Annual report pursuant to Section 13 and 15(d)

Purchase Price Obligations

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Purchase Price Obligations
12 Months Ended
Dec. 31, 2016
Purchase Price Obligations
11. Purchase Price Obligations

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

 

Fair value, January 1, 2016 (1)

   $ 8.8  

Fair value of acquisition liabilities paid (2)

     (7.6

Fair value of consideration issued

     4.1  

Change in fair value (3)

     (2.3
  

 

 

 

Fair value, December 31, 2016 (4)

   $ 3.0  
  

 

 

 

 

(1) Includes $1.8 million to be paid in cash, $6.5 million to be settled in common stock and $0.5 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) Includes $1.0 million settled in cash and $6.6 million settled in common stock.
(3) Change in fair value includes a $2.5 million reduction due to a change in assumptions utilized in the calculation of purchase price obligations and not meeting applicable thresholds.
(4) 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.

The following table presents quantitative information about Level 3 fair value measurements as of December 31, 2016:

 

     Fair Value     

Valuation Technique

  

Unobservable Inputs

Earnout liabilities

   $ 2.4      Income approach    Discount rate – 19.5%

Stock distribution price floor

     0.6      Monte Carlo simulation    Volatility – 60%
         Risk free rate – 1.2%
         Dividend yield – 0%
  

 

 

       

Fair value

   $ 3.0