Intangible Assets
Finite-lived intangible assets were as follows:

December 31, 2025
Gross Carrying ValueAccumulated AmortizationNet Carrying Value
(in millions)
Management and franchise contracts:
Contract acquisition costs
$1,564 $(334)$1,230 
Other(1)
300 (59)241 
$1,864 $(393)$1,471 
Other intangible assets:
Capitalized software costs$859 $(667)$192 
Leases(2)
67 (53)14 
$926 $(720)$206 

December 31, 2024
Gross Carrying ValueAccumulated AmortizationNet Carrying Value
(in millions)
Management and franchise contracts:
Contract acquisition costs
$1,289 $(289)$1,000 
Other(1)
281 (46)235 
$1,570 $(335)$1,235 
Other intangible assets:
Capitalized software costs$754 $(590)$164 
Leases(2)
88 (58)30 
$842 $(648)$194 
____________
(1)Includes development commissions, other intangible assets and management and franchise contract intangible assets acquired from third parties.
(2)Represents intangible assets that were initially recorded at fair value at the time of the Merger.
Amortization of our finite-lived intangible assets was as follows:

Year Ended December 31,
202520242023
(in millions)
Recognized in depreciation and amortization expenses(1)
$114 $91 $104 
Recognized as a reduction of franchise and licensing fees and base and other management fees
57 50 43 
____________
(1)Includes amortization expense of $5 million, $5 million and $37 million for the years ended December 31, 2025, 2024 and 2023, respectively, associated with assets that were initially recorded at fair value at the time of the Merger, some of which fully amortized during the year ended December 31, 2023.

As of December 31, 2025, we estimate future amortization expense of our finite-lived intangible assets that will be recognized in depreciation and amortization expenses to be as follows:

Year(in millions)
2026$113 
202785 
202846 
202917 
203016 
Thereafter170 
$447 

Historical Timeline

Fiscal YearFiled
2025Feb 11, 2026Showing above
2024Feb 6, 2025
2023Feb 7, 2024
2022Feb 9, 2023
2021Feb 16, 2022
2020Feb 17, 2021
2019Feb 11, 2020
2018Feb 13, 2019
2017Feb 14, 2018
2016Feb 15, 2017
2015Feb 26, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.