Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

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, 2018 and December 31, 2017, 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, 2018			(Level 1)		(Level 2)			(Level 3)

Interest rate contracts ⁽¹⁾	$	8,047		$	—	$	8,047		$	—
Foreign currency contract assets, current and long-term ⁽²⁾	$	1,880		$	—	$	1,880		$	—
Foreign currency contract liabilities, current and long-term ⁽³⁾	$	(497	)	$	—	$	(497	)	$	—

				Fair Value Measurements Using
	Total Fair			Quoted prices in		Significant other			Significant
	Value at			active markets		observable inputs			unobservable inputs
Description	December 31, 2017			(Level 1)		(Level 2)			(Level 3)

Interest rate contracts ⁽¹⁾	$	5,749		$	—	$	5,749		$	—
Foreign currency contract assets, current and long-term ⁽²⁾	$	621		$	—	$	621		$	—
Foreign currency contract liabilities, current and long-term ⁽³⁾	$	(1,391	)	$	—	$	(1,391	)	$	—

(1) The fair value of the interest rate contracts is determined using Level 2 fair value inputs and is recorded as other assets or other long-term obligations in the consolidated balance sheets.

(2) The fair value of the foreign currency contract assets (including those designated as hedging instruments and those not designated as hedging instruments) is determined using Level 2 fair value inputs and is recorded as prepaid expenses and other assets or other long-term assets in the consolidated balance sheets.

(3) The fair value of the foreign currency contract liabilities (including those designated as hedging instruments and those not designated as hedging instruments) is determined using Level 2 fair value inputs and is recorded as accrued expenses or other long-term obligations in the consolidated balance sheets.

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, 2018 and 2017, consisted of the following (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Beginning balance	$	10,928		$	705		$	10,956		$	683
Contingent consideration liability recorded as the result of acquisitions (see Note 5)	—			4,900			—			4,900
Fair value adjustments recorded to income during the period	99			(18		)	86			19
Contingent payments made	(115		)	(15		)	(130		)	(30		)
Ending balance	$	10,912		$	5,572		$	10,912		$	5,572

Fair Value Inputs, Liabilities, Quantitative Information

The recurring Level 3 measurement of our contingent consideration liability and contingent receivable includes the following significant unobservable inputs at June 30, 2018 and December 31, 2017 (amounts in thousands):



Contingent consideration asset or liability	Fair value at June 30, 2018		Valuation technique	Unobservable inputs	Range
Revenue-based payments	$	10,912	Discounted cash flow	Discount rate	9.9% - 15%
contingent liability			Discounted cash flow	Projected year of payments	2018-2037

Contingent receivable	$	474	Discounted cash flow	Discount rate	10%
asset			Discounted cash flow	Probability of milestone payment	54%
				Projected year of payments	2018-2019

Contingent consideration asset or liability	Fair value at December 31, 2017		Valuation technique	Unobservable inputs	Range
Revenue-based payments	$	10,956	Discounted cash flow	Discount rate	9.9% - 15%
contingent liability			Discounted cash flow	Probability of milestone payment	100%
				Projected year of payments	2018-2037

Contingent receivable	$	760	Discounted cash flow	Discount rate	10%
asset			Discounted cash flow	Probability of milestone payment	75%
				Projected year of payments	2018-2019