Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Measurement Inputs and Valuation Techniques

The following table presents the fair values, valuation techniques, unobservable inputs, and ranges of the Company’s financial liabilities categorized within Level 3. The weighted averages below are a product of the unobservable input and fair value of the contingent consideration arrangement as of September 30, 2021.


	Valuation Technique	Unobservable Input	Range	Weighted Average
Contingent Consideration	Option-Based Model	Risk free rate	1.9% - 2.2%	2.0	%
		Debt spread	0.0% - 74.7%	13.6	%
		Probabilities	100.0%	100.0	%
		Present value factor	2.2% - 26.9%	15.4	%
		Discount rate	27.3% - 38.0%	32.3	%

Fair Values of Financial Instruments Measured On Recurring Basis

The following tables present the fair values of the Company’s financial assets or liabilities that are measured at fair value on a recurring basis (in thousands):


September 30, 2021	Level 1		Level 2		Level 3		Fair Value		Carrying Value
Assets:
Cash equivalents:
Money market and other funds	$	10,391	$	—	$	—	$	10,391	$	10,391









Corporate debt securities	—		—		—		—		—
Total assets measured at fair value	$	10,391	$	—	$	—	$	10,391	$	10,391

Liabilities:
Contingent consideration	$	—	$	—	$	9,296	$	9,296	$	9,296
Debt	1,975,779		—		—		1,975,779		1,678,753
Total liabilities measured at fair value	$	1,975,779	$	—	$	9,296	$	1,985,075	$	1,688,049

December 31, 2020	Level 1		Level 2		Level 3		Fair Value		Carrying Value
Assets:
Cash equivalents:
Money market and other funds	$	10,413	$	—	$	—	$	10,413	$	10,413








Corporate debt securities	—		663		—		663		663
Total assets measured at fair value	$	10,413	$	663	$	—	$	11,076	$	11,076

Liabilities:
Contingent consideration	$	—	$	—	$	9,094	$	9,094	$	9,094
Debt	1,960,527		—		—		1,960,527		1,579,021
Total liabilities measured at fair value	$	1,960,527	$	—	$	9,094	$	1,969,621	$	1,588,115

Reconciliation of Level 3 Financial Liabilities Measured on Recurring Basis

The following table presents a reconciliation of the Company’s Level 3 financial liabilities related to contingent consideration that are measured at fair value on a recurring basis (in thousands):


	Level 3		Affected line item in the Statement of Operations
Balance as of January 1, 2021	$	9,094
Contingent consideration	6,600
Total fair value adjustments reported in earnings	(567)		General and administrative
Contingent consideration payments	(5,831)		Not applicable
Balance as of September 30, 2021	$	9,296