Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v3.19.3.a.u2
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Schedule of Assets and liabilities at Fair Value on Recurring Basis
Assets and liabilities carried at fair value on a recurring basis consisted of the following (in thousands):
                                                                 
 
December 31, 2019
 
 
December 31, 2018
 
 
Fair Value
 
 
Level 1
 
 
Level 2
 
 
Level 3
 
 
Fair Value
 
 
Level 1
 
 
Level 2
 
 
   Level 3   
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets held in rabbi trust
  $
9,452
    $
    $
9,452
    $
 
 
 
 
    $
8,268
    $
—  
    $
8,268
    $
—  
 
                                                                 
Cash equivalents
(1)
:
   
     
     
     
     
     
     
     
 
Commercial paper and other
 
$
5,087
 
 
$
 
 
$
5,087
 
 
$
 —
 
 
$
1,599
 
 
$
1,599
 
 
$
—  
 
 
$
 
Money market funds
   
185,513
     
185,513
     
     
     
163,126
     
163,126
     
—  
     
—  
 
                                                                 
  $
 190,600
    $
185,513
    $
5,087
    $
    $
 164,725
    $
164,725
    $
—  
    $
—  
 
                                                                 
Marketable securities,
available-for-sale:
   
     
     
     
 
     
     
     
     
 
Short-term investments:
   
     
     
     
     
     
     
     
 
U.S. treasuries
  $
 124,580
    $
124,580
    $
    $
    $
 121,180
    $
121,180
    $
—  
    $
—  
 
U.S. government sponsored entities
   
     
     
     
     
3,505
     
—  
     
3,505
     
—  
 
Corporate debt
   
26,172
     
     
26,172
     
     
11,951
     
—  
     
11,951
     
—  
 
ABS and other
   
     
     
     
     
800
     
—  
     
800
     
—  
 
                                                                 
  $
 150,752
    $
124,580
    $
 26,172
    $
    $
 137,436
    $
121,180
    $
 16,256
    $
—  
 
                                                                 
Long-term investments:
   
     
     
     
     
     
     
     
 
U.S. treasuries
  $
24,423
    $
24,423
    $
 —
    $
    $
45,010
    $
45,010
    $
—  
    $
—  
 
U.S. government sponsored entities
   
1,355
     
     
1,355
     
     
1,507
     
—  
     
1,507
     
—  
 
Corporate debt
   
26,471
     
     
26,471
     
     
31,837
     
—  
     
31,837
     
—  
 
ABS and other
   
8,560
     
     
8,560
     
     
4,855
     
—  
     
4,855
     
—  
 
                                                                 
  $
60,809
    $
24,423
    $
 36,386
    $
    $
83,209
    $
45,010
    $
 38,199
    $
—  
 
                                                                 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration
  $
4,788
    $
    $
    $
 4,788
    $
2,875
    $
—  
    $
—  
    $
 2,875
 
                                                                 
Deferred compensation liability
  $
8,241
    $
8,241
    $
    $
    $
7,893
    $
7,893
    $
—  
    $
—  
 
                                                                 
 
 
 
 
 
 
 
 
 
(1)
Included in cash and cash equivalents on the accompanying consolidated balance sheets.
 
 
 
 
 
 
Schedule of Reconciliation of Contingent Consideration Measured at Fair Value on Recurring Basis Assuming the achievement of the applicable performance criteria and/or service and time requirements, the Company anticipates these
earn-out
payments will be made over the next one to seven-year period. Changes in fair value are included in selling, general and administrative expense
in the consolidated statements of net and comprehensive income. A reconciliation of contingent consideration measured at fair value on a recurring basis consisted of the following (in thousands):
 
                 
 
December 31,
 
 
2019
 
 
2018
 
Beginning balance
  $
2,875
    $
—  
 
Contingent consideration in connection with acquisitions
(1)
   
2,382
     
2,674
 
Change in fair value of contingent consideration
   
202
     
201
 
Payments of contingent consideration
   
(671
)    
—  
 
                 
Ending balance
  $
4,788
    $
2,875
 
                 
 
 
 
 
 
 
 
 
 
 
 
(1)
Contingent consideration in connections with acquisitions represents noncash investing activity.
 
 
 
Fair Value Liabilities Measured On Recurring Basis Valuation Techniques
Quantitative information about the valuation technique and significant unobservable inputs used in the valuation of the Company’s Level 3 financial liabilities measured at fair value on a recurring basis consisted of the following (dollars in thousands):
                             
 
Fair Value at
December 31, 2019
 
 
Valuation Technique
 
 
Unobservable inputs
 
Range (Weighted
Average)
(1)
 
Contingent consideration
  $
4,788
     
Discounted cash flow
   
Expected life of cash flows
   
0.4-5.8
 years (2.3 years)
 
   
     
   
Discount rate
   
3.6%-5.0%
 
(4.1%)
 
   
     
   
Probability of achievement
   
33.0%-100.0%
 (81.8%)
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Unobservable inputs were weighted by the relative fair value of the instruments.
 
 
 
 
 
 
 
 
 
 
Fair Value Liabilities Measured On NonRecurring Basis Valuation Techniques
Quantitative information about the valuation technique and significant unobservable inputs used in the valuation of the Company’s Level 3 financial assets measured at fair value on a nonrecurring basis consisted of the following (dollars in thousands):
                                 
 
Fair Value at
December 31, 2019
 
 
Valuation Technique
 
 
Unobservable inputs
 
 
Range (Weighted
Average)
(1)
 
MSRs
  $
2,204
     
Discounted cash flow
     
Constant prepayment rates
     
0.0%-20.0%
 (10.0%)
 
   
     
     
Constant default rate
     
2.0%-2.0%
 
(2.0%)
 
   
     
     
Loss severity
     
40.0%-40.0%
 (40.0%)
 
   
     
     
Discount rate
     
9.5%-9.7%
 
(9.7%)
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Weighted average is based on the 10% constant prepayment rate scenario which the Company uses as the reported fair value.