Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Fair Value of Financial Assets Measured on Recurring Basis

Financial assets and liabilities reported at fair value on a recurring basis include the following (in thousands):



December 31,	2018		2017
Lumber derivative contracts (Level 1)	$	5	$	9

Contingent earn-out receivable (based on Level 3 inputs):
Current portion	$	63	$	373
Noncurrent portion	—		61
Total	$	63	$	434

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

The following table summarizes the activity for our Level 3 assets and liabilities measured on a recurring basis (in thousands):



	Earn-Out Receivable ⁽¹⁾			Earn-Out Payable ⁽²⁾
Balance at December 31, 2016	$	561		$	(967	)
Add - adjustment based on re-assessments	361			—
Add - net decrease based on re-assessments	—			76
Subtract - settlements	(488		)	—
Subtract - amendment	—			891
Balance at December 31, 2017	434			—
Add – adjustment based on re-assessments	8			—
Subtract - settlements	(379		)	—
Balance at December 31, 2018	$	63		$	—


⁽¹⁾	Earn-out receivable related to the transfer of our test handler product line in 2014 (see Note 7).


⁽²⁾	Earn-out payable related to the EBGL Acquisition in 2016. This liability is now complete with no potential residual payables.

Schedule of Quantitative Information Level 3 Fair Assets and Liabilities

Quantitative information about Level 3 fair value assets and liabilities measured on a recurring basis at December 31, 2018 is summarized in the table below:

Quantitative information about Level 3 fair value assets measured on a recurring basis at December 31, 2017 is summarized in the table below:

There were no Level 3 fair value assets or liabilities measured on a nonrecurring basis at December 31, 2018. Quantitative information about Level 3 fair value assets and liabilities measured on a nonrecurring basis at December 31, 2017 is summarized in the table below:

Schedule of Assets Reported Fair Value on Nonrecurring Basis

Financial assets reported at fair value on a nonrecurring basis include the following (in thousands):



Years ended December 31,	2017
	Fair Value (Level 3)		Total Gains and (Losses)⁽¹⁾
Goodwill	$	—	$	(3,020	)

⁽¹⁾ We recorded a goodwill impairment charge of approximately $3.0 million in year 2017 in connection with the write-off of EBGL goodwill to its fair value of $0 (see Note 13).

Schedule of Fair Value of Goodwill Activity

The following table summarizes the activity for our Level 3 assets measured on a nonrecurring basis (in thousands):



	Goodwill ⁽¹⁾
Balance at December 31, 2016	3,020
Subtract - EBGL goodwill impairment recorded at June 30, 2017 (included in earnings)	(3,020		)
Balance at December 31, 2017	$	—


⁽¹⁾	For more information regarding Goodwill, see Note 13.

Fair Value Asset/Liability

Valuation Technique

Unobservable Input

Unobservable Input
Amount

Contingent earn-out receivable related to transfer of test handler product line

Discounted cash flow

Total actual revenue for the remaining royalty period Discount rate

$6.9 million
2.41%

ATRM Holdings, Inc. 10-K