Fair Value Measurements

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The Company utilizes fair value measurement guidance prescribed by accounting standards to value its financial instruments. The guidance establishes a fair value hierarchy based on the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows:

Level One: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level Two: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level Three: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The carrying values of financial instruments, including Trade receivables and Accounts payable, approximate their fair values due to their short-term maturities. The estimated fair values may not represent actual values of the financial instruments that could be realized as of the balance sheet date or that will be realized in the future.

A summary of the Company’s assets and liabilities that are measured at fair value for each fair value hierarchy level for the periods presented is in the table below (see Note 14, “Benefit Plans” for classification of the assets of the Company’s benefit plans within the fair value hierarchy).

	December 31, 2024								December 31, 2023
	Level One		Level Two		Level Three		Total		Level One		Level Two		Level Three		Total
	(In thousands)								(In thousands)
Assets:
Cash equivalents	$	8,990	$	—	$	—	$	8,990	$	6,027	$	—	$	—	$	6,027
Foreign currency contracts	—		657		—		657		—		2,261		—		2,261
Interest rate swap agreement	—		842		—		842		—		9,522		—		9,522
Deferred compensation plans	—		5,242		—		5,242		—		3,488		—		3,488
	$	8,990	$	6,741	$	—	$	15,731	$	6,027	$	15,271	$	—	$	21,298
Liabilities:
Foreign currency contracts	$	—	$	781	$	—	$	781	$	—	$	1,769	$	—	$	1,769
Cross-currency swap agreements	—		1,830		—		1,830		—		22,232		—		22,232
Deferred compensation plans	—		5,242		—		5,242		—		3,488		—		3,488
	$	—	$	7,853	$	—	$	7,853	$	—	$	27,489	$	—	$	27,489

The Company’s cash equivalents consist of investments in foreign interest-bearing deposit accounts and foreign money market mutual funds that are valued based on quoted market prices. The fair value of these investments approximate cost due to their short-term maturities and the high credit quality of the issuers of the underlying securities.

The Company measures the fair value of foreign currency contracts, cross-currency swap agreements and interest rate swap agreement(s) using Level Two inputs based on observable spot and forward rates in active markets. Additionally, the fair value of derivatives designated in hedging relationships includes a credit valuation adjustment to appropriately incorporate nonperformance risk for the Company and the respective counterparty. For the year ended December 31, 2024, the impact of the credit valuation adjustment on the Company’s derivatives is immaterial. Refer to Note 16, “Derivatives” for additional information.

There were no transfers in or out of Level One, Two or Three during the years ended December 31, 2024 and 2023.

Concentration of Credit Risk

Financial instruments potentially subject the Company to concentrations of credit risk consist primarily of trade accounts receivable. Concentrations of credit risk are considered to exist when there are amounts collectible from multiple counterparties with similar characteristics, which could cause their ability to meet contractual obligations to be similarly impacted by economic or other conditions. The Company performs credit evaluations of its customers prior to delivery or commencement of services and normally does not require collateral. Letters of credit are occasionally required when the Company deems necessary. There are no customers that represent more than 10% of the Company’s Trade receivables, net as of December 31, 2024 and 2023.