JACK HENRY & ASSOCIATES INCJKHY

JACK HENRY & ASSOCIATES INC Fair Value Disclosure

10-KFiled Aug 25, 20251 min read
FAIR VALUE OF FINANCIAL INSTRUMENTS
For cash equivalents, certificates of deposit, amounts receivable or payable, and short-term borrowings, fair values approximate carrying value, based on the short-term nature of the assets and liabilities.
The Company's estimates of the fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets, and requires that observable inputs be used in the valuations when available. The three levels of the hierarchy are as follows:
Level 1: inputs to the valuation are quoted prices in an active market for identical assets.
Level 2: inputs to the valuation include quoted prices for similar assets in active markets that are observable either directly or indirectly.
Level 3: valuation is based on significant inputs that are unobservable in the market and the Company's own estimates of assumptions that we believe market participants would use in pricing the asset.
Financial assets and financial liabilities measured at fair value on a recurring basis are as follows:

Estimated Fair Value MeasurementsTotal Fair
 Level 1Level 2Level 3Value
June 30, 2025   
Financial Assets:
Certificates of Deposit$— $4,620 $— $4,620 
June 30, 2024   
Financial Assets:
Certificates of Deposit$— $3,505 $— $3,505 
Financial Liabilities:
Credit facilities
$— $150,000 $— $150,000 

Historical Timeline

Fiscal YearFiled
2025Aug 25, 2025Showing above
2024Aug 26, 2024
2023Aug 24, 2023
2022Aug 25, 2022
2021Aug 25, 2021
2019Aug 26, 2019
2018Aug 24, 2018
2017Aug 25, 2017
2016Aug 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.

Other Available Disclosures

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