Acquisitions

6 Months Ended

Jun. 30, 2017

Acquisitions [Abstract]

Acquisitions

(5)  Acquisitions

In 2016, the Company completed the acquisitions of Challenger and Hybrid, for total consideration of $22.8 million, $6.0 million of which was contingent and based on their future performance. The aggregate allocation of the combined purchase price included $1.2 million of cash, $9.9 million of identifiable intangible assets, $12.9 million of residual goodwill, and $1.2 million of net liabilities assumed.

The contingent consideration liability was $1.6 million and $2.2 million as of June 30, 2017 and December 31, 2016, respectively. Expected future payments of $1.2 million and $0.4 million were recorded in Other long-term liabilities and Accrued expenses and Other current liabilities, respectively, in the Company’s consolidated balance sheets at June 30, 2017. Expected future payments of $1.7 million and $0.5 million were recorded in Other long-term liabilities and Accrued expenses and Other current liabilities, respectively, in the Company’s consolidated balance sheets at December 31, 2016.

Management estimated the fair value of the contingent consideration liability as of June 30, 2017, based on expected future payments, which were estimated based on forecasted future performance. The fair value of these liabilities would be categorized as Level 3 in the fair value hierarchy. The following table provides a reconciliation of the contingent consideration liability measured at estimated fair value based on the balance as of December 31, 2016 and updated quarterly for the six months ended June 30, 2017 (in thousands):

	2017
January 1	$	2,211
Net decrease in estimated fair value of contingent consideration
included in Administrative expenses		(631)
June 30	$	1,580