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GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended
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Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The following table presents Goodwill carrying values and the change in balance, by reporting unit, during the six months ended June 30, 2024 (in thousands):
| WUP Legacy(1) |  | Air Partner |  | Total
Balance as of December 31, 2023(2) | $ | 136,098 |  |  | $ | 82,110 |  |  | $ | 218,208 |
Foreign currency translation adjustment | — |  |  | (552) |  |  | (552) |
Balance as of June 30, 2024 | $ | 136,098 |  |  | $ | 81,558 |  |  | $ | 217,656 |
(1) As of June 30, 2024, the legacy Wheels Up reporting unit (“WUP Legacy”) had negative net assets (stockholders’ equity). (2) Net of accumulated impairment losses of $306.2 million, all of which was recognized on the goodwill attributable to WUP Legacy. Intangible Assets The gross carrying value, accumulated amortization and net carrying value of Intangible assets consisted of the following (in thousands):
| June 30, 2024
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value
Status | $ | 80,000 |  |  | $ | 34,367 |  |  | $ | 45,633 |
Customer relationships | 89,121 |  |  | 40,310 |  |  | 48,811 |
Trade name | 11,939 |  |  | 5,951 |  |  | 5,988 |
Developed technology | 20,556 |  |  | 13,819 |  |  | 6,737 |
Leasehold interest - favorable | 600 |  |  | 113 |  |  | 487 |
Foreign currency translation adjustment | (677) |  |  | (290) |  |  | (387) |
Total | $ | 201,539 |  |  | $ | 94,270 |  |  | $ | 107,269 |
| December 31, 2023
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value
Status | $ | 80,000 |  |  | $ | 31,325 |  |  | $ | 48,675 |
Customer relationships | 89,121 |  |  | 34,920 |  |  | 54,201 |
Trade name | 11,939 |  |  | 5,402 |  |  | 6,537 |
Developed technology | 20,556 |  |  | 12,329 |  |  | 8,227 |
Leasehold interest - favorable | 600 |  |  | 102 |  |  | 498 |
Foreign currency translation adjustment | (589) |  |  | (217) |  |  | (372) |
Total | $ | 201,627 |  |  | $ | 83,861 |  |  | $ | 117,766 |
Amortization expense of intangible assets was $5.2 million and $10.4 million for the three and six months ended June 30, 2024, respectively, and $5.9 million and $11.8 million for the three and six months ended June 30, 2023, respectively. Intangible Liabilities Associated with our acquisition of Delta Private Jets on January 17, 2020, we recognized intangible liabilities for the fair value of complimentary Wheels Up Connect Memberships provided to existing Delta SkyMiles 360® customers as of the acquisition date, as required under the Commercial Cooperation Agreement, dated as of January 17, 2020, by and among WUP, WUP LLC and Delta (as amended, the “Original CCA”). The gross carrying value, accumulated amortization and net carrying value of Intangible liabilities consisted of the following (in thousands):
| June 30, 2024
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value
Intangible liabilities | $ | 20,000 |  |  | $ | 8,561 |  |  | $ | 11,439 |
| December 31, 2023
| Gross Carrying Value |  | Accumulated Amortization |  | Net Carrying Value
Intangible liabilities | $ | 20,000 |  |  | $ | 7,798 |  |  | $ | 12,202 |
Amortization of Intangible liabilities, which reduces amortization expense, was $0.4 million and $0.8 million for the three and six months ended June 30, 2024, respectively, and $0.5 million and $1.0 million for the three and six months ended June 30, 2023, respectively. The current portion of Intangible liabilities is presented within Other current liabilities on the condensed consolidated balance sheets. Future amortization expense of Intangible assets and Intangible liabilities held as of June 30, 2024, were as follows (in thousands):
| Intangible Assets |  | Intangible Liabilities
Remainder of 2024 | $ | 10,302 |  |  | $ | 763 |
2025 | 20,307 |  |  | 1,525 |
2026 | 19,441 |  |  | 1,525 |
2027 | 14,885 |  |  | 1,525 |
2028 | 14,235 |  |  | 1,525 |
2029 and Thereafter | 28,099 |  |  | 4,576 |
Total | $ | 107,269 |  |  | $ | 11,439 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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