Fair Value Measurements

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value is a market-based measurement that reflects assumptions that market participants would use in pricing an asset or

liability. GAAP discusses valuation techniques, such as the market approach (comparable market prices), the income approach

(present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or

replacement cost). These valuation techniques are based upon observable and unobservable inputs. Observable inputs reflect

market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions.

As the basis for evaluating such inputs, a three-tier value hierarchy prioritizes the inputs used in measuring fair value as

follows:

•Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets.

•Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability,

including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or

liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose

significant value drivers are observable.

•Level 3: Unobservable inputs for which there is little or no market data, which require the reporting entity to develop

its own assumptions. The fair value hierarchy also requires an entity to maximize the use of observable inputs and

minimize the use of unobservable inputs when measuring fair value.

The following table presents the Company’s financial assets and liabilities which are measured at fair values on a recurring

basis as of December 31, 2024 and 2023, (in thousands): 

	Fair Value	Level 1	Level 2	Level 3
December 31, 2024
Assets:
Overnight deposits	$140,359	$—	$140,359	$—
Money market	320,289	—	320,289	—
Certificates of deposit	273,082	—	273,082	—
Treasury bills	550,514	—	550,514	—
Interest rate swaps	19,765	—	19,765	—
Cross-currency interest rate swap	30,530	—	30,530	—
Foreign exchange contracts	833,695	—	833,695	—
Total assets	$2,168,234	$—	$2,168,234	$—
Cash collateral for foreign exchange contracts	$34,994
Liabilities:
Interest rate swaps	$9,861	$—	$9,861	$—
Cross-currency interest rate swap	5,220	—	5,220	—
Foreign exchange contracts	724,296	—	724,296	—
Total liabilities	$739,377	$—	$739,377	$—
Cash collateral obligation for foreign exchange contracts	$718,143
December 31, 2023
Assets:
Overnight deposits	$256,466	$—	$256,466	$—
Money market	376,465	—	376,465	—
Certificates of deposit	266,316	—	266,316	—
Treasury bills	236,505	—	236,505	—
Interest rate swaps	23,485	—	23,485	—
Foreign exchange contracts	320,216	—	320,216	—
Total assets	$1,479,453	$—	$1,479,453	$—
Cash collateral for foreign exchange contracts	$39,219
Liabilities:
Interest rate swaps	$55,796	—	$55,796	—
Cross-currency interest rate swap	14,522	—	14,522	—
Foreign exchange contracts	244,745	—	244,745	—
Total liabilities	$315,063	$—	$315,063	$—
Cash collateral obligation for foreign exchange contracts	$180,168

The Company has highly-liquid investments classified as cash equivalents, with original maturities of three months or less,

included in our Consolidated Balance Sheets. The Company utilizes Level 2 fair value determinations derived from directly or

indirectly observable (market based) information to determine the fair value of these highly liquid investments. The Company

has certain cash and cash equivalents that are invested in highly liquid investments, such as, overnight deposits, money markets,

certificates of deposit and Treasury bills, with purchased maturities ranging from overnight to three months or less. The value

of overnight deposits is determined based upon the quoted market prices for the treasury securities associated with the deposit.

The value of money market instruments is determined based upon the financial institutions' month-end statement, as these

instruments are not tradable and must be settled directly by us with the respective financial institution. Certificates of deposit

and certain U.S. Treasury bills are valued at cost, plus interest accrued. Given the short-term nature of these instruments, the

carrying value approximates fair value. Foreign exchange derivative contracts are carried at fair value, with changes in fair

value recognized in the Consolidated Statements of Income. The fair value of the Company's derivatives is derived with

reference to a valuation from a derivatives dealer operating in an active market, which approximates the fair value of these

instruments. Interest rate swap derivative contracts are carried at fair value, with changes in fair value recognized in

accumulated other comprehensive loss to the extent designated as highly effective cash flow hedges for accounting purposes.

The fair value represents the net settlement if the contracts were terminated as of the reporting date. Cash collateral received for

foreign exchange derivatives is recorded within customer deposits in our Consolidated Balance Sheets. Cash collateral

deposited for foreign exchange derivatives is recorded within restricted cash in our Consolidated Balance Sheets.

The level within the fair value hierarchy and the measurement technique are reviewed quarterly. Transfers between levels are

deemed to have occurred at the end of the quarter. There were no transfers between fair value levels during the periods

presented for 2024 and 2023.

The Company’s assets that are measured at fair value on a nonrecurring basis and are evaluated with periodic testing for

impairment include property and equipment, investments, goodwill and other intangible assets. Estimates of the fair value of

assets acquired and liabilities assumed in business combinations are generally developed using key inputs such as

management’s projections of cash flows on a held-and-used basis (if applicable), discounted as appropriate, management’s

projections of cash flows upon disposition and discount rates. Accordingly, these fair value measurements are in Level 3 of the

fair value hierarchy.

The Company's derivatives are over-the-counter instruments with liquid markets. The Company determines the fair values of its

derivatives based on quoted market prices for similar assets or liabilities or pricing models using current market

rates. Accordingly, these fair value measurements are in Level 2 of the fair value hierarchy. The amounts exchanged are

calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates, foreign currency

exchange rates, commodity rates or other financial indices. See Note 16 for further information.

The Company regularly evaluates the carrying value of its investments. The carrying value of investments without readily

determinable fair values was $60.1 million and $69.5 million at December 31, 2024 and 2023, respectively.

The fair value of the Company’s cash, accounts receivable, securitized accounts receivable and related facility, prepaid

expenses and other current assets, accounts payable, accrued expenses, customer deposits and short-term borrowings

approximate their respective carrying values due to the short-term maturities of the instruments. The carrying value of the

Company’s debt obligations approximates fair value as the interest rates on the debt are variable market-based interest rates that

reset on a monthly basis. These are each Level 2 fair value measurements, except for cash, which is a Level 1 fair value

measurement.