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Fair Value Measurements
 9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is defined as the price that would be received from selling an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:
Level 1 — Quoted prices in active markets for identical assets and liabilities.
Level 2 — Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly.
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.
At September 30, 2021, our financial assets and liabilities recorded at fair value on a recurring basis consisted of cash equivalents and available-for-sale debt securities. At December 31, 2020, our financial assets and liabilities recorded at fair value on a recurring basis consisted of cash equivalents, a restricted cash equivalent, available-for-sale debt securities, interest rate swaps, an interest rate cap and a financial guarantee derivative. Cash equivalents and the restricted cash equivalent consisted of money market funds valued using quoted prices in active markets, which represent Level 1 inputs in the fair value hierarchy. Our interest rate swaps and interest rate cap were valued using observable market inputs including LIBOR, swap rates and third-party dealer quotes, which represent Level 2 inputs in the fair value hierarchy. The available-for-sale debt securities and financial guarantee derivative were valued using a Monte Carlo simulation, which include inputs that represent Level 3 inputs in the fair value hierarchy.
The carrying amounts of accounts receivable, accounts payable and accrued expenses and other current liabilities approximate fair values because of the short-term nature of these items. The fair value of our long-term debt was estimated by using quoted or sales prices of similar debt instruments, which represent Level 2 inputs in the fair value hierarchy.
The following tables summarize our assets and liabilities that are measured at fair value on a recurring basis, by Level, within the fair value hierarchy (in thousands):
September 30, 2021
Level 1Level 2Level 3
Available-for-sale debt securities$— $— $1,123 
Money market funds30,214 — — 
Total assets$30,214 $— $1,123 
Contingent consideration— — 750 
Total liabilities$— $— $750 
December 31, 2020
Level 1Level 2Level 3
Available-for-sale debt securities$— $— $1,050 
Money market fund5,208 — — 
Restricted money market fund25,000 — — 
Total assets$30,208 $— $1,050 
Interest rate caps and swaps$— $5,817 $— 
Financial guarantee— — 150 
Contingent consideration— — 1,250 
Total liabilities$— $5,817 $1,400