VSE Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets

(5) Goodwill and Intangible Assets

Changes in goodwill for the years ended December 31, 2014 and 2013 are as follows (in thousands):

	Supply Chain Management		IT, Energy and Management Consulting		Total
Balance as of December 31, 2012	$	61,169	$	30,883	$	92,052
Balance as of December 31, 2013	$	61,169	$	30,883	$	92,052
Balance as of December 31, 2014	$	61,169	$	30,883	$	92,052

The results of our annual impairment testing indicated that the fair value of our reporting units exceeded their carrying values as of October 1, 2014.

Intangible assets consist of the value of contract-related assets, technologies and trade names. Amortization expense for the years ended December 31, 2014, 2013 and 2012 was approximately $10 million, $10.2 million and $11.2 million, respectively.

Intangible assets were composed of the following (in thousands):

	Cost		Accumulated Amortization			Accumulated Impairment Loss			Net Intangible Assets
December 31, 2014
Contract and customer-related	$	93,304	$	(33,840	)	$	(1,025	)	$	58,439
Acquired technologies		12,400		(4,024	)		-			8,376
Trade names – amortizable		10,100		(4,706	)		-			5,394
Total	$	115,804	$	(42,570	)	$	(1,025	)	$	72,209

December 31, 2013
Contract and customer-related	$	93,304	$	(26,287	)	$	(1,025	)	$	65,992
Acquired technologies		12,400		(2,896	)		-			9,504
Trade names – amortizable		10,100		(3,339	)		-			6,761
Total	$	115,804	$	(32,522	)	$	(1,025	)	$	82,257

Future expected amortization of intangible assets is as follows for the years ending December 31, (in thousands):

	Amortization
2015	$	9,439
2016		9,255
2017		9,255
2018		9,255
2019		9,190
Thereafter		25,815
Total	$	72,209