Fair Value Measurements

12 Months Ended

Dec. 31, 2024

Note 4. Fair Value Measurements

The Company's liabilities measured at fair value on a recurring basis consisted of the following (in thousands):


			Fair value measurement at reporting date
	As of December 31, 2024		Level 1		Level 2		Level 3
Contingent consideration	$	500	$	—	$	—	$	500
Total	$	500	$	—	$	—	$	500


			Fair value measurement at reporting date
	As of December 31, 2023		Level 1		Level 2		Level 3
Contingent consideration	$	61,408	$	—	$	—	$	61,408
Total	$	61,408	$	—	$	—	$	61,408

The rollforward of the Level 3 contingent consideration from December 31, 2023 is as follows (in thousands):


	As of December 31, 2023		Payment of Contingent Consideration			Fair Value Adjustment (1)			As of December 31, 2024
Contingent consideration	$	61,408	$	(27,435	)	$	(33,473	)	$	500

(1)

Fair value adjustments on contingent considerations are reflected within Other income (expense), net in the Consolidated Statements of Income.

The Company's contingent consideration obligations arise from acquisitions that involve a potential future payment of consideration that is contingent upon the achievement of certain financial or operational metrics. The contingent consideration is classified in the Consolidated Balance Sheets based on expected payment dates. As of December 31, 2024, $0.5 million was included within Other accrued liabilities in the Consolidated Balance Sheets. As of December 31, 2023, $25.8 million and $35.6 million were included within Other accrued liabilities and Other noncurrent liabilities, respectively, in the Consolidated Balance Sheets. For information related to the AccuTrade contingent consideration agreement, see Note 3 (Business Combinations). The Company expects to make the remaining payments on the contingent consideration in 2025.