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

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

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

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(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:

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(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:

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(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: