Annual report pursuant to Section 13 and 15(d)

Intangible Assets

v3.19.3.a.u2
Intangible Assets
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
6. INTANGIBLE ASSETS

Intangible assets as of December 31, 2019 and December 31, 2018 consisted of the following:
 
December 31, 2019
 
December 31, 2018
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Unamortized intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$
1,539

 
 
 
 
 
$
1,547

 
 
 
 
Trademarks (a)
$
1,393

 
 
 
 
 
$
1,393

 
 
 
 
Amortized intangible assets:
 
 
 
 
 
 
 
 
 
 
 
Franchise agreements (b)
$
895

 
$
460

 
$
435

 
$
895

 
$
434

 
$
461

Management agreements (c)
137

 
23

 
114

 
140

 
13

 
127

Trademarks (d)
3

 
1

 
2

 
5

 
1

 
4

Other (e)
3

 
1

 
2

 
6

 
4

 
2

 
$
1,038

 
$
485

 
$
553

 
$
1,046

 
$
452

 
$
594


______________________
(a)
Comprised of various trademarks that the Company has acquired. These trademarks are expected to generate future cash flows for an indefinite period of time.
(b)
Amortized over a period ranging from 20 to 40 years with a weighted average life of 32 years.
(c)
Amortized over a period ranging from 7 to 20 with a weighted average life of 14 years.
(d)
Amortized over a period of 20 years.
(e)
Amortized over a period ranging from 1 to 8 years with a weighted average life of 5 years.
The changes in the carrying amount of goodwill are as follows:
 
Balance as of January 1, 2018
 
Goodwill Acquired During 2018
 
2018 Adjustments to Goodwill (a)
 
Balance as of December 31, 2018
 
2019 Adjustments to Goodwill (b)
 
Balance as of December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Hotel Franchising
$
385

 
$
1,067

 
$
(3
)
 
$
1,449

 
$
(8
)
 
$
1,441

Hotel Management
38

 
60

 

 
98

 

 
98

Total
$
423

 
$
1,127

 
$
(3
)

$
1,547

 
$
(8
)
 
$
1,539


______________________
(a)
Includes $2 million related to the sale of Knights Inn brand in May 2018.
(b)
Includes $8 million related to purchase price adjustments for the La Quinta acquisition in 2018.
Amortization expense relating to amortizable intangible assets was as follows for the years ended December 31:
 
2019
 
2018
 
2017
Franchise agreements
$
27

 
$
22

 
$
16

Management agreements
10

 
7

 
3

Trademarks

 
1

 
1

Other
1

 
1

 

Total (a)
$
38

 
$
31

 
$
20

______________________
(a)
Included as a component of depreciation and amortization on the Consolidated and Combined Statements of Income.
Based on Wyndham Hotels’ amortizable intangible assets as of December 31, 2019, the Company expects related amortization expense as follows:
 
Amount
2020
$
37

2021
37

2022
35

2023
35

2024
34