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

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible AssetsChanges in goodwill for the nine months ended September 30, 2021 are as follows (in thousands):


	Fleet		Federal and Defense		Aviation		Total
Balance as of December 31, 2020	$	63,190	$	30,883	$	144,053	$	238,126
Increase from acquisitions	—		—		2,700		2,700


Balance as of September 30, 2021	$	63,190	$	30,883	$	146,753	$	240,826

We perform an annual review of goodwill for impairment during the fourth quarter and whenever events or other changes in circumstances indicate that the carrying value may not be fully recoverable.

Intangible assets, net comprised the following (in thousands):


	Cost		Accumulated Amortization		Accumulated Impairment Loss		Net Intangible Assets
September 30, 2021
Contract and customer-related	$	240,452	$	(123,019)	$	(3,814)	$	113,619
Acquired technologies	12,400		(11,633)		—		767
Trade names	18,770		(16,115)		—		2,655
Total	$	271,622	$	(150,767)	$	(3,814)	$	117,041

December 31, 2020
Contract and customer-related	$	213,194	$	(110,917)	$	(3,814)	$	98,463
Acquired technologies	12,400		(10,787)		—		1,613
Trade names	18,770		(15,251)		—		3,519
Total	$	244,364	$	(136,955)	$	(3,814)	$	103,595

The increase in the gross carrying amount of contract and customer-related intangibles during the nine months ended September 30, 2021 is related to customer relationship intangibles recognized in connection with the acquisitions of HSS and Global Parts. See Note (2) "Acquisitions and Divestitures" for additional details regarding the acquisitions.

Amortization expense related to intangible assets was $4.9 million and $4.2 million for the three months ended September 30, 2021 and 2020, respectively, and $13.8 million and $13.3 million for the nine months ended September 30, 2021 and 2020, respectively.