Intangible Assets and Goodwill (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of components of intangible assets

The following table provides the components of the Company’s intangible assets (in thousands, except weighted average amortization period in years):


	Weighted
	Average	As of December 31, 2016						As of December 31, 2015
	Amortization	Initial		Accumulated		Net		Initial		Accumulated		Net
	Period	Cost		Amortization		Balance		Cost		Amortization		Balance
Franchise agreements	11.6	$	224,167	$	(115,027)	$	109,140	$	162,438	$	(100,499)	$	61,939
Other intangible assets:
Software(a)	4.6	$	13,207	$	(7,154)	$	6,053	$	10,885	$	(7,325)	$	3,560
Trademarks	14.2		3,102		(1,782)		1,320		2,985		(1,604)		1,381
Non-compete	10.0		2,500		(62)		2,438		—		—		—
Total other intangible assets	7.9	$	18,809	$	(8,998)	$	9,811	$	13,870	$	(8,929)	$	4,941

(a)

As of December 31, 2016 and December 31, 2015, capitalized software development costs of $356,000 and $3,165,000, respectively, were recorded in “Other intangible assets” in the accompanying Consolidated Balance Sheets. As of these dates, the associated information technology infrastructure projects were not complete and ready for their intended use and thus were not subject to amortization.

Schedule of estimated future amortization of intangible assets, other than goodwill

As of December 31, 2016, the estimated future amortization expense for the next five years related to intangible assets with definite lives is as follows (in thousands):


Year ending December 31:
2017(a)	$	19,643
2018		14,807
2019		14,632
2020		14,441
2021		14,065
	$	77,588

(a)

The decrease in estimated future amortization expense is due to certain acquired franchise agreements reaching the end of their contractual term during the year ended December 31, 2017.

Schedule of changes to goodwill

The following table presents changes to goodwill for the years ended December 31, 2016 and 2015 (in thousands):


		Domestic Owned Regions		Global Owned Regions		Total
Balance, January 1, 2015	$	68,809	$	3,654	$	72,463
Effect of changes in foreign currency exchange rates		-		(592)		(592)
Balance, December 31, 2015		68,809		3,062		71,871
Goodwill recognized related to current year acquisitions		54,665		-		54,665
Effect of changes in foreign currency exchange rates		-		97		97
Balance, December 31, 2016	$	123,474	$	3,159	$	126,633