Intangible Assets and Goodwill (Tables)

9 Months Ended

Sep. 30, 2020

Intangible Assets and Goodwill

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 September 30, 2020						As of December 31, 2019
	Amortization	Initial		Accumulated		Net		Initial		Accumulated		Net
	Period	Cost		Amortization		Balance		Cost		Amortization		Balance
Franchise agreements	12.5	$	180,867	$	(104,802)	$	76,065	$	180,867	$	(93,197)	$	87,670
Other intangible assets:
Software (a)	4.4	$	42,251	$	(15,952)	$	26,299	$	36,680	$	(9,653)	$	27,027
Trademarks	8.3		2,311		(1,204)		1,107		1,904		(1,037)		867
Non-compete agreements	4.4		3,920		(2,479)		1,441		3,700		(1,546)		2,154
Training materials	5.0		2,400		(1,000)		1,400		2,400		(640)		1,760
Other	3.8		1,670		(493)		1,177		800		(293)		507
Total other intangible assets	4.6	$	52,552	$	(21,128)	$	31,424	$	45,484	$	(13,169)	$	32,315

(a) As of September 30, 2020 and December 31, 2019, capitalized software development costs of $0.8 million and $10.5 million, respectively, were related to technology projects not yet 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

The estimated future amortization expense for the next five years related to intangible assets is as follows (in thousands):

As of September 30, 2020:
Remainder of 2020	$	7,271
2021		27,622
2022		21,004
2023		16,817
2024		14,150
Thereafter		20,625
	$	107,489

Schedule of changes to goodwill

The following table presents changes to goodwill (in thousands), by segment:

	RE/MAX Franchising		Motto Franchising		Other		Total
Balance, January 1, 2020	$	147,238	$	11,800	$	—	$	159,038
Goodwill recognized from acquisitions		2,926		6,837		7,586		17,349
Effect of changes in foreign currency exchange rates		(85)		—		—		(85)
Balance, September 30, 2020	$	150,079	$	18,637	$	7,586	$	176,302