Fair value measurement (Tables)

12 Months Ended

Dec. 31, 2018

Financial Assets and Liabilities Carried at Fair Value Measured on Recurring Basis

The following tables provide information regarding the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017:



	Basis of fair value measurement
	December 31, 2018		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Investments in marketable securities	$	8,671	$	8,671	$	—	$	—
Derivative assets	16,050		—		16,050		—
Derivative liabilities	8,581		—		8,581		—
Contingent consideration liabilities	304,248		—		—		304,248



	Basis of fair value measurement
	December 31, 2017		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Investments in marketable securities	$	9,045	$	9,045	$	—	$	—
Derivative assets	1,221		—		1,221		—
Derivative liabilities	1,426		—		1,426		—
Contingent consideration liabilities	272,136		—		—		272,136

Schedule of Valuation Techniques

The table below provides additional information regarding the valuation technique and inputs used in determining the fair value of contingent consideration.



Contingent Consideration Liability	Valuation Technique	Unobservable Input	Range
Milestone-based payment
	Discounted cash flow	Discount rate	4.3% - 6.2%
		Projected year of payment	2019 - 2023
Revenue-based
	Monte Carlo simulation	Revenue volatility	16.1% - 25.0%
		Risk free rate	Cost of debt structure
		Projected year of payment	2019 - 2022

	Discounted cash flow	Discount rate	10.0% - 10.5%
		Projected year of payment	2019 - 2029

Reconciliation of Changes in Level 3 Financial Liabilities Measured at Fair Value on Recurring Basis

The following table provides information regarding changes in the Company's contingent consideration liabilities for the years ended December 31, 2018 and 2017:



	Contingent consideration
	2018			2017
	(Dollars in thousands)
Beginning balance – January 1	$	272,136		$	7,102
Initial estimate upon acquisition	54,696			261,733
Payments	(75,335		)	(335		)
Revaluations	52,977			3,575
Translation adjustment	(226		)	61
Ending balance – December 31	$	304,248		$	272,136