Note 4. Intangible Assets Intangible Assets (Notes)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

INTANGIBLE ASSETS

Goodwill by segment and changes in the carrying amount are as follows:



	Real Estate Franchise Services			Company Owned Brokerage Services			Relocation Services			Title and Settlement Services			Total Company
Balance at January 1, 2014	$	2,241		$	661		$	360		$	73		$	3,335
Goodwill acquired	51			86			—			5			142
Balance at December 31, 2014	2,292			747			360			78			3,477
Goodwill acquired	—			94			—			47			141
Balance at December 31, 2015	2,292			841			360			125			3,618
Goodwill acquired	—			52			—			20			72
Balance at December 31, 2016	$	2,292		$	893		$	360		$	145		$	3,690
Goodwill and accumulated impairment summary
Gross goodwill	$	3,315		$	1,051		$	641		$	469		$	5,476
Accumulated impairment losses (a)	(1,023		)	(158		)	(281		)	(324		)	(1,786		)
Balance at December 31, 2016	$	2,292		$	893		$	360		$	145		$	3,690

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(a)	During the fourth quarter of 2008 and 2007 the Company recorded impairment charges, which reduced goodwill by $1,279 million and $507 million, respectively. No goodwill or unamortized intangible asset impairments have been recorded since 2008.

Intangible assets are as follows:



	As of December 31, 2016						As of December 31, 2015
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortizable—Franchise agreements (a)	$	2,019	$	658	$	1,361	$	2,019	$	591	$	1,428
Unamortizable—Trademarks (b)	$	748			$	748	$	745			$	745
Other Intangibles
Amortizable—License agreements (c)	$	45	$	9	$	36	$	45	$	8	$	37
Amortizable—Customer relationships (d)	550		312		238		530		284		246
Unamortizable—Title plant shares (e)	18				18		11				11
Amortizable—Pendings and listings (f)	6		5		1		3		1		2
Amortizable—Other (g)	33		13		20		31		11		20
Total Other Intangibles	$	652	$	339	$	313	$	620	$	304	$	316

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(a)	Generally amortized over a period of 30 years.


(b)	Primarily relates to the Century 21^®, Coldwell Banker^®, ERA^®, Corcoran^®, Coldwell Banker Commercial^® and Cartus tradenames, which are expected to generate future cash flows for an indefinite period of time.


(c)	Relates to the Sotheby’s International Realty^® and Better Homes and Gardens^® Real Estate agreements which are being amortized over 50 years (the contractual term of the license agreements).


(d)	Relates to the customer relationships at the Relocation Services segment, the Title and Settlement Services segment, the Real Estate Franchise Services segment and our Company Owned Real Estate Services segment. These relationships are being amortized over a period of 2 to 20 years.


(e)	Ownership in a title plant is required to transact title insurance in certain states. The Company expects to generate future cash flows for an indefinite period of time.


(f)	Generally amortized over a period of 5 months.


(g)	Consists of covenants not to compete which are amortized over their contract lives and other intangibles which are generally amortized over periods ranging from 5 to 10 years.

Intangible asset amortization expense is as follows:



	For the Year Ended December 31,
	2016		2015		2014
Franchise agreements	$	67	$	67	$	67
License agreements	1		1		1
Customer relationships	28		28		37
Pendings and listings	12		16		8
Other	5		5		3
Total	$	113	$	117	$	116

Based on the Company’s amortizable intangible assets as of December 31, 2016, the Company expects related amortization expense to be approximately $99 million, $97 million, $96 million, $94 million, $92 million and $1,178 million in 2017, 2018, 2019, 2020, 2021 and thereafter, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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