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Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS
The Company uses a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about valuation based on the best information available in the circumstances. The three levels of inputs are classified as follows:
•Level 1 — quoted prices in active markets for identical assets or liabilities;
•Level 2 — observable inputs, other than quoted prices included in Level 1, such as quoted prices for markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and
•Level 3 — unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
In determining fair value, the Company uses various valuation approaches within the fair value measurement framework. The valuation methodologies used for the Company’s assets and liabilities measured at fair value and their classification in the valuation hierarchy are summarized below:
Cash Equivalents
Cash equivalents primarily consist of time-based deposits and interest-bearing instruments with maturities of three months or less. The Company classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets.
Interest Rate Swaps
As described in Note 9 – Debt, the Company may, from time to time, execute interest rate swaps as a means of fixing the floating interest rate component on a portion of its floating-rate debt. The Company classifies its interest rate swaps as Level 2 due to the use of a discounted cash flow model based on the terms of the contract and the interest rate curve (Level 2 inputs) to calculate the fair value of the swaps.
Contingent Consideration
As of December 31, 2024, the Company had contingent obligations to transfer up to $6.2 million, C$6.0 million (approximately $4.2 million), and $4.8 million to the former owners of Blasters, Trackless, and Standard, respectively, if specified financial results are met over future reporting periods (i.e., an earn-out). The Blasters, Trackless, and Standard acquisitions were completed on January 3, 2023, April 3, 2023, and October 4, 2024, respectively. The Blasters contingent earn-out payments, if earned, would be due to be paid annually, in each of the three years following the anniversary of the closing date. There was no contingent earn-out payable for the first annual measurement period. The second annual measurement period ended on January 3, 2025, and the applicable contingent earn-out payment, if any, is expected to be finalized in the first half of 2025. The Trackless contingent earn-out payment, if earned, would be due to be paid following the second anniversary of the closing date. The Standard contingent earn-out payment, if earned, would be due to be paid following the end of the performance period, which concludes on January 1, 2027. The Company also had a contingent obligation to transfer up to $7.5 million to the former owners of Deist Industries, Inc., Bucks Fabricating, LLC, Roll-Off Parts, LLC, and Switch-N-Go LLC (collectively, “Deist”). The earn-out period for Deist ended on December 30, 2024, the third anniversary of the closing date, and the associated earn-out payment, if any, is expected to be finalized in the first half of 2025. During the year ended December 31, 2023, the Company paid $0.5 million to settle the contingent consideration obligation due to the former owners of Mark Rite Lines Equipment Company, Inc. (“MRL”), which was acquired on July 1, 2019.
Liabilities for contingent consideration are measured at fair value each reporting period, with the acquisition-date fair value included as part of the consideration transferred. Subsequent changes in fair value are included as a component of Acquisition and integration-related expenses (benefits), net on the Consolidated Statements of Operations.
The Company uses an income approach to value the contingent consideration obligation based on the present value of risk-adjusted future cash flows under either a scenario-based or option-pricing method, as appropriate. Due to the lack of relevant observable market data over fair value inputs, such as prospective financial information or probabilities of future events as of December 31, 2024, the Company has classified the contingent consideration liability within Level 3 of the fair value hierarchy outlined in ASC 820, Fair Value Measurements. As further described in Note 2 – Acquisitions, the Company has recognized a preliminary estimate of the fair value of the Standard contingent consideration liability as of the applicable acquisition date. This preliminary estimate is subject to change during the measurement period as the applicable third-party valuation is finalized.
The following tables summarize the Company’s assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2024 and 2023:
Fair Value Measurement at December 31, 2024 Using
(in millions of dollars)Level 1Level 2Level 3Total
Assets:
Cash equivalents$30.3 $— $— $30.3 
Liabilities:
Contingent consideration— — 4.8 4.8 
Interest rate swaps— 0.3 — 0.3 
Fair Value Measurement at December 31, 2023 Using
(in millions of dollars)Level 1Level 2Level 3Total
Assets:
Cash equivalents$20.5 $— $— $20.5 
Liabilities:
Contingent consideration— — 4.9 4.9 
Interest rate swaps— 0.7 — 0.7 
The following table provides a roll-forward of the fair value of recurring Level 3 fair value measurements for the years ended December 31, 2024 and 2023:
(in millions of dollars)20242023
Contingent consideration liability, at January 1$4.9 $2.7 
Acquisitions, including measurement period adjustments0.4 4.8 
Settlements of contingent consideration liabilities— (0.5)
Foreign currency translation(0.3)— 
Total net benefit included in earnings (a)
(0.2)(2.1)
Contingent consideration liability, at December 31$4.8 $4.9 
(a)    Included as a component of Acquisition and integration-related expenses (benefits), net on the Consolidated Statements of Operations.