Fair Value Measurement

9 Months Ended

Sep. 30, 2011

Fair Value Measurement [Abstract]

Fair Value Measurement

4. Fair Value Measurement

Accounting guidance on fair value measurements for certain financial assets and liabilities requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:

Level 1	—	Quoted market prices in active markets for identical assets or liabilities.
Level 2	—	Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3	—	Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets.

A financial asset or liability’s classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement.

The following table presents information, as of September 30, 2011 and December 31, 2010, about the Company’s financial liabilities, the contingent purchase price related to acquisitions that are measured at fair value on a recurring basis, according to the valuation techniques the Company used to determine their fair values (in thousands):

	9/30/2011
							Fair
	Level 1		Level 2		Level 3		Value
Contingent purchase price related to acquisitions	$	—	$	—	$	2,787	$	2,787
Total liabilities at fair value	$	—	$	—	$	2,787	$	2,787

	12/31/2010
							Fair
	Level 1		Level 2		Level 3		Value
Contingent purchase price related to acquisitions	$	—	$	—	$	2,977	$	2,977
Total liabilities at fair value	$	—	$	—	$	2,977	$	2,977

In measuring the fair value of the contingent payment liability, the Company used an income approach that considers the expected future earnings of the acquired businesses and the resulting contingent payments, discounted at a risk-adjusted rate.

The table below sets forth a reconciliation of the Company’s beginning and ending Level 3 financial liability balance for the three months ended and nine months ended September 30, 2011 (in thousands):

Balance as of June 30, 2011	$	3,946
Payment of contingent purchase obligation		(1,267	)
Adjustment to contingent purchase obligation		108
Balance as of September 30, 2011	$	2,787
Balance as of December 31, 2010	$	2,977
Acquisition of Bruenger		2,581
Payment of contingent purchase obligation		(2,979	)
Adjustment to contingent purchase obligation		208
Balance as of September 30, 2011	$	2,787