Intangible Assets and Goodwill

3 Months Ended

Mar. 31, 2024

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, 2024						As of December 31, 2023
	Amortization	Initial		Accumulated		Net		Initial		Accumulated		Net
	Period	Cost		Amortization		Balance		Cost		Amortization		Balance
Franchise agreements	12.1	$	224,566	$	(128,725)	$	95,841	$	225,716	$	(124,200)	$	101,516
Other intangible assets:
Software (a)	4.1	$	54,498	$	(41,000)	$	13,498	$	52,918	$	(39,192)	$	13,726
Trademarks	9.1		973		(681)		292		971		(649)		322
Non-compete agreements	5.0		12,948		(8,786)		4,162		13,051		(8,156)		4,895
Training materials	—		2,400		(2,400)		—		2,400		(2,400)		—
Other	7.0		870		(696)		174		870		(637)		233
Total other intangible assets	4.5	$	71,689	$	(53,563)	$	18,126	$	70,210	$	(51,034)	$	19,176

(a) As of March 31, 2024 and December 31, 2023, capitalized software development costs of $2.1 million and $1.0 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 $7.2 million and $7.4 million for the three months ended March 31, 2024 and 2023, respectively.

As of March 31, 2024, 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 2024	$	19,512
2025		23,119
2026		16,091
2027		9,118
2028		8,274
Thereafter		37,853
	$	113,967

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

	Real Estate
Balance, January 1, 2024	$	241,164
Effect of changes in foreign currency exchange rates		(1,234)
Balance, March 31, 2024	$	239,930

As of March 31, 2024, there were no events or circumstances that would indicate impairment may have occurred at either reporting unit level.