Investments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

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Available-for-Sale Short-Term Investments

Our available-for-sale short-term investments as of September 30, 2017, and December 31, 2016, are as follows (in thousands):

	Amortized cost		Gross unrealized gains		Gross  unrealized losses			Fair value
September 30, 2017
U.S. Government and sponsored entities	$	65,345	$	2	$	(358	)	$	64,989
Corporate debt securities		138,399		152		(200	)		138,351
Municipal government		1,047		—		(1	)		1,046
Asset-backed securities		12,823		47		(21	)		12,849
Mortgage-backed securities – residential		689		1		(2	)		688
Total short-term investments	$	218,303	$	202	$	(582	)	$	217,923
December 31, 2016
U.S. Government and sponsored entities	$	70,893	$	49	$	(348	)	$	70,594
Corporate debt securities		198,166		102		(621	)		197,647
Municipal government		1,278		—		(1	)		1,277
Asset-backed securities		24,233		79		(17	)		24,295
Mortgage-backed securities – residential		1,615		3		(3	)		1,615
Total short-term investments	$	296,185	$	233	$	(990	)	$	295,428

Summary of Fair Value and Duration of Investments, Including Cash Equivalents, that have been Classified in Gross Unrealized Loss Position

The fair value and duration that investments, including cash equivalents, have been in a gross unrealized loss position as of September 30, 2017, and December 31, 2016 are as follows (in thousands):

	Less than 12 Months					More than 12 Months					TOTAL
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
September 30, 2017
U.S. Government and sponsored entities	$	45,777	$	(158	)	$	18,040	$	(199	)	$	63,817	$	(357	)
Corporate debt securities		57,158		(138	)		21,315		(63	)		78,473		(201	)
Municipal government		379		(1	)		—		—			379		(1	)
Asset-backed securities		11,959		(20	)		805		(1	)		12,764		(21	)
Mortgage-backed securities – residential		351		(2	)		11		—			362		(2	)
Total	$	115,624	$	(319	)	$	40,171	$	(263	)	$	155,795	$	(582	)
December 31, 2016
U.S. Government and sponsored entities	$	39,810	$	(348	)	$	—	$	—		$	39,810	$	(348	)
Corporate debt securities		133,382		(581	)		13,158		(40	)		146,540		(621	)
Municipal government		1,268		(1	)		—		—			1,268		(1	)
Asset-backed securities		4,540		(7	)		4,611		(10	)		9,151		(17	)
Mortgage-backed securities – residential		428		(1	)		153		(2	)		581		(3	)
Total	$	179,428	$	(938	)	$	17,922	$	(52	)	$	197,350	$	(990	)

Amortized Cost and Estimated Fair Value of Investments

Amortized cost and estimated fair value of investments as of September 30, 2017, are summarized by maturity date as follows (in thousands):

	Amortized cost		Fair value
Mature in less than one year	$	56,677	$	56,646
Mature in one to three years		161,626		161,277
Total short-term investments	$	218,303	$	217,923

Investments in Accordance with Fair Value Hierarchy

Our investments and liabilities measured at fair value have been presented in accordance with the fair value hierarchy specified in ASC 820 as of September 30, 2017, and December 31, 2016 in order of liquidity as follows (in thousands):

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
September 30, 2017
Assets:
Money market funds	$	24,426	$	24,426	$	—	$	—
U.S. Government and sponsored entities		64,989		38,966		26,023		—
Corporate debt securities		138,351		—		138,351		—
Municipal government		1,046		—		1,046		—
Asset-backed securities		12,849		—		12,795		54
Mortgage-backed securities – residential		687		—		687		—
	$	242,348	$	63,392	$	178,902	$	54
Liabilities:
Contingent consideration, current and noncurrent	$	53,520	$	—	$	—	$	53,520
Self-insurance		935		—		—		935
	$	54,455	$	—	$	—	$	54,455
December 31, 2016
Assets:
Money market funds	$	23,575	$	23,575	$	—	$	—
U.S. Government and sponsored entities		70,594		51,870		18,724		—
Corporate debt securities		197,647		—		197,647		—
Municipal government		1,277		—		1,277		—
Asset-backed securities		24,295		—		24,228		67
Mortgage-backed securities – residential		1,615		—		1,615		—
	$	319,003	$	75,445	$	243,491	$	67
Liabilities:
Contingent consideration, current and noncurrent	$	56,463	$	—	$	—	$	56,463
Self-insurance		1,542		—		—		1,542
	$	58,005	$	—	$	—	$	58,005

Summary of Changes in Fair Value Contingent Consideration

Changes in the fair value of contingent consideration are summarized as follows (in thousands):

Fair value of contingent consideration at January 1, 2016	$	54,796
Fair value of Rialco contingent consideration at March 1, 2016		2,109
Fair value of Optitex contingent consideration at June 16, 2016		22,300
Changes in valuation		6,813
Payments		(28,111	)
Foreign currency adjustment		(1,444	)
Fair value of contingent consideration at December 31, 2016	$	56,463
Fair value of GD contingent consideration at August 14, 2017	$	3,600
Changes in valuation	$	2,187
Payments and settlements		(11,559	)
Foreign currency adjustment		2,829
Fair value of contingent consideration at September 30, 2017	$	53,520