Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2022

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 (in thousands, except weighted average amortization period in years):

	Weighted
	Average	As of June 30, 2022						As of December 31, 2021
	Amortization	Initial		Accumulated		Net		Initial		Accumulated		Net
	Period	Cost		Amortization		Balance		Cost		Amortization		Balance
Franchise agreements	12.7	$	267,088	$	(135,105)	$	131,983	$	267,770	$	(123,938)	$	143,832
Other intangible assets:
Software (a)	4.0	$	48,176	$	(27,335)	$	20,841	$	51,368	$	(29,682)	$	21,686
Trademarks	8.3		2,361		(1,708)		653		2,356		(1,533)		823
Non-compete agreements	4.3		13,149		(3,332)		9,817		13,100		(4,563)		8,537
Training materials	5.0		2,400		(1,840)		560		2,400		(1,600)		800
Other	6.6		870		(354)		516		1,670		(986)		684
Total other intangible assets	4.3	$	66,956	$	(34,569)	$	32,387	$	70,894	$	(38,364)	$	32,530

(a) As of June 30, 2022 and December 31, 2021, capitalized software development costs of $4.7 million and $1.9 million, respectively, were related to technology projects not yet complete and ready for their intended use and thus were not subject to amortization.

Amortization expense was $8.5 million and $6.4 million for the three months ended June 30, 2022 and 2021, respectively and was $16.8 million and $12.7 million for the six months ended June 30, 2022 and 2021, respectively.

As of June 30, 2022, the estimated future amortization expense related to intangible assets includes the estimated amortization expense associated with the Company’s intangible assets assumed with the Company’s acquisitions (in thousands):

Remainder of 2022	$	15,631
2023		30,878
2024		25,591
2025		20,640
2026		14,606
Thereafter		57,024
	$	164,370

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

	Real Estate		Mortgage		Total
Balance, January 1, 2022	$	250,482	$	18,633	$	269,115
Purchase price adjustments		(332)		—		(332)
Effect of changes in foreign currency exchange rates		(729)		—		(729)
Balance, June 30, 2022	$	249,421	$	18,633	$	268,054