Fair Value Measurements (Tables)

3 Months Ended

Apr. 01, 2022

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 1, 2022 (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	$	4,325	$	4,325	$	—	$	—
Prepaid expenses and other current assets:
Foreign currency forward contracts		118		—		118		—
	$	4,443	$	4,325	$	118	$	—
Liabilities
Accrued expenses and other current liabilities:
Contingent considerations - Current	$	45,471	$	—	$	—	$	45,471
Foreign currency forward contracts		41		—		41		—
Other liabilities:
Contingent considerations - Long-term		1,259		—		—		1,259
	$	46,771	$	—	$	41	$	46,730

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, 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	$	1,711	$	1,711	$	—	$	—
Prepaid expenses and other current assets:
Foreign currency forward contracts		137		—		137		—
	$	1,848	$	1,711	$	137	$	—
Liabilities
Accrued expenses and other current liabilities:
Contingent considerations - Current	$	47,522	$	—	$	—	$	47,522
Foreign currency forward contracts		160		—		160		—
Other liabilities:
Contingent considerations - Long-term		3,402		—		—		3,402
	$	51,084	$	—	$	160	$	50,924

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 1, 2022 were as follows (in thousands):

	Contingent Considerations
Balance at December 31, 2021	$	50,924
Payments		(1,845	)
Fair value adjustments		(2,214	)
Effect of foreign exchange rates		(135	)
Balance at April 1, 2022	$	46,730

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 1, 2022 Fair Value (in thousands)	Valuation Technique	Unobservable Inputs	Percentage Applied
Contingent consideration (ATI)	$44,000	Monte Carlo method	Adjusted EBITDA for fiscal year 2021	N/A
			EBITDA risk premium	7.2%
			EBITDA volatility	27.0%
			Credit spread	2.1%
Contingent consideration (ARGES)	$1,519	Monte Carlo method	Historical and projected revenues from August 2019 through December 2026	N/A
			Revenue volatility	14.0%
			Cost of debt	3.9%
			Discount rate	2.6%
Contingent consideration (Ingenia)	$1,211	Monte Carlo method	Historical revenues from April 2019 through March 2022	N/A