Commitments And Contingencies

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

COMMITMENTS AND CONTINGENCIES

Contingent Consideration

In connection with several business acquisitions, if certain sales targets for the acquired products are achieved, the Company would pay additional cash consideration. The Company has recorded a liability for the fair value of this contingent consideration at March 31, 2015, based on the present value of the expected future cash flows using a market participant’s weighted average cost of capital of 15.0 percent.

As required, the liability for this contingent consideration is measured at fair value quarterly, considering actual sales of the acquired products, updated sales projections, and the updated market participant weighted average cost of capital. Depending upon the weighted average costs of capital and future sales of the products which are subject to contingent consideration, the Company could record adjustments in future periods.

The following table provides a reconciliation of the Company’s contingent consideration liability for the three months ended March 31:

(In thousands)	2015			2014
Balance at beginning of period	$	8,129		$	7,414
Acquisitions	—			1,455
Payments	(127		)	(1,098		)
Accretion (a)	289			261
Fair value adjustments (a)	(232		)	410
Balance at end of the period (b)	8,059			8,442
Less current portion in accrued expenses and other current liabilities	(3,494		)	(2,656		)
Total long-term portion in other long-term liabilities	$	4,565		$	5,786

(a) Recorded in selling, general and administrative expense in the Condensed Consolidated Statements of Income.

(b) Amounts represent the fair value of estimated remaining payments. The total estimated remaining payments as of March 31, 2015 are $11.3 million. The liability for contingent consideration expires at various dates through September 2029. Certain of the contingent consideration arrangements are subject to a maximum payment amount, while the remaining arrangements have no maximum contingent consideration.

Litigation

In the normal course of business, the Company is subject to proceedings, lawsuits, regulatory agency inquiries and other claims. All such matters are subject to uncertainties and outcomes that are not predictable with assurance. While these matters could materially affect operating results when resolved in future periods, it is management’s opinion after final disposition, including anticipated insurance recoveries in certain cases, any monetary liability or financial impact to the Company beyond that provided in the Condensed Consolidated Balance Sheet as of March 31, 2015, would not be material to the Company’s financial position or annual results of operations.