Goodwill and Amortizable Intangible Assets

5. Goodwill and Amortizable Intangible Assets

As a result of the acquisition of GetSmarter, the Company recorded goodwill of $68.2 million within its Short Course Segment as of July 1, 2017. As of December 31, 2017, goodwill was $72.0 million. The difference between the date of acquisition and year end was $3.8 million, due to changes in foreign currency.

Amortizable intangible assets consisted of the following as of:

		December 31, 2017							December 31, 2016
	Estimated Average Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
		(in thousands)
Capitalized technology	3	$	27,108	$	(9,486	)	$	17,622	$	17,100	$	(7,822	)	$	9,278
Capitalized content development	4		55,872		(21,417	)		34,455		37,956		(15,367	)		22,589
University client relationships	9		29,443		(1,636	)		27,807		—		—			—
Trade names and domain names	10		12,119		(1,242	)		10,877		2,761		(497	)		2,264

Total amortizable intangible assets, net		$	124,542	$	(33,781	)	$	90,761	$	57,817	$	(23,686	)	$	34,131

Included in the amounts presented above are $15.6 million and $8.7 million of in process capitalized technology and content development as of December 31, 2017 and December 31, 2016, respectively.

The Company recorded amortization expense related to amortizable intangible assets of $14.0 million, $8.0 million and $6.1 million for the years ended December 31, 2017, 2016 and 2015, respectively.

As of December 31, 2017, the estimated future amortization expense for amortizable intangible assets placed in service is as follows (in thousands):

2018	$	17,571
2019		15,595
2020		12,102
2021		8,216
2022		5,404
Thereafter		16,296

Total	$	75,184

On January 19, 2018, the Company entered into an agreement to purchase a perpetual source code license and services of $14.5 million for the Learn.co platform from Flatiron School, Inc., a wholly owned subsidiary of WeWork Companies, Inc.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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