Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2023

Summary of Financial Liabilities that Measured at Fair Value

The following tables summarize our financial assets and liabilities that were measured at fair value on a recurring basis, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands):


	September 30, 2023
	(Level 1)		(Level 2)		(Level 3)		Total

Assets:
Foreign currency forward contracts(1)	$	—	$	528	$	—	$	528
Total assets	$	—	$	528	$	—	$	528

Liabilities:
Foreign currency forward contracts(1)	$	—	$	35	$	—	$	35
Total liabilities	$	—	$	35	$	—	$	35


	December 31, 2022 (3)
	(Level 1)		(Level 2)		(Level 3)		Total

Liabilities:
Deferred cash consideration in connection with a business acquisition—SCUF(2)	$	—	$	—	$	954	$	954
Foreign currency forward contracts(1)		—		484		—		484
Total liabilities	$	—	$	484	$	954	$	1,438

(1)

The fair values of the forward contracts were based on similar exchange traded derivatives and the related asset or liability is included within Level 2 of the fair value hierarchy.

(2)

In December 2019, one of our subsidiaries entered into an Agreement and Plan of Merger with Scuf Holdings, Inc. and its subsidiaries (collectively, “SCUF”) and acquired 100% of their equity interests (the “SCUF Acquisition”). The fair value of the SCUF contingent consideration was determined based on the estimates of acquired tax benefits owed to SCUF’s sellers according to the merger agreement, and these estimates represent a level 3 fair value measurement. The $1.0 million liability as of December 31, 2022 was finalized in the fourth quarter of 2022, and this amount was paid in the first quarter of 2023.

(3)

The balances as of December 31, 2022 of our financial assets that were measured at fair value on a recurring basis were not material.