Fair Value Measurements (Tables)

9 Months Ended

Sep. 27, 2019

Fair Value Disclosures [Abstract]

Fair Values of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of September 27, 2019 (in thousands):

			Quoted Prices in				Significant Other
			Active Markets for		Significant Other		Unobservable
			Identical Assets		Observable Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets
Cash equivalents	$	3,439	$	3,439	$	—	$	—
Prepaid expenses and other current assets:
Foreign currency forward contracts		354		—		354		—
	$	3,793	$	3,439	$	354	$	—
Liabilities
Accrued expenses and other current liabilities:
Contingent considerations - Current	$	3,769	$	—	$	—	$	3,769
Foreign currency forward contracts		21		—		21		—
Other liabilities:
Contingent considerations - Long-term		14,998		—		—		14,998
	$	18,788	$	—	$	21	$	18,767

The following table summarizes the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 (in thousands):

			Quoted Prices in				Significant Other
			Active Markets for		Significant Other		Unobservable
			Identical Assets		Observable Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets
Cash equivalents	$	4,288	$	4,288	$	—	$	—
Prepaid expenses and other current assets:
Foreign currency forward contracts		15		—		15		—
	$	4,303	$	4,288	$	15	$	—
Liabilities
Accrued expenses and other current liabilities:
Foreign currency forward contracts	$	182	$	—	$	182	$	—
Other liabilities:
Contingent considerations - Long-term		3,376		—		—		3,376
	$	3,558	$	—	$	182	$	3,376

Changes in Fair Value of Level 3 Contingent Considerations

Changes in the fair value of Level 3 contingent considerations during the nine months ended September 27, 2019 were as follows (in thousands):

	Contingent Considerations
Balance at December 31, 2018	$	3,376
Acquisition of ARGES		7,870
Acquisition of Ingenia		6,569
Fair value adjustments		1,285
Effect of foreign exchange rates		(333	)
Balance at September 27, 2019	$	18,767

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The following table provides qualitative information associated with the fair value measurement of the Company’s Level 3 liabilities:

Liability	September 27, 2019 Fair Value (in thousands)	Valuation Technique	Unobservable Inputs	Percentage Applied
Contingent consideration (ARGES)	$7,743	Monte Carlo method	Historical and projected revenues from July 2019 through December 2026	N/A
			Revenue volatility	32.7%
			Cost of debt	1.5%
			Revenue discount rate	7.4%
Contingent consideration (Ingenia)	$6,363	Monte Carlo method	Historical and projected revenues from April 2019 through March 2022	N/A
			Revenue volatility	31.3%
			Cost of debt	1.0%
			Revenue discount rate	14.3%
Contingent consideration (Other)	$4,661	Discounted cash flow method	Historical and projected revenues for fiscal years 2018 to 2021	N/A
			Revenue discount rate	22.8%