Goodwill and other intangible assets (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Goodwill and Other Intangible Assets


	Goodwill $m			Brands $m		Software $m			Management contracts $m			Other intangibles $m			Total $m
Cost
At 1 January 2016		371			193		498			465			263			1,790

Additions		—			—		127			—			53			180
Capitalised interest		—			—		4			—			—			4
Disposals		—			—		(45	)		—			(7	)		(52	)
Exchange and other adjustments		(1	)		—		(1	)		(21	)		(13	)		(36	)

At 31 December 2016		370			193		583			444			296			1,886

Additions		—			—		168			—			73			241
Capitalised interest		—			—		6			—			—			6
Disposals		—			—		(14	)		—			(3	)		(17	)
Exchange and other adjustments		7			—		2			22			10			41

At 31 December 2017		377			193		745			466			376			2,157

Amortisation and impairment
At 1 January 2016		(138	)		—		(202	)		(139	)		(85	)		(564	)

Provided		—			—		(41	)		(11	)		(14	)		(66	)
System Fund expense		—			—		(26	)		—			—			(26	)
Disposals		—			—		45			—			3			48
Exchange and other adjustments		—			—		1			9			4			14

At 31 December 2016		(138	)		—		(223	)		(141	)		(92	)		(594	)

Provided		—			—		(40	)		(10	)		(18	)		(68	)
System Fund expense		—			—		(30	)		—			—			(30	)
Disposals		—			—		14			—			2			16
Exchange and other adjustments		(2	)		—		(2	)		(8	)		(2	)		(14	)

At 31 December 2017		(140	)		—		(281	)		(159	)		(110	)		(690	)

Net book value
At 31 December 2017		237			193		464			307			266			1,467

At 31 December 2016		232			193		360			303			204			1,292

At 1 January 2016		233			193		296			326			178			1,226

Summary of Carrying Value of Goodwill and Indefinite Life Brands Allocated to Cash-generating Units for Impairment Testing

The year-end carrying value of goodwill and indefinite life brands have been allocated to cash-generating units (CGUs) for impairment testing purposes as follows:


	2017				2016
	Goodwill $m		Brands $m		Goodwill $m		Brands $m
CGU
Americas Managed		63		193		63		193
Americas Franchised		37		—		37		—
Europe Managed		21		—		21		—
Europe Franchised		10		—		10		—
AMEA Managed and Franchised		106		—		101		—

		237		193		232		193

Summary of Terminal Growth Rates and Discount Rates Used in Impairment Tests

The terminal growth rates and discount rates used, which are considered to be key assumptions, are as follows:

Terminal growth rate

Discount rate

2017
%

2016
%

2017
%

2016
%

Americas Managed

2.0

2.0

10.4

9.8

Americas Franchised

2.0

2.0

9.4

8.8

Europe Managed

2.0

2.0

10.8

9.3

Europe Franchised

2.0

2.0

9.8

8.4

AMEA Managed and Franchised

3.5

3.5

14.1

13.0

Summary of Net Book Value and Remaining Amortisation Period of Principal Management Contracts

At 31 December 2017, the net book value and remaining amortisation period of the principal management contracts were as follows:


	2017				2016
	Net book value $m		Remaining amortisation period Years		Net book value $m		Remaining amortisation period Years
Hotel
InterContinental Hong Kong		61		35		62		36
InterContinental New York Barclay		37		46		38		47
InterContinental London Park Lane		31		45		29		46
InterContinental Paris – Le Grand		34		47		31		48