CCC Intelligent Solutions Holdings Inc. Fair Value Disclosure

5. FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Interest Rate Swaps—In February 2025, the Company entered into three interest rate swap agreements to reduce its exposure to variability from future cash flows resulting from interest rate risk related to its floating rate long-term debt (see Note 15). The fair value of the interest rate swap agreements was estimated using inputs that were observable or that could be corroborated by observable market data and therefore was classified within Level 2 of the fair value hierarchy as of December 31, 2025.

The Company does not designate its interest rate swap agreements as hedging instruments and records the changes in fair value within other income (expense)—net on the consolidated statements of operations and comprehensive (loss) income. As of December 31, 2025, the interest rate swap agreements had a fair value liability of $7.4 million. The fair value of the interest rate swap agreements is classified within other liabilities in the accompanying consolidated balance sheet as of December 31, 2025.

Interest Rate Cap—In August 2022, the Company entered into two interest rate cap agreements to reduce its exposure to increases in interest rates applicable to its floating rate long-term debt (See Note 15). The fair value of the interest rate cap agreements was estimated using inputs that were observable or that could be corroborated by observable market data and therefore, was classified within Level 2 of the fair value hierarchy as of December 31, 2024. The interest rate cap agreements expired in July 2025.

The Company did not designate its interest rate cap agreements as hedging instruments and recorded the changes in fair value within other (expense) income-net on the consolidated statement of operations and comprehensive income (loss). The interest rate cap agreements' fair value was $1.0 million, classified within other assets in the accompanying consolidated balance sheet as of December 31, 2024.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis—The Company has assets that under certain conditions are subject to measurement at fair value on a nonrecurring basis. These assets include those associated with acquired businesses, including goodwill and other intangible assets. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if one or more is determined to be impaired.

The Company did not recognize any impairment charges related to these assets during the year ended December 31, 2025 and 2024. During the year ended December 31, 2023, the Company recognized impairment charges related to its China reporting unit’s goodwill and intangible assets (See Note 11).

Fair Value of Other Financial Instruments—The following table presents the carrying amounts, net of debt discount, and estimated fair values of the Company’s financial instruments that are not recorded at fair value on the consolidated balance sheets (in thousands):

The fair value of the Company’s long-term debt, including current maturities, was estimated based on the quoted market prices for the same or similar instruments and fluctuates with changes in applicable interest rates among other factors. The fair value of long-term debt is classified as a Level 2 measurement in the fair value hierarchy and is established based on observable inputs in less active markets.