Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements

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Fair Value Measurements
12 Months Ended
Dec. 31, 2021
Fair Value Measurements  
Fair Value Measurements

7.  FAIR VALUE MEASUREMENTS

Fair Value on Recurring Basis

The carrying values of cash and cash equivalents, receivables, net, and accounts payable are considered to be representative of their respective fair values due to the short-term nature of these instruments.  We measure our contingent consideration liabilities related to business combinations at fair value.  For more information see Note 15 – Business Combinations.

Fair Value on Non-Recurring Basis

Fair value measurements were applied to our long-term debt portfolio.  We believe the carrying value of our term loan approximates the fair market value primarily due to the fact that the non-performance risk of servicing our debt obligations, as reflected in our business and credit risk profile, has not materially changed since we assumed our debt obligations under the Amendment No. 2 to Credit Agreement.  In addition, due to the floating-rate nature of our term loan, the market value is not subject to variability solely due to changes in the general level of interest rates as is the case with a fixed-rate debt obligation. Based on active market trades of our 3.625% Senior Notes and our 4.125% Senior Notes close to December 31, 2021 (Level 1 fair value measurements), we estimate that the fair value of each in the table below:

As of December 31, 2021

Fair Value

Gross Carrying Value

3.625% Senior Notes

405,000

400,000

4.125% Senior Notes

516,900

500,000

During all periods presented, there were no transfers between fair value hierarchical levels.