Quarterly report pursuant to Section 13 or 15(d)

Purchase Price Obligations

v3.7.0.1
Purchase Price Obligations
 6 Months Ended
Jun. 30, 2017
Purchase Price Obligations
8. Purchase Price Obligations

Changes in the fair value of purchase price obligations were as follows:

 

Fair value, January 1, 2017 (1)

    $ 3.0  

Fair value of acquisition liabilities paid (2)

      (0.8 ) 

Change in fair value (3)

      (1.6 ) 
  

 

 

  

Fair value, June 30, 2017 (4)

    $ 0.6  
  

 

 

  

 

(1) Includes $0.9 million to be paid in cash, $0.6 million to be settled in common stock and $1.5 million that may be settled, at our option, in either cash or an equivalent amount of common stock based upon their then-current market value, if certain performance criteria had been met.
(2) Such acquisition liabilities were settled in common stock.
(3) Change in fair value includes a reduction due to a change in assumptions utilized in the calculation of purchase price obligations and not meeting applicable thresholds.
(4) Includes $0.1 million to be paid in cash, $0.3 million to be settled in common stock and $0.2 million that may be settled, at our option, in either cash or an equivalent amount of common stock based upon their then-current market value, if certain performance criteria had been met.

The following table presents quantitative information about Level 3 fair value measurements as of June 30, 2017:

 

     Fair Value     

Valuation Technique

   

Unobservable Inputs

Earnout liabilities

    $ 0.3      Income approach    Discount rate – 19.5%

Stock distribution price floor

      0.3      Monte Carlo simulation    Volatility – 60%
        

Risk free rate – 1.2%

Dividend yield – 0%
  

 

 

        

Fair value

    $ 0.6