8. Intangible Assets and Goodwill

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, 2018						As of December 31, 2017
	Amortization	Initial		Accumulated		Net		Initial		Accumulated		Net
	Period	Cost		Amortization		Balance		Cost		Amortization		Balance
Franchise agreements	12.5	$	180,867	$	(77,710)	$	103,157	$	181,567	$	(62,218)	$	119,349
Other intangible assets:
Software (a)	4.4	$	20,579	$	(5,802)	$	14,777	$	13,762	$	(8,111)	$	5,651
Trademarks	9.3		1,857		(839)		1,018		1,539		(902)		637
Non-compete	7.7		3,700		(896)		2,804		2,500		(312)		2,188
Training materials	5.0		2,350		(157)		2,193		—		—		—
Other (b)	11.9		2,389		(216)		2,173		—		—		—
Total other intangible assets	5.8	$	30,875	$	(7,910)	$	22,965	$	17,801	$	(9,325)	$	8,476

(a)

As of December 31, 2018, and December 31, 2017, capitalized software development costs of $4.5 million and $0.6 million, respectively, were related to technology projects not yet complete and ready for their intended use and thus were not subject to amortization.

(b)

“Other” consists of customer relationships and a favorable market lease, both obtained in connection with the acquisition of booj. The favorable market lease is amortized as additional rent expense through “Selling, operating and administrative expenses” in the accompanying Consolidated Statements of Income over the remaining term of the lease.

Amortization expense was $19.5 million, $19.6 million and $15.2 million for the years ended December 31, 2018, 2017 and 2016, respectively.

As of December 31, 2018, the estimated future amortization expense for the next five years related to intangible assets includes the estimated amortization expense associated with the Company’s intangible assets assumed with the acquisition of booj and is as follows (in thousands):


Year ending December 31:
2019	$	20,524
2020		20,591
2021		19,820
2022		16,967
2023		13,799
	$	91,701

The following table presents changes to goodwill for the period from January 1, 2017 to December 31, 2018 (in thousands):


	RE/MAX Franchising		Other		Total
Balance, January 1, 2017	$	114,833	$	11,800	$	126,633
Goodwill recognized related to acquisitions		12,220		—		12,220
Adjustments to acquisition accounting during the measurement period		(3,865)		—		(3,865)
Effect of changes in foreign currency exchange rates		225		—		225
Balance, December 31, 2017		123,413		11,800		135,213
Goodwill recognized related to current year acquisitions (a)		15,039		—		15,039
Adjustments to acquisition accounting during the measurement period		700		—		700
Effect of changes in foreign currency exchange rates		(268)		—		(268)
Balance, December 31, 2018	$	138,884	$	11,800	$	150,684

(a)

The purpose of the booj acquisition is to develop and deliver core technology solutions designed for and with RE/MAX franchisees and agents. As such, the Company allocated the goodwill arising from this acquisition to RE/MAX Franchising. See Note 6, Acquisitions for additional information.