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Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2013
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Our financial assets and (liabilities) carried at fair value measured on a recurring basis as of December 31, 2013 and 2012, consisted of the following (in thousands):

 
 
 
 
Fair Value Measurements Using
 
 
Total Fair
 
Quoted prices in
 
Significant other
 
Significant
 
 
Value at
 
active markets
 
observable inputs
 
Unobservable inputs
Description
 
December 31, 2013
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
Interest rate swap (1)
 
$
1,203

 
$

 
$
1,203

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements Using
 
 
Total Fair
 
Quoted prices in
 
Significant other
 
Significant
 
 
Value at
 
active markets
 
observable inputs
 
Unobservable inputs
Description
 
December 31, 2012
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
Interest rate swap (1)
 
$
(1,788
)
 
$

 
$
(1,788
)
 
$

 
 
 
 
 
 
 
 
 



(1)    The fair value of the interest rate swap is determined based on forward yield curves.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
Changes in the fair value of our contingent consideration liability during the years ended December 31, 2013 and 2012, consisted of the following (in thousands):

 
2013
 
2012
Beginning balance
$
6,697

 
$
1,290

Contingent consideration liability recorded as the result of acquisitions (see Note 2)

 
4,704

Initial purchase price adjustments finalized over the period (see Note 2)

 
280

Fair value adjustments recorded to (income) expense during the period
(4,094
)
 
480

Contingent payments made
(77
)
 
(57
)
Ending balance
$
2,526

 
$
6,697

Fair Value Inputs, Liabilities, Quantitative Information
The recurring Level 3 measurement of our contingent consideration liability includes the following significant unobservable inputs at December 31, 2013 and 2012 (amount in thousands):
Contingent consideration liability
 
Fair value at December 31, 2013
 
Valuation technique
 
Unobservable inputs
 
Range
Revenue-based payments
 
$
2,282

 
Discounted cash flow

 
Discount rate
 
11% - 15%
 
 
 
 
 
Probability of milestone payment
 
90%
 
 
 
 
 
 
Projected year of payments
 
2014-2028
 
 
 
 
 
 
 
 
 
Other payments
 
$
244

 
Discounted cash flow

 
Discount rate
 
5.4%
 
 
 
 
 
Probability of milestone payment
 
100%
 
 
 
 
 
 
Projected year of payments
 
2014-2016
 
 
 
 
 
 
 
 
 
Contingent consideration liability
 
Fair value at December 31, 2012
 
Valuation technique
 
Unobservable inputs
 
Range
Revenue-based payments
 
$
6,370

 
Discounted cash flow

 
Discount rate
 
10% - 14.5%
 
 
 
 
 
Probability of milestone payment
 
90%
 
 
 
 
 
 
Projected year of payments
 
2013-2028
 
 
 
 
 
 
 
 
 
Other payments
 
$
327

 
Discounted cash flow

 
Discount rate
 
4.5%
 
 
 
 
 
Probability of milestone payment
 
100%
 
 
 
 
 
 
Projected year of payments
 
2013-2015