Quarterly report pursuant to Section 13 or 15(d)

Purchase Price Obligations (Tables)

v3.5.0.2
Purchase Price Obligations (Tables)
9 Months Ended
Sep. 30, 2016
Fair Value Remeasurement Based on Significant Inputs Not Observable, Level 3 Measurement

Changes in the fair value of purchase price obligations during the nine months ended September 30, 2016:

 

Fair value, January 1 (2)

   $ 8.8   

Fair value of acquisition liabilities paid

     (7.4

Fair value of consideration issued

     4.1   

Change in fair value (1)

     (0.1
  

 

 

 

Fair value, September 30 (2)

   $ 5.4   
  

 

 

 

 

(1) Change in fair value includes a $0.9 million reduction during the third quarter due to a change in assumptions utilized in the calculation of purchase price obligations.
(2) Purchase price obligations may be settled, at our option, in either cash or an equivalent amount of common shares based upon their then-current market value, if certain performance criteria had been met.
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

The following table presents quantitative information about Level 3 fair value measurements as of September 30, 2016:

 

     Fair Value      Valuation Technique      Unobservable Inputs  

Earnout liabilities

   $ 4.6         Income approach        
 
Discount rate –
19.5%
  
  

Stock distribution price floor

     0.8         Monte Carlo simulation         Volatility – 60%   
          

 

Risk free rate – 1.2%

Dividend yield – 0%

  

  

  

 

 

       

Fair value

   $ 5.4