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

9 Months Ended

Sep. 30, 2022


8. INTANGIBLE ASSETS

Intangible assets consisted of the following:


	September 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

	September 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					$	1,228					$	1,201

Amortized intangible assets:
Franchise agreements	$	912	$	533	$	379	$	895	$	513	$	382
Management agreements	15		14		1		135		44		91
Trademarks	2		1		1		2		1		1
Other	1		—		1		1		1		—
	$	930	$	548	$	382	$	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, which under the terms of the agreement with CorePoint Lodging (“CPLG”) effectively resulted in the sale of the rights to the management contracts that 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 of the related hotel management contract intangible asset and thus resulted in a full recovery of such asset. The 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.