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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Company's Fair Value Hierarchy for its Financial Assets and Liabilities

The following table represents the Company’s fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis (in thousands):

	As of March 31, 2019
	Level 1		Level 2		Level 3			Total
Assets:
Money market funds (1)	$	7,177	$	—	$	—		$	7,177
Total Assets:	$	7,177	$	—	$	—		$	7,177

Liabilities
Contingent purchase price (2)	$	—	$	—	$	(4,059	)	$	(4,059	)
Total Liabilities:	$	—	$	—	$	(4,059	)	$	(4,059	)

	As of December 31, 2018
	Level 1		Level 2		Level 3			Total
Assets:
Money market funds (1)	$	255	$	—	$	—		$	255
Total Assets:	$	255	$	—	$	—		$	255

Liabilities
Contingent purchase price (2)	$	—	$	—	$	(4,196	)	$	(4,196	)
Total Liabilities:	$	—	$	—	$	(4,196	)	$	(4,196	)

(1)	Included in cash and cash equivalents.

(2)	$1.8 million is included in accrued expenses and other current liabilities, and $2.3 million and $2.4 million is included in non-current liabilities as of March 31, 2019 and December 31, 2018, respectively.

Summary of Changes in the Fair Value of Level 3 Contingent Consideration

Changes in the fair value of Level 3 contingent consideration for the three months ended March 31, 2019 were as follows (in thousands):

	Contingent
	Consideration
Balance at December 31, 2018	$	(4,196	)
Fair value adjustment of contingent purchase price (1)		88
Foreign exchange effect		49
Balance at March 31, 2019	$	(4,059	)

(1)

This amount was recognized as a reduction in acquisition and integration costs within the Consolidated Statements of Operations. As of March 31, 2019, the significant unobservable inputs used in the Monte Carlo simulation to fair value the contingent consideration included projected contract bookings, a discount rate of 17.8%, and revenue volatility of 24.4%. Increases or decreases in the inputs would result in a higher or lower fair value measurement.