Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Tabular disclosure of financial instruments measured at fair value on a recurring basis

The following table presents the fair value of the Company’s financial instrument liability/(asset) that are measured at fair value on a recurring basis as of March 31, 2019:

(in thousands)	Level 1		Level 2		Level 3		Total
Tax amortization benefit contingency(1)	$	—	$	—	$	41,351	$	41,351
Contingent consideration(2)	—		—		569		569
Stock appreciation rights(3)	—		—		72		72
Phantom shares(4)	—		—		447		447
Total	$	—	$	—	$	42,439	$	42,439

The following table presents the fair value of the Company’s financial instruments that are measured at fair value on a recurring basis as of December 31, 2018:

(in thousands)	Level 1		Level 2		Level 3		Total
Tax amortization benefit contingency(1)	$	—	$	—	$	40,467	$	40,467
Contingent consideration related to acquisition(2)	—		—		379		379
Stock appreciation rights(3)	—		—		146		146
Phantoms shares(4)	—		—		404		404
Total	$	—	$	—	$	41,396	$	41,396

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(1) The fair value of the tax amortization benefit contingency is measured using an income approach based on the Company’s best estimate of the undiscounted cash payments to be made, with the current portion tax effected at 21.5% and the non-current portion tax effected at 21.5% due to the TCJA enacted in the U.S. and discounted to present value utilizing an appropriate market discount rate.

(2) The fair value of the contingent consideration related to the Tecnidex acquisition.

(3) The fair value of the stock appreciation rights was measured using a Black Scholes pricing model during the three months ended March 31, 2019. The valuation technique used did not change during the three months ended March 31, 2019.

(4) The fair value of phantom shares is based on the fair value of the Company's common stock. The valuation technique used did not change during the three months ended March 31, 2019.

Changes in financial instruments measured at level 3 fair value on a recurring basis

The following table presents the changes during the period presented in our Level 3 financial instrument liability/(asset) that are measured at fair value on a recurring basis.

(in thousands)	Tax amortization benefit contingency		Contingent consideration related to acquisition		Stock appreciation rights		Phantom shares		Total
Balance, December 31, 2018	$	40,467	$	379	$	146	$	404	$	41,396
Accretion	884		—		—		—		884
Tecnidex acquisition	—		190		—		—		190
Stock compensation expense	—		—		(74)		43		(31)
Balance, March 31, 2019	$	41,351	$	569	$	72	$	447	$	42,439