Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Measurements

Schedule of assets and liabilities measured at fair value on a recurring basis

The following table summarizes the carrying amount and estimated fair value of the Company’s financial instruments at December 31, 2022 and 2021 (in thousands):

		As of December 31, 2022
		Carrying		Fair		Fair Value Measurements
		Amount		Value		Level 1		Level 2		Level 3
Assets
Cash equivalents	$	212,577	$	212,577	$	212,577	$	—	$	—
Corporate bonds		193,633		193,633		—		193,633		—
U.S. Treasuries		1,139,310		1,139,310		1,139,310		—		—
Equity securities		134,836		134,836		134,836		—		—
Liabilities
Contingent consideration		116,165		116,165		—		—		116,165

		As of December 31, 2021
		Carrying		Fair		Fair Value Measurements
		Amount		Value		Level 1		Level 2		Level 3
Assets
Cash equivalents	$	115,241	$	115,241	$	115,241	$	—	$	—
Corporate bonds		226,382		226,382		—		226,382		—
U.S. Treasuries		1,013,883		1,013,883		1,013,883		—		—
Equity securities		147,995		147,995		147,995		—		—
Swaps and forward contracts		70		70		70		—		—
Liabilities
Contingent consideration		62,297		62,297		—		—		62,297
Swaps and forward contracts		981		981		981		—		—

Schedule of assets and liabilities measured at fair value on a recurring basis that have unobservable inputs

Financial Instrument	Fair Value		Valuation Technique	Unobservable Input	Range (weighted average)
Contingent Consideration	$	85,269	Scenario based method	Credit spread	15.73% - 15.74%
				Discount rate	19.85% - 20.68%
		11,310	Monte carlo simulation	Credit spread	15.74%
				Discount rate	20.00%-20.30%
				Revenue volatility	45.29%
		19,586	Monte carlo simulation	Credit spread	15.73%
				Revenue volatility	35.7% - 23.1% (35.0%)
				Gross profit volatility	106.7% - 23.2% (60.0%)
		116,165

In the audited consolidated balance sheets, contingent consideration is recorded in the contingent consideration, loss accrual for service contracts, and other liabilities financial statement line item, and is comprised of the following unobservable inputs for the year ending December 31, 2021:

Financial Instrument	Fair Value		Valuation Technique	Unobservable Input	Range (weighted average)
Contingent Consideration	$	49,927	Scenario based method	Credit spread	12.31% - 12.57%
				Discount rate	12.45% - 13.13%
		12,370	Monte carlo simulation	Credit spread	12.40%
				Discount rate	12.46%-13.18%
				Revenue volatility	48.60%
		62,297

Schedule of activity in the level 3 liabilities

The change in the carrying amount of Level 3 liabilities for the year ended December 31, 2022 was as follows (in thousands):

	Year ended
	December 31, 2022
Beginning Balance at December 31, 2021		62,297
Payments		(2,667)
Additions due to acquisitions		41,732
Fair value adjustments		16,468
Foreign currency translation adjustment		(1,665)
Ending balance at December 31, 2022		116,165