v3.24.2.u1

Goodwill and Intangible Assets | 6 Months Ended
--- | ---
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following tables present the changes in the carrying amount of goodwill by reportable segment on the Company’s condensed consolidated balance sheets for the periods indicated.
|  | Balance as of December 31, 2023 |  | Impairment Charges* |  | Foreign Currency Translation Adjustments |  | Balance as of June 30, 2024
| (in thousands)
Degree Program Segment |  |  |  |  |  |  |  |
Gross goodwill |  | $ | 192,459 |  |  | $ | — |  |  | $ | — |  |  | $ | 192,459 |
Accumulated impairments |  | — |  |  | — |  |  | — |  |  | — |
Net goodwill |  | 192,459 |  |  | — |  |  | — |  |  | 192,459 |
Alternative Credential Segment |  |  |  |  |  |  |  |
Gross goodwill |  | $ | 687,880 |  |  | $ | — |  |  | $ | 314 |  |  | $ | 688,194 |
Accumulated impairments |  | (228,841) |  |  | (339,928) |  |  | — |  |  | (568,769) |
Net goodwill |  | 459,039 |  |  | (339,928) |  |  | 314 |  |  | 119,425 |
Total |  |  |  |  |  |  |  |
Gross goodwill |  | $ | 880,339 |  |  | $ | — |  |  | $ | 314 |  |  | $ | 880,653 |
Accumulated impairments |  | (228,841) |  |  | (339,928) |  |  | — |  |  | (568,769) |
Net goodwill |  | $ | 651,498 |  |  | $ | (339,928) |  |  | $ | 314 |  |  | $ | 311,884 |
* |  | Refer to Note 2 for further information about the goodwill impairment charges.
The following table presents the components of intangible assets, net on the Company’s condensed consolidated balance sheets as of each of the dates indicated.
|  |  | June 30, 2024 |  | December 31, 2023
| Estimated Average Useful Life (in years) |  | Gross Carrying Amount |  | Accumulated Amortization and Impairments* |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization and Impairments |  | Net Carrying Amount
|  |  | (in thousands)
Capitalized technology | 3-5 |  | $ | 244,002 |  |  | $ | (173,765) |  |  | $ | 70,237 |  |  | $ | 245,867 |  |  | $ | (159,155) |  |  | $ | 86,712 |
Capitalized content development | 4-5 |  | 228,337 |  |  | (182,199) |  |  | 46,138 |  |  | 233,592 |  |  | (176,374) |  |  | 57,218 |
University client relationships | 9-10 |  | 176,677 |  |  | (86,036) |  |  | 90,641 |  |  | 208,823 |  |  | (75,849) |  |  | 132,974 |
Enterprise client relationships | 10 |  | 14,300 |  |  | (3,754) |  |  | 10,546 |  |  | 14,300 |  |  | (3,039) |  |  | 11,261 |
Trade names and domain names* | 5-25 |  | 278,072 |  |  | (201,981) |  |  | 76,091 |  |  | 284,810 |  |  | (201,777) |  |  | 83,033 |
Total intangible assets |  |  | $ | 941,388 |  |  | $ | (647,735) |  |  | $ | 293,653 |  |  | $ | 987,392 |  |  | $ | (616,194) |  |  | $ | 371,198 |
* |  | During the three and six months ended June 30, 2024, the Company recorded impairment charges of $10.3 million to capitalized technology, $2.4 million to capitalized content development, $32.2 million to university client relationships, and $4.4 million to trade names and domain names.
** |  | The Company concluded that due to changes in facts and circumstances, the edX trade name, which was classified as indefinite-lived as of June 30, 2023, is now finite-lived. In the third quarter of 2023, the Company began amortizing the trade name on a straight-line basis over its estimated useful life. The gross carrying amount of the edX trade name was $255.0 million as of both June 30, 2024 and December 31, 2023. Accumulated amortization and impairments include $181.1 million and $176.7 million of impairment charges related to the edX trade name as June 30, 2024 and December 31, 2023, respectively. Refer to Note 2 for further information about these impairment charges.
The amounts presented in the table above include $39.4 million and $43.4 million of in-process capitalized technology and content development as of June 30, 2024 and December 31, 2023, respectively. The Company recorded amortization expense related to amortizable intangible assets of $22.3 million and $24.7 million for the three months ended June 30, 2024 and 2023, respectively, and $44.4 million and $51.9 million for the six months ended June 30, 2024 and 2023, respectively. The following table presents the estimated future amortization expense of the Company’s amortizable intangible assets placed in service as of June 30, 2024.
| Future Amortization Expense
| (in thousands)
Remainder of 2024 | $ | 30,641 |
2025 | 52,452 |
2026 | 38,076 |
2027 | 26,542 |
2028 | 19,766 |
Thereafter | 86,813 |
Total | $ | 254,290 |

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