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Fair Value Measurements

6 Months Ended

Jun. 30, 2023

The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value in the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022, based on the three-tier fair value hierarchy:


	June 30, 2023
	Fair Value		Level I		Level II		Level III
Assets:
Equity securities investments	$	434	$	434	$	—	$	—
Assets to fund deferred compensation liability	15,961		15,961		—		—
Convertible notes receivable	15,058		—		—		15,058
Total assets	$	31,453	$	16,395	$	—	$	15,058
Liabilities:
Deferred compensation liability	$	15,961	$	15,961	$	—	$	—
Total liabilities	$	15,961	$	15,961	$	—	$	—


	December 31, 2022
	Fair Value		Level I		Level II		Level III
Assets:
Equity securities investments	$	112	$	112	$	—	$	—
Assets to fund deferred compensation liability	13,602		13,602		—		—
Convertible notes receivable	10,352		—		—		10,352
Total assets	$	24,066	$	13,714	$	—	$	10,352
Liabilities:
Deferred compensation liability	$	13,602	$	13,602	$	—	$	—
Total liabilities	$	13,602	$	13,602	$	—	$	—

Fair Value of Equity Securities Investments

The fair values of the Company’s assets consisting of investment funds that invest in listed equity securities are based on the month-end quoted market prices for the net asset value of the various funds.

Fair Value of Assets to Fund Deferred Compensation Liability and Deferred Compensation Liability

The assets to fund deferred compensation liability are included in investments, at fair value in the condensed consolidated balance sheets, with fair market value based on the month-end quoted market prices for the net asset value of the various investment funds.

The deferred compensation liability is included in other long-term liabilities in the condensed consolidated balance sheets and its fair market value is based on the month-end market prices for the net asset value of the various investment funds in the Company’s rabbi trust that the participants have selected.

Fair Value of Convertible Notes Receivable

The fair value of the convertible notes receivables was estimated using a market yield method with significant inputs that are not observable in the market, including inputs related to the creditworthiness of the borrower, and thus represents a Level III fair value measurement. The Company’s management believes the fair value is appropriately discounted considering the uncertainties associated with these obligations, and is calculated in accordance with the terms of the underlying contractual agreement between the Company and the borrower.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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