METTLER TOLEDO INTERNATIONAL INC/MTD

METTLER TOLEDO INTERNATIONAL INC/ Fair Value Disclosure

10-KFiled Feb 6, 20263 min read
FAIR VALUE MEASUREMENTS
At December 31, 2025 and 2024, the Company had derivative assets totaling $3.2 million and $9.2 million, respectively, and derivative liabilities totaling $37.4 million and $8.5 million, respectively. The Company has limited involvement with derivative financial instruments and therefore does not present all the required disclosures in tabular format. The fair values of the cross currency swap agreements, and the foreign currency forward contracts that economically hedge short-term intercompany balances are estimated based upon inputs from current valuation information obtained from dealer quotes and priced with observable market assumptions and appropriate valuation adjustments for credit risk. The Company has evaluated the valuation methodologies used to develop the fair values by dealers in order to determine whether such valuations are representative of an exit price in the Company’s principal market. In addition, the Company uses an internally developed model to perform testing on the valuations received from brokers. The Company has also considered both its own credit risk and counterparty credit risk in determining fair value and determined these adjustments were insignificant for the years ended December 31, 2025 and 2024.
Under U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement consists of observable and unobservable inputs that reflect the assumptions that a market participant would use in pricing an asset or liability.
A fair value hierarchy has been established that categorizes these inputs into three levels:
Level 1: Quoted prices in active markets for identical assets and liabilities
Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities
Level 3: Unobservable inputs
The following table presents the Company’s assets and liabilities, which are all categorized as Level 2 and are measured at fair value on a recurring basis at December 31, 2025 and 2024. The Company does not have any assets or liabilities which are categorized as Level 1.
 20252024Balance Sheet Location
Foreign currency forward contracts not designated as hedging instruments$3,167 $7,949 Other current assets and prepaid expenses
Cash flow hedges:
Cross currency swap agreement— 855 Other current assets and prepaid expenses
Cross currency swap agreement— 398 Other non-current assets
Total derivative assets$3,167 $9,202 
Foreign currency forward contracts not designated as hedging instruments$5,237 $4,078 Accrued and other liabilities
Cash flow hedges:
Cross currency swap agreements14,287 — Accrued and other liabilities
Cross currency swap agreements17,889 4,463 Other non-current liabilities
Total derivative liabilities$37,413 $8,541 
The Company had $5.1 million and $3.7 million of cash equivalents at December 31, 2025 and 2024, respectively, the fair value of which is determined using Level 2 inputs through quoted and corroborated prices in active markets. The fair value of cash equivalents approximates cost.
The fair value of the Company’s debt is less than the carrying value by approximately $185.7 million as of December 31, 2025. The fair value of the Company’s fixed interest rate debt was estimated using Level 2 inputs and primarily discounted cash flow models, based on estimated current rates offered for similar debt under current market conditions for the Company.

Historical Timeline

Fiscal YearFiled
2025Feb 6, 2026Showing above
2024Feb 7, 2025
2023Feb 9, 2024
2022Feb 10, 2023
2021Feb 11, 2022
2020Feb 8, 2021
2019Feb 7, 2020
2018Feb 8, 2019
2017Feb 9, 2018
2016Feb 2, 2017
2015Feb 4, 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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