Intangible and Other Non-Current Assets

6 Months Ended

Jun. 30, 2023

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, 2022		June 30, 2023
Tradenames	$	25,610	$	29,074
Capitalized commissions on preneed contracts, net of accumulated amortization of $2,990 and $3,375, respectively	4,048		4,350
Prepaid agreements not-to-compete, net of accumulated amortization of $3,515 and $3,576, respectively	1,877		1,592
Internal-use software, net of accumulated amortization of $200 and $300, respectively	1,271		1,935
Other	124		382
Intangible and other non-current assets, net	$	32,930	$	37,333

Tradenames

During the six months ended June 30, 2023, we increased the value of our tradenames by $3.5 million, with $1.3 million allocated to our funeral home segment and $2.2 million allocated to our cemetery segment, related to our 2023 business combination, described in Note 3 to the Consolidated Financial Statements.

Capitalized Commissions

We capitalize sales commissions and other direct selling costs related to preneed cemetery merchandise and services and preneed funeral trust contracts as these costs are incremental and recoverable costs of obtaining a contract with a customer. Our capitalized commissions on preneed contracts are amortized on a straight-line basis over the average maturity period of ten years for our preneed funeral trust contracts and eight years for our preneed cemetery merchandise and services contracts.

Amortization expense was $174,000 and $196,000 for the three months ended June 30, 2022 and 2023, respectively and $344,000 and $385,000 for the six months ended June 30, 2022 and 2023, respectively.

Prepaid Agreements

Prepaid agreements not-to-compete are amortized over the term of the respective agreements, generally ranging from one to ten years. Amortization expense was $142,000 and $131,000 for the three months ended June 30, 2022 and 2023, respectively and $290,000 and $262,000 for the six months ended June 30, 2022 and 2023, respectively.

Internal-use Software

Internal-use software is amortized on a straight-line basis typically over three to five years. Amortization expense was $55,000 and $72,000 for the three months ended June 30, 2022 and 2023, respectively and $111,000 and $134,000 for the six months ended June 30, 2022 and 2023, respectively.

The aggregate amortization expense for our capitalized commissions, prepaid agreements and internal-use software as of June 30, 2023 is as follows (in thousands):


	Capitalized Commissions		Prepaid Agreements		Internal-use Software
Years ending December 31,
Remainder of 2023	$	402	$	257	$	142
2024	759		424		303
2025	694		377		391
2026	628		262		378
2027	562		142		377
Thereafter	1,305		130		344
Total amortization expense	$	4,350	$	1,592	$	1,935