eFax 2015 Annual Report Download - page 80
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The following tables presents a reconciliation of the Company’s Level 3 financial assets or liabilities that are measured at fair value on a recurring basis (in thousands):
Level 3
Affected line item in the Statement of Income
Balance as of January 1, 2014 $ —
Contingent consideration 15,000
Not Applicable
Total (gains) losses reported in earnings —
Transfers into or out of Level 3 —
Balance as of December 31, 2014 $ 15,000
Contingent consideration $ (600)
Not applicable
Total (gains) losses reported in earnings 16,200
General and administrative
Transfers into or out of Level 3 —
Balance as of December 31, 2015 $ 30,600
In connection with the acquisition of Ookla, on December 1, 2014, contingent consideration of up to an aggregate of $40.0 million may be payable upon achieving certain
future income thresholds and had a fair value of $25.0 million and $15.0 million at December 31, 2015 and 2014, respectively. Due to the Company achieving certain earnings
targets for the year ended December 31, 2015, $20.0 million has been reclassified to current liabilities on the consolidated balance sheet payable in 2016. The remaining $5.0 million
of contingent consideration is recorded as an other long-term liability on the consolidated balance sheet at December 31, 2015.
In connection with the acquisition of Salesify, on September 17, 2015, contingent consideration of up to an aggregate of $17.0 million may be payable upon achieving
certain future income thresholds and had a fair value of $5.6 million , which was recorded as an other long-term liability on the consolidated balance sheet at December 31, 2015.
During the year ended December 31, 2015, the Company recorded a net increase in the fair value of the contingent consideration of $16.2 million and reported such
increase in general and administrative expenses.
The following tables presents a reconciliation of the Company’s derivative instruments (in thousands):
Amount
Affected line item in the Statement of Income
Derivative Liabilities:
Level 2:
Balance as of January 1, 2014 $ —
Contingent interest 372
Total losses reported in earnings 370
Interest expense, net
Balance as of December 31, 2014 $ 742
Total losses reported in earnings 708
Interest expense, net
Balance as of December 31, 2015 $ 1,450
Losses associated with other-than-temporary impairments are recorded as a component of other income (expenses). Gains and losses not associated with other-than-
temporary impairments are recorded as a component of other comprehensive income.
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