Park Hotels & Resorts Inc. Goodwill & Intangibles Disclosure
Note 6: Goodwill and Intangibles
Due to the effects of COVID-19, we assessed goodwill for impairment during the first quarter of 2020. We determined that the carrying value of our consolidated and unconsolidated hotel reporting units exceeded their respective estimated fair value. As a result, we fully impaired our remaining goodwill balance, recognizing an impairment loss of $607 million in the first quarter of 2020.
Intangible assets were:
|
|
December 31, |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
|
|
(in millions) |
|
|||||
Air rights contract |
|
|
45 |
|
|
|
45 |
|
Other |
|
|
7 |
|
|
|
8 |
|
Accumulated amortization |
|
|
(9 |
) |
|
|
(9 |
) |
|
|
$ |
43 |
|
|
$ |
44 |
|
As of December 31, 2022, we estimated our future amortization expense for our intangible assets to be:
Year |
|
(in millions) |
|
|
2023 |
|
$ |
1 |
|
2024 |
|
|
1 |
|
2025 |
|
|
1 |
|
2026 |
|
|
1 |
|
2027 |
|
|
1 |
|
Thereafter |
|
|
38 |
|
|
|
$ |
43 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2022 | Feb 23, 2023 | Showing above |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
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.