Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE OF FINANCIAL INSTRUMENTS

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FAIR VALUE OF FINANCIAL INSTRUMENTS - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE 6.             FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The Company's financial instruments consist of cash and cash equivalents, trade receivables, notes receivable, accounts payable and other short-term liabilities. The carrying amounts of these financial instruments approximate their respective fair values.

 

At September 30, the Company had $21.0 million of earnout liability with the former owners of acquired companies. The earnouts were discounted on the Company's books at $21.0 million and are considered level 3 liabilities. The table below presents a summary of the changes in fair value for level 3 assets and liabilities.

                                                               
    Recurring Fair Value Measurements
    Quoted Prices in Active                        
    Markets for Identical   Significant Other   Significant Unobservable        
    Assets and Liabilities   Observable Inputs   Inputs        
    at September 30,   at September 30,   at September 30,   Total Fair Value
    (Level 1)   (Level 2)   (Level 3)   at September 30,
    2019   2018   2019   2018   2019   2018   2019   2018
Liabilities                                                              
Acquisition earnouts   $ —     $ —       $ —       $ —       $ 21,030     $ 15,640     $ 21,030     $ 15,640  

 

The table below shows the rollforward activity for the level 3 liabilities in the summary table above.

                 
    Nine Months Ended
    September 30, 2019
(in thousands)   2019   2018
Acquisition earnouts:                
Beginning balance   $ 14,339     $ 17,959  
New acquisition earnouts     12,700       3,025  
Adjustments and Accrued Interest     2,121       685  
Earnout payments     (8,130 )     (6,029 )
Ending balance   $ 21,030     $ 15,640  

 

      
Fair Value, Recurring [Member] | Liability [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Acquisition earnouts $ 21,030   $ 15,640  
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Liability [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Acquisition earnouts    
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Liability [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Acquisition earnouts    
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Liability [Member]        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Acquisition earnouts $ 21,030 $ 14,339 $ 15,640 $ 17,959