Core Laboratories Inc. /DE/ Fair Value Disclosure
15. FINANCIAL INSTRUMENTS
The Company’s only financial assets and liabilities which are measured at fair value on a recurring basis relate to certain aspects of the Company’s benefit plans. We use the market approach to determine the fair value of these assets and liabilities using significant other observable inputs (Level 2) with the assistance of a third-party specialist. We do not have any assets or liabilities measured at fair value on a recurring basis using quoted prices in an active market (Level 1) or significant unobservable inputs (Level 3). Gains and losses related to the fair value changes in the financial assets and liabilities are recorded in general and administrative expense in the consolidated statements of operations.
The following table summarizes the fair value balances (in thousands):
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Fair Value Measurement at December 31, 2025 |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Company owned life insurance policies (1) |
|
$ |
26,627 |
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|
$ |
— |
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|
$ |
26,627 |
|
|
$ |
— |
|
|
|
$ |
26,627 |
|
|
$ |
— |
|
|
$ |
26,627 |
|
|
$ |
— |
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|
|
|
|
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|
|
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Liabilities: |
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|
|
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Deferred compensation liabilities |
|
$ |
18,451 |
|
|
$ |
— |
|
|
$ |
18,451 |
|
|
$ |
— |
|
|
|
$ |
18,451 |
|
|
$ |
— |
|
|
$ |
18,451 |
|
|
$ |
— |
|
|
|
Fair Value Measurement at December 31, 2024 |
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Total |
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Level 1 |
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|
Level 2 |
|
|
Level 3 |
|
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Assets: |
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|
|
|
|
|
|
|
|
|
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||||
Company owned life insurance policies (1) |
|
$ |
25,435 |
|
|
$ |
— |
|
|
$ |
25,435 |
|
|
$ |
— |
|
|
|
$ |
25,435 |
|
|
$ |
— |
|
|
$ |
25,435 |
|
|
$ |
— |
|
|
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Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
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Deferred compensation liabilities |
|
$ |
19,103 |
|
|
$ |
— |
|
|
$ |
19,103 |
|
|
$ |
— |
|
|
|
$ |
19,103 |
|
|
$ |
— |
|
|
$ |
19,103 |
|
|
$ |
— |
|
(1) Company owned life insurance policies have cash surrender value and are intended to assist in funding deferred compensation liabilities and other benefit plans.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 23, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
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.