Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Measurement Inputs and Valuation Techniques

The following table presents the fair values, valuation techniques, unobservable inputs, and ranges of the Company’s financial liabilities categorized within Level 3.


	Valuation Technique	Unobservable Input	Range	Weighted Average
Contingent Consideration	Option-Based Model	Risk free rate	1.9% - 2.9%	1.9	%
		Debt spread	0.0% - 33.5%	12.6	%
		Probabilities	5.0% - 100.0%	77.8	%
		Present value factor	3.6% - 4.8%	3.8	%
		Discount rate	28.6%	28.6	%

Fair Values of Financial Instruments Measured On Recurring Basis

The following tables present the fair values of the Company’s financial assets or liabilities that are measured at fair value on a recurring basis (in thousands):


September 30, 2020	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents:
Money market and other funds	$	317,107	$	—	$	—	$	317,107









Corporate debt securities	—		653		—		653
Total assets measured at fair value	$	317,107	$	653	$	—	$	317,760

Liabilities:
Contingent consideration	$	—	$	—	$	8,352	$	8,352
Total liabilities measured at fair value	$	—	$	—	$	8,352	$	8,352

December 31, 2019	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents:
Money market and other funds	$	395,664	$	—	$	—	$	395,664








Corporate debt securities	—		623		22,047		22,670
Total assets measured at fair value	$	395,664	$	623	$	22,047	$	418,334

Liabilities:
Contingent consideration	$	—	$	—	$	37,887	$	37,887
Total liabilities measured at fair value	$	—	$	—	$	37,887	$	37,887

Reconciliation of Level 3 Financial Liabilities Measured on Recurring Basis

The following table presents a reconciliation of the Company’s Level 3 financial liabilities related to contingent consideration that are measured at fair value on a recurring basis (in thousands):


	Level 3		Affected line item in the Statement of Operations
Balance as of January 1, 2020	$	37,887
Contingent consideration	8,106
Total fair value adjustments reported in earnings	(243)		General and administrative
Contingent consideration payments	(37,398)		Not applicable
Balance as of September 30, 2020	$	8,352