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)

9 Months Ended

Sep. 30, 2015

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

Schedule of contingent consideration related to acquisitions

The following table discloses the liabilities measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014:



	Fair value at September 30, 2015
	Total		Level 1		Level 2		Level 3
	(in thousands)
Contingent consideration related to the acquisition of:
InstaManager	$	66	$	—	$	—	$	66
Indatus	801		—		—		801
VRX	307		—		—		307
	$	1,174	$	—	$	—	$	1,174



	Fair value at December 31, 2014
	Total		Level 1		Level 2		Level 3
	(in thousands)
Contingent consideration related to the acquisition of:
Active Building	$	1,566	$	—	$	—	$	1,566
MyBuilding	248		—		—		248
InstaManager	2,335		—		—		2,335
VMM	1		—		—		1
	$	4,150	$	—	$	—	$	4,150

Schedule of change in level 3 fair values

The following table summarizes the changes in the fair value of our Level 3 liabilities for the nine months ended September 30, 2015 and 2014:



	Nine Months Ended September 30,
	2015			2014
	(in thousands)
Balance at beginning of period	$	4,150		$	1,827
Initial contingent consideration	1,415			2,939
Settlements through cash payments	(1,179		)	(229		)
Net (gains) losses on change in fair value	(3,212		)	173
Balance at end of period	$	1,174		$	4,710

Schedules of valuation techniques

Significant unobservable inputs used in fair value measurement of the trade names included the following for the nine months ended September 30, 2015:



				Nine Months Ended September 30, 2015
Discount rate				15.0%
Royalty Rate				5.4%

Recurring

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

Schedule of fair value inputs

Significant unobservable inputs used in the contingent consideration fair value measurements included the following at September 30, 2015 and December 31, 2014:



	September 30, 2015	December 31, 2014
Discount rates	15.8% - 60.3%	22.5% - 64.0%
Volatility rates	36.0% - 54.0%	45.0% - 48.0%
Risk free rate of return	0.2% - 0.6%	0.1% - 0.2%