Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measures

v3.24.3
Fair Value Measures
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measures
NOTE 11 — FAIR VALUE MEASURES

Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

Level 1 — observable inputs such as quoted prices for identical assets or liabilities in active liquid markets;
Level 2 —
inputs, other than the quoted market prices in active markets, that are observable, either directly or indirectly; or observable market prices in markets with insufficient volume or infrequent transactions; and
Level 3 —
unobservable inputs for which there is little or no market data available, that require the reporting entity to develop its own assumptions.

The Company's assets and liabilities measured at fair value are categorized as Level 1 or Level 2 instruments. Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from inputs, other than quoted market prices in active markets, that are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions.

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 are as follows:

(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Cash equivalents:
Money market funds $ 50,149  $ —  $ —  $ 50,149 
Time deposits (1)
—  33,422  —  33,422 
Short-term investments:
Available-for-sale short-term investments: (2)
U.S. Government treasury bills —  64,975  —  64,975 
Other short-term investments:
Money market funds 253  —  —  253 
Mutual fund shares 2,016  —  —  2,016 
Prepaid expenses and other current assets:
Derivative financial instruments —  4,754  —  4,754 
Other non-current assets:
Money market funds 1,122  —  —  1,122 
Mutual fund shares 29,014  —  —  29,014 
Derivative financial instruments —  817  —  817 
Total assets measured at fair value $ 82,554  $ 103,968  $ —  $ 186,522 
Liabilities:
Accrued liabilities:
Derivative financial instruments $ —  $ 5,098  $ —  $ 5,098 
Other long-term liabilities:
Derivative financial instruments —  1,264  —  1,264 
Total liabilities measured at fair value $ —  $ 6,362  $ —  $ 6,362 
(1) Time deposits are carried at amortized cost on the unaudited Condensed Consolidated Balance Sheets, which reasonably approximates fair value.
(2) Available-for-sale short-term investments have remaining maturities of less than one year.
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 are as follows:

(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Cash equivalents:
Money market funds $ 75,758  $ —  $ —  $ 75,758 
U.S. Government treasury bills —  9,977  —  9,977 
Time deposits (1)
—  40,876  —  40,876 
Short-term investments:
Available-for-sale short-term investments: (2)
U.S. Government treasury bills —  412,987  —  412,987 
Other short-term investments:
Money market funds 314  —  —  314 
Mutual fund shares 884  —  —  884 
Prepaid expenses and other current assets:
Derivative financial instruments —  10,200  —  10,200 
Other non-current assets:
Money market funds 1,796  —  —  1,796 
Mutual fund shares 24,808  —  —  24,808 
Derivative financial instruments —  961  —  961 
Total assets measured at fair value $ 103,560  $ 475,001  $ —  $ 578,561 
Liabilities:
Accrued liabilities:
Derivative financial instruments $ —  $ 6,390  $ —  $ 6,390 
Other long-term liabilities:
Derivative financial instruments —  2,629  —  2,629 
Total liabilities measured at fair value $ —  $ 9,019  $ —  $ 9,019 
(1) Time deposits are carried at amortized cost on the unaudited Condensed Consolidated Balance Sheets, which reasonably approximates fair value.
(2) Available-for-sale short-term investments have remaining maturities of less than one year.
Assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 are as follows:

(in thousands) Level 1 Level 2 Level 3 Total
Assets:
Cash equivalents:
Money market funds $ 60,120  $ —  $ —  $ 60,120 
Time deposits (1)
—  19,412  —  19,412 
Short-term investments:
Money market funds 302  —  —  302 
Mutual fund shares 1,172  —  —  1,172 
Prepaid expenses and other current assets:
Derivative financial instruments —  21,606  —  21,606 
Other non-current assets:
Money market funds 1,699  —  —  1,699 
Mutual fund shares 21,879  —  —  21,879 
Derivative financial instruments —  6,511  —  6,511 
Total assets measured at fair value $ 85,172  $ 47,529  $ —  $ 132,701 
Liabilities:
Accrued liabilities:
Derivative financial instruments $ —  $ 2,361  $ —  $ 2,361 
Other long-term liabilities:
Derivative financial instruments —  104  —  104 
Total liabilities measured at fair value $ —  $ 2,465  $ —  $ 2,465 
NON-RECURRING FAIR VALUE MEASUREMENTS

The Company measured the fair value of certain trademark indefinite-lived intangible assets and goodwill as part of impairment testing for the year ended December 31, 2023. The inputs used to measure the fair value of these assets are primarily significant unobservable inputs and, as such, considered Level 3 fair value measurements. Refer to Note 6 in Part II, Item 8 in the Annual Report on Form 10-K for further discussion.