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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets |
4. Goodwill and Other Intangible Assets
The change in goodwill during 2024 consisted of the following:
(dollars in thousands) | Total
Balance at December 31, 2023 | $ | 1,053,738 |
Effect of foreign currency translation | (1,232) |
Balance at December 31, 2024 | $ | 1,052,506 |
We have recorded intangible assets acquired in various business combinations based on their fair values at the date of acquisition. The table below sets forth the balances of each class of intangible asset and related amortization as of:
| December 31,
(dollars in thousands) | 2024 | 2023
Finite-lived gross carrying amount |  |
Customer relationships | $ | 243,203 |  | $ | 570,104 |
Marketing assets | 29,876 |  | 71,308 |
Developed technology | 110,606 |  | 182,956 |
Content | — |  | 17,900 |
Total finite-lived gross carrying amount | 383,685 |  | 842,268 |
Accumulated amortization |  |
Customer relationships | (173,720) |  | (174,982) |
Marketing assets | (11,660) |  | (11,985) |
Developed technology | (65,424) |  | (69,386) |
Content | — |  | (3,978) |
Total accumulated amortization | (250,804) |  | (260,331) |
Intangible assets, net | $ | 132,881 |  | $ | 581,937 |
During the year ended December 31, 2024, changes to the gross carrying amounts of intangible asset classes were primarily related to the EVERFI impairment charges and subsequent disposition discussed below, write-offs of fully amortized intangible assets and the effect of foreign currency translation. EVERFI impairment charges In July 2024, we hired a strategic advisor to assist us in considering a range of alternatives for EVERFI, one of which included a potential divestiture of the business. As part of evaluating alternatives for EVERFI, during the fourth quarter of 2024, we prepared a revised business forecast that included a new level of detail, including separately identifiable cash flows for EVERFI. The Company then reassessed its asset groupings under ASC 360-10 and determined there was a new asset group for EVERFI and evaluated this asset group for potential impairment. On December 9, 2024, the Company concluded that a material impairment charge was required related to its EVERFI asset group, which primarily included finite-lived intangible assets and capitalized software and content development costs. On December 29, 2024, we classified EVERFI's assets and liabilities as held for sale and we determined there would be an additional impairment charge to record the EVERFI disposal group at its estimated fair value less costs to sell resulting in total noncash impairment charges of $390.2 million. On December 31, 2024, we disposed of EVERFI for a nominal amount that resulted in a loss on disposition of $15.2 million, which together with the impairment charges, is recorded within EVERFI disposition on our consolidated statements of comprehensive loss. See Note 3 to these consolidated financial statements for additional information about the disposition of EVERFI. Amortization expense Amortization expense related to finite-lived intangible assets acquired in business combinations is allocated to cost of revenue on the consolidated statements of comprehensive income based on the revenue stream to which the asset contributes, except for marketing assets and non-compete agreements, for which the associated amortization expense is included in operating expenses. The following table summarizes amortization expense of our finite-lived intangible assets:
| Years ended December 31,
(dollars in thousands) | 2024 | 2023 | 2022
Included in cost of revenue: |  |  |
Cost of recurring | $ | 55,659 |  | $ | 51,079 |  | $ | 47,085 |
Cost of one-time services and other | 1,298 |  | 1,384 |  | 1,407 |
Total included in cost of revenue | 56,957 |  | 52,463 |  | 48,492 |
Included in operating expenses | 3,541 |  | 3,139 |  | 2,925 |
Total amortization of intangibles from business combinations | $ | 60,498 |  | $ | 55,602 |  | $ | 51,417 |
The following table outlines the estimated future amortization expense for each of the next five years for our finite-lived intangible assets as of December 31, 2024:
Years ending December 31, (dollars in thousands) | Amortization expense
2025 | 29,498 |
2026 | 23,771 |
2027 | 20,518 |
2028 | 15,484 |
2029 | 14,061 |
Total | $ | 103,332 |

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