KILROY REALTY CORPKRC

KILROY REALTY CORP Fair Value Disclosure

10-KFiled Feb 11, 20261 min read
Fair Value Measurements and Disclosures
The only assets we record at fair value on a recurring basis in our consolidated financial statements are the marketable securities related to our Deferred Compensation Plan (See Note 15 “Employee Benefit Plans” for additional information). The following table sets forth the fair value of our Deferred Compensation Plan:

Fair Value (Level 1) (1)
December 31, 2025December 31, 2024
Description(in thousands)
Deferred Compensation Plan assets (2)
$30,807 $27,965 
____________________
(1)Based on quoted prices in active markets for identical securities.
(2)The Deferred Compensation Plan assets are held in a limited rabbi trust.

Financial Instruments Disclosed at Fair Value

The following table sets forth the carrying value and the fair value of our other financial instruments: 

December 31, 2025December 31, 2024
Carrying Value
Fair Value
Carrying Value
Fair Value
(in thousands)
Liabilities
Secured debt, net$592,685 $587,244 $598,199 $569,061 
Unsecured debt, net$3,996,774 $3,834,485 $3,999,566 $3,681,914 

Fair value is calculated using Level 2 inputs, which are based on model-derived valuations in which significant inputs and significant value drivers are observable in active markets.

Historical Timeline

Fiscal YearFiled
2025Feb 11, 2026Showing above
2024Feb 13, 2025
2023Feb 9, 2024
2022Feb 10, 2023
2021Feb 10, 2022
2020Feb 12, 2021
2019Feb 13, 2020
2018Feb 15, 2019
2017Feb 13, 2018
2016Feb 15, 2017
2015Feb 12, 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

RevenueEarnings Per SharePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew Standards