Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measures

v3.23.3
Fair Value Measures
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measures FAIR VALUE MEASURES
The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are:
•Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date.
•Level 2 inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
•Level 3 inputs are unobservable and are used to measure fair value in situations where there is little, if any, market activity for the asset or liability at the measurement date.
NOTE B – FAIR VALUE MEASURES - CONTINUED
As of September 30, 2023, and December 31, 2022, the following financial assets and liabilities were measured at fair value on a recurring basis using the type of inputs shown:
September 30,
2023		 Fair Value Measurements Using
Inputs
Level 1 Level 2 Level 3
Money market funds included in cash equivalents $ 243,577  $ 243,577  $ —  $ — 
Foreign currency contracts included in other current liabilities (66) —  (66) — 
Deferred compensation liabilities included in other long-term liabilities (2,580) —  (2,580) — 
December 31,
2022		 Fair Value Measurements Using
Inputs
Level 1 Level 2 Level 3
Money market funds included in cash equivalents $ 211,539  $ 211,539  $ —  $ — 
Foreign currency contracts included in other current liabilities (3,150) —  (3,150) — 
Deferred compensation liabilities included in other long-term liabilities (1,632) —  (1,632) — 
Contingent consideration included in other current liabilities of ($338) and other long-term liabilities of ($548)
 (886) —  —  (886)
There were no transfers of financial assets or liabilities between levels of the fair value hierarchy for the periods indicated.
The majority of the Company’s non-financial assets, which include long-lived assets, are not required to be carried at fair value on a recurring basis. However, if an impairment charge is required, a non-financial asset would be written down to fair value. As of September 30, 2023 and December 31, 2022, there were no non-financial assets measured at fair value on a non-recurring basis.
As of September 30, 2023 and December 31, 2022, the Company’s financial instruments include cash equivalents and restricted cash. The recorded values of cash equivalents and restricted cash approximate their fair values, based on their short-term nature.
The contingent consideration liability was (i) a contingent part of the purchase price payable by the Company to acquire substantially all of the assets of a business owned by the seller in July 2022, and (ii) based on the achievement of certain milestones by the business over a three-year period, and the seller's continued employment with the business. During the nine months ended September 30, 2023, the employee resigned from the business, which consequently terminated the employment relationship and the remaining contingent consideration of $548 was forfeited. This non-cash gain on contingent consideration is included in the change in "Other liabilities" line item on the Company’s condensed consolidated statements of cash flows.