Concentrix CorpCNXC
Concentrix Corp Fair Value Disclosure
NOTE 7—FAIR VALUE MEASUREMENTS:
Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels:
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
The following table summarizes the valuation of the Company’s investments and financial instruments that are measured at fair value on a recurring basis:
| As of November 30, 2025 | As of November 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Fair value measurement category | Fair value measurement category | ||||||||||||||||||||||||||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||
Assets measured at fair value: | |||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, including cash held for sale | $ | 329,404 | $ | 329,404 | $ | — | $ | — | $ | 240,571 | $ | 240,571 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Restricted cash | 191,723 | 191,723 | — | — | 189,033 | 189,033 | — | — | |||||||||||||||||||||||||||||||||||||||
| Forward foreign currency exchange contracts | 914 | — | 914 | — | 14,513 | — | 14,513 | — | |||||||||||||||||||||||||||||||||||||||
| Cross-currency interest rate swaps | 5,343 | — | 5,343 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Liabilities measured at fair value: | |||||||||||||||||||||||||||||||||||||||||||||||
| Forward foreign currency exchange contracts | 21,424 | — | 21,424 | — | 22,322 | — | 22,322 | — | |||||||||||||||||||||||||||||||||||||||
Cross-currency interest rate swaps | 49,319 | — | 49,319 | — | 7,468 | — | 7,468 | — | |||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 3,357 | — | 3,357 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Acquisition contingent consideration | 7,866 | — | — | 7,866 | 13,373 | — | — | 13,373 | |||||||||||||||||||||||||||||||||||||||
Liabilities measured at other than fair value: | |||||||||||||||||||||||||||||||||||||||||||||||
Long term debt (senior notes) | |||||||||||||||||||||||||||||||||||||||||||||||
Fair value | 2,184,727 | — | 2,184,727 | — | 2,202,221 | — | 2,202,221 | — | |||||||||||||||||||||||||||||||||||||||
Carrying amount | 2,139,537 | — | — | — | 2,135,576 | — | — | — | |||||||||||||||||||||||||||||||||||||||
The Company’s cash and cash equivalents, including cash held for sale, consist primarily of cash on hand, including bank deposits, money market fund securities, and term deposits with maturity periods of three months or less. The carrying values of cash equivalents approximate fair value since they are near their maturity. Restricted cash balances relate primarily to funds held for clients. The carrying values of restricted cash balances approximate
fair value since they are highly liquid and short-term in nature. The Company does not adjust the quoted market price for such financial instruments. The fair values of forward exchange contracts are measured based on the foreign currency spots, forward rates, and volatility. Fair values of long-term foreign currency exchange contracts are measured using valuations based upon quoted prices for similar assets and liabilities in active markets and are valued by reference to similar financial instruments, adjusted for terms specific to the contracts. The fair values of the cross-currency interest rate swaps are determined using a market approach that is based on observable inputs other than quoted market prices, including contract terms, interest rates, currency rates, and other market factors. The estimated fair value of the acquisition contingent consideration entered into in connection with the Webhelp Combination is determined using a Monte-Carlo simulation model. The inputs include the closing price of Concentrix common stock as of the reporting period end date, Concentrix-specific historical equity volatility, and the risk-free rate. The inputs for this liability are unobservable, and therefore, are classified within Level 3 of the fair value hierarchy. Changes in the fair value of this liability are recorded in other expense (income), net on the consolidated statement of operations.
The effect of nonperformance risk on the fair value of derivative instruments was not material as of November 30, 2025 and 2024.
The carrying values of term deposits with maturities less than one year, accounts receivable and accounts payable approximate fair value due to their short maturities and interest rates that are variable in nature. The carrying values of the outstanding balance on the term loans under the Company’s senior credit facility and the outstanding balance on the Company’s accounts receivable securitization facility (the “Securitization Facility”) approximate their fair values since they bear interest rates that are similar to existing market rates. The fair values of the 2026 Notes, 2028 Notes, and 2033 Notes (as defined in Note 8) are based on quoted prices in active markets and are classified within Level 2 of the fair value hierarchy. The Company does not adjust the quoted market prices for such financial instruments.
During fiscal years 2025, 2024 and 2023, there were no transfers between the fair value measurement category levels.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 28, 2026 | Showing above |
| 2024 | Jan 28, 2025 | |
| 2023 | Jan 29, 2024 | |
| 2022 | Jan 27, 2023 | |
| 2021 | Jan 28, 2022 | |
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.