ZoomInfo Technologies Inc.GTM
ZoomInfo Technologies Inc. Fair Value Disclosure
Note 8 - Fair Value
The Company's financial instruments consist principally of cash and cash equivalents, short-term investments, long-term investments (included in Deferred costs and other assets, net of current portion on our Consolidated Balance Sheets), prepaid expenses and other current assets, accounts receivable, and accounts payable, accrued expenses, and long-term debt. The carrying value of cash and cash equivalents, prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses approximate fair value, primarily due to short maturities. We classify our certificates of deposits and money market mutual funds as Level 1 within the fair value hierarchy. We classify our corporate debt securities, securities guaranteed by the U.S. government, and certificates of deposits as Level 2 within the fair value hierarchy. The fair value of our First Lien Term Loan and Senior Notes was $577.8 million and $611.0 million as of December 31, 2025, and $584.0 million and $585.0 million as of December 31, 2024, respectively, based on observable market prices in less active markets and categorized as Level 2 within the fair value measurement framework.
Interest rate derivatives are valued using an income approach that projects future cash flows and discounts them to present value. Significant Level 2 inputs include observable market data such as SOFR and OIS yield curves. The discount rates used reflect the collateralized or uncollateralized nature of the instrument and associated credit risk.
We estimate the value of other long-lived assets that are recorded at fair value on a non-recurring basis based on a market valuation approach. We use prices and other relevant information generated primarily by recent market transactions involving similar or comparable assets, as well as our historical experience in divestitures, acquisitions and real estate transactions. Additionally, we may use a cost valuation approach to value long-lived assets when a market valuation approach is unavailable. Under this approach, we determine the cost to replace the service capacity of an asset, adjusted for physical and economic obsolescence. When available, we use valuation inputs from independent valuation experts, such as real estate appraisers and brokers, to corroborate our estimates of fair value. Real estate appraisers’ and brokers’ valuations are typically developed using one or more valuation techniques including market, income, and replacement cost approaches. Because these valuations contain unobservable inputs, we classify the measurement of fair value of long-lived assets as Level 3.
The fair value of our financial assets (liabilities) was determined using the following inputs (in millions):
| Fair Value at December 31, 2025 | Level 1 | Level 2 | Level 3 | ||||||||||||||
| Measured on a recurring basis: | |||||||||||||||||
| Assets: | |||||||||||||||||
Cash equivalents:(1) | |||||||||||||||||
| Certificates of deposit | $ | 10.6 | $ | — | $ | — | |||||||||||
| Money market mutual funds | 1.2 | — | — | ||||||||||||||
| Investments: | |||||||||||||||||
| Corporate debt securities | $ | — | $ | 1.5 | $ | — | |||||||||||
| Securities guaranteed by U.S. government | — | 2.5 | — | ||||||||||||||
Derivative assets:(2) | |||||||||||||||||
| Interest rate swap contracts | $ | — | $ | 1.4 | $ | — | |||||||||||
| Total | $ | 11.8 | $ | 5.4 | $ | — | |||||||||||
| Measured on a non-recurring basis: | |||||||||||||||||
| Assets: | |||||||||||||||||
Impaired lease-related assets(3) | $ | — | $ | — | $ | 4.0 | |||||||||||
| Total | $ | — | $ | — | $ | 4.0 | |||||||||||
| Fair Value at December 31, 2024 | Level 1 | Level 2 | Level 3 | ||||||||||||||
| Measured on a recurring basis: | |||||||||||||||||
| Assets: | |||||||||||||||||
Cash equivalents:(1) | |||||||||||||||||
| Certificates of deposit | $ | 8.4 | $ | — | $ | — | |||||||||||
| Money market mutual funds | 6.0 | — | — | ||||||||||||||
Derivative assets:(2) | |||||||||||||||||
| Interest rate swap contracts | $ | — | $ | 18.5 | $ | — | |||||||||||
| Interest rate swap contracts | — | 1.4 | — | ||||||||||||||
Total | $ | 14.4 | $ | 19.9 | $ | — | |||||||||||
| Measured on a non-recurring basis: | |||||||||||||||||
Impaired lease-related assets(3) | $ | — | $ | — | $ | 31.5 | |||||||||||
| Total | $ | — | $ | — | $ | 31.5 | |||||||||||
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(1)Refer to Note 3 - Investments for further information regarding the fair value of our financial instruments.
(2)Refer to Note 7 - Derivatives and Hedging Activities for further information regarding the fair value of our derivative instruments.
(3)Consists of right-of-use lease assets and property and equipment recorded at fair value pursuant to impairment charges that occurred during the fourth quarter of 2025 and second and third quarters of 2024. Refer to Note 12 - Leases for further information regarding the impairment of lease-related assets.
There were no transfers between fair value measurements levels during the years ended December 31, 2025 and 2024.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 26, 2021 | |
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.