| Schedule of goodwill |
The following table presents 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, 2022 | | Impairment Charges* | | Foreign Currency Translation Adjustments | | Balance as of September 30, 2023 | | | | | | | | | | | | (in thousands) | | Degree Program Segment | | | | | | | | | | Gross goodwill | | $ | 192,459 | | | $ | — | | | $ | — | | | $ | 192,459 | | | Accumulated impairments | | — | | | — | | | — | | | — | | | Net goodwill | | 192,459 | | | — | | | — | | | 192,459 | | | | | | | | | | | | Alternative Credential Segment | | | | | | | | | | Gross goodwill | | $ | 691,531 | | | $ | — | | | $ | (5,259) | | | $ | 686,272 | | | Accumulated impairments | | (149,370) | | | (16,717) | | | — | | | (166,087) | | | Net goodwill | | 542,161 | | | (16,717) | | | (5,259) | | | 520,185 | | | | | | | | | | | | Total | | | | | | | | | | Gross goodwill | | $ | 883,990 | | | $ | — | | | $ | (5,259) | | | $ | 878,731 | | | Accumulated impairments | | (149,370) | | | (16,717) | | | — | | | (166,087) | | | Net goodwill | | $ | 734,620 | | | $ | (16,717) | | | $ | (5,259) | | | $ | 712,644 | |
| | | | | | | | | | | | | | | | | * | | Refer to Note 2 for further information about the impairment charges recorded during the second quarter of 2023. |
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| Schedule of amortizable intangible assets |
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. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2023 | | December 31, 2022 | | | 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 | | $ | 241,848 | | | $ | (153,473) | | | $ | 88,375 | | | $ | 226,761 | | | $ | (132,621) | | | $ | 94,140 | | | Capitalized content development | 4-5 | | 252,900 | | | (188,648) | | | 64,252 | | | 261,844 | | | (177,154) | | | 84,690 | | | University client relationships | 9-10 | | 208,145 | | | (70,119) | | | 138,026 | | | 210,138 | | | (55,556) | | | 154,582 | | | Enterprise client relationships | 10 | | 14,300 | | | (2,681) | | | 11,619 | | | 14,300 | | | (1,609) | | | 12,691 | | | Trade names and domain names* | 5-25 | | 284,243 | | | (200,243) | | | 84,000 | | | 284,701 | | | (81,049) | | | 203,652 | | | Total intangible assets | | | $ | 1,001,436 | | | $ | (615,164) | | | $ | 386,272 | | | $ | 997,744 | | | $ | (447,989) | | | $ | 549,755 | |
| | | | | | | | | | | | | | | | | * | | 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 September 30, 2023 and December 31, 2022. Accumulated amortization and impairments include $176.7 million and $59.3 million of impairment charges related to the edX trade name as of September 30, 2023 and December 31, 2022, respectively. Refer to Note 2 for further information about these impairment charges. |
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| Schedule of estimated future amortization expense for amortizable intangible assets |
The following table presents the estimated future amortization expense of the Company’s amortizable intangible assets placed in service as of September 30, 2023. | | | | | | | Future Amortization Expense | | (in thousands) | | Remainder of 2023 | $ | 21,499 | | | 2024 | 73,695 | | | 2025 | 53,294 | | | 2026 | 37,685 | | | 2027 | 28,479 | | | Thereafter | 122,881 | | | Total | $ | 337,533 | |
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