Company: DXPE
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001020710-25-000036
Chunk: 70

Company: DXP ENTERPRISES INC
Filing Date: 2025-03-10
Form: 10-K
Item: Item 8
Chunk 70
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 to be made using a weighted probability of possible payments. The unobservable inputs used in the determination of the fair value of the contingent consideration include management's assumptions about the likelihood of payment based on the established benchmarks and discount rates based on an internal rate of return analysis. The fair value measurement includes inputs that are Level 3 inputs as discussed above, as they are not observable in the market. Should actual results increase or decrease as compared to the assumptions used in our analysis, the fair value of the contingent consideration obligations will increase or decrease, up to the contracted limit, as applicable. Changes in the fair value of the contingent consideration are measured during each reporting period and reflected in our results of operations.During 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