XML 22 R12.htm IDEA: XBRL DOCUMENT v3.26.1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The following table represents the fair value of assets and liabilities as of March 31, 2026 and December 31, 2025, respectively, including the following:
(In thousands)Balance at
March 31,
2026		Level 1Level 2Level 3
Assets:
Cash equivalents$379,925 $377,627 $2,298 $— 
Municipal bonds12,262 — 12,262 — 
Corporate debt securities81,974 — 81,974 — 
Commercial paper49,317 — 49,317 — 
Asset-backed securities60,285 — 60,285 — 
Government, federal agency, and other sovereign obligations34,500 30,403 4,097 — 
Liabilities:
Business acquisition liabilities100,318 — — 100,318 
(In thousands)Balance at
December 31,
2025		Level 1Level 2Level 3
Assets:
Cash equivalents$311,708 $287,574 $24,134 $— 
Municipal bonds9,556 — 9,556 — 
Corporate debt securities37,427 — 37,427 — 
Commercial paper15,627 — 15,627 
Asset-backed securities19,178 — 19,178 — 
Government, federal agency, and other sovereign obligations21,118 17,046 4,072 — 
Liabilities:
Business acquisition liabilities101,508 — — 101,508 
Our marketable securities and certain cash equivalents are classified as Level 2 within the fair value hierarchy, as we measure their fair value using market prices for similar instruments and inputs such as actual trade data, benchmark yields, broker/dealer quotes and other similar data obtained from quoted market prices or independent pricing vendors.
Fair value of the revenue-based business acquisition liabilities was determined using a discounted cash flow model, probability model, and an option pricing methodology. The significant inputs of such models are not observable in the market, such as certain financial metric growth rates, volatility and discount rates, market price risk adjustment, projections associated with the applicable milestone, the interest rate, and the related probabilities and payment structure in the contingent consideration arrangement.
The following are the significant unobservable inputs used in the two valuation techniques:
Unobservable inputRangeWeighted Average*
Revenue risk premium1.6%-5.5%2.5%
Revenue volatility14.0%-15.8%14.8%
Discount rate3.9%-8.5%5.0%
Projected year of payment2026-2035
* The weighted average rates were calculated based on the relative fair value of each business acquisition liability.
The change in the carrying value of the business acquisition liabilities during the three months ended March 31, 2026 and 2025, respectively, included the following:
Three Months Ended
March 31,
(In thousands)20262025
Beginning balance$101,508 $123,235 
Purchase price contingent consideration3,909 — 
Contingent cash payments(6,597)(5,902)
Contingent RSU grants(393)(429)
Changes in fair value of business acquisition liabilities6,352 167 
Contractual payable reclassification(4,461)984 
Ending balance$100,318 $118,055 
Changes in the fair value of business acquisition liabilities are driven by changes in market conditions and the achievement of certain performance conditions.