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, 2015

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets

(6) Goodwill and Intangible Assets

Changes in goodwill for the years ended December 31, 2015 and 2014 are as follows (in thousands):

	Supply Chain Management		IT, Energy and Management Consulting		Aviation		Total
Balance as of December 31, 2013	$	61,169	$	30,883	$	-	$	92,052
Balance as of December 31, 2014	$	61,169	$	30,883	$	-	$	92,052
Increase from acquisitions		1,944		-		104,549		106,493
Balance as of December 31, 2015	$	63,113	$	30,883	$	104,549	$	198,545

The results of our annual goodwill impairment testing indicated that the fair value of our reporting units exceeded their carrying values as of October 1, 2015.

Intangible assets consist of the value of contract-related assets, technologies and trade names. Amortization expense for the years ended December 31, 2015, 2014 and 2013 was approximately $15.6 million, $10 million and $10.2 million, respectively.

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

	Cost		Accumulated Amortization			Accumulated Impairment Loss			Net Intangible Assets
December 31, 2015
Contract and customer-related	$	173,084	$	(46,611	)	$	(1,025	)	$	125,448
Acquired technologies		12,400		(5,151	)		-			7,249
Trade names		16,730		(6,384	)		-			10,346
Total	$	202,214	$	(58,146	)	$	(1,025	)	$	143,043

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		10,100		(4,706	)		-			5,394
Total	$	115,804	$	(42,570	)	$	(1,025	)	$	72,209

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

	Amortization
2016	$	16,130
2017		16,080
2018		16,080
2019		16,016
2020		15,425
Thereafter		63,312
Total	$	143,043