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Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2015
Fair Value Measurements [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

 

 

 

 

 

 

 

 

Significant

 

 

 

 

 

 

 

 

 

Quoted prices

 

 

other

 

 

Significant

 

 

 

Total

 

 

in active

 

 

observable

 

 

unobservable

 

 

 

Carrying

 

 

markets

 

 

inputs

 

 

inputs

As of June 30, 2015

 

 

Value

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

(in thousands)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents (a)

 

$
106,917 

 

$
106,917 

 

$

 —

 

$

 —

Restricted cash (a)

 

 
39,493 

 

 
39,493 

 

 

 —

 

 

 —

Investments in lieu of retainage (b)

 

 
36,482 

 

 
26,579 

 

 
9,903 

 

 

 —

Total

 

$
182,892 

 

$
172,989 

 

$
9,903 

 

$

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap contract (c)

 

$
208 

 

$

 —

 

$
208 

 

$

 —

Contingent consideration (d)

 

 
26,334 

 

 

 —

 

 

 —

 

 
26,334 

 

 

$
26,542 

 

$

 —

 

$
208 

 

$
26,334 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

 

 

 

 

 

 

 

 

Significant

 

 

 

 

 

 

 

 

 

Quoted prices

 

 

other

 

 

Significant

 

 

 

Total

 

 

in active

 

 

observable

 

 

unobservable

 

 

 

Carrying

 

 

markets

 

 

inputs

 

 

inputs

As of December 31, 2014

 

 

Value

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

(in thousands)

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents (a)

 

$
135,583 

 

$
135,583 

 

$

 —

 

$

 —

Restricted cash (a)

 

 
44,370 

 

 
44,370 

 

 

 —

 

 

 —

Investments in lieu of retainage (b)

 

 
33,224 

 

 
25,761 

 

 
7,463 

 

 

 —

Total

 

$
213,177 

 

$
205,714 

 

$
7,463 

 

$

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap contract (c)

 

$
381 

 

$

 —

 

$
381 

 

$

 —

Contingent consideration (d)

 

 
24,814 

 

 

 —

 

 

 —

 

 
24,814 

 

 

$
25,195 

 

$

 —

 

$
381 

 

$
24,814 

 

(a)

Cash, cash equivalents and restricted cash consist primarily of money market funds with original maturity dates of three months or less, for which fair value is determined through quoted market prices.

(b)

Investments in lieu of retainage are classified as account receivables, including retainage and are comprised primarily of money market funds for which fair value is determined through quoted market prices. Investment in lieu of retainage also includes U.S. Treasury Notes and other municipal bonds for which fair value is determined through quoted market prices and other similar high quality investments whose values are determined from readily-available pricing sources for comparable instruments.

(c)

As discussed in Note 10 — Financial Commitments, the Company entered into a swap agreement with Bank of America, N.A. to establish a long-term interest rate for its former $200 million five-year term loan. The swap agreement became effective for the term loan principal balance outstanding at January 31, 2012. This term loan was paid off and the then current amount refinanced on June 5, 2014, providing for a $250 million term loan maturing on June 5, 2019. The interest rate swap continues on its original basis for the initial term and amount and finalizes on June 30, 2016. Bank of America calculates the fair market value of the interest rate swap liability by utilizing a mark-to-market valuation model that is based on current observable interest rates, expected future interest rates and the Company’s credit risk. The Company reviews the mark-to-market valuation when determining the fair value of the interest rate swap liability to be recognized. This liability is classified as a component of other long-term liabilities.

(d)

The liabilities listed as of June 30, 2015 and December 31, 2014 above represent the contingent consideration for the Company’s acquisitions in 2011 for which the measurement periods for purchase price analyses for the acquisitions have concluded.
Changes in Level 3 Liabilities Measured at Fair Value on a Recurring Basis

 

 

Contingent

 

 

Consideration

 

 

(in thousands)

Balance at December 31, 2014

 

$
24,814 

Fair value adjustments included in other income (expense), net

 

 
746 

Contingent consideration settled

 

 

 —

Balance at March 31, 2015

 

$
25,560 

Fair value adjustments included in other income (expense), net

 

 
774 

Contingent consideration settled

 

 

 —

Balance at June 30, 2015

 

$
26,334 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent

 

 

Consideration

 

 

(in thousands)

Balance at December 31, 2013

 

$
46,022 

Fair value adjustments included in other income (expense), net

 

 
3,404 

Contingent consideration settled

 

 
(1,031)

Balance at March 31, 2014

 

$
48,395 

Fair value adjustments included in other income (expense), net

 

 
2,162 

Contingent consideration settled

 

 
(229)

Balance at June 30, 2014

 

$
50,328