Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Measurements

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 September 30, 2023
		Carrying			Fair			Fair Value Measurements
		Amount			Value			Level 1			Level 2			Level 3
Assets
Cash equivalents		$	118		$	118		$	118		$	—		$	—
Corporate bonds			128,111			128,111			—			128,111			—
U.S. Treasuries			260,657			260,657			260,657			—			—
Equity securities			67,823			67,823			67,823			—			—

Liabilities
Contingent consideration			121,251			121,251			—			—			121,251


		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

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		$	75,491		Scenario based method		Credit spread		14.05% - 14.20%
							Discount rate		18.71% - 19.67%
			10,960		Monte carlo simulation		Credit spread		14.20%
							Discount rate		19.64%
							Revenue volatility		38.64%
			34,800		Monte carlo simulation		Credit spread		14.19%
							Revenue volatility		25.00%
							Gross profit volatility		55.00%
		$	121,251

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

Schedule of activity in the level 3 liabilities

The change in the carrying amount of Level 3 liabilities for the nine month period ended September 30, 2023 was as follows (in thousands):


		Nine Months Ended
		September 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
Fair value adjustments			2,239
Foreign currency translation adjustment			(829)
Ending balance at September 30, 2023		$	121,251