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