Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables set forth the Company’s financial assets and financial liabilities measured at fair value on a recurring basis and the basis of measurement at December 31, 2016 (in thousands):



At December 31, 2016	Total Fair Value Measurement		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Contingent consideration	$	19,283	$	—	$	—	$	19,283

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table provides a reconciliation of the beginning and ending balances for the liabilities measured at fair value using significant unobservable inputs (Level 3) (in thousands):



	Fair Value Measurements at Reporting Date Using Significant Unobservable Inputs (Level 3)
	Contingent Consideration
Balance at December 31, 2015	$	22,162
Contingent consideration payments paid in cash	(11,374		)
Contingent consideration payments paid in stock	(2,012		)
Change in fair value⁽¹⁾	10,417
Reclass to Due to seller	402
Foreign exchange impact⁽²⁾	(312		)

Balance at December 31, 2016	19,283
Contingent consideration payments paid in cash	(15,345		)
Contingent consideration payments paid in stock	(4,678		)
Change in fair value⁽¹⁾	677
Foreign exchange impact⁽²⁾	63

Balance at December 31, 2017	$	—


(1)	Adjustments to original contingent consideration obligations recorded were the result of using revised financial forecasts and updated fair value measurements, see note 3. These changes are recognized within operating expenses on the consolidated statements of operations.


(2)	Changes in the contingent consideration liability which are caused by foreign exchange rate fluctuations are recognized in other comprehensive income.