CORPAY, INC.CPAY
CORPAY, INC. Fair Value Disclosure
Fair Value Measurements
Fair value is a market-based measurement that reflects assumptions that market participants would use in pricing an asset or
liability. GAAP discusses valuation techniques, such as the market approach (comparable market prices), the income approach
(present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or
replacement cost). These valuation techniques are based upon observable and unobservable inputs. Observable inputs reflect
market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions.
As the basis for evaluating such inputs, a three-tier value hierarchy prioritizes the inputs used in measuring fair value as
follows:
•Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets.
•Level 2: Observable inputs other than quoted prices that are directly or indirectly observable for the asset or liability,
including quoted prices for similar assets or liabilities in active markets; quoted prices for similar or identical assets or
liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose
significant value drivers are observable.
•Level 3: Unobservable inputs for which there is little or no market data, which require the reporting entity to develop
its own assumptions. The fair value hierarchy also requires an entity to maximize the use of observable inputs and
minimize the use of unobservable inputs when measuring fair value.
The following table presents the Company’s financial assets and liabilities which are measured at fair values on a recurring
basis as of December 31, 2025 and 2024, (in thousands):
Fair Value | Level 1 | Level 2 | Level 3 | |||||
December 31, 2025 | ||||||||
Assets: | ||||||||
Overnight deposits | $192,427 | $— | $192,427 | $— | ||||
Money market | 399,401 | — | 399,401 | — | ||||
Certificates of deposit | 371,843 | — | 371,843 | — | ||||
Treasury bills | 360,085 | — | 360,085 | — | ||||
Interest rate swaps | 1,265 | — | 1,265 | — | ||||
Cross-currency interest rate swap | 13,361 | — | 13,361 | — | ||||
Foreign exchange, interest rate and commodity contracts | 949,026 | — | 949,026 | — | ||||
Total assets | $2,287,408 | $— | $2,287,408 | $— | ||||
Cash collateral for foreign exchange contracts | $175,158 | |||||||
Liabilities: | ||||||||
Interest rate swaps | $24,443 | $— | $24,443 | $— | ||||
Cross-currency interest rate swap | 149,742 | — | 149,742 | — | ||||
Foreign exchange, interest rate and commodity contracts | 655,039 | — | 655,039 | — | ||||
Total liabilities | $829,224 | $— | $829,224 | $— | ||||
Cash collateral obligation for foreign exchange contracts | $356,712 | |||||||
December 31, 2024 | ||||||||
Assets: | ||||||||
Overnight deposits | $140,359 | $— | $140,359 | $— | ||||
Money market | 320,289 | — | 320,289 | — | ||||
Certificates of deposit | 273,082 | — | 273,082 | — | ||||
Treasury bills | 550,514 | — | 550,514 | — | ||||
Interest rate swaps | 19,765 | — | 19,765 | — | ||||
Cross-currency interest rate swap | 30,530 | — | 30,530 | — | ||||
Foreign exchange contracts | 833,695 | — | 833,695 | — | ||||
Total assets | $2,168,234 | $— | $2,168,234 | $— | ||||
Cash collateral for foreign exchange contracts | $34,994 | |||||||
Liabilities: | ||||||||
Interest rate swaps | $9,861 | $— | $9,861 | $— | ||||
Cross-currency interest rate swap | 5,220 | — | 5,220 | — | ||||
Foreign exchange contracts | 724,296 | — | 724,296 | — | ||||
Total liabilities | $739,377 | $— | $739,377 | $— | ||||
Cash collateral obligation for foreign exchange contracts | $718,143 |
The Company has highly-liquid investments classified as cash equivalents, with original maturities of three months or less,
included in our Consolidated Balance Sheets. The Company utilizes Level 2 fair value determinations derived from directly or
indirectly observable (market based) information to determine the fair value of these highly liquid investments. The Company
has certain cash and cash equivalents that are invested in highly liquid investments, such as, overnight deposits, money markets,
certificates of deposit and Treasury bills, with purchased maturities ranging from overnight to three months or less. The value
of overnight deposits is determined based upon the quoted market prices for the treasury securities associated with the deposit.
The value of money market instruments is determined based upon the financial institutions' month-end statement, as these
instruments are not tradable and must be settled directly by us with the respective financial institution. Certificates of deposit
and certain U.S. Treasury bills are valued at cost, plus interest accrued. Given the short-term nature of these instruments, the
carrying value approximates fair value. Foreign exchange derivative contracts are carried at fair value, with changes in fair
value recognized in the Consolidated Statements of Income. The fair value of the Company's derivatives is derived with
reference to a valuation from a derivatives dealer operating in an active market, which approximates the fair value of these
instruments. Interest rate swap derivative contracts are carried at fair value, with changes in fair value recognized in
accumulated other comprehensive loss to the extent designated as highly effective cash flow hedges for accounting purposes.
The fair value represents the net settlement if the contracts were terminated as of the reporting date. Cash collateral received for
foreign exchange derivatives is recorded within customer deposits in our Consolidated Balance Sheets. Cash collateral
deposited for foreign exchange derivatives is recorded within restricted cash in our Consolidated Balance Sheets.
The level within the fair value hierarchy and the measurement technique are reviewed quarterly. Transfers between levels are
deemed to have occurred at the end of the quarter. There were no transfers between fair value levels during the periods
presented for 2025 and 2024.
The Company’s assets that are measured at fair value on a nonrecurring basis and are evaluated with periodic testing for
impairment include property and equipment, investments, goodwill and other intangible assets. Estimates of the fair value of
assets acquired and liabilities assumed in business combinations are generally developed using key inputs such as
management’s projections of cash flows on a held-and-used basis (if applicable), discounted as appropriate, management’s
projections of cash flows upon disposition and discount rates. Accordingly, these fair value measurements are in Level 3 of the
fair value hierarchy.
The Company's derivatives are over-the-counter instruments with liquid markets. The Company determines the fair values of its
derivatives based on quoted market prices for similar assets or liabilities or pricing models using current market
rates. Accordingly, these fair value measurements are in Level 2 of the fair value hierarchy. The amounts exchanged are
calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates, foreign currency
exchange rates, commodity rates or other financial indices. See Note 16 for further information.
The Company regularly evaluates the carrying value of its investments. The carrying value of investments without readily
determinable fair values was $601.9 million and $60.1 million at December 31, 2025 and 2024, respectively.
The fair value of the Company’s cash, accounts receivable, securitized accounts receivable and related facility, prepaid
expenses and other current assets, accounts payable, accrued expenses, customer deposits and short-term borrowings
approximate their respective carrying values due to the short-term maturities of the instruments. The carrying value of the
Company’s debt obligations approximates fair value as the interest rates on the debt are variable market-based interest rates that
reset on a monthly basis. These are each Level 2 fair value measurements, except for cash, which is a Level 1 fair value
measurement.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 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.