XML 39 R27.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

FAIR VALUE MEASUREMENTS | 3 Months Ended
--- | ---
Mar. 31, 2024
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. We have certain financial assets and liabilities that are measured at fair value on a recurring basis, certain nonfinancial assets and liabilities that may be measured at fair value on a non-recurring basis, and certain financial assets and liabilities that are not measured at fair value in our unaudited condensed consolidated balance sheets but for which we disclose the fair value. The fair value disclosures of these assets and liabilities are based on a three-level hierarchy, which is defined as follows:
Level 1 |  | Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2 |  | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 |  | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. We did not have any transfers between Level 1 and Level 2, or transfers in or out of Level 3, of the fair value hierarchy during the three months ended March 31, 2024. Our cross currency swap contracts are measured at fair value on a recurring basis in our accompanying unaudited condensed consolidated balance sheets and are classified as derivative instruments. We measure the fair value of our cross currency swap contracts prevailing market conditions as of the close of business on each balance sheet date. The product of this calculation is then adjusted for counterparty risk. Our foreign currency exchange contracts are measured at fair value on a recurring basis in our accompanying unaudited condensed consolidated balance sheets and are classified as derivative instruments. We measure the fair value of our foreign currency exchange contracts using an income approach, based on prevailing market forward exchange rates less the contract rate multiplied by the notional amount. The product of this calculation is then adjusted for counterparty risk. Our interest rate swap contracts are measured at fair value on a recurring basis in our accompanying unaudited condensed consolidated balance sheets and are classified as derivative instruments. We measure the fair value of our interest rate swap contracts using current market interest rates for debt issues with similar remaining years to maturity, adjusted for applicable credit risk. The amounts outstanding under our unsecured Credit Facility and Senior Notes (“long-term debt”) are measured at carrying value in our unaudited condensed consolidated balance sheets though we disclose the fair value of these financial instruments. We determine the fair value of the amount outstanding under our Credit Facility and long-term debt using an income approach, utilizing a discounted cash flow analysis based on current market interest rates for debt issues with similar remaining years to maturity, adjusted for applicable credit risk. Our Credit Facility and long-term debt are valued using Level 2 inputs. The estimated fair value of our Credit Facility approximates its carrying value. The estimated fair value and carrying value of our long-term debt were $660.6 million and $696.1 million, respectively, as of March 31, 2024, and $670.0 million and $698.2 million, respectively, as of December 31, 2023. The following tables set forth our assets and liabilities that were measured at fair value on a recurring basis by level within the fair value hierarchy:
(in thousands) |  |  |  |  |  |  |  |
As of March 31, 2024 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Balance as of March 31, 2024
Assets |  |  |  |  |  |  |  |
Money market funds (1) |  | $ | 251,669 |  |  | $ | — |  |  | $ | — |  |  | $ | 251,669 |
Equity mutual funds (2) |  | $ | 26 |  |  | $ | — |  |  | $ | — |  |  | $ | 26 |
Cross currency swaps (3) |  | $ | — |  |  | $ | 1,046 |  |  | $ | — |  |  | $ | 1,046 |
Foreign currency exchange contracts (3) |  | $ | — |  |  | $ | 4,774 |  |  | $ | — |  |  | $ | 4,774 |
Interest rate swap (4) |  | $ | — |  |  | $ | 3,256 |  |  | $ | — |  |  | $ | 3,256 |
Liabilities |  |  |  |  |  |  |  |
Cross currency swaps (3) |  | $ | — |  |  | $ | 2,736 |  |  | $ | — |  |  | $ | 2,736 |
Foreign currency exchange contracts (3) |  | $ | — |  |  | $ | 1,080 |  |  | $ | — |  |  | $ | 1,080 |
Deferred compensation (5) |  | $ | 26 |  |  | $ | — |  |  | $ | — |  |  | $ | 26 |
Contingent Consideration |  | $ | — |  |  | $ | — |  |  | $ | 4,400 |  |  | $ | 4,400 |
(in thousands) |  |  |  |  |  |  |  |
As of December 31, 2023 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Balance as of December 31, 2023
Assets |  |  |  |  |  |  |  |
Money market funds (1) |  | $ | 290,807 |  |  | $ | — |  |  | $ | — |  |  | $ | 290,807 |
Equity mutual funds (2) |  | $ | 99 |  |  | $ | — |  |  | $ | — |  |  | $ | 99 |
Cross currency swaps (3) |  | $ | — |  |  | $ | 664 |  |  | $ | — |  |  | $ | 664 |
Foreign currency exchange contracts (3) |  | $ | — |  |  | $ | 1,783 |  |  | $ | — |  |  | $ | 1,783 |
Interest rate swap (4) |  | $ | — |  |  | $ | 1,451 |  |  | $ | — |  |  | $ | 1,451 |
Liabilities |  |  |  |  |  |  |  |
Cross currency swaps (3) |  | $ | — |  |  | $ | 5,041 |  |  | $ | — |  |  | $ | 5,041 |
Foreign currency exchange contracts (3) |  | $ | — |  |  | $ | 5,532 |  |  | $ | — |  |  | $ | 5,532 |
Deferred compensation (5) |  | $ | 99 |  |  | $ | — |  |  | $ | — |  |  | $ | 99 |
(1)Money market funds with an original maturity of less than ninety days are included within cash and cash equivalents. The remaining balance of cash and cash equivalents as of March 31, 2024, consists of demand deposits. (2)Equity mutual funds relate to a deferred compensation plan that was assumed as part of a previous business combination. This amount is included within other current assets. Refer to footnote (5) below for a discussion of the related deferred compensation liability. (3)Cross currency swaps and foreign currency exchange contracts are included within other current assets, other long-term assets, accrued liabilities, or other long-term liabilities depending on the gain (loss) position and anticipated settlement date. (4)Interest rate swap is included within other long-term assets. (5)A deferred compensation plan assumed as part of a previous business combination is included within accrued liabilities. The fair value of our deferred compensation plan is indexed to the performance of the underlying equity mutual funds discussed in footnote (2) above. The estimated fair values of certain financial instruments, including cash and cash equivalents, accounts receivable, and accounts payable, approximate their respective carrying values due to their short maturity. Contingent Consideration We have classified our liabilities for contingent consideration related to acquisitions within Level 3 of the fair value hierarchy because the fair value is determined using significant unobservable inputs, which include the achievements of future revenues. The contingent consideration is included within other short-term and long-term liabilities. Changes in the estimated fair value of contingent consideration are recorded in the unaudited condensed consolidated statements of income. The fair values of liabilities for contingent consideration for the three months ended March 31, 2024 and 2023, are as follows:
|  | Three Months Ended March 31,
(in thousands) |  | 2024 |  | 2023
Contingent consideration at the beginning of the period |  | $ | — |  |  | $ | 120 |
Contingent consideration recorded from acquisition |  | 4,400 |  |  | — |
Contingent consideration at the end of the period |  | $ | 4,400 |  |  | $ | 120 |
Contingent consideration associated with a software business acquired during the first quarter of 2024 is based on the achievement of certain future revenue milestones during each annual period following the acquisition date, over a three-year period, and a cumulative revenue target for the three-year period, up to a maximum of $30.0 million (undiscounted) payable in cash. The fair value of the contingent consideration liability for the 2024 acquisition was determined using a probability-weighted model. The balance at March 31, 2024, includes $1.7 million recorded as a current liability for amounts expected to be paid within the next 12 months. Future revenue results are uncertain by nature and actual results may differ from estimates.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration