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Fair Value Measures and Disclosures (Tables) | 9 Months Ended
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Sep. 30, 2023
Fair Value Disclosures [Abstract] |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables provide a reconciliation of the Level 3 earn-out liabilities measured at estimated fair value (in thousands):
|  | Earn-out Liability
Accrued balance, January 1, 2023 |  | $ | 25,572 |
Change in fair value of earn-out (included in income from operations as a separate line item)(1) |  | (700) |
Currency translation |  | 33 |
Accrued balance, March 31, 2023 |  | 24,905 |
Change in fair value of earn-out (included in income from operations as a separate line item)(2) |  | 4,016 |
Other |  | 11 |
Currency translation |  | 1 |
Accrued balance, June 30, 2023 |  | 28,933 |
Change in fair value of earn-out (included in income from operations as a separate line item)(1) |  | (15,572) |
Other |  | 58 |
Currency translation |  | (58) |
Accrued balance, September 30, 2023 |  | $ | 13,361 |
|  | Earn-out Liability
Accrued balance, January 1, 2022 |  | $ | 2,589 |
Acquisition date fair value estimate of earn-out(3) |  | 55,158 |
Currency translation |  | (46) |
Accrued balance, March 31, 2022 |  | 57,701 |
Change in fair value of earn-out (included in income from operations as a separate line item)(1) |  | (27,194) |
Currency translation |  | (98) |
Accrued balance, June 30, 2022 |  | 30,409 |
Change in fair value of earn-out (included in income from operations as a separate line item)(1) |  | (4,059) |
Currency translation |  | (108) |
Accrued balance, September 30, 2022 |  | $ | 26,242 |
_______________________________ (1) Primarily relates to the change in fair value of our Smiths Medical earn-out. (2) Primarily relates to the change in fair value of our Smiths Medical earn-out and the earnout with one of our international distributors. (3) $53.5 million of the change in fair value of earn-out relates to our acquisition of Smiths Medical, and $1.6 million of the change in fair value of earn-out relates to our acquisition of a small foreign infusions systems supplier in the fourth quarter of 2021 (see Note 3: Acquisitions).
Fair Value Measurement Inputs and Valuation Techniques | The following tables provide quantitative information about Level 3 inputs for fair value measurement of our earn-out liabilities related to Smiths Medical: Smiths Medical Earn-out Liability
Simulation Input |  |  |  | As of September 30, 2023 |  | As of December 31, 2022
Volatility |  |  |  | 41.00 | % |  | 38.00 | %
Risk-Free Rate |  |  |  | 4.91 | % |  | 4.17 | %
Fair Value, by Balance Sheet Grouping | Our assets and liabilities measured at fair value on a recurring basis consisted of the following Level 1, 2 and 3 inputs as defined above (in thousands):
| Fair value measurements as of September 30, 2023
| Total carrying value |  | Quoted prices in active markets for identical assets (level 1) |  | Significant other observable inputs (level 2) |  | Significant unobservable inputs (level 3)
Assets: |  |  |  |  |  |  |
Available-for-sale debt securities: |  |  |  |  |  |  |
Short-term corporate bonds | $ | 1,306 |  |  | $ | — |  |  | $ | 1,306 |  |  | $ | — |
Short-term government bonds | 500 |  |  | — |  |  | 500 |  |  | — |
Foreign exchange contracts: |  |  |  |  |  |  |
Prepaid expenses and other current assets | 8,630 |  |  | — |  |  | 8,630 |  |  | — |
Other assets | 542 |  |  | — |  |  | 542 |  |  | — |
Interest rate contracts: |  |  |  |  |  |  |
Prepaid expenses and other current assets | 30,446 |  |  | — |  |  | $ | 30,446 |  |  | — |
Other assets | 22,167 |  |  | — |  |  | $ | 22,167 |  |  | — |
Total Assets | $ | 63,591 |  |  | $ | — |  |  | $ | 63,591 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |
Contingent earn-out liability - ST | $ | 6,300 |  |  | $ | — |  |  |  |  | $ | 6,300 |
Contingent earn-out liability - LT | 7,061 |  |  | — |  |  |  |  | $ | 7,061 |
Foreign exchange contracts: |  |  |  |  |  |  |
Accrued liabilities | 1,890 |  |  | — |  |  | $ | 1,890 |  |  | — |
Other long-term liabilities | 91 |  |  | — |  |  | $ | 91 |  |  | — |
Total Liabilities | $ | 15,342 |  |  | $ | — |  |  | $ | 1,981 |  |  | $ | 13,361 |
| Fair value measurements as of December 31, 2022
| Total carrying value |  | Quoted prices in active markets for identical assets (level 1) |  | Significant other observable inputs (level 2) |  | Significant unobservable inputs (level 3)
Assets: |  |  |  |  |  |  |
Available-for-sale debt securities: |  |  |  |  |  |  |
Short-term corporate bonds | $ | 2,314 |  |  | $ | — |  |  | $ | 2,314 |  |  | $ | — |
Short-term U.S. treasury securities | 1,412 |  |  | 1,412 |  |  | — |  |  | — |
Short-term government bonds | 498 |  |  | — |  |  | $ | 498 |  |  | — |
Long-term corporate bonds | 516 |  |  | — |  |  | $ | 516 |  |  | — |
Foreign exchange forwards: |  |  |  |  |  |  |
Prepaid expenses and other current assets | 4,860 |  |  | — |  |  | $ | 4,860 |  |  | — |
Other assets | 94 |  |  | — |  |  | $ | 94 |  |  | — |
Interest rate contracts: |  |  |  |  |  |  |
Prepaid expenses and other current assets | 28,431 |  |  | — |  |  | $ | 28,431 |  |  | — |
Other assets | 26,753 |  |  | — |  |  | $ | 26,753 |  |  | — |
Total Assets | $ | 64,878 |  |  | $ | 1,412 |  |  | $ | 63,466 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |
Contingent earn-out liability - LT | $ | 25,572 |  |  | $ | — |  |  | $ | — |  |  | $ | 25,572 |
Foreign exchange contracts: |  |  |  |  |  |  |
Accrued liabilities | 1,847 |  |  | — |  |  | 1,847 |  | — |
Other long-term liabilities | 167 |  |  | — |  |  | 167 |  | — |
Total Liabilities | $ | 27,586 |  |  | $ | — |  |  | $ | 2,014 |  |  | $ | 25,572 |

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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 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 + Details
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