The Company's liabilities measured at fair value on a recurring basis consisted of the following (in thousands):


			Fair value measurement at reporting date
	Total as of June 30, 2023		Level 1		Level 2		Level 3
Contingent consideration	$	50,689	$	—	$	—	$	50,689
Total	$	50,689	$	—	$	—	$	50,689


			Fair value measurement at reporting date
	Total as of December 31, 2022		Level 1		Level 2		Level 3
Contingent consideration	$	55,871	$	—	$	—	$	55,871
Total	$	55,871	$	—	$	—	$	55,871

The roll-forward of the Level 3 contingent consideration from December 31, 2022 is as follows (in thousands):


	As of December 31, 2022		Fair Value Adjustment (1)			As of June 30, 2023
Contingent consideration	$	55,871	$	(5,182	)	$	50,689

(1)

Fair value adjustments on contingent considerations are reflected within the Other income, net line on the Consolidated Statements of Income.

The Company's contingent consideration obligations are from arrangements resulting from acquisitions that involve potential future payment of consideration that is contingent upon the achievement of certain financial metrics or lender market share. The contingent consideration is classified on the Consolidated Balance Sheets based on expected payment dates. As of June 30, 2023, $25.5 million and $25.2 million were included within Other accrued liabilities and Other noncurrent liabilities on the Consolidated Balance Sheets, respectively. As of December 31, 2022, $9.4 million and $46.5 million were included within Other accrued liabilities and Other noncurrent liabilities on the Consolidated Balance Sheets.

The Company reviews and reassesses the estimated fair value of contingent consideration liabilities at each reporting period and the updated fair value could differ materially from the initial estimates. The Company measures contingent consideration recognized in connection with acquisitions at fair value on a recurring basis using significant unobservable inputs classified as Level 3 inputs. The fair value is measured based on a Monte Carlo simulation or a scenario-based method, depending on the earnout objective. The fair value measurement includes the following significant inputs: volatility and projected financial information. Significant increases or decreases to any of these inputs in isolation could result in a significantly higher or lower liability. Ultimately, the liability will be equivalent to the amount paid, and the difference between the fair value estimate on the acquisition date and each reporting period and the amount paid will be recognized in earnings.

As of June 30, 2023, other than projected financial information, volatility was the only significant input and assumption in the contingent consideration valuations. The volatility input ranged from 25% to 50%.

The Company expects to make payments on the contingent consideration in 2023, 2024 and 2025. For more information relating to contingent consideration, see Note 3 (Business Combinations).