5. Business Combinations The Company recognizes the assets acquired, liabilities assumed, and any non-controlling interest at fair value at the date of acquisition. Certain acquisitions contained contingent consideration arrangements that required the Company to assess the acquisition date fair value of the contingent consideration liabilities, which was recorded as part of the purchase price allocation of the acquisition, with subsequent fair value adjustments to the contingent consideration recorded in the Consolidated Statements of Operations. See Note 3 to the Unaudited Consolidated Financial Statements for further discussion on contingent consideration liabilities. Acquisitions In January 2018, the Company acquired SafePassage, a privately-held provider of IOM services, which now operates as a wholly-owned subsidiary of the Company. The acquisition was not considered material to the overall Unaudited Consolidated Financial Statements. The Companys NuVasive Clinical Services division (including SafePassage) represents the reported service revenue on the Unaudited Consolidated Statement of Operations. The Company has completed other acquisitions that were not considered material, individually or collectively, to the overall Unaudited Consolidated Financial Statements during the periods presented. These acquisitions have been included in the Unaudited Consolidated Financial Statements from the respective dates of acquisition. The Company does not believe that collectively the acquisitions made during the periods presented are material to the overall financial statements. For certain acquisitions completed during the periods presented, the Company is still in the process of finalizing the purchase price allocation given the timing of the acquisitions and the size and scope of the assets and liabilities subject to valuation. While the Company does not expect material changes in the valuation outcome, certain assumptions and findings that were in place at the date of acquisition could result in changes in the purchase price allocation. Variable Interest Entities Progentix Orthobiology B.V. In 2009, the Company purchased forty percent (40%) of the capital stock of Progentix Orthobiology B.V. (Progentix), a company organized under the laws of the Netherlands, from existing shareholders pursuant to a Preferred Stock Purchase Agreement for $10.0 million in cash (the Initial Investment). The Company also loaned Progentix cumulatively a total of $5.3 million at an interest rate of 6% per year (the Loan) . Concurrently, with the Initial Investment, the Company and Progentix entered into a Distribution Agreement (as amended, the Distribution Agreement) for a term of ten years, whereby Progentix appointed the Company as its exclusive distributor for certain Progentix products. Following the Initial Investment, in accordance with authoritative guidance, the Company determined that Progentix was a variable interest entity (VIE), as it did not have the ability to finance its activities without additional subordinated financial support and its equity investors would not absorb their proportionate share of expected losses and would be limited in the receipt of the potential residual returns of Progentix. In January 2018, the Company completed the acquisition of the remaining 60% of the capital stock of Progentix (the Non-Controlling Interest Acquisition). Subsequent to the Non-Controlling Interest Acquisition, the Company owns 100% of the capital stock of Progentix, which now operates as its wholly-owned subsidiary and is no longer accounted for as a VIE or a separate reporting unit as of the date of the Non-Controlling Interest Acquisition. In accordance with authoritative guidance, the non-controlling interest associated with Progentix was reclassified to additional paid-in capital, including the difference between the non-controlling interest and consideration paid. The Loan plus accrued interest and the related receivable between the Company and Progentix is still outstanding as of September 30, 2018. The following is a reconciliation of equity (net assets) attributable to the non-controlling interest: Nine Months Ended September 30, ( in thousands ) 2018 2017 Non-controlling interest at beginning of period $ 3,845 $ 5,588 Acquired non-controlling interest reclassified to additional paid-in capital (3,845 )  Less: Net loss attributable to the non-controlling interest  (1,307 ) Non-controlling interest at end of period $  $ 4,281 Total assets and liabilities of Progentix as a VIE included in the accompanying Consolidated Balance Sheets are as follows: ( in thousands ) September 30, 2018 December 31, 2017 Total current assets $  $ 670 Identifiable intangible assets, net  8,752 Goodwill  12,654 Accounts payable and accrued expenses  562 Deferred tax liabilities, net  331 Non-controlling interest  3,845 NuVasive Clinical Services and Physician Practices The Companys NuVasive Clinical Services division (including SafePassage), which provides IOM services to surgeons and healthcare facilities across the U.S., maintain contractual relationships with several physician practices (PCs). In accordance with authoritative guidance, the Company has determined that the PCs are VIEs and therefore, the accompanying Unaudited Consolidated Financial Statements include the accounts of the PCs from the date of acquisition. During the periods presented, the results of the PCs were immaterial to the Companys financials. The creditors of the PCs have claims only on the assets of the PCs, which are not material, and the assets of the PCs are not available to the Company.