31, 2021 December 31, 2020
Gross
Carrying
Amount
Accumulated
Impairment
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Impairment
Net
Carrying
Amount
Goodwill $ 1,539  $ 14  $ 1,525  $ 1,539  $ 14  $ 1,525 
December 31, 2021 December 31, 2020
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Unamortized intangible assets:
Trademarks
 $ 1,201  $ 1,202 
Amortized intangible assets:
Franchise agreements $ 895  $ 513  $ 382  $ 895  $ 487  $ 408 
Management agreements 135  44  91  136  33  103 
Trademarks 2  1  1  2  1  1 
Other
 1  1  —  1  —  1 
$ 1,033  $ 559  $ 474  $ 1,034  $ 521  $ 513 
Change in Goodwill  
The changes in the carrying amount of goodwill are as follows:
Balance as of January 1, 2020
2020 Adjustments to Goodwill (a)
Balance as of December 31, 2021
Hotel Franchising $ 1,441  $ —  $ 1,441 
Hotel Management 98  (14) 84 
Total $ 1,539  $ (14) $ 1,525 
______________________
(a)    Includes $14 million related to an impairment charge associated with the Company’s owned hotel reporting unit.
Amortization Expense of Amortizable Intangible Assets  
Amortization expense relating to amortizable intangible assets was as follows for the years ended December 31:
2021 2020 2019
Franchise agreements
 $ 27  $ 27  $ 27 
Management agreements
 11  10  10 
Other
 —  —  1 
Total (a)
$ 38  $ 37  $ 38 
______________________
(a)    Included as a component of depreciation and amortization on the Consolidated Statements of Income/(Loss).
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]  
Based on the Company’s amortizable intangible assets as of December 31, 2021, the Company expects related amortization expense as follows:
Amount
2022 $ 32 
2023 27 
2024 26 
2025 26 
2026 25 
Schedule of Impaired Intangible Assets
The following is the breakout of the intangible impairment charges recorded in the second quarter of 2020:
Intangible Asset Book Value Impairment Charges Adjusted Fair Value
Owned hotel reporting unit goodwill $ 14  $ (14) $ — 
La Quinta trademark 710  (155) 555 
Other trademarks (a)
103  (36) 67 
Total $ 827  $ (205) $ 622 
_____________________
(a)    Represents the impairments of three of the Company’s trademarks.