Fair Value Measurements (Tables)

3 Months Ended

Apr. 03, 2020

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 April 3, 2020 (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	$	9,338	$	9,338	$	—	$	—
Prepaid expenses and other current assets:
Foreign currency forward contracts		59		—		59		—
	$	9,397	$	9,338	$	59	$	—
Liabilities
Accrued expenses and other current liabilities:
Contingent considerations - Current	$	5,221	$	—	$	—	$	5,221
Foreign currency forward contracts		366		—		366		—
Other liabilities:
Contingent considerations - Long-term		12,001		—		—		12,001
	$	17,588	$	—	$	366	$	17,222

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, 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	$	9,262	$	9,262	$	—	$	—
Prepaid expenses and other current assets:
Foreign currency forward contracts		50		—		50		—
	$	9,312	$	9,262	$	50	$	—
Liabilities
Accrued expenses and other current liabilities:
Contingent considerations - Current	$	3,813	$	—	$	—	$	3,813
Foreign currency forward contracts		99		—		99		—
Other liabilities:
Contingent considerations - Long-term		16,504		—		—		16,504
	$	20,416	$	—	$	99	$	20,317

Changes in Fair Value of Level 3 Contingent Considerations

Changes in the fair value of Level 3 contingent considerations during the three months ended April 3, 2020 were as follows (in thousands):

	Contingent Considerations
Balance at December 31, 2019	$	20,317
Payments		(2,632	)
Fair value adjustments		—
Effect of foreign exchange rates		(463	)
Balance at April 3, 2020	$	17,222

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	April 3, 2020 Fair Value (in thousands)	Valuation Technique	Unobservable Inputs	Percentage Applied
Contingent consideration (ARGES)	$7,647	Monte Carlo method	Historical and projected revenues from August 2019 through December 2026	N/A
			Revenue volatility	36.0%
			Cost of debt	1.4%
			Discount rate	7.3%
Contingent consideration (Ingenia)	$6,441	Monte Carlo method	Historical and projected revenues from April 2019 through March 2022	N/A
			Revenue volatility	36.0%
			Cost of debt	0.9%
			Discount rate	15.3%
Contingent consideration (Other)	$3,134	Discounted cash flow method	Historical and projected revenues for fiscal years 2018 to 2021	N/A
			Revenue discount rate	22.8%