Intangible and Other Non-Current Assets

9 Months Ended

Sep. 30, 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):


	September 30, 2024		December 31, 2023
Tradenames	$	28,116	$	28,862
Capitalized commissions on preneed contracts, net of accumulated amortization of $4,422 and $3,788, respectively	4,957		4,678
Internal-use software, net of accumulated amortization of $694 and $444, respectively	4,785		2,422
Prepaid agreements not-to-compete, net of accumulated amortization of $3,427 and $3,158, respectively	1,037		1,335
Other	280		380
Intangible and other non-current assets, net	$	39,175	$	37,677

Tradenames

Our tradenames have indefinite lives and therefore are not amortized.

During the nine months ended September 30, 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.

As a result of our 2024 qualitative assessment, we determined that there were factors that would indicate the need to perform an additional quantitative impairment test for certain funeral home businesses. As a result of this additional quantitative impairment test, we recorded a $0.6 million impairment to the tradename of one funeral home, during the three and nine months ended September 30, 2024, as the carrying amount of this tradename exceeded its fair value.

For our 2023 assessment, we determined that there were factors that would indicate the need to perform an additional quantitative impairment test for certain funeral home businesses. As a result of this additional quantitative impairment test, we recorded an impairment to the tradenames for two of our funeral homes of $0.2 million, during the three and nine months ended September 30, 2023, as the carrying amount of these tradenames exceeded their fair value.

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.

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 September 30, 2024, and 2023, and $0.7 million and $0.6 million for the nine months ended September 30, 2024 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 $0.1 million for both the three months ended September 30, 2024 and 2023, and $0.3 million and $0.2 million for the nine months ended September 30, 2024 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 $0.1 million for both the three months ended September 30, 2024, and 2023 and $0.4 million for both the nine months ended September 30, 2024 and 2023.

The aggregate amortization expense for our capitalized commissions, internal-use software and prepaid agreements as of September 30, 2024 is as follows (in thousands):


	Capitalized Commissions		Internal-use Software		Prepaid Agreements
Years ending December 31,
Remainder of 2024	$	429	$	76	$	115
2025	833		1,022		390
2026	779		1,013		262
2027	720		1,007		142
2028	644		867		78
Thereafter	1,552		800		50
Total amortization expense	$	4,957	$	4,785	$	1,037