AES CORPAES
AES CORP Fair Value Disclosure
FAIR VALUE
The fair value of current financial assets and liabilities, debt service reserves, and other deposits approximate their reported carrying amounts. The estimated fair values of the Company's assets and liabilities have been determined using available market information. Because these amounts are estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.
Valuation Techniques — The fair value measurement accounting guidance describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach, (2) income approach, and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on current market expectations of the return on those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The Company measures its investments and derivatives at fair value on a recurring basis. Additionally, in connection with annual or event-driven impairment evaluations, certain nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis. These include long-lived tangible assets (i.e., property, plant, and equipment), equity method investments, goodwill, and intangible assets (e.g., sales concessions, land use rights, water rights, etc.). In general, the Company determines the fair value of investments and derivatives using the market approach and the income approach, respectively. In the nonrecurring measurements of nonfinancial assets and liabilities, all three approaches are considered; however, the value estimated under the income approach is often the most representative of fair value.
Investments — The Company's investments measured at fair value generally consist of marketable debt and equity securities. Equity securities are either measured at fair value using quoted market prices or based on comparisons to market data obtained for similar assets. Debt securities primarily consist of certificates of deposit. Debt securities are measured at fair value based on comparisons to market data obtained for similar assets.
Derivatives — Derivatives are measured at fair value using quoted market prices or the income approach utilizing spot and forward benchmark interest rates, foreign exchange rates, commodity prices, volatilities, and credit data, as applicable. When significant inputs are not observable, the Company uses relevant techniques to determine the inputs, such as regression analysis or prices for similarly traded instruments available in the market.
The Company's methodology to fair value its derivatives is to start with any observable inputs; however, in certain instances the published forward rates or prices may not extend through the remaining term of the contract, and management must make assumptions to extrapolate the curve, which necessitates the use of unobservable inputs, such as proxy commodity prices or historical settlements to forecast forward prices. With respect to credit inputs, in certain instances the spread that reflects the credit or nonperformance risk is unobservable, requiring the use of proxy yield curves of similar credit quality.
To determine the fair value of a derivative, cash flows are discounted using the relevant spot benchmark interest rate. The Company then makes a credit valuation adjustment ("CVA"), as applicable, by further discounting the cash flows for nonperformance or credit risk based on the observable or estimated debt spread of the Company's subsidiary or its counterparty and the tenor of the respective derivative instrument. The CVA for potential future scenarios in which the derivative is in an asset position is based on the counterparty's credit ratings, credit default swap spreads, and debt spreads, as available. The CVA for potential future scenarios in which the derivative is in a liability position is based on the Parent Company's or the subsidiary's current debt spread. In the absence of readily obtainable credit information, the Parent Company's or the subsidiary's estimated credit rating and spreads of comparably rated entities or the respective country's debt spreads are used as a proxy. All derivative instruments are analyzed individually and are subject to unique risk exposures.
The fair value hierarchy of an asset or a liability is based on the level of significance of the input assumptions. An input assumption is considered significant if it affects the fair value by at least 10%. Assets and liabilities are classified as Level 3 when the use of unobservable inputs is significant. When the use of unobservable inputs is insignificant, assets and liabilities are classified as Level 2.
Contingent consideration — Contingent consideration is primarily related to future milestone payments associated with acquisitions of renewables development projects. The estimated fair value of contingent consideration is determined using probability-weighted discounted cash flows based on internal forecasts, which are considered Level 3 inputs. Changes in Level 3 inputs, particularly changes in the probability of achieving development milestones, could result in material changes to the fair value of the contingent consideration and could materially impact the amount of expense or income recorded each reporting period. Contingent consideration is updated quarterly with any prospective changes in fair value recorded through earnings. Gains and losses on the
remeasurement of contingent consideration are recognized in Other income and Other expense, respectively, on the Consolidated Statements of Operations.
Debt — Recourse and non-recourse debt are carried at amortized cost. The fair value of recourse debt is estimated based on quoted market prices. The fair value of non-recourse debt is estimated based upon interest rates and other features of the loan. In general, the carrying amount of variable rate debt is a close approximation of its fair value. For fixed rate loans, the fair value is estimated using quoted market prices or discounted cash flow ("DCF") analyses. The fair value of recourse and non-recourse debt excludes accrued interest at the valuation date. The fair value was determined using available market information as of December 31, 2025. The Company is not aware of any factors that would significantly affect the fair value amounts subsequent to December 31, 2025.
Nonrecurring measurements — For nonrecurring measurements derived using the income approach, fair value is generally determined using valuation models based on the principles of DCF. The income approach is most often used in the impairment evaluation of long-lived tangible assets, equity method investments, goodwill, and intangible assets. Where the use of market observable data is limited or not available for certain input assumptions, the Company develops its own estimates using a variety of techniques such as regression analysis and extrapolations. Depending on the complexity of a valuation, an independent valuation firm may be engaged to assist management in the valuation process.
For nonrecurring measurements derived using the market approach, recent market transactions involving the sale of identical or similar assets are considered. The use of this approach is limited because it is often difficult to identify sale transactions of identical or similar assets. This approach is used in impairment evaluations for business interests classified as held-for-sale and for certain intangible assets. Otherwise, it is used to corroborate the fair value determined under the income approach.
For nonrecurring measurements derived using the cost approach, fair value is typically based upon a replacement cost approach. This approach involves a considerable amount of judgment, which is why its use is limited to the measurement of long-lived tangible assets. Like the market approach, this approach is also used to corroborate the fair value determined under the income approach.
Fair Value Considerations — In determining fair value, the Company considers the source of observable market data inputs, liquidity of the instrument, the credit risk of the counterparty, and the risk of the Company's or its counterparty's nonperformance. The conditions and criteria used to assess these factors are:
Sources of market assumptions — The Company derives most of its market assumptions from market efficient data sources (e.g., Bloomberg and Reuters). To determine fair value where market data is not readily available, management uses comparable market sources and empirical evidence to develop its own estimates of market assumptions.
Market liquidity — The Company evaluates market liquidity based on whether the financial or physical instrument, or the underlying asset, is traded in an active or inactive market. An active market exists if the prices are fully transparent to market participants, can be measured by market bid and ask quotes, the market has a relatively large proportion of trading volume as compared to the Company's current trading volume, and the market has a significant number of market participants that will allow the market to rapidly absorb the quantity of assets traded without significantly affecting the market price. Another factor the Company considers when determining whether a market is active or inactive is the presence of government or regulatory controls over pricing that could make it difficult to establish a market-based price when entering into a transaction.
Nonperformance risk — Nonperformance risk refers to the risk that an obligation will not be fulfilled and affects the value at which a liability is transferred or an asset is sold. Nonperformance risk includes, but may not be limited to, the Company's or its counterparty's credit and settlement risk. Nonperformance risk adjustments are dependent on credit spreads, letters of credit, collateral, other arrangements available, and the nature of master netting arrangements. The Company is party to various interest rate swaps and options, foreign currency options and forwards, and derivatives and embedded derivatives, which subject the Company to nonperformance risk. The financial and physical instruments held at the subsidiary level are generally non-recourse to the Parent Company.
Nonperformance risk on the investments held by the Company is incorporated in the fair value derived from quoted market data to mark the investments to fair value.
Recurring Measurements — The following table presents, by level within the fair value hierarchy as described in Note 1—General and Summary of Significant Accounting Policies, the Company's financial assets and liabilities that were measured at fair value on a recurring basis as of the dates indicated (in millions). For the Company's investments in marketable debt securities, the security classes presented were determined based on the nature and risk of the security and are consistent with how the Company manages, monitors, and measures its marketable securities:
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
| DEBT SECURITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Available-for-sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Certificates of deposit | $ | — | $ | 3 | $ | — | $ | 3 | $ | — | $ | 4 | $ | — | $ | 4 | ||||||||||||||||||||||||||||||||||
| Government debt securities | — | — | — | — | — | 4 | — | 4 | ||||||||||||||||||||||||||||||||||||||||||
| Total debt securities | — | 3 | — | 3 | — | 8 | — | 8 | ||||||||||||||||||||||||||||||||||||||||||
| EQUITY SECURITIES: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Mutual funds | 57 | — | — | 57 | 51 | — | — | 51 | ||||||||||||||||||||||||||||||||||||||||||
Common stock | 1 | — | — | 1 | 4 | — | — | 4 | ||||||||||||||||||||||||||||||||||||||||||
| Total equity securities | 58 | — | — | 58 | 55 | — | — | 55 | ||||||||||||||||||||||||||||||||||||||||||
| DERIVATIVES: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate derivatives | — | 279 | — | 279 | — | 349 | — | 349 | ||||||||||||||||||||||||||||||||||||||||||
| Foreign currency derivatives | — | 24 | — | 24 | — | 9 | 52 | 61 | ||||||||||||||||||||||||||||||||||||||||||
| Commodity derivatives | 109 | 72 | 5 | 186 | 193 | 80 | 5 | 278 | ||||||||||||||||||||||||||||||||||||||||||
Total derivatives — assets (1) | 109 | 375 | 5 | 489 | 193 | 438 | 57 | 688 | ||||||||||||||||||||||||||||||||||||||||||
| TOTAL ASSETS | $ | 167 | $ | 378 | $ | 5 | $ | 550 | $ | 248 | $ | 446 | $ | 57 | $ | 751 | ||||||||||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration (2) | $ | — | $ | — | $ | 205 | $ | 205 | $ | — | $ | — | $ | 145 | $ | 145 | ||||||||||||||||||||||||||||||||||
| DERIVATIVES: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate derivatives | — | 59 | — | 59 | — | 14 | 1 | 15 | ||||||||||||||||||||||||||||||||||||||||||
| Foreign currency derivatives | — | 28 | — | 28 | — | 18 | — | 18 | ||||||||||||||||||||||||||||||||||||||||||
| Commodity derivatives | 110 | 42 | 45 | 197 | 185 | 44 | 26 | 255 | ||||||||||||||||||||||||||||||||||||||||||
Total derivatives — liabilities (1) | 110 | 129 | 45 | 284 | 185 | 76 | 27 | 288 | ||||||||||||||||||||||||||||||||||||||||||
| TOTAL LIABILITIES | $ | 110 | $ | 129 | $ | 250 | $ | 489 | $ | 185 | $ | 76 | $ | 172 | $ | 433 | ||||||||||||||||||||||||||||||||||
_____________________________
(1)Includes $3 million of derivative assets reported in Current held-for-sale assets and $3 million of derivative liabilities reported in Current held-for-sale liabilities on the Consolidated Balance Sheets related to Dominican Republic Renewables as of December 31, 2024.
(2)The Level 3 contingent consideration is mainly related to the acquisition of Bellefield in June 2023.
As of December 31, 2025, all available-for-sale debt securities had stated maturities within one year. For the years ended December 31, 2025 and 2024, no impairments of marketable securities were recognized in earnings or other comprehensive income (loss). Gains and losses on sales of investments are determined using the specific-identification method. The following table presents gross proceeds from sale of available-for-sale securities for the periods indicated (in millions):
| Year Ended December 31, | 2025 | 2024 | 2023 | |||||||||||||||||
Gross proceeds from sale of available-for-sale securities | $ | 7 | $ | 717 | $ | 1,377 | ||||||||||||||
The Company accounts for equity securities without readily determinable fair values using the measurement alternative in accordance with ASC 321. These securities are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer. Upward adjustments resulting from observable price changes are recorded in Other income and impairments and downward adjustments are recorded in Other expense. As of December 31, 2024, the carrying amount of equity securities accounted for using the measurement alternative was $62 million, inclusive of $22 million of cumulative upward adjustments recorded in Other income in prior years to reflect observable price changes for our investment in 5B Holdings Ptd. Ltd. ("5B"). In June 2025, the Company recorded a $48 million downward adjustment to our investment in 5B in Other expense due to an observable price change resulting from a transaction between 5B and a third party. The carrying amount of equity securities accounted for using the measurement alternative as of December 31, 2025 was $19 million.
The following tables present a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2025 and 2024 (derivative balances are presented net), in millions. Transfers between Level 3 and Level 2 principally result from changes in the significance of unobservable inputs used to calculate the credit valuation adjustment.
| Derivative Assets and Liabilities | |||||||||||||||||||||||||||||
| Year Ended December 31, 2025 | Interest Rate | Foreign Currency | Commodity | Contingent Consideration | Total | ||||||||||||||||||||||||
| Balance at January 1 | $ | (1) | $ | 52 | $ | (21) | $ | (145) | $ | (115) | |||||||||||||||||||
| Total realized and unrealized gains (losses): | |||||||||||||||||||||||||||||
| Included in earnings | — | 3 | — | (79) | (76) | ||||||||||||||||||||||||
Included in other comprehensive income (loss) — derivative activity | 1 | 1 | (16) | — | (14) | ||||||||||||||||||||||||
| Included in regulatory (assets) liabilities | — | — | 5 | — | 5 | ||||||||||||||||||||||||
Acquisitions | — | — | — | (40) | (40) | ||||||||||||||||||||||||
| Settlements | — | (40) | (5) | 59 | 14 | ||||||||||||||||||||||||
| Transfers of assets/(liabilities), net into Level 3 | — | — | (3) | — | (3) | ||||||||||||||||||||||||
| Transfers of (assets)/liabilities, net out of Level 3 | — | (16) | — | — | (16) | ||||||||||||||||||||||||
| Balance at December 31 | $ | — | $ | — | $ | (40) | $ | (205) | $ | (245) | |||||||||||||||||||
| Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period | $ | — | $ | — | $ | — | $ | (79) | $ | (79) | |||||||||||||||||||
| Derivative Assets and Liabilities | |||||||||||||||||||||||||||||
| Year Ended December 31, 2024 | Interest Rate | Foreign Currency | Commodity | Contingent Consideration | Total | ||||||||||||||||||||||||
| Balance at January 1 | $ | (4) | $ | 59 | $ | (110) | $ | (165) | $ | (220) | |||||||||||||||||||
| Total realized and unrealized gains (losses): | |||||||||||||||||||||||||||||
| Included in earnings | — | 23 | 4 | (10) | 17 | ||||||||||||||||||||||||
Included in other comprehensive income (loss) — derivative activity | 3 | 8 | 84 | — | 95 | ||||||||||||||||||||||||
Included in other comprehensive income (loss) — foreign currency translation activity | — | — | — | 1 | 1 | ||||||||||||||||||||||||
| Included in regulatory (assets) liabilities | — | — | 5 | — | 5 | ||||||||||||||||||||||||
Acquisitions | — | — | — | (76) | (76) | ||||||||||||||||||||||||
| Settlements | — | (38) | (4) | 105 | 63 | ||||||||||||||||||||||||
| Balance at December 31 | $ | (1) | $ | 52 | $ | (21) | $ | (145) | $ | (115) | |||||||||||||||||||
| Total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities held at the end of the period | $ | — | $ | (6) | $ | 6 | $ | (10) | $ | (10) | |||||||||||||||||||
The following table summarizes the significant unobservable inputs used for the Level 3 derivative assets (liabilities) as of December 31, 2025 (in millions, except range amounts):
| Type of Derivative | Fair Value | Unobservable Input | Amount or Range (Average) | |||||||||||||||||
| Commodity: | ||||||||||||||||||||
| CAISO energy swap | $ | (38) | Forward CAISO energy prices per MWh from 2032 through 2038 | $11.63 to $163.83 ($78.30) | ||||||||||||||||
| MISO energy swap | (4) | Forward MISO energy prices per MWh from 2032 through 2040 | $23.83 to $75.68 ($47.08) | |||||||||||||||||
| Other | 2 | |||||||||||||||||||
| Total | $ | (40) | ||||||||||||||||||
For the CAISO and MISO energy swaps, increases (decreases) in the estimates above would decrease (increase) the value of the derivative.
Nonrecurring Measurements — The Company measures fair value using the applicable fair value measurement guidance. Impairment expense, shown as pre-tax loss below, is measured by comparing the fair value at the evaluation date to the then-latest available carrying amount and is included in Asset impairment expense or Other non-operating expense on the Consolidated Statements of Operations, as applicable. The following table summarizes our major categories of asset groups measured at fair value on a nonrecurring basis and their level within the fair value hierarchy (in millions):
| Year Ended December 31, 2025 | Measurement Date | Carrying Amount (1) | Fair Value | Pre-tax Loss | ||||||||||||||||||||||||||||||||||
| Assets | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||
Held-for-sale businesses: (2) | ||||||||||||||||||||||||||||||||||||||
Mong Duong (3) | 3/31/2025 | $ | 383 | $ | — | $ | 371 | $ | — | $ | 17 | |||||||||||||||||||||||||||
Equity method investments: (4) | ||||||||||||||||||||||||||||||||||||||
| Uplight | 9/30/2025 | $ | 60 | $ | — | $ | — | $ | — | $ | 60 | |||||||||||||||||||||||||||
Long-lived asset groups held and used: (5) | ||||||||||||||||||||||||||||||||||||||
Maritza (6) | 10/31/2025 | $ | 405 | $ | — | $ | — | $ | 141 | $ | 264 | |||||||||||||||||||||||||||
| Year Ended December 31, 2024 | Measurement Date | Carrying Amount (1) | Fair Value | Pre-tax Loss | ||||||||||||||||||||||||||||||||||
| Assets | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||
Held-for-sale businesses: (2) | ||||||||||||||||||||||||||||||||||||||
Mong Duong | 3/31/2024 | $ | 450 | $ | — | $ | 413 | $ | — | $ | 37 | |||||||||||||||||||||||||||
AES Brasil (7) | 5/15/2024 | 1,577 | — | 1,565 | — | 25 | ||||||||||||||||||||||||||||||||
Mong Duong (3) | 6/30/2024 | 390 | — | 389 | — | 6 | ||||||||||||||||||||||||||||||||
AES Brasil (8) | 9/30/2024 | 1,581 | — | 1,548 | — | 55 | ||||||||||||||||||||||||||||||||
Mong Duong (3) | 9/30/2024 | 407 | — | 400 | — | 11 | ||||||||||||||||||||||||||||||||
Mong Duong (3) | 12/31/2024 | 365 | — | 362 | — | 8 | ||||||||||||||||||||||||||||||||
Ventanas | 12/31/2024 | 131 | — | 6 | — | 125 | ||||||||||||||||||||||||||||||||
_____________________________
(1)Represents the carrying values of the asset groups at the dates of measurement, before fair value adjustment.
(3)The pre-tax loss recognized was calculated using the fair value of the Mong Duong disposal group less costs to sell of $5 million.
(4)See Note 9—Investments in and Advances to Affiliates for further information.
(6)The carrying value of the Maritza asset group excludes accumulated foreign currency translation adjustments of $126 million.
(7)The pre-tax loss recognized was calculated using the fair value of the AES Brasil disposal group less costs to sell of $13 million. A subsequent impairment analysis was performed as of June 30, 2024 and no additional impairment was identified.
(8)The pre-tax loss recognized was calculated using the fair value of the AES Brasil disposal group less costs to sell of $22 million.
Mong Duong — During the year ended December 31, 2025, the Company recognized a $243 million increase in the carrying value of the Mong Duong asset group due to the derecognition of a $239 million valuation allowance on the loan receivable accounted for under ASC 310, which had been recognized in Asset impairment expense between December 31, 2023 and March 31, 2025 while Mong Duong was classified as held-for-sale, and the elimination of $4 million in net estimated costs to sell from the measurement of the asset group. Upon reclassification out of held-for-sale, the loan receivable was remeasured at amortized cost and individual non-loan assets were remeasured at the lower of (i) carrying value before Mong Duong was classified as held for sale, adjusted for any depreciation expense or impairment losses that would have been recognized had the asset been continuously classified as held and used, or (ii) fair value at the date of the subsequent determination that held-for-sale criteria was no longer met. See Note 23—Asset Impairment Expense for further information.
AES Clean Energy Development Projects — On a quarterly basis, the Company reviews the status of development projects to identify projects that are no longer viable and will be abandoned. The fair value of each abandoned project with no salvage value is determined to be zero as there are no future projected cash flows, resulting in a full write-off of the carrying value of project development intangibles and capitalized development costs incurred.
The Company recognized $157 million, $95 million, and $151 million of pre-tax asset impairment expense in 2025, 2024, and 2023, respectively, including $137 million during the fourth quarter of 2023 primarily related to the write-off of project development intangibles which were recognized at fair value when the Company acquired sPower's development platform as part of the formation of AES Clean Energy Development. See Note 23—Asset Impairment Expense for further information.
The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived asset groups held and used measured on a nonrecurring basis during the year ended December 31, 2025 (in millions, except range amounts):
| December 31, 2025 | Fair Value | Valuation Technique | Unobservable Input | Range | ||||||||||||||||||||||
| Long-lived asset groups held and used: | ||||||||||||||||||||||||||
| Maritza | $ | 141 | Discounted cash flow | Discount rate | 26 | % | ||||||||||||||||||||
Financial Instruments not Measured at Fair Value in the Consolidated Balance Sheets
The following table presents (in millions) the carrying amount, fair value, and fair value hierarchy of the Company's financial assets and liabilities that are not measured at fair value in the Consolidated Balance Sheets as of the dates indicated, but for which fair value is disclosed:
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
Carrying Amount | Fair Value | ||||||||||||||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
| Assets: | Financing receivables (1) | $ | 855 | $ | 955 | $ | — | $ | — | $ | 955 | ||||||||||||||||||||||||
| Liabilities: | Non-recourse debt | 23,178 | 23,749 | — | 20,448 | 3,301 | |||||||||||||||||||||||||||||
| Recourse debt | 5,984 | 5,003 | — | 5,003 | — | ||||||||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
Carrying Amount | Fair Value | ||||||||||||||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
| Assets: | Financing receivables (1) | $ | 87 | $ | 171 | $ | — | $ | — | $ | 171 | ||||||||||||||||||||||||
| Liabilities: | Non-recourse debt | 22,743 | 23,066 | — | 20,981 | 2,085 | |||||||||||||||||||||||||||||
| Recourse debt | 5,704 | 4,538 | — | 4,538 | — | ||||||||||||||||||||||||||||||
_____________________________
(1)As of December 31, 2025, the amounts primarily relate to the Mong Duong loan receivable. For both periods presented, amounts also include payment deferrals granted to mining customers as part of our green blend agreements in Chile, the sale of the Redondo Beach land, and the fair value of the Argentine FONINVEMEM receivables. These are included in Loan receivable and Other noncurrent assets on the Consolidated Balance Sheets. See Note 7—Financing Receivables for further information.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 24, 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.