Company: DXPE
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001020710-25-000036
Chunk: 19

Company: DXP ENTERPRISES INC
Filing Date: 2025-03-10
Form: 10-K
Item: Item 7A
Chunk 19
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 the twelve months ended December 31, 2024, we recorded $16.3 million in other current and other long-term liabilities for contingent consideration. See further discussion at Note 16 - Business Acquisitions.

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For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein and gains or losses recognized during the last three fiscal years (in thousands): Contingent  ConsiderationBalance at December 31, 2021$905 Acquisitions and settlements:     Acquisitions8,200      Settlements(1,250)Total remeasurement adjustments:     Changes in fair value recorded in other (income) expense, net2,311 Balance at December 31, 2022$10,166 Acquisitions and settlements:     Acquisitions2,682      Settlements(5,833)Total remeasurement adjustments:     Changes in fair value recorded in other (income) expense, net1,738 Balance at December 31, 2023(1)$8,753 Acquisitions and settlements:     Acquisitions (Note 16)11,932      Settlements(5,108)Total remeasurement adjustments:     Changes in fair value recorded in other (income) expense, net745 Balance at December 31, 2024(1)$16,322 (1) Amounts included in other current liabilities were $8.0 million and $5.4 million for the periods ending December 31, 2024 and December 31, 2023, respectively. Amounts included in other long-term liabilities were $8.3 million and $3.4 million for the periods ending December 31, 2024 and December 31, 2023, respectively.Quantitative Information about Level 3 Fair Value MeasurementsThe significant unobservable inputs used in the fair value measurement of the Company's contingent consideration liabilities designated as Level 3 are as follows:Fair Value at December 31, 2024Valuation TechniqueSignificant Unobservable Inputs$16,322 Discounted cash flowAnnualized EBITDA and probability of achievementSensitivity to Changes in Significant Unobservable InputsThe significant Level 3 unobservable inputs used in the fair value measurement of contingent consideration related to the acquisitions are annualized E