Quarterly report pursuant to Section 13 or 15(d)

Purchase Price Obligations

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Purchase Price Obligations
 9 Months Ended
Sep. 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)

      (1.2 ) 

Change in fair value (3)

      (1.6 ) 
  

 

 

  

Fair value, September 30, 2017 (4)

    $ 0.2  
  

 

 

  

 

(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 and cash.
(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 $0.2 million to be settled in common stock.

We determined the fair value of the purchase price obligation on a recurring basis using a Monte Carlo simulation. The fair value remeasurement is based on significant inputs not observable in the market and thus represent a Level 3 measurement. At September 30, 2017, we used the following assumptions in determining the purchase price obligations: volatility of 60%, risk free interest rate of 1.2% and dividend yield of 0%.