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Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2015
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 June 30, 2015 and December 31, 2014, 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
 
June 30, 2015
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
Interest rate swap (1)
 
$
(227
)
 
$

 
$
(227
)
 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements Using
 
 
Total Fair
 
Quoted prices in
 
Significant other
 
Significant
 
 
Value at
 
active markets
 
observable inputs
 
Unobservable inputs
Description
 
December 31, 2014
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
Interest rate swap (1)
 
$
573

 
$

 
$
573

 
$

 
 
 
 
 
 
 
 
 


(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 three and six-month periods ended June 30, 2015 and 2014, consisted of the following (in thousands):

 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2015
 
2014
 
2015
 
2014
Beginning balance
$
1,842

 
$
2,513

 
$
1,886

 
$
2,526

Fair value adjustments recorded to income during the period
121

 
8

 
243

 
19

Contingent payments made
(14
)
 
(14
)
 
(180
)
 
(38
)
Ending balance
$
1,949

 
$
2,507

 
$
1,949

 
$
2,507

Fair Value Inputs, Liabilities, Quantitative Information
The recurring Level 3 measurement of our contingent consideration liability includes the following significant unobservable inputs at June 30, 2015 (amount in thousands):
Contingent consideration liability
 
Fair value at June 30, 2015
 
Valuation technique
 
Unobservable inputs
 
Range
Revenue-based payments
 
$
1,803

 
Discounted cash flow

 
Discount rate
 
1% - 14%
 
 
 
 
 
Probability of milestone payment
 
15% - 100%
 
 
 
 
 
 
Projected year of payments
 
2015-2028
 
 
 
 
 
 
 
 
 
Other payments
 
$
146

 
Discounted cash flow

 
Discount rate
 
5%
 
 
 
 
 
Probability of milestone payment
 
100%
 
 
 
 
 
 
Projected year of payments
 
2015-2016