Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill

The following table presents changes in the carrying value of goodwill by segment for the three months ended March 31, 2023 (in thousands):

	U.S. Higher Education		Australia / New Zealand		Education Technology Services		Total
Balance as of December 31, 2022	$	632,075	$	519,202	$	100,000	$	1,251,277
Additions	—		—		—		—
Impairments	—		—		—		—
Currency translation adjustments	—		(7,947)		—		(7,947)
Adjustments to prior acquisitions	—		—		—		—
Balance as of March 31, 2023	$	632,075	$	511,255	$	100,000	$	1,243,330

The Company assesses goodwill at least annually for impairment during the fourth quarter, or more frequently if events occur or circumstances change between annual tests that would more likely than not reduce the fair value of the respective reporting unit below its carrying amount. No events or circumstances occurred in the three months ended March 31, 2023 to indicate an impairment to goodwill at any of its segments. There were no impairment charges related to goodwill recorded during the three months ended March 31, 2022 and 2023.

Intangible Assets

The following table represents the balance of the Company’s intangible assets as of December 31, 2022 and March 31, 2023 (in thousands):

	December 31, 2022						March 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization
Student relationships	$	200,185	$	(191,125)	$	9,060	$	200,107	$	(193,862)	$	6,245
Not subject to amortization
Trade names	251,481		—		251,481		250,470		—		250,470
Total	$	451,666	$	(191,125)	$	260,541	$	450,577	$	(193,862)	$	256,715

The Company’s finite-lived intangible assets are comprised of student relationships, which are being amortized on a straight-line basis over a three-year useful life. Straight-line amortization expense for finite-lived intangible assets reflects the pattern in which the economic benefits of the assets are consumed over their estimated useful lives. Amortization expense related to finite-lived intangible assets was $2.9 million and $2.7 million for the three months ended March 31, 2022 and 2023, respectively.

Indefinite-lived intangible assets not subject to amortization consist of trade names. The Company assigned an indefinite useful life to its trade name intangible assets, as it is believed these assets have the ability to generate cash flows indefinitely. In addition, there are no legal, regulatory, contractual, economic, or other factors to limit the useful life of the trade name intangibles.

The Company assesses indefinite-lived intangible assets at least annually for impairment during the fourth quarter, or more frequently if events occur or circumstances change between annual tests that would more likely than not reduce the fair value of

the respective indefinite-lived intangible asset below its carrying amount. No events or circumstances occurred in the three months ended March 31, 2023 to indicate an impairment to indefinite-lived intangible assets. There were no impairment charges related to indefinite-lived intangible assets recorded during the three months ended March 31, 2022 and 2023.