Company: ACA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001739445-25-000115
Chunk: 34

Company: Arcosa, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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: Fair Value Measurement as of June 30, 2025 Level 1Level 2Level 3Total(in millions)Assets:Cash equivalents$81.0 $— $— $81.0 Contingent consideration(1)— — 12.8 12.8 Total assets$81.0 $— $12.8 $93.8  Fair Value Measurement as of December 31, 2024 Level 1Level 2Level 3Total(in millions)Assets:Cash equivalents$133.0 $— $— $133.0 Contingent consideration(1)— — 15.4 15.4 Total assets$133.0 $— $15.4 $148.4 Liabilities:Contingent consideration(2)$— $— $1.4 $1.4 Total liabilities$— $— $1.4 $1.4 (1) Included in other assets on the Consolidated Balance Sheets.(2) Included in accrued liabilities on the Consolidated Balance Sheets.Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for that asset or liability in an orderly transaction between market participants on the measurement date. An entity is required to establish a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair values are listed below:Level 1 – This level is defined as quoted prices in active markets for identical assets or liabilities. The Company’s cash equivalents are instruments of the U.S. Treasury or highly-rated money market mutual funds.Level 2 – This level is defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.Level 3 – This level is defined as unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Contingent consideration relates to estimated future payments expected from businesses previously acquired or sold. We estimate the fair value of the contingent consideration using a