Financial Information
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PART II
Item 8. Financial Statements and Supplementary Data.
MARRIOTT INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 11. INTANGIBLE ASSETS AND GOODWILL
The following table details the composition of our intangible assets at year-end 2020 and 2019:
We capitalize direct costs that we incur to obtain management, franchise, and license agreements. We amortize these costs on a straight-line basis over the initial term of the agreements, ranging from 15 to 30 years. In 2020, we recorded impairment charges totaling $64 million in the “Contract investment amortization” caption of our Income Statements to reduce the carrying amount of certain capitalized costs incurred to obtain contracts with customers, primarily due to the impact of COVID-19, most of which we recorded in our U.S. & Canada business segment.
For acquired definite-lived intangible assets, we recorded amortization expense of $97 million in 2020, $105 million in 2019, and $111 million in 2018 in the “Depreciation, amortization, and other” caption of our Income Statements. For these assets, we estimate that our aggregate amortization expense will be $95 million for each of the next five fiscal years.
The following table details the carrying amount of our goodwill at year-end 2020 and 2019:
