Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

The change in the net carrying amount of Goodwill from December 31, 2017 through December 31, 2019 was composed of the following items:



	Brazil			Mexico			Andean			Rest of World			Online & Partnerships		Total
Balance at December 31, 2017	$	493,373		$	503,373		$	272,181		$	95,617		$	460,740	$	1,825,284
Acquisitions	—			—			4,658			—			—		4,658
Reclassification to Long-term assets held for sale	(15,165		)	—			—			—			—		(15,165		)
Impairments	—			—			—			—			—		—
Currency translation adjustments	(71,756		)	(5,154		)	(22,580		)	(8,198		)	—		(107,688		)
Adjustments to prior acquisitions	—			—			—			—			—		—
Balance at December 31, 2018	$	406,452		$	498,219		$	254,259		$	87,419		$	460,740	$	1,707,089
Acquisitions	1,333			—			—			—			—		1,333
Reclassification to Long-term assets held for sale	—			—			—			—			—		—
Impairments	—			—			—			—			—		—
Currency translation adjustments	(19,625		)	27,037			(12,932		)	(1,407		)	—		(6,927		)
Adjustments to prior acquisitions	—			—			—			—			—		—
Balance at December 31, 2019	$	388,160		$	525,256		$	241,327		$	86,012		$	460,740	$	1,701,495

In March 2019, the Company's indirect, wholly owned subsidiary, UAM Brazil, acquired a company in Brazil that, prior to the acquisition, was a vendor providing distance-learning and marketing services to the Company's Brazil operations. The total purchase price was BRL 5,022 ($1,333 at the date of purchase), which was recorded as Goodwill given the immaterial nature of the acquisition. The acquiree was merged into UAM Brazil.

Other Intangible Assets

Amortization expense for intangible assets subject to amortization was $1,352, $5,780 and $11,514 for the years ended December 31, 2019, 2018 and 2017, respectively. The estimated future amortization expense for intangible assets for the years ending December 31, 2020, 2021, 2022, 2023, 2024 and beyond is $787, $450, $194, $0, $0 and $0, respectively.

The following table summarizes our identifiable intangible assets as of December 31, 2019:



	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period (Yrs)
Subject to amortization:
Student rosters	$	67,579	$	(67,579	)	$	—	0.0
Other	24,975		(23,544		)	1,431		2.1
Not subject to amortization:
Tradenames	1,119,454		—			1,119,454		—
Total	$	1,212,008	$	(91,123	)	$	1,120,885

The following table summarizes our identifiable intangible assets as of December 31, 2018:



	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Amortization Period (Yrs)
Subject to amortization:
Student rosters	$	69,540	$	(69,253	)	$	287	0.9
Other	57,933		(32,791		)	25,142		11.2
Not subject to amortization:
Tradenames	1,126,244		—			1,126,244		—
Total	$	1,253,717	$	(102,044	)	$	1,151,673

The decrease in Other intangible assets in 2019 related primarily to our adoption of ASC Topic 842, which resulted in the reclassification of certain lease intangibles to operating lease ROU assets.

Impairment Tests

The following table summarizes the Loss on impairment of assets:



For the years ended December 31,	2019		2018		2017
Impairments of Goodwill	$	—	$	—	$	—
Impairments of Deferred costs and Other intangible assets, net	—		—		2,696
Impairments of long-lived assets	470		10,030		4,425
Total	$	470	$	10,030	$	7,121

We perform annual impairment tests of our non-amortizable intangible assets, which consist of goodwill and tradenames, in the fourth quarter of each year. The impairment charges discussed below were recorded to reduce the assets' carrying values to fair value.

For the purposes of our annual impairment testing of the Company's goodwill, fair value measurements were determined primarily using the income approach, based largely on inputs that are not observable to active markets, which would be deemed “Level 3” fair value measurements as defined in Note 21, Fair Value Measurement. These inputs include our expectations about future revenue growth and profitability, marginal income tax rates by jurisdiction, and the discount rate. Where a market approach is used, the inputs also include publicly available data about our competitors' financial ratios and transactions.

For purposes of our annual impairment testing of the Company’s indefinite-lived tradenames, fair value measurements were determined using the income approach, based largely on inputs that are not observable to active markets, which would be deemed “Level 3” fair value measurements as defined in Note 21, Fair Value Measurement. These inputs include our expectations about future revenue growth, marginal income tax rates by jurisdiction, the discount rate and the estimated royalty rate. We use publicly available information and proprietary third-party arm’s length agreements that Laureate has entered into with various licensors in determining certain assumptions to assist us in estimating fair value using market participant assumptions.

2018 Loss on Impairment of Assets

University of Liverpool

Effective September 30, 2018, the University of Liverpool (Liverpool), an institution in our Online & Partnerships segment, elected not to renew its institutional partnership agreement and therefore the existing agreement will terminate in April 2021. Accordingly, Liverpool stopped enrolling new students and began a teach-out process that is expected to be completed in April 2021. As a result, during the third quarter of 2018 we recorded an impairment charge of $10,030 related to fixed assets of this entity that are no longer recoverable based on expected future cash flows. Since Liverpool does not meet the criteria to be classified as held-for-sale or a discontinued operation, its results are reported within continuing operations for all periods presented.

2017 Loss on Impairment of Assets

The 2017 impairment charges related to the impairment of a lease intangible, certain modular buildings and software development costs.