FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE 6. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company’s financial instruments consist of cash and cash equivalents, trade receivables, notes receivable, accounts payable and other short-term liabilities. The carrying amounts of these financial instruments approximate their respective fair values.

At June 30, 2020 and 2019, the Company had $47.1 million and $54.7 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.

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2020			2019			2020			2019
Beginning	$	51,328		$	28,999		$	49,131		$	30,926
New acquisitions and revaluations		1,054			27,893			5,543			29,450
Payouts		(5,822	)		(2,426	)		(7,862	)		(5,233	)
Interest on outstanding contingencies		565			510			1,148			722
Charge offset, forfeit and other		(40	)		(291	)		(875	)		(1,180	)
Ending Balance	$	47,085		$	54,685		$	47,085		$	54,685