Fair Value Measurements

We estimate the fair value of financial instruments using available market information and generally accepted valuation methodologies. We assess the inputs used to measure fair value using a three-tier hierarchy. The hierarchy indicates the extent to which pricing inputs used in measuring fair value are observable in the market. Level 1 inputs include unadjusted quoted prices for identical assets or liabilities and are the most observable. Level 2 inputs include unadjusted quoted prices for similar assets and liabilities that are either directly or indirectly observable, or other observable inputs such as interest rates, foreign currency exchange rates, commodity rates, and yield curves. Level 3 inputs are not observable in the market and include our own judgments about the assumptions market participants would use in pricing the asset or liability. The use of observable and unobservable inputs is reflected in the hierarchy assessment disclosed in the tables below.

There were no significant transfers between Levels 1, 2, and 3 during the three months ended June 30, 2017 and 2016.

The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value:

Fair value measurement used

Recorded
value
as of

Active
markets
for
identical
assets or
liabilities

Quoted
prices in
similar
instruments
and
observable
inputs

Active
markets for
unobservable
inputs

(In thousands)

June 30, 2017

(Level 1)

(Level 2)

(Level 3)

Assets:

Corporate-owned life insurance — non-current

815

—

815

Fair value measurement used

Recorded
value
as of

Active
markets
for
identical
assets or
liabilities

Quoted
prices in
similar
instruments
and
observable
inputs

Active
markets for
unobservable
inputs

(In thousands)

March 31, 2017

(Level 1)

(Level 2)

(Level 3)

Assets:

Corporate-owned life insurance — non-current

809

—

809

The recorded value of the corporate-owned life insurance policies is adjusted to the cash surrender value of the policies obtained from the third party life insurance providers, which are not observable in the market, and therefore, are classified within Level 3 of the fair value hierarchy. Changes in the cash surrender value of these policies are recorded within “Other expenses (income), net” in the Condensed Consolidated Statements of Operations.

The following table presents a summary of changes in the fair value of the Level 3 assets:



	Three months ended
	June 30,
(In thousands)	2017		2016
Corporate-owned life insurance:
Balance on April 1	$	809	$	3,122
Unrealized gain relating to instruments held at reporting date	4		5
Purchases, sales, issuances and settlements, net	2		1
Balance on June 30	$	815	$	3,128

The following tables present a summary of changes in the fair value of the Level 3 liabilities:



	Three months ended
	June 30,
(In thousands)	2017		2016
Contingent consideration
Balance on April 1	$	—	$	197
Activity, payments and other charges (net)	—		(197		)
Balance on June 30	$	—	$	—