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Intangible Assets and Goodwill
6 Months Ended
Jun. 30, 2017
Intangible Assets and Goodwill  
Intangible Assets and Goodwill

6. Intangible Assets and Goodwill

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Weighted

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Average

 

As of June 30, 2017

 

As of December 31, 2016

 

 

Amortization

 

Initial

 

Accumulated

 

Net

 

Initial

 

Accumulated

 

Net

 

 

Period

 

Cost

 

Amortization

 

Balance

 

Cost

 

Amortization

 

Balance

Franchise agreements

 

12.2

 

$

193,877

 

$

(94,841)

 

$

99,036

 

$

224,167

 

$

(115,027)

 

$

109,140

Other intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software (a)

 

4.6

 

$

13,577

 

$

(7,821)

 

$

5,756

 

$

13,207

 

$

(7,154)

 

$

6,053

Trademarks

 

14.2

 

 

3,137

 

 

(1,874)

 

 

1,263

 

 

3,102

 

 

(1,782)

 

 

1,320

Non-compete

 

10.0

 

 

2,500

 

 

(187)

 

 

2,313

 

 

2,500

 

 

(62)

 

 

2,438

Total other intangible assets

 

7.8

 

$

19,214

 

$

(9,882)

 

$

9,332

 

$

18,809

 

$

(8,998)

 

$

9,811


(a)    As of June 30, 2017 and December 31, 2016, capitalized software development costs of $742,000 and $356,000, respectively, were information technology infrastructure projects not yet complete and ready for their intended use and thus were not subject to amortization.

 

Amortization expense for the three months ended June 30, 2017 and 2016 was $5,189,000 and $3,656,000, respectively. Amortization expense for the six months ended June 30, 2017 and 2016 was $10,989,000 and $7,170,000, respectively.

As of June 30, 2017, the estimated future amortization expense for the next five years related to intangible assets is as follows (in thousands):

 

 

 

 

As of June 30, 2017:

    

 

 

Remainder of 2017

 

$

8,669

2018

    

 

14,906

2019

 

 

14,744

2020

 

 

14,542

2021

 

 

14,098

 

 

$

66,959

 

The following table presents changes to goodwill for the six months ended June 30, 2017 (in thousands):

 

 

 

 

Balance, January 1, 2017

    

$

126,633

Change in purchase price allocations for 2016 acquisitions

 

 

335

Effect of changes in foreign currency exchange rates

 

 

113

Balance, June 30, 2017

 

$

127,081