Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v3.20.1
Goodwill and Intangible Assets
 3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
Goodwill and Intangible Assets

Changes in goodwill for the three months ended March 31, 2020 are as follows (in thousands):
 
 
Fleet
 
Federal and Defense
 
Aviation
 
Total
Balance as of December 31, 2019
 
$
63,190

 
$
30,883

 
$
182,377

 
$
276,450

Decrease from divestiture
 
—

 
—

 
(7,379
)
 
(7,379
)
Balance as of March 31, 2020
 
$
63,190

 
$
30,883

 
$
174,998

 
$
269,071



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. As a result of the decline in the macroeconomic environment caused by the COVID-19 pandemic and the decrease in our market capitalization, we performed an interim impairment analysis as of March 31, 2020. The result of the impairment analysis indicated that our reporting units' goodwill was not impaired. We will continue to evaluate these reporting units for potential goodwill impairment in 2020 as market conditions evolve.

In the first quarter of 2020, we completed the sale of the Prime Turbines subsidiary and certain related inventory assets and recognized a loss on the sale of the business and inventory of $7.5 million. Prime Turbines was reported within our Aviation segment. As part of determining the loss on sale, goodwill of $7.4 million was allocated to the disposal group on a relative fair value basis and was written-off upon the completion of the sale.

Intangible assets consist of the value of contract and customer-related intangible assets, acquired technologies and trade names. Amortization expense was approximately $4.7 million and $5.0 million for the three months ended March 31, 2020 and March 31, 2019, respectively.

Intangible assets, net comprised the following (in thousands):
 
 
Cost
 
Accumulated Amortization
 
Accumulated
Impairment Loss
 
Net Intangible Assets
March 31, 2020
 
 
 
 
 
 
 
 
Contract and customer-related
 
$
213,194

 
$
(99,997
)
 
$
(1,025
)
 
$
112,172

Acquired technologies
 
12,400

 
(9,942
)
 
—

 
2,458

Trade names
 
18,770

 
(14,234
)
 
—

 
4,536

Total
 
$
244,364

 
$
(124,173
)
 
$
(1,025
)
 
$
119,166

 
 
 
 
 
 
 
 
 
December 31, 2019
 
 

 
 

 
 

 
 

Contract and customer-related
 
$
227,594

 
$
(102,169
)
 
$
(1,025
)
 
$
124,400

Acquired technologies
 
12,400

 
(9,660
)
 
—

 
2,740

Trade names
 
18,770

 
(13,735
)
 
—

 
5,035

Total
 
$
258,764

 
$
(125,564
)
 
$
(1,025
)
 
$
132,175