Concentra Group Holdings Parent, Inc.CON

Concentra Group Holdings Parent, Inc. Fair Value Disclosure

10-KFiled Feb 26, 20262 min read
Fair Value of Financial Instruments
Financial instruments which are measured at fair value, or for which a fair value is disclosed, are classified in the fair value hierarchy, as outlined below, on the basis of the observability of the inputs used in the fair value measurement:
•Level 1 – inputs are based upon quoted prices for identical instruments in active markets.
•Level 2 – inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data.
•Level 3 – inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the instrument.
The fair values of the Company’s derivative instruments are based on quotes from the market makers that derive fair values from market data, and therefore are classified as Level 2.
The Company does not measure its indebtedness at fair value in its consolidated balance sheets. The fair value of the Credit Facilities is based on quoted market prices for this debt in the syndicated loan market. The fair value of the Concentra senior notes is based on quoted market prices. The carrying value of the Company’s other debt, as disclosed in Note 9—“Long-Term Debt”, approximates fair value.
We did not have any Level 3 financial assets or liabilities in any period presented.
The fair values and the levels within the fair value hierarchy of financial instruments recorded on the consolidated balance sheets were (in thousands):
December 31, 2025December 31, 2024
Financial InstrumentLevel
Balance Sheet Classification
Carrying ValueFair ValueCarrying ValueFair Value
Derivatives designated as hedging instruments
(in thousands)
Swap contracts
Level 2
Current liability
$(1,257)$(1,257)$— $— 
Swap contracts
Level 2
Non-current liability
(2,180)(2,180)— — 
Total swap contracts
(3,437)(3,437)— — 
Collar contracts
Level 2
Current liability
(202)(202)— — 
Collar contracts
Level 2
Non-current liability
(771)(771)— — 
Total collar contracts
(973)(973)— — 
Total fair value
$(4,410)$(4,410)$— $— 
6.875% senior notes
Level 2$639,644 $680,316 $638,075 $660,972 
Credit facilities:
Revolving Credit Facility
Level 2— — — — 
Term Loan
Level 2$931,247 $949,947 $835,412 $853,174 
The Company’s other financial instruments, which primarily consist of cash, accounts receivable, and accounts payable approximate fair value because of the short-term maturities of these instruments.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Mar 3, 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.

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