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

Annual report pursuant to Section 13 and 15(d)

Intangible Assets

Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]


8. INTANGIBLE ASSETS

Intangible assets consisted of the following:


	December 31, 2023						December 31, 2022
	Gross Carrying Amount						Gross Carrying Amount
Goodwill	$	1,525					$	1,525

	December 31, 2023						December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Unamortized intangible assets:
Trademarks					$	1,232					$	1,231

Amortized intangible assets:
Franchise agreements	$	913	$	567	$	346	$	913	$	541	$	372
Management agreements	1		1		—		15		14		1
Trademarks	—		—		—		1		—		1
Other	1		—		1		1		—		1
	$	915	$	568	$	347	$	930	$	555	$	375

The changes in the carrying amount of goodwill by reporting unit are as follows:


	Balance as of December 31, 2021		Adjustments to Goodwill		Balance as of December 31, 2023
Hotel Franchising	$	1,441	$	—	$	1,441
Hotel Management	84		—		84
Total	$	1,525	$	—	$	1,525

Amortization expense relating to amortizable intangible assets was as follows for the years ended December 31:


	2023		2022		2021
Franchise agreements	$	26	$	26	$	27
Management agreements	1		5		11


Total (a)	$	27	$	31	$	38

______________________

(a) Included as a component of depreciation and amortization on the Consolidated Statements of Income.

Based on the Company’s amortizable intangible assets as of December 31, 2023, the Company expects related amortization expense as follows:


	Amount
2024	$	27
2025	27
2026	26
2027	26
2028	25

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 Consolidated Statement of Cash Flows. The franchise agreements for these hotels remained in place at their stated fee structure.