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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Summary of Changes in Fair Value of the Company's Level 3 Liabilities , That Are Measured Using Significant Unobservable Inputs (Level 3)

The following table presents the changes in the estimated fair values of the Company’s liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for fiscal year 2023:

(in thousands)
December 31, 2021	$	—
New contingent consideration		14,200
Change in fair value of contingent consideration		(4,400	)
Balance at December 31, 2022		9,800
Change in fair value of contingent consideration		(9,200	)
Balance at December 31, 2023	$	600

Fair Value, Liabilities Measured on Recurring Basis

The following tables provide quantitative information associated with the fair value measurement of the Company’s liabilities for contingent consideration:

	December 31, 2023
Contingency Type	Maximum Payout ⁽¹⁾ (undiscounted) (in thousands)		Fair Value		Valuation Technique	Unobservable Inputs	Weighted Average or Range
Revenue based payments	$	5,600	$	600	Monte Carlo	Revenue volatility		25.0	%
						Discount rate		11.5	%
						Projected year of payments		2024

⁽¹⁾ Maximum payout as determined by Monte Carlo valuation simulation; the disclosed contingency is not subject to a contractual maximum payout.

	December 31, 2022
Contingency Type	Maximum Payout ⁽¹⁾ (undiscounted) (in thousands)		Fair Value		Valuation Technique	Unobservable Inputs	Weighted Average or Range
Revenue and EBITDA based payments	$	33,900	$	9,800	Monte Carlo	Revenue volatility		25.0	%
						Gross profit volatility		40.0	%
						Discount rate		13.5	%
						Projected year of payments		2024

⁽¹⁾ Maximum payout as determined by Monte Carlo valuation simulation; the disclosed contingency is not subject to a contractual maximum payout.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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