Business Acquisition (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of Business Acquisitions, by Acquisition

The following table summarizes the preliminary purchase price allocation and determination of goodwill, which is not deductible for tax purposes, as of February 1, 2016 (in thousands):


	Amounts at Acquisition
Consideration:
Cash	$	1,152
Fair value of contingent consideration		2,435
Total Purchase Price		3,587
Forgiveness of pre-existing debt		2,006
		5,593

Acquisition related expenses - incurred as of September 30, 2016	$	131

Preliminary identifiable assets acquired and liabilities assumed:
Current assets acquired		1,616
Property and equipment		722
Current liabilities assumed		(208	)
Deferred tax liability assumed		(161	)
Identifiable intangible assets		535
		2,504
Goodwill		3,089
Net assets acquired	$	5,593

Schedule of Business Acquisitions by Acquisition, Contingent Consideration

The following table summarizes the contingent consideration balance and activity for the nine month period ended September 30, 2016 (in thousands):


	Exactech Australia			Blue Ortho			Total
Beginning fair value of contingent liability, December 31, 2015	$	—		$	6,222		$	6,222
Initial fair value of contingent consideration		2,435			—			2,435
Period change in valuation		69			143			212
Payments		—			(669	)		(669	)
Foreign currency translation effects		233			166			399
Contingent liability balance, September 30, 2016		2,737			5,862			8,599
Current liability		(1,327	)		(1,764	)		(3,091	)
Non-current liability	$	1,410		$	4,098		$	5,508