MAGNACHIP SEMICONDUCTOR Corp Fair Value Disclosure
ASC 820 defines fair value, establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements. ASC 820 requires, among other things, the Company’s valuation techniques used to measure fair value to maximize the use of observable inputs and minimize the use of unobservable inputs.
Fair Value of Financial Instruments
As of December 31, 2025, the following table represents the Company’s assets and liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands):
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Carrying Value |
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Fair Value |
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Quoted Prices in |
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Significant |
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|
Significant |
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Assets: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(other current assets) |
|
$ |
3 |
|
|
$ |
3 |
|
|
|
— |
|
|
$ |
3 |
|
|
|
— |
|
Liabilities: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(other current liabilities) |
|
$ |
1,644 |
|
|
$ |
1,644 |
|
|
|
— |
|
|
$ |
1,644 |
|
|
|
— |
|
(other non-current |
|
$ |
126 |
|
|
$ |
126 |
|
|
|
— |
|
|
$ |
126 |
|
|
|
— |
|
As of December 31, 2024, the following table represents the Company’s liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands):
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Carrying Value |
|
|
Fair Value |
|
|
Quoted Prices in |
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Significant |
|
|
Significant |
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|||||
Liabilities: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(other current liabilities) |
|
$ |
1,956 |
|
|
$ |
1,956 |
|
|
|
— |
|
|
$ |
1,956 |
|
|
|
— |
|
Items not reflected in the table above include cash equivalents, accounts receivable, other receivables, accounts payable, and other accounts payable, the fair value of which approximates carrying values due to the short-term nature of these instruments. The fair value of assets and liabilities whose carrying value approximates fair value is determined using Level 2 inputs. The carrying value of the Company’s outstanding Term Loan and CAPEX Loan approximates its fair value because its interest rate reflects the market rate for the respective periods. The fair value of this debt is categorized within Level 2 of the fair value hierarchy.
Fair Values Measured on a Non-recurring Basis
The Company’s non-financial assets, such as property, plant and equipment, and intangible assets are recorded at fair value upon acquisition and are remeasured at fair value only if an impairment charge is recognized. For the year ended December 31, 2025, the Company did not have any assets or liabilities measured at fair value on a non-recurring basis. For the year ended December 31, 2024, the Company remeasured the fair value of certain tangible and intangible assets in connection with the impairment assessment of its Display business, which was classified as discontinued operations in the current year.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Mar 9, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 22, 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.