Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

v3.24.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
  
The following tables set forth the Company's financial assets and liabilities measured at fair value on a recurring basis, based on the three-tier fair value hierarchy, as described in detail within the Company's Annual Report:

  September 30, 2024
  Fair Value Level I Level II Level III
(in thousands)
Assets:        
Money market funds $ 124,623  $ 124,623  $ —  $ — 
Assets to fund deferred compensation liability 11,984  —  —  11,984 
Total assets $ 136,607  $ 124,623  $ —  $ 11,984 
Liabilities:        
Deferred compensation liability $ 9,152  $ 9,152  $ —  $ — 
Total liabilities $ 9,152  $ 9,152  $ —  $ — 

  December 31, 2023
  Fair Value Level I Level II Level III
(in thousands)
Assets:        
Money market funds $ 51,653  $ 51,653  $ —  $ — 
Assets to fund deferred compensation liability 10,961  —  —  10,961 
Total assets $ 62,614  $ 51,653  $ —  $ 10,961 
Liabilities:        
Deferred compensation liability $ 8,045  $ 8,045  $ —  $ — 
Total liabilities $ 8,045  $ 8,045  $ —  $ — 
The Company assesses the categorization of assets and liabilities by level at each measurement date, and transfers between levels are recognized on the actual date of the event or when changes in circumstances cause the transfer, in accordance with the Company’s accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. There were no transfers between Levels I, II and III during the nine months ended September 30, 2024.

Fair Value of Assets Used to Fund the Deferred Compensation Liability

The table below presents a reconciliation of the assets used to fund the Company's deferred compensation liability, which is measured at fair value on a recurring basis using significant unobservable inputs (Level III):

  Fair Value of Assets Used to Fund Deferred Compensation Liability
(in thousands)
Balance as of December 31, 2023 $ 10,961 
Fair value adjustments and fees 1,023 
Balance as of September 30, 2024 $ 11,984 

The fair market value of the assets used to fund the Company's deferred compensation liability is measured using the cash surrender value of the Company's life insurance premiums and is included in other assets in the condensed consolidated balance sheets. Changes in fair value, if any, are recognized in the Company's earnings and included in general and administrative expense in the condensed consolidated statements of operations.
Fair Value of Debt Agreements

The Company considered its Convertible Notes to be Level II liabilities as of September 30, 2024 and December 31, 2023, and used a market approach to calculate their respective fair values. The estimated fair value for each convertible note was determined based on estimated or actual bids and offers in an over-the-counter market on September 30, 2024 and December 31, 2023, respectively (See “Note 12—Debt”).

Fair Value of Other Financial Assets and Liabilities

The Company considered the recorded value of its other financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable and accounts payable, to approximate the fair value of the respective assets and liabilities as of September 30, 2024 and December 31, 2023, based upon the short-term nature of these assets and liabilities.