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Fair value measurements
Jul. 01, 2024
Fair Value Disclosures [Abstract]  
Fair value measurements
NOTE 8: FAIR VALUE MEASUREMENTS

Goodwill impairment analyses – Our policy regarding goodwill impairment can be found under the caption "Note 1: Significant Accounting Policies" in the Notes to Consolidated Financial Statements appearing in the 2023 Form 10-K. This policy explains our methodology for assessing the impairment of goodwill.

In completing the 2024 annual impairment analysis as of July 31, 2024, we elected to perform quantitative analyses for certain of our reporting units: Merchant Services, Treasury Management and Business Essentials. These quantitative analyses indicated that the estimated fair values of the reporting units exceeded their carrying values. In determining the estimated fair values of our reporting units, we are required to estimate a number of factors, including revenue growth rates; earnings before interest, taxes, depreciation and amortization ("EBITDA") margins; terminal growth rates; discount rates; and the allocation of shared and corporate items. These assumptions require significant judgement. Actual results may differ from our assumptions and may result in future impairment charges.

We elected to complete qualitative analyses for our remaining reporting units with goodwill. These qualitative analyses evaluated factors, including, but not limited to, economic, market and industry conditions, cost factors and the overall financial performance of the reporting units. We also considered the most recent quantitative analyses completed in prior periods. In completing these qualitative assessments, we noted no changes in events or circumstances that indicated it was more likely than not that the fair value of any reporting unit was less than its carrying amount. As such, no goodwill impairment charges were recorded as a result of our 2024 annual impairment analysis.

As of September 30, 2024, we also completed a quantitative analysis of the goodwill related to our U.S. and Canadian payroll and human resources services business, which we are currently in the process of exiting. This analysis resulted in a pretax goodwill impairment charge of $6,700 during the quarter ended September 30, 2024. Further information can be found in Note 6.

Recurring fair value measurements – Cash and cash equivalents included available-for-sale debt securities at December 31, 2023 (Note 3), which consisted of a domestic money market fund. The cost of the fund, which was traded in an active market, approximated its fair value because of the short-term nature of the underlying investments. The fair value of derivative instruments (Note 7) is calculated based on the applicable reference rate curve on the date of measurement.
Information regarding the fair values of our financial instruments was as follows:

 Fair value measurements using
September 30, 2024Quoted prices in active markets for identical assets
(Level 1)		Significant other observable inputs
(Level 2)		Significant unobservable inputs
(Level 3)
(in thousands)Balance sheet locationCarrying valueFair value
Measured at fair value through comprehensive income:
Derivative liabilities (Note 7)Accrued liabilities and other non-current liabilities$(4,380)$(4,380)$— $(4,380)$— 
Amortized cost:
CashCash and cash equivalents41,307 41,307 41,307 — — 
CashFunds held for customers41,258 41,258 41,258 — — 
CashOther non-current assets3,030 3,030 3,030 — — 
Loans and notes receivable from distributors
Other current assets and other non-current assets13,314 14,278 — — 14,278 
Long-term debtCurrent portion of long-term debt and long-term debt1,531,527 1,515,895 — 1,515,895 — 
 Fair value measurements using
December 31, 2023Quoted prices in active markets for identical assets
(Level 1)		Significant other observable inputs
(Level 2)		Significant unobservable inputs
(Level 3)
(in thousands)Balance sheet locationCarrying valueFair value
Measured at fair value through comprehensive income:
Available-for-sale debt securities
Cash and cash equivalents$22,000 $22,000 $22,000 $— $— 
Derivative assets (Note 7)Other non-current assets1,806 1,806 — 1,806 — 
Derivative liability (Note 7)Other non-current liabilities(2,158)(2,158)— (2,158)— 
Amortized cost:
CashCash and cash equivalents49,962 49,962 49,962 — — 
Cash
Funds held for customers383,134 383,134 383,134 — — 
Cash
Other non-current assets2,937 2,937 2,937 — — 
Loans and notes receivable from distributors
Other current assets and other non-current assets13,430 13,249 — — 13,249 
Long-term debt
Current portion of long-term debt and long-term debt1,592,851 1,554,028 — 1,554,028 —