XML 35 R25.htm IDEA: XBRL DOCUMENT

Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2022

Summary of Financial Assets and Liabilities that Measured at Fair Value

The carrying values of certain of our financial instruments, including accounts receivable and accounts payable, approximate their fair values due to their short maturities. The following tables summarize our financial assets and financial liabilities that were measured at fair value on a recurring basis, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands):

	September 30, 2022
	(Level 1)		(Level 2)		(Level 3)		Total

Assets:
Foreign currency forward contracts⁽¹⁾	$	—	$	828	$	—	$	828
Available-for-sale debt securities ⁽²⁾		—		—		1,000		1,000
Total assets	$	—	$	828	$	1,000	$	1,828

Liabilities:
Deferred cash consideration in connection with a business acquisition—SCUF⁽³⁾	$	—	$	—	$	954	$	954
Foreign currency forward contracts⁽¹⁾		—		15		—		15
Total liabilities	$	—	$	15	$	954	$	969

	December 31, 2021
	(Level 1)		(Level 2)		(Level 3)		Total

Assets:
Foreign currency forward contracts⁽¹⁾	$	—	$	33	$	—	$	33
Other		—		3		—		3
Total assets	$	—	$	36	$	—	$	36

Liabilities:
Deferred cash consideration in connection with a business acquisition—SCUF⁽³⁾	$	—	$	—	$	1,250	$	1,250
Foreign currency forward contracts⁽¹⁾		—		427		—		427
Other		—		—		224		224
Total liabilities	$	—	$	427	$	1,474	$	1,901

(1)	The fair values of the forward contracts were based on similar exchange traded derivatives and the related asset or liability is included within Level 2 of the fair value hierarchy.

(2)

In May 2022, we invested in a convertible promissory note issued by a private company (the “Note”) for $1.0 million. The Note is interest bearing and matures in April 2023. The Note is classified as an available-for-sale security and is included in prepaid expenses and other assets in our condensed consolidated balance sheets. We included the Note as Level 3 in the fair value hierarchy due to the absence of quoted market prices or other observable data. The fair value of the Note is estimated based on a qualitative analysis using the most recent observable transaction price and other significant unobservable inputs requiring management judgement.

(3)

In December 2019, one of our subsidiaries entered into an Agreement and Plan of Merger with Scuf Holdings, Inc. and its subsidiaries (collectively “SCUF”) and acquired 100% of their equity interests (the “SCUF Acquisition”). The fair value of the SCUF contingent consideration was determined based on the estimates of acquired tax benefits owed to SCUF’s sellers according to the merger agreement, and these estimates represent a level 3 fair value measurement. The $1.3 million liability as of December 31, 2021 consisted of $0.3 million based on a contractual amount and the remaining $1.0 million is subject to update upon filing our tax return for tax year 2021. In March 2022, we paid the $0.3 million contractual amount, and the contingency around the remaining $1.0 million liability is expected to be resolved in the fourth quarter of 2022 and this amount is expected to be paid by the end of 2022.