Travel + Leisure Co. 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, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets consisted of (in millions):


	As of December 31, 2022						As of December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Unamortized Intangible Assets:
Goodwill	$	955					$	961
Trademarks (a)	$	144					$	146
Amortized Intangible Assets:
Customer lists (b)	$	75	$	37	$	38	$	75	$	31	$	44
Management agreements (c)	50		35		15		52		34		18
Trademarks (d)	9		6		3		8		5		3
Other (e)	8		1		7		8		—		8
	$	142	$	79	$	63	$	143	$	70	$	73

(a)Comprised of trademarks and trade names the Company has acquired that are expected to generate future cash flows for an indefinite period of time. During 2022, the Company recorded a $2 million trade name impairment at the Travel and Membership segment.

(b)Amortized between 4 to 15 years with a weighted average life of 12 years.

(c)Amortized between 5 to 25 years with a weighted average life of 17 years.

(d)Amortized between 7 to 8 years with a weighted average life of 8 years.

(e)Includes business contracts, which are amortized between 10 to 69 years with a weighted average life of 58 years.

Goodwill

During the fourth quarters of 2022, 2021, and 2020, the Company performed its annual goodwill impairment test and determined no impairment existed as the fair value of goodwill at its reporting units was in excess of the carrying value.

The changes in the carrying amount of goodwill are as follows (in millions):


	Balance as of December 31, 2021		Goodwill Acquired During 2022		Foreign Exchange		Balance as of December 31, 2022
Travel and Membership	$	934	$	1	$	(7)	$	928
Vacation Ownership	27		—		—		27
Total Company	$	961	$	1	$	(7)	$	955

Amortizable Intangible Assets

Amortization expense relating to amortizable intangible assets is included as a component of Depreciation and amortization on the Consolidated Statements of Income/(Loss) and was as follows (in millions):


	Year Ended December 31,
	2022		2021		2020
Customer lists	$	6	$	6	$	6
Management agreements	1		3		3
Other	2		—		1
Total	$	9	$	9	$	10

Based on the Company’s amortizable intangible assets as of December 31, 2022, the Company expects related amortization expense for the next five years as follows (in millions):


	Amount
2023	$	9
2024	8
2025	8
2026	8
2027	7