Fair value measurements

3 Months Ended

Mar. 31, 2024

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, 2023 and March 31, 2024:


	As of December 31, 2023
	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)	$	22,307	$	—	$	22,307	$	—
Deferred compensation plan assets (Note a, d)	51,983		—		—		51,983
Total	$	74,290	$	—	$	22,307	$	51,983
Liabilities
Derivative instruments (Note b, c)	17,363		—		17,363		—
Deferred compensation plan liability (Note b, e)	51,354		—		—		51,354
Total	$	68,717	$	—	$	17,363	$	51,354


	As of March 31, 2024
	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)	$	29,468	$	—	$	29,468	$	—
Deferred compensation plan assets (Note a, d)	55,559		—		—		55,559
Total	$	85,027	$	—	$	29,468	$	55,559
Liabilities
Derivative instruments (Note b, c)	10,311		—		10,311		—
Deferred compensation plan liability (Note b, e)	54,519		—		—		54,519
Total	$	64,830	$	—	$	10,311	$	54,519

4. Fair value measurements (Continued)

(a)Derivative assets are included in “prepaid expenses and other current assets” and “other assets” in the consolidated balance sheets. 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)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.

(e)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 months ended March 31, 2023 and 2024:


	Three months ended March 31,
	2023		2024
Opening balance	$	2,517	$	—
Payments made on earn-out consideration	(2,399)		—
Change in fair value of earn-out consideration (Note a)	(118)		—
Closing balance	$	—	$	—

(a)Changes in the fair value of earn-out consideration are reported in “other operating (income) expense, net” in the consolidated statements of income.

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 months ended March 31, 2023 and 2024:


	Three months ended March 31,
	2023		2024
Opening balance	$	40,261	$	51,983
Additions (net of redemption)	2,098		368
Change in fair value of deferred compensation plan assets (Note a)	2,386		3,208
Closing balance	$	44,745	$	55,559

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

4. 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 months ended March 31, 2023 and 2024:


	Three months ended March 31,
	2023		2024
Opening balance	$	39,654	$	51,354
Additions (net of redemption)	2,098		1
Change in fair value of deferred compensation plan liabilities (Note a)	2,343		3,164
Closing balance	$	44,095	$	54,519

(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.