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Goodwill and Amortizable Intangible Assets | 12 Months Ended
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Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Amortizable Intangible Assets | Goodwill and Amortizable Intangible Assets The table below summarizes the changes in the carrying amount of goodwill by reportable segment:
| Graduate Program Segment |  | Alternative Credential Segment |  | Total
| (in thousands)
Balance as of December 31, 2017 | $ | — |  |  | $ | 71,988 |  |  | $ | 71,988 |
Foreign currency translation adjustments | — |  |  | (10,136 | ) |  | (10,136 | )
Balance as of December 31, 2018 | — |  |  | 61,852 |  |  | 61,852 |
Goodwill recognized in connection with business combination | — |  |  | 425,346 |  |  | 425,346 |
Impairment charge (current and cumulative) | — |  |  | (70,379 | ) |  | (70,379 | )
Foreign currency translation adjustments | — |  |  | 1,531 |  |  | 1,531 |
Balance as of December 31, 2019 | $ | — |  |  | $ | 418,350 |  |  | $ | 418,350 |
The Company experienced a sustained decline in its stock price during the third quarter of 2019, which management deemed a triggering event that required the Company to perform an interim goodwill impairment test as of September 1, 2019. The Company’s test relied in part on the work of an independent valuation firm engaged to provide inputs as to the fair value of the reporting units and to assist in the related calculations and analysis. The results of the interim impairment test indicated that the carrying value of the boot camp business acquired in 2019 within the Company’s Alternative Credential Segment exceeded the fair value by $70.4 million. The decrease in this reporting unit’s fair value was primarily due to lower expectations of future performance due to the impact of changes in key management as well as an increased focus in integrating the operations of the newly acquired reporting unit, which impacted the estimated operating cash flows. As a result, the Company recorded an impairment charge of $70.4 million on the consolidated statements of operations and comprehensive loss in the third quarter of 2019. For purposes of testing the Company’s goodwill for impairment, fair value measurements were determined primarily using a weighted combination of the income-based and market-based approaches. The income-based approach largely relied on inputs that were not observable to active markets, which would be deemed “Level 3” fair value measurements, as defined in the Fair Value Measurements section of Note 2. These inputs included the Company’s expectations about future revenue growth, profitability, income tax rates, cash flows and the rate at which cash flows should be discounted, in order to determine this fair value estimate. The primary input used in the market-based approach was publicly-available data on the financial ratios of the Company’s competitors. In the fourth quarter of 2019, the Company performed a qualitative assessment for its October 1 annual impairment assessment and was not required to recognize any additional impairment of goodwill. Amortizable intangible assets, net consisted of the following as of:
|  |  | December 31, 2019 |  | December 31, 2018
| 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 | 3-5 |  | $ | 142,712 |  |  | $ | (41,106 | ) |  | $ | 101,606 |  |  | $ | 68,291 |  |  | $ | (16,945 | ) |  | $ | 51,346 |
Capitalized content development | 4-5 |  | 167,758 |  |  | (54,736 | ) |  | 113,022 |  |  | 79,725 |  |  | (31,662 | ) |  | 48,063 |
University client relationships | 9-10 |  | 110,344 |  |  | (12,419 | ) |  | 97,925 |  |  | 25,616 |  |  | (4,269 | ) |  | 21,347 |
Trade names and domain names | 5-10 |  | 26,462 |  |  | (5,940 | ) |  | 20,522 |  |  | 18,793 |  |  | (2,944 | ) |  | 15,849 |
Total amortizable intangible assets, net |  |  | $ | 447,276 |  |  | $ | (114,201 | ) |  | $ | 333,075 |  |  | $ | 192,425 |  |  | $ | (55,820 | ) |  | $ | 136,605 |
The amounts presented in the table above include $30.7 million and $40.3 million of in process capitalized technology and content development as of December 31, 2019 and December 31, 2018, respectively. Amortizable intangible assets recognized in connection with the acquisition of Trilogy consisted of developed technology of $48.1 million, developed content of $48.1 million, university client relationships of $84.2 million and trade names and domain names of $7.1 million, and are included in the balances presented in the table above as of December 31, 2019. During 2018, the Company acquired certain third-party technologies to enhance the Company’s platform, which is referred to as the 2U Operating System, or 2UOS, for aggregate consideration of $9.5 million. These acquired assets are classified as capitalized technology within amortizable intangible assets, net, on the Company’s consolidated balance sheets. Additionally, during the same period the Company purchased several active websites and additional domains for consideration of $7.6 million to support the marketing efforts of certain offerings within our Graduate Program Segment. These acquired assets are classified as trade names and domain names within amortizable intangible assets, net, on the Company’s consolidated balance sheets. In the first quarter of 2018, the Company entered into an agreement to purchase a perpetual source code license for the Learn.co platform and certain integration software development services for $14.5 million. These acquired assets are classified as capitalized technology and recorded within amortizable intangible assets, net on the Company’s consolidated balance sheets. The Company recorded amortization expense related to amortizable intangible assets of $58.3 million, $23.9 million and $14.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019, the estimated future amortization expense for amortizable intangible assets placed in service is as follows (in thousands):
2020 | $ | 75,955 |
2021 | 69,605 |
2022 | 55,520 |
2023 | 36,403 |
2024 | 19,512 |
Thereafter | 45,357 |
Total | $ | 302,352 |

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