Intangible Assets and Goodwill

3 Months Ended

Mar. 31, 2023

Intangible Assets and Goodwill

Intangible Assets and Goodwill

5. 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 March 31, 2023						As of December 31, 2022
	Amortization	Initial		Accumulated		Net		Initial		Accumulated		Net
	Period	Cost		Amortization		Balance		Cost		Amortization		Balance
Franchise agreements	12.3	$	224,454	$	(109,120)	$	115,334	$	224,397	$	(104,223)	$	120,174
Other intangible assets:
Software (a)	4.1	$	49,475	$	(34,009)	$	15,466	$	48,658	$	(32,198)	$	16,460
Trademarks	9.2		1,713		(1,307)		406		1,713		(1,272)		441
Non-compete agreements	4.3		12,958		(5,687)		7,271		12,953		(4,878)		8,075
Training materials	5.0		2,400		(2,200)		200		2,400		(2,080)		320
Other	7.0		870		(463)		407		870		(403)		467
Total other intangible assets	4.4	$	67,416	$	(43,666)	$	23,750	$	66,594	$	(40,831)	$	25,763

(a) As of March 31, 2023 and December 31, 2022, capitalized software development costs of $5.2 million and $4.6 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 $7.4 million and $8.4 million for the three months ended March 31, 2023 and 2022.

As of March 31, 2023, 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 2023	$	22,235
2024		25,336
2025		21,512
2026		14,902
2027		8,979
Thereafter		46,120
	$	139,084

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

	Real Estate		Mortgage		Total
Balance, January 1, 2023	$	239,993	$	18,633	$	258,626
Effect of changes in foreign currency exchange rates		60		—		60
Balance, March 31, 2023	$	240,053	$	18,633	$	258,686