ICF International, Inc. Fair Value Disclosure
NOTE 11 - FAIR VALUE
Financial instruments measured at fair value on a recurring basis and their location within the accompanying consolidated financial statements are as follows:
|
December 31, 2025 |
|
|
|
|||||||||||||
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
Location on Balance Sheet |
||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Company-owned life insurance policies |
$ |
— |
|
|
$ |
26,373 |
|
|
$ |
— |
|
|
$ |
26,373 |
|
|
Other assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest swaps - current portion |
$ |
— |
|
|
$ |
615 |
|
|
$ |
— |
|
|
$ |
615 |
|
|
Accrued expenses and other current liabilities |
Interest swaps - long-term portion |
|
— |
|
|
|
2,060 |
|
|
|
— |
|
|
|
2,060 |
|
|
Other long-term liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
December 31, 2024 |
|
|
|
|||||||||||||
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
Location on Balance Sheet |
||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate swaps - current portion |
$ |
— |
|
|
$ |
825 |
|
|
$ |
— |
|
|
$ |
825 |
|
|
Prepaid expenses and other assets |
Interest rate swaps - long-term portion |
|
— |
|
|
|
129 |
|
|
|
— |
|
|
|
129 |
|
|
Other assets |
Company-owned life insurance policies |
|
— |
|
|
|
23,174 |
|
|
|
— |
|
|
|
23,174 |
|
|
Other assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest swaps - current portion |
$ |
— |
|
|
$ |
15 |
|
|
$ |
— |
|
|
$ |
15 |
|
|
Accrued expenses and other current liabilities |
Interest swaps - long-term portion |
|
— |
|
|
|
153 |
|
|
|
— |
|
|
|
153 |
|
|
Other long-term liabilities |
Financial and non-financial instruments measured or re-measured at fair value on a non-recurring basis after initial measurement include certain impaired right-of-use assets from operating leases (see “Note 19 - Exit Activities”) using the discounted cash flows method with Level 3 inputs as of the impairment dates.
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.