Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 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 September 30, 2024						As of December 31, 2023
	Amortization	Initial		Accumulated		Net		Initial		Accumulated		Net
	Period	Cost		Amortization		Balance		Cost		Amortization		Balance
Franchise agreements	11.8	$	224,726	$	(137,380)	$	87,346	$	225,716	$	(124,200)	$	101,516
Other intangible assets:
Software (a)	4.1	$	56,643	$	(44,926)	$	11,717	$	52,918	$	(39,192)	$	13,726
Trademarks	9.1		992		(745)		247		971		(649)		322
Non-compete agreements	5.0		12,962		(9,687)		3,275		13,051		(8,156)		4,895
Training materials	—		2,400		(2,400)		—		2,400		(2,400)		—
Other	7.0		870		(812)		58		870		(637)		233
Total other intangible assets	4.5	$	73,867	$	(58,570)	$	15,297	$	70,210	$	(51,034)	$	19,176

(a) As of September 30, 2024 and December 31, 2023, capitalized software development costs of $1.1 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 $6.6 million and $7.6 million for the three months ended September 30, 2024 and 2023, respectively and was $20.7 million and $22.4 million for the nine months ended September 30, 2024 and 2023.

As of September 30, 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	$	6,433
2025		23,458
2026		16,773
2027		9,656
2028		8,361
Thereafter		37,962
	$	102,643

The following table presents changes to goodwill at the Real Estate reporting unit (in thousands):

	Real Estate
Balance, January 1, 2024	$	241,164
Effect of changes in foreign currency exchange rates		(1,062)
Balance, September 30, 2024	$	240,102

As of September 30, 2024, there were no events or circumstances that would indicate impairment may have occurred.