XML 50 R17.htm IDEA: XBRL DOCUMENT v3.3.0.814
Contingent Earnout Liabilities
9 Months Ended
Sep. 30, 2015
Contingent Earnout Liabilities  
Contingent Earnout Liabilities

 

Note 12 — Contingent Earnout Liabilities

 

In March 2014, the Company paid $5,000 to the sellers of Q3C based on achievement of the 2013 operating performance targets. The sellers were paid an additional $5,000 in March 2015 based on achieving an operating performance target for the calendar year 2014.

 

In June 2014, the Company acquired the assets of Vadnais Company for $6,354 in cash plus an earnout of $900, with $450 payable in September 2015 and $450 payable in September 2016, contingent upon meeting a certain performance targets for each of the two periods.  The estimated fair value of the contingent consideration on the acquisition date was $679. At September 30, 2015, it was determined that the operations of Vadnais did not meet the September 2015 performance targets. As a result, the contingent consideration balance of $396 was credited to non-operating income at September 30, 2015. The fair value of the contingent consideration related to the September 30, 2016 target was $368 as of September 30, 2015.

 

During the third quarter 2014, the Company made three small purchases totaling $8.2 million in cash for the net assets of Surber Roustabout, LLC, Ram-Fab, LLC and Williams Testing, LLC.  The Surber purchase provided a contingent earnout amount of up to $1.4 million over a 3-year period, which had an estimated fair value of $1.0 million on the acquisition date and $1,083 as of September 30, 2015.  The Ram-Fab purchase included a $0.2 million contingent earnout based on estimated earnings of a six-month operating project.  Because the operating results for the Ram-Fab project were not met during the acquisition measurement period, the contingent earnout liability was reduced in June 2015 and the value of intangible assets of the acquisition was reduced by the same amount.