VSE Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 and the level they fall within the fair value hierarchy (in thousands):



Amounts Recorded at Fair Value	Financial Statement Classification	Fair Value Hierarchy	Fair Value June 30, 2020		Fair Value December 31, 2019
Non-COLI assets held in Deferred Supplemental Compensation Plan	Other assets	Level 1	$	1,022	$	710
Interest rate swap agreements	Accrued expenses	Level 2	$	2,741	$	1,473
Earn-out obligation - short-term	Current portion of earn-out obligation	Level 3	$	3,600	$	31,700
Earn-out obligation - long-term	Earn-out obligation	Level 3	$	—	$	5,000

Fair Value Measured on a Recurring Basis

Changes in earn-out obligation measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2020 are as follows (in thousands):



	Current portion			Long-term portion			Total
Balance as of December 31, 2019	$	31,700		$	5,000		$	36,700
Earn-out payments	(31,700		)	—			(31,700		)
Fair value adjustment included in net income	(1,400		)	—			(1,400		)
Reclassification from long-term to current	5,000			(5,000		)	—
Balance as of June 30, 2020	$	3,600		$	—		$	3,600

Fair Value Measurements on a Non-recurring Basis

The following table presents changes in the Level 3 fair value of certain assets measured on a non-recurring basis for the six months ended June 30, 2020 (in thousands):



	Goodwill
Assets subject to impairment charges
Carrying value prior to impairment	$	174,998
Impairment charge	(30,945		)
Carrying value after impairment	144,053
Carrying value of assets not subject to impairment charge	94,073
Balance as of June 30, 2020	$	238,126