Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE OF FINANCIAL INSTRUMENTS

v3.20.2
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