MINERALS TECHNOLOGIES INCMTX

MINERALS TECHNOLOGIES INC Fair Value Disclosure

10-KFiled Feb 20, 20263 min read
Note 13.  Fair Value of Financial Instruments
 
Fair value is an exchange price that would be received for an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability. The Company follows a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs about which little or no market data exists, therefore requiring an entity to develop its own assumptions.
 
Assets and liabilities measured at fair value are based on one or more of three valuation techniques. The three valuation techniques are as follows:
 
  • Market approach – prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.
  • Cost approach – amount that would be required to replace the service capacity of an asset or replacement cost.
  • Income approach – techniques to convert future amounts to a single present amount based on market expectations, including present value techniques, option-pricing, and other models.
 
The Company primarily applies the income approach for foreign exchange derivatives for recurring fair value measurements and attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.
 
The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities accounted for at fair value on a recurring basis at the end of each of the past two years. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.
 
                 
(in millions of dollars)     Fair Value Measurements Using
   Asset /    Quoted Prices in   Significant   Significant 
   (Liability)   Active Markets for   Other Observable   Unobservable  
   Balance at   Identical Assets   Inputs   Inputs 
Description  December 31, 2025   (Level 1)   (Level 2)   (Level 3) 
Deferred compensation plan assets $13.9  $-  $13.9  $- 
                 
Supplementary pension plan assets  40.1   -   40.1   - 
                 
Interest rate swap  (0.2)   -   (0.2)   - 
      Fair Value Measurements Using
   Asset /    Quoted Prices in   Significant   Significant 
   (Liability)   Active Markets for   Other Observable   Unobservable  
   Balance at   Identical Assets   Inputs   Inputs 
Description  December 31, 2024   (Level 1)   (Level 2)   (Level 3) 
Deferred compensation plan assets $13.6  $-  $13.6  $- 
                 
Supplementary pension plan assets  19.4   -   19.4   - 
                 
Interest rate swap  0.3   -   0.3   - 
 
The fair value of foreign exchange contracts is determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets and are categorized as Level 2. Deferred compensation and supplementary pension plan assets related to the Company’s 2014 acquisition of AMCOL International Corporation are valued using quoted prices for similar assets in active markets.
 
The Company does not have any financial assets or liabilities measured at fair value on a recurring basis categorized as Level 3, except for pension assets discussed in Note 16, and there were no transfers in or out of Level 3 during the year ended December 31, 2025 and 2024. There were also no changes to the Company’s valuation techniques used to measure asset and liability fair values on a recurring basis.
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Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 21, 2025
2023Feb 16, 2024
2022Feb 17, 2023
2021Feb 18, 2022
2020Feb 19, 2021
2019Feb 14, 2020
2018Feb 15, 2019
2017Feb 16, 2018
2016Feb 17, 2017
2015Feb 19, 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

Income TaxesRevenueEarnings Per SharePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsNew StandardsPay vs Performance