FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 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 September 30, 2020 and 2019, the Company had $33.8 million and $51.8 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 Ending						Nine Months Ending
	September 30,						September 30,
(in thousands)	2020			2019			2020			2019
Beginning	$	47,085		$	54,685		$	49,131		$	30,926
New acquisitions and revaluations		3,160			5,161			8,703			34,611
Payouts		(16,306	)		(8,339	)		(24,168	)		(13,572	)
Interest on outstanding contingencies		386			715			1,534			1,437
Charge offset, forfeit and other		(554	)		(387	)		(1,429	)		(1,567	)
Ending balance	$	33,771		$	51,835		$	33,771		$	51,835