Intangible and Other Non-Current Assets

9 Months Ended

Sep. 30, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

INTANGIBLE AND OTHER NON-CURRENT ASSETS

Intangible and other non-current assets are as follows (in thousands):


	December 31, 2021		September 30, 2022
Tradenames	$	23,565	$	24,108
Prepaid agreements not-to-compete, net of accumulated amortization of $3,316 and $3,373, respectively	2,247		1,884
Capitalized commissions on preneed contracts, net of accumulated amortization of $2,278 and $2,803, respectively	3,560		3,963

Other	6		496
Intangible and other non-current assets, net	$	29,378	$	30,451

Tradenames

Our tradenames have indefinite lives and therefore are not amortized. During the three and nine months ended September 30, 2022, we increased the value of our tradenames by $0.5 million related to our 2022 acquisition described in Note 3 to the Consolidated Financial Statements included herein.

See Note 1 to the Consolidated Financial Statements included herein for a discussion of the methodology used for our indefinite-lived intangible asset impairment test.

Prepaid Agreements

Prepaid agreements not-to-compete are amortized over the term of the respective agreements, ranging generally from one to ten years. Amortization expense was $158,000 and $142,000 for the three months ended September 30, 2021 and 2022, respectively, and $495,000 and $432,000 for the nine months ended September 30, 2021 and 2022, respectively.

Capitalized Commissions

We capitalize our selling costs related to preneed cemetery merchandise and services and preneed funeral trust contracts. These costs are amortized on a straight-line basis over the average maturity period for our preneed cemetery merchandise and services contracts and preneed funeral trust contracts, of eight and ten years, respectively. Amortization expense was $165,000 and $181,000 for the three months ended September 30, 2021 and 2022, respectively, and $473,000 and $525,000 for the nine months ended September 30, 2021 and 2022, respectively.

The aggregate amortization expense for our non-compete agreements and capitalized commissions as of September 30, 2022 is as follows (in thousands):


	Prepaid Agreements		Capitalized Commissions
Years ending December 31,
Remainder of 2022	$	135	$	186
2023	496		710
2024	381		650
2025	372		585
2026	257		518
Thereafter	243		1,314
Total amortization expense	$	1,884	$	3,963