EQUINIX INCEQIX

EQUINIX INC Fair Value Disclosure

10-KFiled Feb 11, 20262 min read
Fair Value Measurements
We perform fair value measurements in accordance with ASC 820, Fair Value Measurement, which establishes three levels of inputs that we use to measure fair value:
•Level 1: quoted prices in active markets for identical assets or liabilities.
•Level 2: observable inputs (e.g., spot rates and other data from third-party pricing vendors for our derivative instruments, credit rating and current prices of similar debt instruments that are publicly traded for our debt instruments) other than quoted market prices included within Level 1 that are observable, either directly or indirectly, for the assets or liabilities.
•Level 3: unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities, including indicative pricing from third parties for similar instruments and asset-specific yield adjustments for elements such as credit risk.
The fair values of certain financial assets and liabilities as of December 31 were as follows (in millions):
20252024
Fair ValueFair Value Measurement UsingFair ValueFair Value Measurement Using
Level 1Level 2Level 3Level 1Level 2Level 3
Assets:
Money market funds (1)
$1,333 $1,333 $— $— $2,401 $2,401 $— $— 
Time deposits (2)
1,271 — 1,271 — 642 115 527 — 
U.S. government securities (3)
256 — 256 — — — — — 
Loan receivable (4)
351 — — 351 280 — — 280 
Derivative instruments (5)
255 — 255 — 591 — 591 — 
Total$3,466 $1,333 $1,782 $351 $3,914 $2,516 $1,118 $280 
Liabilities:
Derivative instruments (5)
$229 $— $229 $— $72 $— $72 $— 
Mortgage and loans payable (6)
706 — 706 — 654 — 654 — 
Senior notes (6)
17,297 16,847 450 — 13,342 12,851 491 — 
Total$18,232 $16,847 $1,385 $— $14,068 $12,851 $1,217 $— 
(1)Instruments are included within cash and cash equivalents in the consolidated balance sheets, and are measured at fair value.
(2)Instruments are included within cash and cash equivalents and short-term investments in the consolidated balance sheets, and are measured at amortized cost.
(3)Instruments are included within short-term investments in the consolidated balance sheets, and are measured at amortized cost. All of our U.S. government securities are held to maturity and mature within one year. As of December 31, 2025, no allowance for credit losses was recorded for these securities and there are insignificant unrecognized gains and losses.
(4)Instrument is included within other assets in the consolidated balance sheets, and is measured at amortized cost. Refer to Note 15.
(5)Instruments are included within other current assets, other assets, other current liabilities and other liabilities in the consolidated balance sheets, and are measured at fair value. Refer to Note 7.
(6)Include current and non-current portions and are measured at amortized cost. Refer to Note 10.

Historical Timeline

Fiscal YearFiled
2025Feb 11, 2026Showing above
2024Feb 12, 2025
2023Feb 16, 2024
2022Feb 17, 2023
2021Feb 18, 2022
2020Feb 19, 2021
2019Feb 21, 2020
2018Feb 22, 2019
2017Feb 26, 2018
2016Feb 27, 2017
2015Feb 26, 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.

Other Available Disclosures

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