AMN 2017 Annual Report

46 were necessary to reflect the probability of default by the counterparty or the Company, which were considered Level 3 inputs. On May 3, 2017, the Company terminated the remaining interest rate swap. The Company’s contingent consideration liabilities are measured at fair value using probability-weighted discounted cash flow analysis for the acquired companies, which are Level 3 inputs. The following tables present information about assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value: Fair Value Measurements as of December 31, 2017 Assets (Liabilities) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market funds $ 2,713 $ 2,713 $ — $ — Commercial paper 28,708 — 28,708 — Acquisition contingent consideration liabilities (2,070) — — (2,070) Fair Value Measurements as of December 31, 2016 Assets (Liabilities) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Money market funds $ 4,627 $ 4,627 $ — $ — Commercial paper 25,610 — 25,610 — Interest rate swap asset 24 — 24 — Acquisition contingent consideration liabilities (6,816) — — (6,816) The following table sets forth a reconciliation of changes in the fair value of contingent consideration liabilities classified as Level 3 in the fair value hierarchy: 2017 2016 Balance as of January 1, $ (6,816) $ (3,770) Settlement of TFS earn-out for year ended December 31, 2015 — 1,000 Contingent consideration earn-out liability from HSG acquisition on January 11, 2016 — (3,590) Change in fair value of contingent consideration earn-out liabilities from Avantas, TFS and HSG acquisitions (184) (456) Settlement of TFS earn-out for year ended December 31, 2016 3,000 — Settlement of HSG earn-out for year ended December 31, 2016 1,930 — Balance as of December 31, $ (2,070) $ (6,816) Assets Measured on a Non-Recurring Basis The Company applies fair value techniques on a non-recurring basis associated with valuing potential impairment losses related to its goodwill, indefinite-lived intangible assets, long-lived assets and equity method investment. The Company evaluates goodwill and indefinite-lived intangible assets annually for impairment and whenever circumstances occur indicating that goodwill or indefinite-lived intangible assets might be impaired. The Company determines the fair value of its reporting units based on a combination of inputs, including the market capitalization of the Company, as well as Level 3 inputs such as discounted cash flows, which are not observable from the market, directly or indirectly. The Company determines the fair value of its indefinite-lived intangible assets using the income approach (relief-from-royalty method) based on Level 3 inputs.