Fair Value Measurements (Tables)

9 Months Ended

Oct. 01, 2021

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 October 1, 2021 (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	$	3,089	$	3,089	$	—	$	—
Prepaid expenses and other current assets:
Foreign currency forward contracts		202		—		202		—
	$	3,291	$	3,089	$	202	$	—
Liabilities
Accrued expenses and other current liabilities:
Contingent considerations - Current	$	55,469	$	—	$	—	$	55,469
Foreign currency forward contracts		10		—		10		—
Other liabilities:
Contingent considerations - Long-term		3,605		—		—		3,605
	$	59,084	$	—	$	10	$	59,074

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, 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	$	11,047	$	11,047	$	—	$	—
Prepaid expenses and other current assets:
Foreign currency forward contracts		27		—		27		—
	$	11,074	$	11,047	$	27	$	—
Liabilities
Accrued expenses and other current liabilities:
Contingent considerations - Current	$	4,280	$	—	$	—	$	4,280
Foreign currency forward contracts		—		—		—		—
Other liabilities:
Contingent considerations - Long-term		7,276		—		—		7,276
	$	11,556	$	—	$	—	$	11,556

Changes in Fair Value of Level 3 Contingent Considerations

Changes in the fair value of Level 3 contingent considerations during the nine months ended October 1, 2021 were as follows (in thousands):

	Contingent Considerations
Balance at December 31, 2020	$	11,556
Acquisition of ATI		51,900
Payments		(4,036	)
Fair value adjustments		26
Effect of foreign exchange rates		(372	)
Balance at October 1, 2021	$	59,074

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	October 1, 2021 Fair Value (in thousands)	Valuation Technique	Unobservable Inputs	Percentage Applied
Contingent consideration (ATI)	$51,900	Monte Carlo method	Historical and projected adjusted	N/A
			EBITDA for fiscal year 2021
			EBITDA risk premium	7.2%
			EBITDA volatility	27.0%
			Credit spread	2.1%
Contingent consideration (ARGES)	$4,282	Monte Carlo method	Historical and projected revenues from August 2019 through December 2026	N/A
			Revenue volatility	21.0%
			Cost of debt	2.6%
			Discount rate	3.7%
Contingent consideration (Ingenia)	$1,493	Monte Carlo method	Historical and projected revenues from April 2019 through March 2022	N/A
			Revenue volatility	38.5%
			Cost of debt	3.1%
			Discount rate	9.6%
Contingent consideration (Other)	$1,399	Discounted cash flow method	Historical and projected revenues for fiscal years 2018 to 2021	N/A
			Revenue discount rate	22.8%