| Schedule of assets and liabilities measured at fair value on a recurring basis |
Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): | | | | | | | | | | | | | | | | | | As of June 30, 2023 | | | Carrying | | Fair | | Fair Value Measurements | | | Amount | | Value | | Level 1 | | Level 2 | | Level 3 | Assets | | | | | | | | | | | | | | | | Cash equivalents | | $ | 120,818 | | $ | 120,818 | | $ | 120,818 | | $ | — | | $ | — | Corporate bonds | | | 149,659 | | | 149,659 | | | — | | | 149,659 | | | — | U.S. Treasuries | | | 287,992 | | | 287,992 | | | 287,992 | | | — | | | — | Equity securities | | | 67,753 | | | 67,753 | | | 67,753 | | | — | | | — | | | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | | | | | Contingent consideration | | | 119,841 | | | 119,841 | | | — | | | — | | | 119,841 |
| | | | | | | | | | | | | | | | | | As of December 31, 2022 | | | Carrying | | Fair | | Fair Value Measurements | | | Amount | | Value | | Level 1 | | Level 2 | | Level 3 | Assets | | | | | | | | | | | | | | | | Cash equivalents | | $ | 212,577 | | $ | 212,577 | | $ | 212,577 | | $ | — | | $ | — | Corporate bonds | | | 193,633 | | | 193,633 | | | — | | | 193,633 | | | — | U.S. Treasuries | | | 1,139,310 | | | 1,139,310 | | | 1,139,310 | | | — | | | — | Equity securities | | | 134,836 | | | 134,836 | | | 134,836 | | | — | | | — | | | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | | | | | Contingent consideration | | | 116,165 | | | 116,165 | | | — | | | — | | | 116,165 |
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| Schedule of assets and liabilities measured at fair value on a recurring basis that have unobservable inputs |
| | | | | | | | | | Financial Instrument | | Fair Value | | Valuation Technique | | Unobservable Input | | Range (weighted average) | Contingent Consideration | | $ | 75,700 | | Scenario based method | | Credit spread | | 14.19% - 14.20% | | | | | | | | Discount rate | | 18.71% - 19.67% | | | | 10,430 | | Monte carlo simulation | | Credit spread | | 14.20% | | | | | | | | Discount rate | | 19.64% | | | | | | | | Revenue volatility | | 38.64% | | | | 33,711 | | Monte carlo simulation | | Credit spread | | 14.19% | | | | | | | | Revenue volatility | | 25.00% | | | | | | | | Gross profit volatility | | 55.00% | | | $ | 119,841 | | | | | | |
In the unaudited interim condensed consolidated balance sheets, contingent consideration is recorded in the contingent consideration, loss accrual for service contracts, and other current liabilities financial statement line item, and was comprised of the following unobservable inputs as of December 31, 2022: | | | | | | | | | | Financial Instrument | | Fair Value | | Valuation Technique | | Unobservable Input | | Range (weighted average) | Contingent Consideration | | $ | 85,269 | | Scenario based method | | Credit spread | | 15.73% - 15.74% | | | | | | | | Discount rate | | 19.85% - 20.68% | | | | 11,310 | | Monte carlo simulation | | Credit spread | | 15.74% | | | | | | | | Discount rate | | 20.00%-20.30% | | | | | | | | Revenue volatility | | 45.29% | | | | 19,586 | | Monte carlo simulation | | Credit spread | | 15.73% | | | | | | | | Revenue volatility | | 35.7% - 23.1% (35.0%) | | | | | | | | Gross profit volatility | | 106.7% - 23.2% (60.0%) | | | $ | 116,165 | | | | | | |
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| Schedule of activity in the level 3 liabilities |
The change in the carrying amount of Level 3 liabilities for the six month period ended June 30, 2023 was as follows (in thousands): | | | | | | Six Months Ended | | | June 30, 2023 | Beginning balance at December 31, 2022 | | $ | 116,165 | Cash payments | | | (2,000) | Fair value adjustments | | | 8,769 | Foreign currency translation adjustment | | | 539 | Ending balance at March 31, 2023 | | | 123,473 | Cash payments | | | (11,000) | Payment settled in stock | | | (8,000) | Fair value adjustments | | | 15,308 | Foreign currency translation adjustment | | | 60 | Ending balance at June 30, 2023 | | $ | 119,841 |
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