Acadia Healthcare Company, Inc. Fair Value Disclosure
20. Fair Value Measurements
The carrying amounts reported for cash and cash equivalents, accounts receivable, other current assets, accounts payable and other current liabilities approximate fair value because of the short-term maturity of these instruments.
The carrying amounts and fair values of the Credit Facility, Prior Credit Facility and Senior Notes at December 31, 2025 and 2024 were as follows (in thousands):
|
|
Carrying Amount |
|
|
Fair Value |
|
||||||||||
|
|
December 31, |
|
|
December 31, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Credit Facility |
|
$ |
1,037,816 |
|
|
$ |
— |
|
|
$ |
1,037,816 |
|
|
$ |
— |
|
Prior Credit Facility |
|
$ |
— |
|
|
$ |
1,039,349 |
|
|
$ |
— |
|
|
$ |
1,039,349 |
|
5.500% Senior Notes due 2028 |
|
$ |
447,382 |
|
|
$ |
446,435 |
|
|
$ |
443,400 |
|
|
$ |
425,229 |
|
5.000% Senior Notes due 2029 |
|
$ |
471,946 |
|
|
$ |
471,125 |
|
|
$ |
453,540 |
|
|
$ |
439,324 |
|
7.375% Senior Notes due 2033 |
|
$ |
542,823 |
|
|
$ |
— |
|
|
$ |
545,537 |
|
|
$ |
— |
|
The Credit Facility, Prior Credit Facility, and Senior Notes were categorized as Level 2 in the GAAP fair value hierarchy. Fair values were based on trading activity among the Company’s lenders and the average bid and ask price as determined using published rates.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.