Wyndham Hotels & Resorts, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

Intangible Assets

6 Months Ended

Jun. 30, 2022


7. INTANGIBLE ASSETS

Intangible assets as of June 30, 2022 and December 31, 2021 consisted of the following:


	June 30, 2022						December 31, 2021
	Gross Carrying Amount (a)						Gross Carrying Amount		Accumulated Impairment		Net Carrying Amount
Goodwill	$	1,525					$	1,539	$	14	$	1,525

	June 30, 2022						December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Unamortized intangible assets:
Trademarks					$	1,201					$	1,201

Amortized intangible assets:
Franchise agreements	$	895	$	526	$	369	$	895	$	513	$	382
Management agreements	16		15		1		135		44		91
Trademarks	2		1		1		2		1		1
Other	—		—		—		1		1		—
	$	913	$	542	$	371	$	1,033	$	559	$	474

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(a) Due to the sale of its two owned hotels in 2022, the Company derecognized $14 million from its gross carrying value and accumulated impairment goodwill balances.

In March 2022, the Company completed the exit of its select-service hotel management business and received an $84 million termination fee, under the terms of the agreement with CorePoint Lodging (“CPLG”) which effectively resulted in the sale of the rights to the management contracts which were acquired as part of the La Quinta Holdings purchase in 2018. The termination fee proceeds were completely offset by the write-off of the remaining balance resulting in a full recovery of the

related hotel management contract intangible asset. Such proceeds were reported in proceeds from asset sales, net on the Condensed Consolidated Statement of Cash Flows. The franchise agreements for these hotels remained in place at their stated fee structure.