NATURES SUNSHINE PRODUCTS INCNATR

NATURES SUNSHINE PRODUCTS INC Fair Value Disclosure

10-KFiled Mar 10, 20262 min read
FAIR VALUE
 
The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values of each financial instrument. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories:
 
Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.
Level 3: Unobservable inputs that are not corroborated by market data.
 
The following table presents our hierarchy for assets measured at fair value on a recurring basis as of December 31, 2025 (dollar amounts in thousands):
 Level 1Level 2Level 3 
 Quoted Prices
in Active
Markets for
Identical Assets		Significant
Other
Observable
Inputs		Significant
Unobservable
Inputs		Total
Restricted investment securities - trading$1,132 $— $— $1,132 
Total assets measured at fair value on a recurring basis$1,132 $— $— $1,132 
 
The following table presents our hierarchy for assets measured at fair value on a recurring basis as of December 31, 2024 (dollar amounts in thousands):
 Level 1Level 2Level 3 
 Quoted Prices
in Active
Markets for
Identical Assets		Significant
Other
Observable
Inputs		Significant
Unobservable
Inputs		Total
Restricted investment securities - trading$915 $— $— $915 
Total assets measured at fair value on a recurring basis$915 $— $— $915 
 
Restricted investment securities - trading — Our trading portfolio consists of various marketable securities that are valued using quoted prices in active markets.
 
For the years ended December 31, 2025 and 2024, there were no fair value measurements using significant other observable inputs (Level 2) or significant unobservable inputs (Level 3).
During the years ended December 31, 2025 and 2024, we did not have any re-measurements of non-financial assets at fair value on a nonrecurring basis subsequent to their initial recognition.

Historical Timeline

Fiscal YearFiled
2025Mar 10, 2026Showing above
2024Mar 11, 2025
2023Mar 12, 2024
2022Mar 16, 2023
2021Mar 8, 2022
2020Mar 10, 2021
2019Mar 11, 2020
2018Mar 8, 2019
2017Mar 16, 2018
2016Mar 14, 2017
2015Mar 14, 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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