Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 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 September 30, 2023						As of December 31, 2022
	Amortization	Initial		Accumulated		Net		Initial		Accumulated		Net
	Period	Cost		Amortization		Balance		Cost		Amortization		Balance
Franchise agreements	12.3	$	224,574	$	(118,921)	$	105,653	$	224,397	$	(104,223)	$	120,174
Other intangible assets:
Software (a)	4.2	$	51,580	$	(37,365)	$	14,215	$	48,658	$	(32,198)	$	16,460
Trademarks	9.2		1,724		(1,377)		347		1,713		(1,272)		441
Non-compete agreements	4.3		12,969		(7,318)		5,651		12,953		(4,878)		8,075
Training materials	—		2,400		(2,400)		—		2,400		(2,080)		320
Other	7.0		870		(577)		293		870		(403)		467
Total other intangible assets	4.4	$	69,543	$	(49,037)	$	20,506	$	66,594	$	(40,831)	$	25,763

(a) As of September 30, 2023 and December 31, 2022, capitalized software development costs of $1.5 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 $7.6 million and $8.3 million for the three months ended September 30, 2023 and 2022, respectively, and was $22.4 million and $25.1 million for the nine months ended September 30, 2023 and 2022, respectively.

As of September 30, 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	$	7,417
2024		25,917
2025		22,185
2026		15,535
2027		8,889
Thereafter		46,216
	$	126,159

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		188		—		188
Balance, September 30, 2023	$	240,181	$	18,633	$	258,814

As of September 30, 2023, there were no events or circumstances that would indicate impairment may have occurred at either reporting unit level.