Acquisitions

6 Months Ended

Jun. 30, 2012

Acquisitions

10. Acquisitions

Zokem Oy. On July 28, 2011, a wholly-owned subsidiary of the Company acquired Zokem Oy. The purchase price was $10.6 million in cash plus a contingent consideration arrangement with an estimated fair value of approximately $0.9 million as of the acquisition date. The contingent consideration arrangement provides for possible additional cash payments to be made by the Company to the former Zokem shareholders through 2015 of up to $12.0 million, which are contingent upon Zokem reaching certain financial performance targets in the future. The approximate $0.9 million fair value estimate was determined by applying the income approach method. The key assumptions used in the fair value valuation include a probability-weighted range of performance targets for the four-year measurement period of 2012 through 2015 and an adjusted discount rate. The Company periodically reassesses the fair value of the contingent consideration. As of June 30, 2012, the Company’s estimate of the fair value of the contingent consideration was $1.1 million, which was comprised of less than $0.1 million recorded in accrued expenses and other current liabilities and approximately $1.1 million recorded in other noncurrent liabilities on the Company’s consolidated balance sheet.