The carrying value of goodwill was $258.0 million and $241.2 million as of December 31, 2024 and 2023, respectively.


	CTU			AIUS		USAHS (2)		Total
Balance as of December 31, 2022	$	133,133		$	110,407	$	-	$	243,540
Business acquisition (1)		(2,378	)		-		-		(2,378	)
Balance as of December 31, 2023		130,755			110,407		-		241,162
Business acquisition		-			-		16,850		16,850
Balance as of December 31, 2024	$	130,755		$	110,407	$	16,850	$	258,012

___________________

(1) The negative adjustment for the year ended December 31, 2023 relates to purchase accounting adjustments finalized during the period.

(2) See Note 3 "Business Acquisition" for further details on acquired intangible assets.

In assessing the fair value for our reporting units, we performed a qualitative assessment as of October 1, 2024 to determine if we believe it is more likely than not that our reporting units’ carrying values exceed their respective fair values. When performing the qualitative assessment, management first considered events and circumstances that may affect the fair value of the reporting unit to determine whether it is necessary to perform the quantitative impairment test. Management focused on the significant inputs, including its projections of revenue growth, operating expense leverage and the discount rate used in the prior year quantitative assessment, and any events or circumstances that could affect the significant inputs. These events and circumstances included, but were not limited to, financial performance, future expectations of financial performance, legal, regulatory, contractual, competitive, economic, political, business or other factors, and industry and market considerations, such as a deteriorating operating environment or increased competition. Management evaluated all events and circumstances, including positive or mitigating factors, that could affect the significant inputs used to determine fair value. Additionally, management evaluated its most recent quantitative assessment to determine by how much the previous fair value exceeded the carrying value for each indefinite-lived intangible asset.

The determination of estimated fair value of each reporting unit requires significant estimates and assumptions, and as such, these fair value measurements are categorized as Level 3 per ASC Topic 820. These estimates and assumptions primarily include, but are not limited to, the discount rate, terminal growth rates, operating cash flow projections and capital expenditure forecasts. Due to the inherent uncertainty involved in deriving those estimates, actual results could differ from those estimates. We evaluate the merits of each significant assumption used, both individually and in the aggregate, to assess the fair value of each reporting unit for reasonableness.

As of December 31, 2024 and 2023, the net book value of intangible assets other than goodwill are as follows (dollars in thousands):


	December 31, 2024										December 31, 2023
	Cost		Accumulated Amortization			Accumulated Impairments			Net Book Value		Cost		Accumulated Amortization			Accumulated Impairments			Net Book Value
Amortizable intangible assets:
Course curriculum	$	18,290	$	(2,418	)	$	-		$	15,872	$	2,790	$	(1,817	)	$	-		$	973
Customer relationships		52,090		(19,068	)		(111	)		32,911		38,090		(15,502	)		(111	)		22,477
Developed technology		8,820		(2,980	)		(5,513	)		327		8,820		(2,490	)		(5,513	)		817
Trade names		11,660		(3,085	)		(5,205	)		3,370		13,060		(3,803	)		(5,205	)		4,052
Accreditation rights		25,000		(174	)		-			24,826		-		-			-			-
Net book value, amortizable intangible assets:	$	115,860	$	(27,725	)	$	(10,829	)	$	77,306	$	62,760	$	(23,612	)	$	(10,829	)	$	28,319

Non-amortizable intangible assets:
Accreditation rights									$	1,000									$	1,000
Trade names										16,700										6,900
Non-amortizable intangible assets										17,700										7,900
Intangible assets, net									$	95,006									$	36,219

Amortizable intangible assets are amortized on a straight-line basis over their remaining estimated useful lives, which range from less than one year to thirteen years. Amortization expense for intangible assets was $5.5 million, $7.6 million and $7.3 million for the years ended December 31, 2024, 2023 and 2022, respectively.

For the years ended December 31, 2023 and 2022, we recognized asset impairment charges of $9.7 million in the CTU segment and $1.1 million in the AIUS segment, respectively, related to certain definite-lived intangible assets, due to a decline in cash flows associated with those assets. The fair value of these intangible assets were determined to be zero based on the projected cash flow estimates for the remaining useful life of the primary asset.

On June 30, 2023, the Company entered into a non-cash asset purchase agreement with Le Cordon Bleu International B.V. ("LCBI"), a company incorporated in The Netherlands, to sell Perdoceo's outright rights to the Le Cordon Bleu ("LCB") brand, trade names and rights for North America in exchange for 1.8 million outstanding shares of Perdoceo's stock. The fair value of the 1.8 million shares received was $22.1 million, resulting in a non-cash gain on sale of asset of $22.1 million recorded within other miscellaneous income (expense) on our consolidated statements of income with the offset being recorded as an addition to treasury stock on our consolidated balance sheet.

As of December 31, 2024, net intangible assets include certain accreditation rights and trade names that are considered to have indefinite useful lives and, in accordance with FASB ASC Topic 350—Intangibles—Goodwill and Other, are not subject to amortization but rather reviewed for impairment on at least an annual basis by applying a fair-value-based test.

We performed our annual impairment testing of other indefinite-lived intangible asset balances as of October 1, 2024 utilizing the qualitative assessment approach and concluded that no indicators existed that would suggest that it is more likely than not that the assets would be impaired. We monitor the operating results and revenue projections related to our indefinite-lived trade names and accreditation rights on a quarterly basis for signs of possible declines in estimated fair value. When performing the qualitative assessment, management considered events and circumstances that may affect the fair value of the intangible assets to determine whether it is necessary to perform the quantitative impairment test. These events and circumstances included, but were not limited to, financial performance, future expectations of financial performance, legal, regulatory, contractual, competitive, economic, political, business, and industry and market considerations. Management evaluated these events and circumstances, including positive or mitigating factors, that could affect the significant inputs used to determine fair value.