Fair Value Measurements |
12 Months Ended |
|---|---|
Dec. 31, 2021 | |
| Fair Value Measurements [Abstract] | |
| Fair Value Measurements | NOTE 10. FAIR VALUE MEASUREMENTS We measure certain financial assets and liabilities at fair value on a recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows: Level 1- inputs to the valuation methodology are quoted market prices for identical assets or liabilities in active markets. Level 2- inputs to the valuation methodology include quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 3- inputs to the valuation methodology are based on prices or valuation techniques that are unobservable. Assets and liabilities measured at fair value on a recurring basis at December 31, 2021 and 2020 were as follows: December 31, 2021 Level 1 Level 2 Level 3 Total Assets Designated forward exchange contracts$ - $ 511 $ - $ 511 $ - $ 511 $ - $ 511 Liabilities Designated forward exchange contracts$ - $ 24 $ - $ 24 Contingent consideration liabilities - - 3,485 3,485 $ - $ 24 $ 3,485 $ 3,509 December 31, 2020 Level 1 Level 2 Level 3 Total Assets Designated forward exchange contracts$ - $ - $ - $ - $ - $ - $ - $ - Liabilities Designated forward exchange contracts$ - $ 1,629 $ - $ 1,629 $ - $ 1,629 $ - $ 1,629 Derivative financial instruments are recorded at fair value based on current market pricing models. No nonrecurring fair value measurements existed at December 31, 2021 and 2020. The Company estimated the fair value of the Contingent Consideration liabilities using a series of call options. Significant unobservable inputs used in the valuation include a discount rates ranging from 4.8% to 8.0%. The Contingent Consideration liabilities are remeasured at the estimated fair value at the end of each reporting period with the change in fair value recognized in contingent consideration benefit in the accompanying consolidated statements of comprehensive income for such period. We measure the initial liability and remeasure the liability on a recurring basis using Level 3 inputs as defined under authoritative guidance for fair value measurements. Detail of the Contingent Consideration for the year ended December 31, 2021: Increase due to acquisition of Rhino-Rack$3,565Increase due to acquisition of MAXTRAX 1,644Fair value adjustments (1,605)Impact of foreign currency exchange rates (119)Balance at December 31, 2021$3,485 As the Contingent Consideration liabilities are remeasured to fair value each reporting period, significant increases or decreases in projected sales, discount rates or the time until payment is made would have resulted in a significantly lower or higher fair value measurement. Our determination of fair value of the Contingent Consideration liabilities could change in future periods based on our ongoing evaluation of these significant unobservable inputs. |