Fair Value Measurements

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 18 — Fair Value Measurements

The table below summarizes the financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2022 and the gain recorded during the year ended December 31, 2022:

	Asset (Liability) Carrying Value at December 31, 2022			Quoted Prices in Active Markets for Identical (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Gain for Year Ended December 31, 2022
Interest rate swap	$	2,995		$	—	$	2,995		$	—	$	77
Foreign currency hedges	$	945		$	—	$	945		$	—	$	924
Cross-currency swap	$	(357	)	$	—	$	(357	)	$	—	$	461
Qualified replacement plan assets	$	15,249		$	15,249	$	—		$	—	$	—

The table below summarizes the financial assets that were measured at fair value on a recurring basis as of December 31, 2021 and the (loss) recorded during the year ended December 31, 2021:

	(Liability) Asset Carrying Value at December 31, 2021			Quoted Prices in Active Markets for Identical (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			(Loss) Gain for Year Ended December 31, 2021
Interest rate swap	$	(790	)	$	—	$	(790	)	$	—		$	(744	)
Foreign currency hedges	$	135		$	—	$	135		$	—		$	1,384
Contingent consideration	$	(1,200	)	$	—	$	—		$	(1,200	)	$	—

We use interest rate swaps to convert a portion of our Revolving Credit Facility’s outstanding balance from a variable rate of interest into a fixed rate and foreign currency forward contracts to hedge the effect of foreign currency changes on certain revenues and costs denominated in foreign currencies. In addition, the Company entered into a cross currency swap agreement in order to manage its exposure to changes in interest rates related to foreign debt. These derivative financial instruments are measured at fair value on a recurring basis.

The fair value of our interest rate swaps, and foreign currency hedges were measured using standard valuation models using market-based observable inputs over the contractual terms, including forward yield curves, among others. There is a readily determinable market for these derivative instruments, but that market is not active and therefore they are classified within Level 2 of the fair value hierarchy. The QRP assets consist of investment funds maintained for future contributions to the Company’s U.S. 401(k) program. The investments are Level 1 marketable securities and are recorded in Other Assets on our Condensed Consolidated Balance Sheets. Refer to Note 7 - "Retirement Plans" for further information on the QRP.

The fair value of the contingent consideration required significant judgment. The Company's fair value estimates used in the contingent consideration valuation are considered Level 3 fair value measurements. The fair value estimates were based on assumptions management believes to be reasonable, but that are inherently uncertain, including estimates of future revenues and timing of events and activities that are expected to take place.

A roll-forward of the contingent consideration is as follows:

	Contingent
	Consideration
Balance at December 31, 2021 in accrued expenses and other liabilities	$	1,200
Settled in cash		(1,050	)
Change in fair value		(150	)
Balance at December 31, 2022 in accrued expenses and other liabilities	$	—

Our long-term debt consists of debt outstanding under the Revolving Credit Facility which is recorded at its carrying value. There is a readily determinable market for our long-term debt and it is classified within Level 2 of the fair value hierarchy as the market is not deemed to be active. The fair value of long-term debt approximates carrying value and was determined by valuing a similar hypothetical coupon bond and attributing that value to our long-term debt under the Revolving Credit Facility.