Acquisitions

9 Months Ended

Sep. 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 acquisition date fair value estimate was determined by applying the income approach method. The key assumptions used in the fair value valuation included 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 September 30, 2012, the Company’s estimate of the fair value of the contingent consideration was $1.1 million, recorded in other noncurrent liabilities on the Company’s consolidated balance sheet.

The following table shows the changes in goodwill for the nine-month periods ended September 30, 2012, and 2011, (in thousands):

	Nine-Month			Nine-Month
	Period Ended			Period Ended
	September 30,			September 30,
	2012			2011
Beginning balance	$	45,430		$	38,895
Zokem Oy addition		—			5,623
Translation effect		(71	)		—
Ending balance	$	45,359		$	44,518