v3.25.1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2025
FAIR VALUE MEASUREMENTS [Abstract]  
Fair Value Measurements NOTE 6. FAIR VALUE MEASUREMENTS

The following table represents the fair value of assets and liabilities, as of March 31, 2025 and December 31, 2024, respectively, including the following:

(In thousands)

Balance at
‎March 31,
‎2025

Level 1

Level 2

Level 3

Assets:

Cash equivalents

$

162,325

$

162,325

$

—

$

—

Liabilities:

Business acquisition liabilities

118,055

—

—

118,055

(In thousands)

Balance at
‎December 31,
‎2024

Level 1

Level 2

Level 3

Assets:

Cash equivalents

$

496,676

$

423,977

$

72,699

$

—

Municipal bonds

15,498

—

15,498

—

Corporate debt securities

54,806

—

54,806

—

Commercial paper

36,530

—

36,530

Asset-backed securities

19,621

—

19,621

—

Government, federal agency, and other sovereign obligations

45,298

—

45,298

—

Liabilities:

Business acquisition liabilities

123,235

—

—

123,235

Our marketable securities and certain cash equivalents are classified as Level 2 within the fair value hierarchy, as we measure their fair value using market prices for similar instruments and inputs such as actual trade data, benchmark yields, broker/dealer quotes and other similar data obtained from quoted market prices or independent pricing vendors.

Fair value of the revenue-based business acquisition liabilities was determined using a discounted cash flow model, probability model, and an option pricing methodology. The significant inputs of such models are not observable in the market, such as certain financial metric growth rates, volatility and discount rates, market price risk adjustment, projections associated with the applicable milestone, the interest rate, and the related probabilities and payment structure in the contingent consideration arrangement.

The following are the significant unobservable inputs used in the two valuation techniques:

Unobservable input

Range

Weighted Average*

Revenue risk premium

2.0%

-

5.8%

3.1%

Revenue volatility

14.0%

-

15.8%

14.3%

Discount rate

5.2%

-

8.5%

6.2%

Projected year of payment

2025

-

2034

* The weighted average rates were calculated based on the relative fair value of each business acquisition liability.

The change in the carrying value of the business acquisition liabilities during the three months ended March 31, 2025 and 2024, respectively included the following:

Three Months Ended

March 31,

(In thousands)

2025

2024

Beginning balance

$

123,235

$

139,358

Purchase price contingent consideration

—

19,143

Changes resulting from foreign currency fluctuations

—

246

Contingent cash payments

(5,902)

(46,590)

Contingent RSU grants

(429)

(336)

Changes in fair value of business acquisition liabilities

167

(165)

Contractual payable reclassification

984

(346)

Ending balance

$

118,055

$

111,310

Changes in the fair value of business acquisition liabilities are driven by changes in market conditions and the achievement of certain performance conditions.