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Fair Value Measures and Disclosures (Tables)
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables provide a reconciliation of the Level 3 earn-out liabilities measured at estimated fair value (in thousands):
Earn-out Liability
Accrued balance, January 1, 2022$2,589 
Acquisition date fair value estimate of earn-out(1)
55,158 
Currency translation(46)
Accrued balance, March 31, 2022$57,701 
Change in fair value of earn-out (included in income from operations as a separate line item)(2)
(27,194)
Currency translation(98)
Accrued balance, June 30, 2022$30,409 
Change in fair value of earn-out (included in income from operations as a separate line item)(2)
(4,059)
Currency translation(108)
Accrued balance, September 30, 2022$26,242 
_______________________________
(1) $53.5 million relates to our acquisition of Smiths Medical and $1.6 million relates to our acquisition of a small foreign infusions systems supplier in the fourth quarter of 2021 (see Note 3: Acquisitions).
(2) Primarily relates to the change in fair value of the Smiths Medical earn-out.
Earn-out Liability
Accrued balance, January 1, 2021$26,300 
Change in fair value of earn-out (included in income from operations as a separate line item)— 
Accrued balance, March 31, 2021$26,300 
Change in fair value of earn-out (included in income from operations as a separate line item)— 
Accrued balance, June 30, 2021$26,300 
Contingent earn-out — non-compete arrangement3,100 
Transfer of Pursuit earn-out liability into Level 2(26,300)
Accrued balance, September 30, 2021$3,100 
Fair Value Measurement Inputs and Valuation Techniques
The following tables provide quantitative information about Level 3 inputs for fair value measurement of our earn-out liabilities related to Smiths Medical and Pursuit:

Smiths Medical Earn-out
Simulation InputAs of
September 30, 2022		At Acquisition
January 6, 2022
Volatility42.00 %37.00 %
Risk-Free Rate4.18 %1.31 %

Pursuit Earn-out
Simulation InputAs of
June 30, 2021
Revenue/Gross Profit Volatility25.00 %
Discount Rate12.50 %
Risk-Free Rate0.09 %
Counter Party Risk3.10 %
Fair Value, by Balance Sheet Grouping Our assets and liabilities measured at fair value on a recurring basis consisted of the following Level 1, 2 and 3 inputs as defined above (in thousands):
 Fair value measurements as of September 30, 2022
 Total carrying
value		Quoted prices
in active
markets for
identical
assets (level 1)		Significant
other
observable
inputs (level 2)		Significant
unobservable
inputs (level 3)
Assets:
Available-for-sale debt securities:
Short-term corporate bonds$1,511 $— $1,511 $— 
Short-term U.S. treasury securities1,408 1,408 — — 
Long-term corporate bonds1,333 — 1,333 — 
Long-term government bonds498 — 498 — 
Foreign exchange contracts:
Prepaid expenses and other current assets11,695 — 11,695 — 
Other assets— — — — 
Interest rate contracts:
Prepaid expenses and other current assets24,924 — 24,924 — 
Other assets33,386 — 33,386 — 
Total Assets$74,755 $1,408 $73,347 $— 
Liabilities:
Contingent earn-out liability - ST$300 $— $— $300 
Contingent earn-out liability - LT25,942 — — 25,942 
Foreign exchange contracts:
Accrued liabilities1,752 — 1,752 — 
Total Liabilities$27,994 $— $1,752 $26,242 


 Fair value measurements as of December 31, 2021
 Total carrying
value		Quoted prices
in active
markets for
identical
assets (level 1)		Significant
other
observable
inputs (level 2)		Significant
unobservable
inputs (level 3)
Assets:
Available-for-sale debt securities:
Short-term corporate bonds$14,420 $— $14,420 $— 
Long-term corporate bonds4,620 — 4,620 — 
Cross-currency par forward contract:
Prepaid expenses and other current assets1,061 — 1,061 — 
Total Assets$20,101 $— $20,101 $— 
Liabilities:
Contingent earn-out liability - LT$2,589 $— $— $2,589 
Forward-starting interest rate swaps:
Other long-term liabilities1,480 — 1,480 — 
Total Liabilities$4,069 $— $1,480 $2,589