Intangible and Other Non-Current Assets

3 Months Ended

Mar. 31, 2024

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, 2023		March 31, 2024
Tradenames	$	28,862	$	28,713
Capitalized commissions on preneed contracts, net of accumulated amortization of $3,788 and $3,980, respectively	4,678		4,715
Prepaid agreements not-to-compete, net of accumulated amortization of $3,158 and $3,276, respectively	1,335		1,269
Internal-use software, net of accumulated amortization of $444 and $528, respectively	2,422		2,835
Other	380		340
Intangible and other non-current assets, net	$	37,677	$	37,872

Tradenames

Our tradenames have indefinite lives and therefore are not amortized.

During the three months ended March 31, 2024, two of the funeral homes that we sold had a carrying value of tradenames of $0.2 million, which was included in the loss on sale and recorded in Net loss on divestitures, disposals and impairment charges on our Consolidated Statements of Operations.

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 $0.2 million for both the three months ended March 31, 2023 and 2024.

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 $0.1 million for both the three months ended March 31, 2023 and 2024.

Internal-use Software

Internal-use software is amortized on a straight-line basis typically over three to five years. Amortization expense was $0.1 million for both the three months ended March 31, 2023 and 2024.

The aggregate amortization expense for our capitalized commissions, prepaid agreements and internal-use software as of March 31, 2024 is as follows (in thousands):


	Capitalized Commissions		Prepaid Agreements		Internal-use Software
Years ending December 31,
Remainder of 2024	$	645	$	345	$	297
2025	803		390		606
2026	737		262		597
2027	653		142		591
2028	582		78		450
Thereafter	1,295		52		294
Total amortization expense	$	4,715	$	1,269	$	2,835