Quarterly report pursuant to Section 13 or 15(d)

Purchase Price Obligations

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Purchase Price Obligations
3 Months Ended
Mar. 31, 2017
Purchase Price Obligations
8. Purchase Price Obligations

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

 

Fair value, January 1 (1)

   $ 3.0  

Fair value of acquisition liabilities paid (2)

     (0.2

Change in fair value (3)

     (0.7
  

 

 

 

Fair value, March 31 (4)

   $ 2.1  
  

 

 

 

 

(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 $0.7 million to be paid in cash, $0.5 million to be settled in common stock and $0.9 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 March 31, 2017:

 

     Fair Value      Valuation Technique      Unobservable Inputs  

Earnout liabilities

   $ 1.6        Income approach        Discount rate – 19.5%  

Stock distribution price floor

     0.5        Monte Carlo simulation        Volatility – 60%  
          

Risk free rate – 1.2%

Dividend yield – 0%

 

 

  

 

 

       

Fair value

   $ 2.1