FAIR VALUE MEASUREMENT

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENT

8.          FAIR VALUE MEASUREMENT

The Company’s financial instruments consist of cash and cash equivalents, short-term investments, trade and notes receivables, accounts payable, and other short-term liabilities. The carrying amounts of these financial instruments approximate their fair values. The Company has financial instruments related to its defined benefit pension plan and deferred compensation plan detailed in Note 16.

The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs.

At December 31, 2019 and 2018 respectively, the Company had $49.1 million and $30.9 million of acquisition holdback and earnout liabilities with the former owners of acquired companies. The earnout liabilities were discounted to reflect the expected probability of payout, and both earnout and holdback liabilities were discounted to their net present value on the Company’s books and are considered level 3 liabilities.

The table below presents a summary of the changes in fair value for these liabilities.

(in thousands)
Acquisition holdback and earnout liabilities at December 31, 2017	$	28,848
New acquisitions and revaluations		15,124
Payouts		(13,193	)
Interest on outstanding liabilities		1,082
Charge offset, forfeit and other		(935	)
Acquisition holdback and earnout liabilities at December 31, 2018		30,926
New acquisitions and revaluations		34,003
Payouts		(15,994	)
Interest on outstanding liabilities		1,973
Charge offset, forfeit and other		(1,776	)
Acquisition holdback and earnout liabilities at December 31, 2019	$	49,132