Annual report pursuant to Section 13 and 15(d)

Intangible Assets (Tables)

v3.22.4
Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets and Goodwill
Intangible assets consisted of the following:
December 31, 2022 December 31, 2021
Gross
Carrying
Amount (a)
Gross
Carrying
Amount
Accumulated
Impairment
Net
Carrying
Amount
Goodwill $ 1,525  $ 1,539  $ 14  $ 1,525 
December 31, 2022 December 31, 2021
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Unamortized intangible assets:
Trademarks
 $ 1,231  $ 1,201 
Amortized intangible assets:
Franchise agreements $ 913  $ 541  $ 372  $ 895  $ 513  $ 382 
Management agreements 15  14  1  135  44  91 
Trademarks 1  —  1  2  1  1 
Other
 1  —  1  1  1  — 
$ 930  $ 555  $ 375  $ 1,033  $ 559  $ 474 
______________________
(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.
Change in Goodwill
The changes in the carrying amount of goodwill are as follows:
Balance as of January 1, 2021 2022 and 2021 Adjustments to Goodwill Balance as of December 31, 2022
Hotel Franchising $ 1,441  $ —  $ 1,441 
Hotel Management 84  —  84 
Total $ 1,525  $ —  $ 1,525 
Amortization Expense of Amortizable Intangible Assets
Amortization expense relating to amortizable intangible assets was as follows for the years ended December 31:
2022 2021 2020
Franchise agreements
 $ 26  $ 27  $ 27 
Management agreements
 5  11  10 
Total (a)
$ 31  $ 38  $ 37 
______________________
(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
Based on the Company’s amortizable intangible assets as of December 31, 2022, the Company expects related amortization expense as follows:
Amount
2023 $ 28 
2024 27 
2025 27 
2026 26 
2027 26 
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