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Fair Value Measurements
 3 Months Ended
Mar. 31, 2013
Fair Value Measurements

(7) FAIR VALUE MEASUREMENTS

The Company measures certain assets and liabilities pursuant to accounting guidance which establishes a three-tier fair value hierarchy and prioritizes the inputs used in measuring fair value. Theses tiers include:

•              Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities.

•              Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

•              Level 3: Unobservable inputs are used when little or no market data is available.

The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2013, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value:

 

 

 

 

March 31, 2013

Significant
Unobservable
Inputs
(Level  3)

 

 

 

Liabilities:

 

 

Contingent consideration             

$              108             

$              108             

The fair value of the contingent consideration was determined using a discounted cash flow model at the acquisition date and is revalued at each reporting date or more frequently if circumstances dictate based on changes in the discount periods and rates, changes in the timing and amount of the revenue estimates and changes in probability assumptions with respect to the likelihood of achieving the obligations. The changes in the fair value of this obligation and the accretion expense related to the increase in the net present value of the contingent liabilities was $4 for the three months ended March 31, 2013. No contingent payments were made during the period.