
	Acquisitions

Contingent Consideration

Accounting Standards Codification (“ASC”) Topic 805 requires that contingent consideration be recognized at fair value on the acquisition date and be re-measured each reporting period with subsequent adjustments recognized in the consolidated statement of operations. We estimate the fair value of contingent consideration liabilities based on financial projections of the acquired companies and estimated probabilities of achievement and discount the liabilities to present value using a weighted-average cost of capital. Contingent consideration is valued using significant inputs that are not observable in the market which are defined as Level 3 inputs pursuant to fair value measurement accounting. We believe our estimates and assumptions are reasonable; however, there is significant judgment involved. At each reporting date, the contingent consideration obligation is revalued to estimated fair value, and changes in fair value subsequent to the acquisitions are reflected in income or expense in the consolidated statements of operations, and could cause a material impact to, and volatility in, our operating results. Changes in the fair value of contingent consideration obligations may result from changes in discount periods, changes in the timing and amount of revenue and/or earnings estimates and changes in probability assumptions with respect to the likelihood of achieving the various earn-out criteria.

Below is a summary of the potential contingent consideration we may be required to pay in connection with completed acquisitions as of June 30, 2015 (dollars in thousands):



	Original range
	of potential undiscounted	As of June 30, 2015 Maximum contingent consideration due in
Acquisition:	payments	2015	2016	Total
Effective Companies	$0 - $5,163	—	2,581	2,581

Below is a summary of the changes in the recorded amount of contingent consideration liabilities from December 31, 2014 to June 30, 2015 (dollars in thousands):



	Liability as of December 31,		Additions			Change in Fair Value of Contingent		Foreign Currency			Liability as of June 30,
Acquisition:	2014		(Payments)			Consideration		Translation			2015
Effective Companies	$	5,083	$	(2,609	)	$	258	$	(422	)	$	2,310

As of June 30, 2015 and December 31, 2014, contingent consideration considered a current liability and included in accounts payable totaled $2.3 million and $2.7 million, respectively. As of June 30, 2015 and December 31, 2014, we also had accrued contingent consideration totaling $0 and $2.4 million, respectively, related to acquisitions which are included in other long-term liabilities on the consolidated balance sheet and represent the portion of contingent consideration estimated to be payable greater than twelve months from the balance sheet date.