RealPage, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Significant unobservable inputs used in the contingent consideration fair value measurements included the following at June 30, 2017 and December 31, 2016:



	June 30, 2017		December 31, 2016
Discount rates	16.3 - 28.0%		14.8 - 27.8%
Volatility rates	26.0	%	29.9%
Risk free rate of return	1.2 - 1.3%		0.7%

Schedule of fair value of assets and liabilities

The following tables disclose the assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016, by the fair value hierarchy levels as described above:



	Fair value at June 30, 2017
	Total		Level 1		Level 2		Level 3
	(in thousands)
Assets:
Interest rate swap agreements	$	1,103	$	—	$	1,103	$	—
Liabilities:
Contingent consideration related to the acquisition of:
AssetEye	$	771	$	—	$	—	$	771
Axiometrics	623		—		—		623
Total liabilities measured at fair value	$	1,394	$	—	$	—	$	1,394



	Fair value at December 31, 2016
	Total		Level 1		Level 2		Level 3
	(in thousands)
Assets:
Interest rate swap agreements	$	1,098	$	—	$	1,098	$	—
Liabilities:
Contingent consideration related to the acquisition of:
Indatus	$	2	$	—	$	—	$	2
AssetEye	539		—		—		539
Total liabilities measured at fair value	$	541	$	—	$	—	$	541

Schedule of change in level 3 fair values

Changes in the fair value of Level 3 measurements were as follows for the six months ended June 30, 2017 and 2016:



	Six Months Ended June 30,
	2017		2016
	(in thousands)
Balance at beginning of period	$	541	$	841
Initial contingent consideration	812		245
Net loss (gain) on change in fair value	41		(427		)
Balance at end of period	$	1,394	$	659

Schedule of Fair Value of Convertible Debt

The carrying value of the Convertible Notes is net of unamortized discount and issuance costs. The fair value and carrying value of the Convertible Notes were as follows at June 30, 2017:



	Fair Value		Carrying Value
	(in thousands)
Convertible Notes	$	375,612	$	275,673