Fair Value of Financial Instruments

3 Months Ended

Jun. 30, 2020

Fair Value of Financial Instruments

Fair Value of Financial Instruments

(6) Fair Value of Financial Instruments

The Company carries certain assets and liabilities at fair value on a recurring basis on its consolidated balance sheets. The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at June 30, 2020

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Time deposits—current	$	—	$	3,307		—	$	3,307
Equity securities—current		—		728		—		728
Equity securities—non-current		—		7		—		7
Derivative financial instruments:
Foreign currency derivative contracts—current		—		560		—		560
Foreign currency derivative contracts—non-current		—		379		—		379
Interest rate swap contracts		—		—		—		—
Total assets	$	—	$	4,981	$	—	$	4,981
Liabilities:
Foreign currency derivative contracts—current		—		2,017		—		2,017
Foreign currency derivative contracts—non-current		—		—		—		—
Interest rate swap contracts—non-current		—		11,153		—		11,153
Contingent consideration		—		—		19,495		19,495
Total liabilities	$	—	$	13,170	$	19,495	$	32,665

The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 2020:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Time deposits—current	$	—	$	3,927		—	$	3,927
Equity securities—current		—		5,858		—		5,858
Equity securities—non-current		—		4		—		4
Derivative financial instruments:
Foreign currency derivative contracts—current		—		103		—		103
Foreign currency derivative contracts—non-current		—		56		—		56
Interest rate swap contracts		—		—		—		—
Total assets	$	—	$	9,948	$	—	$	9,948
Liabilities:
Foreign currency derivative contracts—current	$	—		3,689	$	—		3,689
Foreign currency derivative contracts—non-current		—		364	$	—		364
Interest rate swap contracts—non-current		—		11,128		—		11,128
Contingent consideration		—		—		25,012		25,012
Total liabilities	$	—	$	15,181	$	25,012	$	40,193

The Company estimates the fair value of our contingent consideration associated with our business combinations utilizing one or more significant inputs that are unobservable. The Company calculates the fair value of the contingent consideration based on the probability-weighted expected performance of the acquired business against the target performance metric, discounted to present value when appropriate.

The following table shows a reconciliation of the beginning and ending balances of Level 3 contingent consideration liabilities associated with our business combinations:

	June 30, 2020
Beginning balance	$	25,012
Purchase price adjustment		(3,915)
Contingent consideration recognized in earnings		(1,578)
Foreign currency translation adjustments		(24)
Ending balance	$	19,495