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Fair value measurements | 9 Months Ended
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Sep. 30, 2021
Fair Value Disclosures [Abstract] |
Fair value measurements | Fair value measurements The Company measures certain financial assets and liabilities, including derivative instruments, at fair value on a recurring basis. The fair value measurements of these financial assets and liabilities were determined using the following inputs as of December 31, 2020 and September 30, 2021:
| As of December 31, 2020
| Fair Value Measurements at Reporting Date Using
|  |  | Quoted Prices in Active Markets for Identical Assets |  | Significant Other Observable Inputs |  | Significant Other Unobservable Inputs
| Total |  | (Level 1) |  | (Level 2) |  | (Level 3)
Assets |  |  |  |  |  |  |
Derivative instruments (Note a, c) | $ | 27,709 |  |  | $ | — |  |  | $ | 27,709 |  |  | $ | — |
Deferred compensation plan assets (Note a, e) | 26,832 |  |  | — |  |  | — |  |  | 26,832 |
Total | $ | 54,541 |  |  | $ | — |  |  | $ | 27,709 |  |  | $ | 26,832 |
Liabilities |  |  |  |  |  |  |
Earn-out Consideration (Note b, d) | $ | 8,272 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,272 |
Derivative instruments (Note b, c) | 40,981 |  |  | — |  |  | 40,981 |  |  | — |
Deferred compensation plan liability (Note b, f) | 26,390 |  |  | — |  |  | — |  |  | 26,390 |
Total | $ | 75,643 |  |  | $ | — |  |  | $ | 40,981 |  |  | $ | 34,662 |
| As of September 30, 2021
| Fair Value Measurements at Reporting Date Using
|  |  | Quoted Prices in Active Markets for Identical Assets |  | Significant Other Observable Inputs |  | Significant Other Unobservable Inputs
| Total |  | (Level 1) |  | (Level 2) |  | (Level 3)
Assets |  |  |  |  |  |  |
Derivative instruments (Note a, c) | $ | 22,931 |  |  | $ | — |  |  | $ | 22,931 |  |  | $ | — |
Deferred compensation plan assets (Note a, e) | 36,306 |  |  | — |  |  | — |  |  | 36,306 |
Total | $ | 59,237 |  |  | $ | — |  |  | $ | 22,931 |  |  | $ | 36,306 |
Liabilities |  |  |  |  |  |  |
Earn-out consideration (Note b, d) | $ | 6,156 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,156 |
Derivative instruments (Note b, c) | 22,828 |  |  | — |  |  | 22,828 |  |  | — |
Deferred compensation plan liability (Note b, f) | 35,715 |  |  | — |  |  | — |  |  | 35,715 |
Total | $ | 64,699 |  |  | $ | — |  |  | $ | 22,828 |  |  | $ | 41,871 |
(a)Included in “prepaid expenses and other current assets” and “other assets” in the consolidated balance sheets. (b)Included in “accrued expenses and other current liabilities” and “other liabilities” in the consolidated balance sheets. (c)The Company values its derivative instruments based on market observable inputs, including both forward and spot prices for the relevant currencies and interest rate indices for relevant interest rates. The quotes are taken from an independent market database. 6. Fair value measurements (Continued) (d)The fair value of earn-out consideration, calculated as the present value of expected future payments to be made to the sellers of acquired businesses, was derived by estimating the future financial performance of the acquired businesses using the earn-out formula and performance targets specified in each purchase agreement and adjusting the result to reflect the Company’s estimate of the likelihood of achievement of such targets. Given the significance of the unobservable inputs, the valuations are classified in level 3 of the fair value hierarchy. (e)Deferred compensation plan assets consist of life insurance policies held under a Rabbi Trust. Assets held in the Rabbi Trust are valued based on the cash surrender value of the insurance contract, which is determined based on the fair value of the underlying assets included in the insurance portfolio and are therefore classified within level 3 of the fair value hierarchy. (f)The fair value of the deferred compensation plan liability is derived based on the fair value of the underlying assets in the insurance policies and is therefore classified within level 3 of the fair value hierarchy. The following table provides a roll-forward of the fair value of earn-out consideration categorized as level 3 in the fair value hierarchy for the three and nine months ended September 30, 2020 and 2021:
| Three months ended September 30, |  | Nine months ended September 30,
| 2020 |  | 2021 |  | 2020 |  | 2021
Opening balance | $ | 21,935 |  |  | $ | 5,716 |  |  | $ | 22,184 |  |  | $ | 8,272 |
Payments made on earn-out consideration (Note a) | — |  |  | — |  |  | — |  |  | (2,556) |
Change in fair value of earn-out consideration (Note b) | (3,773) |  |  | — |  |  | (4,452) |  |  | — |
Others (Note c) | — |  |  | 440 |  |  | 430 |  |  | 440 |
Closing balance | $ | 18,162 |  |  | $ | 6,156 |  |  | $ | 18,162 |  |  | $ | 6,156 |
(a)Includes an interest payment on earn-out consideration in excess of the acquisition date fair value, which is included in “cash flows from operating activities” amounting to $0 for the three and nine months ended September 30, 2020 and $440 for the three and nine months ended September 30, 2021. (b)Changes in the fair value of earn-out consideration are reported in “other operating (income) expense, net” in the consolidated statements of income. (c)“Others” is comprised of interest expense included in “interest income (expense), net” and the impact of changes in foreign exchange reported in “foreign exchange gains (losses), net” in the consolidated statements of income. This also includes a cumulative translation adjustment reported as a component of “other comprehensive income (loss).” The following table provides a roll-forward of the fair value of deferred compensation plan assets categorized as level 3 in the fair value hierarchy for the three and nine months ended September 30, 2020 and 2021:
| Three months ended September 30, |  | Nine months ended September 30,
| 2020 |  | 2021 |  | 2020 |  | 2021
Opening balance | $ | 21,837 |  |  | $ | 35,533 |  |  | $ | 11,208 |  |  | $ | 26,832 |
Additions (net of redemption) | 639 |  |  | 857 |  |  | 10,500 |  |  | 6,816 |
Change in fair value of deferred compensation plan assets (Note a) | 1,204 |  |  | (84) |  |  | 1,972 |  |  | 2,658 |
Closing balance | $ | 23,680 |  |  | $ | 36,306 |  |  | $ | 23,680 |  |  | $ | 36,306 |
(a)Changes in the fair value of plan assets are reported in “other income (expense), net” in the consolidated statements of income. 6. Fair value measurements (Continued) The following table provides a roll-forward of the fair value of deferred compensation liabilities categorized as level 3 in the fair value hierarchy for the three and nine months ended September 30, 2020 and 2021:
| Three months ended September 30, |  | Nine months ended September 30,
| 2020 |  | 2021 |  | 2020 |  | 2021
Opening balance | $ | 21,375 |  |  | $ | 35,034 |  |  | $ | 10,943 |  |  | $ | 26,390 |
Additions (net of redemption) | 792 |  |  | 840 |  |  | 10,367 |  |  | 6,799 |
Change in fair value of deferred compensation plan liabilities (Note a) | 1,085 |  |  | (159) |  |  | 1,942 |  |  | 2,526 |
Closing balance | $ | 23,252 |  |  | $ | 35,715 |  |  | $ | 23,252 |  |  | $ | 35,715 |
(a)Changes in the fair value of deferred compensation plan liabilities are reported in “selling, general and administrative expenses” in the consolidated statements of income.

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- References No definition available. + Details
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- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
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