Fair Value Measurements

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. Fair Value Measurements

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Our financial assets and liabilities measured at fair value on a recurring basis were categorized as follows:

	March 31, 2022
	Level 1		Level 2			Level 3			Total
	(Dollars in millions)
Assets
Available for sale customer funds assets	$	—	$	2,062.0	(a)	$	—		$	2,062.0
Total assets measured at fair value	$	—	$	2,062.0		$	—		$	2,062.0
Liabilities
DataFuzion contingent consideration	$	—	$	—		$	6.8	(b)	$	6.8
Total liabilities measured at fair value	$	—	$	—		$	6.8		$	6.8

	December 31, 2021
	Level 1		Level 2			Level 3			Total
	(Dollars in millions)
Assets
Available for sale customer funds assets	$	—	$	1,952.4	(a)	$	—		$	1,952.4
Total assets measured at fair value	$	—	$	1,952.4		$	—		$	1,952.4
Liabilities
DataFuzion contingent consideration	$	—	$	—		$	6.0	(b)	$	6.0
Total liabilities measured at fair value	$	—	$	—		$	6.0		$	6.0

(a)Fair value is based on inputs that are observable for the asset or liability, other than quoted prices.

(b)For the contingent consideration related to the 2021 acquisition of certain assets and liabilities of DataFuzion HCM, Inc. ("DataFuzion"), we utilize an option pricing model, specifically a Black-Scholes-Merton model, to estimate the fair value of the contingent liability as of the reporting dates. This model uses certain assumptions related to risk-free rates and volatility as well as certain judgments in forecasting annual recurring revenue. The contingent consideration has been measured as Level 3 given the unobservable inputs that are significant to the measurement of liability. The contingent consideration is included within other liabilities in our condensed consolidated balance sheets.

During the three months ended March 31, 2022, we recognized expense of $0.8 million within selling, general, and administrative expense in our condensed consolidated statements of operations due to the remeasurement of the DataFuzion contingent consideration.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

During the three months ended March 31, 2022, we did not re-measure any financial assets or liabilities at fair value on a nonrecurring basis. During the year ended December 31, 2021, assets and liabilities acquired as part of business combinations and recognized as part of our convertible debt issuance have been recorded at fair value on a nonrecurring basis.