Fair Value Measurements

3 Months Ended

Jun. 30, 2021

The Company measures certain liabilities at fair value on a recurring basis. The following tables provide details regarding the classification of these liabilities within the fair value hierarchy as of the dates presented:


	As of June 30, 2021
	Level I		Level II		Level III		Total








Liabilities
Contingent consideration obligation	$	—	$	—	$	1,306	$	1,306
Total liabilities	$	—	$	—	$	1,306	$	1,306


	As of March 31, 2021
	Level I		Level II		Level III		Total








Liabilities
Contingent consideration obligation	$	—	$	—	$	1,541	$	1,541
Total liabilities	$	—	$	—	$	1,541	$	1,541

For the liabilities presented in the tables above, there were no changes in fair value hierarchy levels during the three months ended June 30, 2021 and 2020.

The changes in the fair value of Level III financial instruments are set forth below:


	Three Months Ended June 30,
	2021		2020
Contingent Consideration Liability
Balance, beginning of period:	$	1,541	$	1,035
Additions	—		—
(Gain) loss on change in fair value	—		—
Settlements	(235)		(290)
Balance, end of period:	$	1,306	$	745

Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date	$	—	$	—

The fair value of the contingent consideration liability is based on a discounted cash flow analysis using a probability-weighted average estimate of certain performance targets, including revenue levels. The assumptions used in the analysis are inherently subjective; therefore, the ultimate amount of the contingent consideration liability may differ materially from the current estimate. The significant unobservable inputs required to value the contingent consideration liability primarily relate to the discount rates applied to the expected future payments of obligations, which ranged from 8.0% to 10.4% as of June 30, 2021. The contingent consideration liability is included in accounts payable, accrued expenses and other liabilities in the condensed consolidated balance sheets. Changes in the fair value of the liability are included in general, administrative and other expenses in the condensed consolidated statements of income.

- 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.

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