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Fair Value Measurements (Tables) | 9 Months Ended
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Oct. 01, 2021
Fair Value Disclosures [Abstract] |
Fair Values of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of October 1, 2021 (in thousands):
|  |  |  |  | Quoted Prices in |  |  |  |  |  |  | Significant Other |
|  |  |  |  | Active Markets for |  |  | Significant Other |  |  | Unobservable |
|  |  |  |  | Identical Assets |  |  | Observable Inputs |  |  | Inputs |
| Fair Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents | $ | 3,089 |  |  | $ | 3,089 |  |  | $ | — |  |  | $ | — |
Prepaid expenses and other current assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | 202 |  |  |  | — |  |  |  | 202 |  |  |  | — |
| $ | 3,291 |  |  | $ | 3,089 |  |  | $ | 202 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accrued expenses and other current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent considerations - Current | $ | 55,469 |  |  | $ | — |  |  | $ | — |  |  | $ | 55,469 |
Foreign currency forward contracts |  | 10 |  |  |  | — |  |  |  | 10 |  |  |  | — |
Other liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent considerations - Long-term |  | 3,605 |  |  |  | — |  |  |  | — |  |  |  | 3,605 |
| $ | 59,084 |  |  | $ | — |  |  | $ | 10 |  |  | $ | 59,074 |
The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 (in thousands):
|  |  |  |  | Quoted Prices in |  |  |  |  |  |  | Significant Other |
|  |  |  |  | Active Markets for |  |  | Significant Other |  |  | Unobservable |
|  |  |  |  | Identical Assets |  |  | Observable Inputs |  |  | Inputs |
| Fair Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents | $ | 11,047 |  |  | $ | 11,047 |  |  | $ | — |  |  | $ | — |
Prepaid expenses and other current assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | 27 |  |  |  | — |  |  |  | 27 |  |  |  | — |
| $ | 11,074 |  |  | $ | 11,047 |  |  | $ | 27 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accrued expenses and other current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent considerations - Current | $ | 4,280 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,280 |
Foreign currency forward contracts |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent considerations - Long-term |  | 7,276 |  |  |  | — |  |  |  | — |  |  |  | 7,276 |
| $ | 11,556 |  |  | $ | — |  |  | $ | — |  |  | $ | 11,556 |
Changes in Fair Value of Level 3 Contingent Considerations | Changes in the fair value of Level 3 contingent considerations during the nine months ended October 1, 2021 were as follows (in thousands):
| Contingent Considerations |
Balance at December 31, 2020 | $ | 11,556 |
Acquisition of ATI |  | 51,900 |
Payments |  | (4,036 | )
Fair value adjustments |  | 26 |
Effect of foreign exchange rates |  | (372 | )
Balance at October 1, 2021 | $ | 59,074 |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | The following table provides qualitative information associated with the fair value measurement of the Company’s Level 3 liabilities:
Liability |  | October 1, 2021 Fair Value (in thousands) |  | Valuation Technique |  | Unobservable Inputs |  | Percentage Applied |
Contingent consideration (ATI) |  | $51,900 |  | Monte Carlo method |  | Historical and projected adjusted |  | N/A |
|  |  |  |  |  | EBITDA for fiscal year 2021 |  |  |
|  |  |  |  |  | EBITDA risk premium |  | 7.2% |
|  |  |  |  |  | EBITDA volatility |  | 27.0% |
|  |  |  |  |  | Credit spread |  | 2.1% |
Contingent consideration (ARGES) |  | $4,282 |  | Monte Carlo method |  | Historical and projected revenues from August 2019 through December 2026 |  | N/A |
|  |  |  |  |  | Revenue volatility |  | 21.0% |
|  |  |  |  |  | Cost of debt |  | 2.6% |
|  |  |  |  |  | Discount rate |  | 3.7% |
Contingent consideration (Ingenia) |  | $1,493 |  | Monte Carlo method |  | Historical and projected revenues from April 2019 through March 2022 |  | N/A |
|  |  |  |  |  | Revenue volatility |  | 38.5% |
|  |  |  |  |  | Cost of debt |  | 3.1% |
|  |  |  |  |  | Discount rate |  | 9.6% |
Contingent consideration (Other) |  | $1,399 |  | Discounted cash flow method |  | Historical and projected revenues for fiscal years 2018 to 2021 |  | N/A
|  |  |  |  |  | Revenue discount rate |  | 22.8% |

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- Definition Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=123874694&loc=SL7498348-110258 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition 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 Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258 + Details
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