LINDSAY CORP Fair Value Disclosure
Note 14 – Fair Value Measurements
The following table presents the Company’s financial assets and liabilities measured at fair value, based upon the level within the fair value hierarchy in which the fair value measurements fall, as of August 31, 2025 and 2024, respectively:
|
|
August 31, 2025 |
|
|||||||||||||
($ in thousands) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Cash and cash equivalents |
|
$ |
250,575 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
250,575 |
|
Derivative liabilities |
|
|
— |
|
|
|
(14,622 |
) |
|
|
— |
|
|
|
(14,622 |
) |
|
|
August 31, 2024 |
|
|||||||||||||
($ in thousands) |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Cash and cash equivalents |
|
$ |
190,879 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
190,879 |
|
Derivative assets |
|
|
— |
|
|
|
603 |
|
|
|
— |
|
|
|
603 |
|
Derivative liabilities |
|
|
— |
|
|
|
(777 |
) |
|
|
— |
|
|
|
(777 |
) |
The carrying value of long-term debt (including current portion) was $115.3 million and $115.5 million at August 31, 2025 and 2024, respectively. The fair value of this debt was estimated to be $106.4 million and $105.5 million as of August 31, 2025 and 2024, respectively, based on current market rates as of the respective year-ends.
The Company enters into derivative instrument agreements, to manage risk in connection with changes in foreign currency. The Company only enters into derivative instrument agreements with counterparties who have highly rated credit and does not enter into derivative instrument agreements for trading or speculative purposes. The fair values are based on inputs other than quoted prices that are observable for the asset or liability and are determined by standard calculations and models that use readily observable market parameters. These inputs include foreign currency exchange rates and interest rates. Industry standard data providers are the primary source for forward and spot rate information for both interest rates and foreign currency exchange rates.
The Company has entered into various cross currency swaps that mature between the second quarter of fiscal 2026 and the third quarter of fiscal 2028 with a total notional amount of $175.0 million, or €163.2 million. The Company elected the spot method for designating these swaps as net investment hedges. Changes in the fair value of these contracts are reported in accumulated other comprehensive loss on the consolidated balance sheets and the fair value of these contracts is recorded within other noncurrent assets and other noncurrent liabilities on the consolidated balance sheets. The fair value of these contracts as of August 31, 2025, is included in the table above as derivative liabilities. Translation gains and losses are recorded within other comprehensive income related to the Company's net investment hedges. Translation losses were $10.6 million, $1.1 million, and $3.3 million for the years ended August 31, 2025, 2024, and 2023, respectively.
During fiscal 2025, the Company settled foreign currency forward contracts resulting in a net loss of $0.4 million which were recorded in the consolidated statements of earnings. At August 31, 2025 the Company had an outstanding foreign currency forward contract to sell a notional amount of 143.5 million South African rand at fixed prices to settle during the next fiscal quarter. The Company’s foreign currency forward contracts do not qualify as hedges of a net investment in foreign operations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Oct 23, 2025 | Showing above |
| 2024 | Oct 24, 2024 | |
| 2023 | Oct 19, 2023 | |
| 2022 | Oct 20, 2022 | |
| 2021 | Oct 21, 2021 | |
| 2020 | Oct 22, 2020 | |
| 2019 | Oct 31, 2019 | |
| 2018 | Oct 24, 2018 | |
| 2017 | Oct 13, 2017 | |
| 2016 | Oct 18, 2016 | |
| 2015 | Oct 20, 2015 | |
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.