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Fair Value Measurements
 9 Months Ended
Sep. 30, 2015
Fair Value Disclosures [Abstract]  
Fair Value Measurements
8. Fair Value Measurements 


The recorded values of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair value based on their short-term nature. Long-term debt recorded in the Company’s condensed consolidated balance sheet at September 30, 2015 was $784.8 million (net of $19.2 million of unamortized deferred loan costs, see "Note 6. Long-Term Debt"). The fair value of the long-term debt at that same date was $809.5 million as determined using the quoted price technique, based on Level 2 inputs including the yields of comparable companies with similar credit characteristics.

Related to acquisitions, at September 30, 2015, the Company had obligations to pay up to $41.0 million of contingent consideration in cash if certain future financial results are met. The fair value of this contingent consideration was determined using an expected present value technique. Expected cash flows were determined using the probability-weighted average of possible outcomes that would occur should certain financial metrics be reached. There is no market data available to use in valuing the contingent consideration, therefore, the Company developed its own assumptions related to the future financial performance of the businesses to evaluate the fair value of these liabilities. As such, the contingent consideration is classified within Level 3. The liability for contingent consideration is established at the time of the acquisition and finalized by the end of the measurement period. Its fair value is remeasured on a recurring basis. Changes due to accretion of discount are recorded in interest expense, while changes related to new developments in expected performance are recorded in SG&A. At September 30, 2015, contingent consideration was determined to be $18.2 million and is included in other current liabilities. At December 31, 2014, contingent consideration was $3.0 million and was included in other long-term liabilities.

The reconciliation of contingent consideration liability measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) is as follows (in thousands):
 
 
Three Months Ended
 
Nine Months Ended
 
September 30,
September 30,
 
2015
 
2014
 
2015
 
2014
Balance at beginning of period
$
(17,326
)
 
$
(3,000
)
 
$
(3,000
)
 
$
(3,667
)
Additions for acquisitions
—

 
—

 
(13,814
)
 
—

Payments on contingent consideration
—

 
—

 
—

 
691

Fair value adjustment
(896
)
 
—

 
(1,408
)
 
—

Foreign currency translation adjustment
—

 
—

 
—

 
(24
)
Balance at end of period
$
(18,222
)
 
$
(3,000
)
 
$
(18,222
)
 
$
(3,000
)

 
Certain assets and liabilities, such as goodwill, are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). For the nine months ended September 30, 2015 and 2014, no fair value adjustments were required for non-financial assets or liabilities.