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FAIR VALUES OF ASSETS AND LIABILITIES (Tables)
9 Months Ended
Sep. 30, 2012
FAIR VALUES OF ASSETS AND LIABILITIES  
Schedule of assets and liabilities that are measured and recorded at fair value on a recurring basis

 

 

 

 

 

 

Estimated Fair Value Measurements

 

 

 

 

 

Quoted
Prices in
Active

 

Significant
Other
Observable

 

Significant
Unobservable

 

Items Measured at Fair Value on a

 

Carrying

 

Markets

 

Inputs

 

Inputs

 

Recurring Basis

 

Value

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

 

 

(in thousands)

 

September 30, 2012:

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

34

 

$

34

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011:

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

34

 

$

34

 

$

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

Contingent consideration (1)

 

$

16,226

 

$

 

$

 

$

16,226

 

 

 

(1)         The contingent consideration represents the estimated fair value of the potential contingent consideration opportunity payable in connection with the De Novo acquisition that is contingent upon achieving performance hurdles based on operating revenue objectives. The carrying value at December 31, 2011, was based on management’s estimate of projected revenue over the measurement period as well as the probability of contingent consideration achievement. We applied a discount rate to the projected contingent consideration payments that approximated the weighted average cost of capital. As discussed in Note 3 the carrying value was adjusted to zero during the third quarter of 2012.

Schedule of changes in the acquisition-related contingent consideration obligation

 

 

 

 

Fair Value
Measurements
Using Significant
Unobservable
Inputs (Level 3)
(in thousands)

 

 

 

 

 

Beginning balance December 31, 2011

 

$

16,226

 

Increase in fair value related to accretion

 

962

 

Decrease in fair value of contingent consideration obligation

 

(17,188

)

Ending balance September 30, 2012

 

$