FORMFACTOR INCFORM
FORMFACTOR INC Fair Value Disclosure
Fair Value
Whenever possible, the fair values of our financial assets and liabilities are determined using quoted market prices of identical securities or quoted market prices of similar securities from active markets. The three levels of inputs that may be used to measure fair value are as follows:
•Level 1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical securities;
•Level 2 valuations utilize significant observable inputs, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
•Level 3 valuations utilize unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances.
We did not have any transfers of assets or liabilities measured at fair value on a recurring basis to or from Level 1, Level 2 or Level 3 during fiscal 2025, 2024 or 2023.
The carrying values of Cash, Accounts receivable, net, Restricted cash, Prepaid expenses and other current assets, Accounts payable, and Accrued liabilities approximate fair value due to their short maturities.
No changes were made to our valuation techniques during fiscal 2025.
Cash Equivalents
The fair value of our cash equivalents is determined based on quoted market prices for similar or identical securities.
Marketable Securities
We classify our marketable securities as available-for-sale and value them utilizing a market approach. Our investments are priced by pricing vendors who provide observable inputs for their pricing without applying significant judgment. Broker pricing is used mainly when a quoted price is not available, the investment is not priced by our pricing vendors or when a broker price is more reflective of fair value. Our broker-priced investments are categorized as Level 2 investments because fair value is based on similar assets without applying significant judgments. In addition, all of our investments have a sufficient level of trading volume to demonstrate that the fair value is appropriate.
Assets and liabilities Measured at Fair Value on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):
| December 27, 2025 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash equivalents: | |||||||||||||||||||||||
| Money market funds | $ | 62,017 | $ | — | $ | — | $ | 62,017 | |||||||||||||||
| Commercial paper | — | 500 | — | 500 | |||||||||||||||||||
| 62,017 | 500 | — | 62,517 | ||||||||||||||||||||
| Marketable securities: | |||||||||||||||||||||||
| U.S. treasuries | 76,626 | — | — | 76,626 | |||||||||||||||||||
| U.S. agency securities | — | 12,905 | — | 12,905 | |||||||||||||||||||
| Corporate bonds | — | 74,897 | — | 74,897 | |||||||||||||||||||
| Commercial paper | — | 7,414 | — | 7,414 | |||||||||||||||||||
| 76,626 | 95,216 | — | 171,842 | ||||||||||||||||||||
| Promissory note receivable | — | — | 1,522 | 1,522 | |||||||||||||||||||
| Interest rate swap derivative contracts | — | 1,422 | — | 1,422 | |||||||||||||||||||
| Total assets | $ | 138,643 | $ | 97,138 | $ | 1,522 | $ | 237,303 | |||||||||||||||
| December 28, 2024 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash equivalents: | |||||||||||||||||||||||
| Money market funds | $ | 131,519 | $ | — | $ | — | $ | 131,519 | |||||||||||||||
| Marketable securities: | |||||||||||||||||||||||
| U.S. treasuries | 71,252 | — | — | 71,252 | |||||||||||||||||||
| U.S. agency securities | — | 13,869 | — | 13,869 | |||||||||||||||||||
| Corporate bonds | — | 83,176 | — | 83,176 | |||||||||||||||||||
| Commercial paper | — | 998 | — | 998 | |||||||||||||||||||
| 71,252 | 98,043 | — | 169,295 | ||||||||||||||||||||
| Promissory note receivable | — | — | 1,512 | 1,512 | |||||||||||||||||||
| Interest rate swap derivative contracts | — | 2,025 | — | 2,025 | |||||||||||||||||||
| Total assets | $ | 202,771 | $ | 100,068 | $ | 1,512 | $ | 304,351 | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Foreign exchange derivative contracts | $ | — | $ | (1,141) | $ | — | $ | (1,141) | |||||||||||||||
| Total liabilities | $ | — | $ | (1,141) | $ | — | $ | (1,141) | |||||||||||||||
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
We measure and report our non-financial assets such as Property, plant and equipment, Equity investment, Goodwill and Intangible assets at fair value on a non-recurring basis if we determine these assets to be impaired or in the period when we make a business acquisition or investment. Other than as discussed in Note 4, Acquisition, there were no assets or liabilities measured at fair value on a non-recurring basis during fiscal 2025, 2024 or 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Mar 15, 2017 | |
| 2015 | Mar 4, 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.