Annual report pursuant to Section 13 and 15(d)

Intangible Assets (Tables)

v3.20.4
Intangible Assets (Tables)
 3 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]    
Schedule of Intangible Assets and Goodwill  
Intangible assets as of December 31, 2020 and December 31, 2019 consisted of the following:
December 31, 2020 December 31, 2019
Gross
Carrying
Amount
Accumulated
Impairment
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Impairment
Net
Carrying
Amount
Goodwill $ 1,539  $ 14  $ 1,525  $ 1,539  $ —  $ 1,539 
December 31, 2020 December 31, 2019
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Unamortized intangible assets:
Trademarks (a)
$ 1,202  $ 1,393 
Amortized intangible assets:
Franchise agreements (b)
$ 895  $ 487  $ 408  $ 895  $ 460  $ 435 
Management agreements (c)
136  33  103  137  23  114 
Trademarks (d)
2  1  1  3  1  2 
Other (e)
1  —  1  3  1  2 
$ 1,034  $ 521  $ 513  $ 1,038  $ 485  $ 553 
______________________
(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 3 to 8 years with a weighted average life of 6 years.
Change in Goodwill  
The changes in the carrying amount of goodwill are as follows:
Balance as of January 1, 2019
2019 Adjustments to Goodwill (a)
Balance as of December 31, 2019
2020 Adjustments to Goodwill (b)
Balance as of December 31, 2020
Hotel Franchising $ 1,449  $ (8) $ 1,441  $ —  $ 1,441 
Hotel Management 98  —  98  (14) 84 
Total $ 1,547  $ (8) $ 1,539  $ (14) $ 1,525 
______________________
(a)    Includes $8 million related to purchase price adjustments for the La Quinta acquisition in 2018.
(b)    Includes $14 million related to an impairment charge associated with the Company's owned hotel reporting unit.
Amortization Expense of Amortizable Intangible Assets  
Amortization expense relating to amortizable intangible assets was as follows for the years ended December 31:
2020 2019 2018
Franchise agreements
 $ 27  $ 27  $ 22 
Management agreements
 10  10  7 
Trademarks
 —  —  1 
Other
 —  1  1 
Total (a)
$ 37  $ 38  $ 31 
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(a)    Included as a component of depreciation and amortization on the Consolidated and Combined Statements of Income (Loss).
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]  
Based on Wyndham Hotels’ amortizable intangible assets as of December 31, 2020, the Company expects related amortization expense as follows:
Amount
2021 $ 37 
2022 35 
2023 35 
2024 34 
2025 34 
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 
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(a)    Represents the impairments of three of the Company's trademarks.