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Fair value measurements (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of fair value of assets and liabilities, including derivative instruments, at fair value on a recurring basis

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, 2021 and 2022:

			As of December 31, 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)			$	34,070					$	—					$	34,070					$	—
Deferred compensation plan assets (Note a, e)			38,584						—						—						38,584
Total			$	72,654					$	—					$	34,070					$	38,584
Liabilities
Earn-out consideration (Note b, d)			$	5,406					$	—					$	—					$	5,406
Derivative instruments (Note b, c)			15,254						—						15,254						—
Deferred compensation plan liability (Note b, f)			38,007						—						—						38,007
Total			$	58,667					$	—					$	15,254					$	43,413

			As of December 31, 2022
			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)			$	21,687					$	—					$	21,687					$	—
Deferred compensation plan assets (a, e)			40,261						—						—						40,261
Total			$	61,948					$	—					$	21,687					$	40,261
Liabilities
Earn-out consideration (Note b, d)			$	2,517					$	—					$	—					$	2,517
Derivative instruments (Note b, c)			38,817						—						38,817						—
Deferred compensation plan liability (b, f)			39,654						—						—						39,654
Total			$	80,988					$	—					$	38,817					$	42,171

(a)Derivative assets are included in “prepaid expenses and other current assets” and “other assets.” Deferred compensation plan assets are included in “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.

(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.

5. Fair value measurements (Continued)

(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.

Schedule of roll-forward of fair value of earn-out consideration categorized as level 3 in 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 years ended December 31, 2021 and 2022:

			Year ended December 31,
			2021						2022
Opening balance			$	8,272					$	5,406
Payments made on earn-out consideration (Note a)			(2,556)						(2,437)
Change in fair value of earn-out consideration (Note b)			(750)						(452)
Others (Note c)			440						—
Closing balance			$	5,406					$	2,517

(a)Includes interest payments on earn-out consideration in excess of the acquisition date fair value, which are included in “cash flows from operating activities” and amount to $440 and $0 for the years ended December 31, 2021 and 2022, respectively.

(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 liabilities categorized as level 3 in the fair value hierarchy for the years ended December 31, 2021 and 2022:

			Year ended December 31,
			2021						2022
Opening balance			$	26,390					$	38,007
Additions (net of redemption)			7,523						9,257
Change in fair value of deferred compensation plan liabilities (Note a)			4,094						(7,610)
Closing balance			$	38,007					$	39,654

(a)Changes in the fair value of deferred compensation liabilities are reported in “selling, general and administrative expenses” in the consolidated statements of income.

Schedule of roll-forward of fair value of deferred compensation plan assets categorized as level 3 in fair value hierarchy

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 years ended December 31, 2021 and 2022:

			Year ended December 31,
			2021						2022
Opening balance			$	26,832					$	38,584
Additions (net of redemption)			7,523						9,257
Change in fair value of deferred compensation plan assets (Note a)			4,229						(7,580)
Closing balance			$	38,584					$	40,261

(a)Changes in the fair value of plan assets are reported in “other income (expense), net” in the consolidated statements of income.

Schedule of fair value of deferred compensation liabilities categorized as Level 3 in 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 years ended December 31, 2021 and 2022:

			Year ended December 31,
			2021						2022
Opening balance			$	8,272					$	5,406
Payments made on earn-out consideration (Note a)			(2,556)						(2,437)
Change in fair value of earn-out consideration (Note b)			(750)						(452)
Others (Note c)			440						—
Closing balance			$	5,406					$	2,517

(a)Includes interest payments on earn-out consideration in excess of the acquisition date fair value, which are included in “cash flows from operating activities” and amount to $440 and $0 for the years ended December 31, 2021 and 2022, respectively.

(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 liabilities categorized as level 3 in the fair value hierarchy for the years ended December 31, 2021 and 2022:

			Year ended December 31,
			2021						2022
Opening balance			$	26,390					$	38,007
Additions (net of redemption)			7,523						9,257
Change in fair value of deferred compensation plan liabilities (Note a)			4,094						(7,610)
Closing balance			$	38,007					$	39,654

(a)Changes in the fair value of deferred compensation liabilities are reported in “selling, general and administrative expenses” in the consolidated statements of income.

X

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
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Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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