Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v3.22.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2021
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, 2021
    
December 31, 2020
  
   
Fair Value
    
Level 1
    
Level 2
    
Level 3
    
Fair Value
    
Level 1
    
Level 2
    
Level 3
  
Assets:
                                                                
Assets held in rabbi trust
   $ 11,508     $ —       $ 11,508     $ —       $ 10,295     $ —       $ 10,295     $ —    
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Cash equivalents
(1)
:
                                                                
Commercial paper
   $ 8,948     $ —       $ 8,948     $ —       $ 9,399     $ —       $ 9,399     $ —    
Money market funds
     210,985       210,985       —         —         158,271       158,271       —         —    
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
    $ 219,933     $ 210,985     $ 8,948     $ —       $ 167,670     $ 158,271     $ 9,399     $ —    
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Marketable debt securities,
available-for-sale:
                                                                
Short-term investments:
                                                                
U.S. treasuries
   $ 35,733     $ 35,733     $ —       $ —       $ 75,970     $ 75,970     $ —       $ —    
U.S. government sponsored entities
     —         —         —         —         32,447       —         32,447       —    
Corporate debt
     148,135       —         148,135       —         49,841       —         49,841       —    
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
    $ 183,868     $ 35,733     $ 148,135     $ —       $ 158,258     $ 75,970     $ 82,288     $ —    
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Long-term investments:
                                                                
U.S. treasuries
   $ 70,767     $ 70,767     $ —       $ —       $ 3,641     $ 3,641     $ —       $ —    
U.S. government sponsored entities
     745       —         745       —         1,152       —         1,152       —    
Corporate debt
     34,013       —         34,013       —         36,287       —         36,287       —    
ABS and other
     7,085       —         7,085       —         6,693       —         6,693       —    
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
    $ 112,610     $ 70,767     $ 41,843     $ —       $ 47,773     $ 3,641     $ 44,132     $ —    
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Liabilities:
                                                                
Contingent consideration
   $ 9,312     $ —       $ —       $ 9,312     $ 5,572     $ —       $ —       $ 5,572  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Deferred consideration
   $ 9,801     $ —       $ 9,801     $ —       $ 15,248     $ —       $ 15,248     $ —    
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Deferred compensation liability
   $ 8,001     $ 8,001     $ —       $ —       $ 8,287     $ 8,287     $ —       $ —    
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(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
A reconciliation of contingent consideration measured at fair value on a recurring basis consisted of the following (in thousands):
 
    
December 31,
  
    
2021
     
2020
  
Beginning balance
    $ 5,572      $ 3,387  
Contingent consideration in connection with acquisitions
(1)
      (100 )       2,918  
Change in fair value of contingent consideration
      4,659        101  
Payments of contingent consideration
      (819 )       (834 ) 
    
 
 
     
 
 
  
Ending balance
    $ 9,312      $ 5,572  
    
 
 
     
 
 
  
 
(1)
Contingent consideration in connection with acquisitions represents a noncash investing activity.
The amount recorded during the year
 ended December 31, 2021 relates to a measurement period adjustment. See Note 6 – “Acquisitions, Goodwill and Other Intangible Assets” for additional information.
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, 2021
 
 
Valuation Technique
 
 
Unobservable inputs
 
 
Range (Weighted Average)
(1)
 
Contingent consideration
   $ 9,312       Discounted cash flow       Expected life of cash flows      
1.4-5.8 years
       (3.4 years
)
 
                      Discount rate      
2.2%-3.5%
       (2.9%
)
 
                      Probability of achievement      
29.0%-100.0%
       (95.2%
)
 
         
   
Fair Value at

December 31, 2020
    
Valuation Technique
    
Unobservable inputs
    
Range (Weighted Average)
(1)
  
Contingent consideration
   $ 5,572       Discounted cash flow       Expected life of cash flows      
2.4-6.8
years 		      (4.4 years
)
                      Discount rate      
2.6%-4.3%
       (3.4%
)
 
                      Probability of achievement      
50.0%-100.0%
       (86.1%
)
 
 
(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, 2021
 
 
Valuation Technique
 
 
Unobservable inputs
 
 
Range (Weighted Average)
 (1)
 
MSRs
   $ 2,332       Discounted cash flow       Constant prepayment rates      
0.0%-20.0%
  
  
   (10.0
%
)
                      Constant default rate      
0.3%-4.9%
  
  
   (1.2
%
)
                      Loss severity      
26.2%-31.4%
  
  
   (28.0
%
)
                      Discount rate      
10.0%-10.0%
  
  
   (10.0
%
)
 
 
Fair Value at

December 31, 2020
 
 
Valuation Technique
 
 
Unobservable inputs
 
 
Range (Weighted Average)
 (1)
 
MSRs
   $ 2,135       Discounted cash flow       Constant prepayment rates      
0.0%-20.0%
    
 
   (10.0
%
)
                      Constant default rate      
0.3%-4.1%
    
 
   (1.1
%
)
                      Loss severity      
26.2%-31.4%
    
 
   (28.0
%
)
                      Discount rate      
10.0%-10.0%
    
 
   (10.0
%
)
 
(1)
Weighted average is based on the 10% constant prepayment rate scenario which the Company uses as the reported fair value.