NORDSON CORPNDSN

NORDSON CORP Fair Value Disclosure

10-KFiled Dec 17, 20252 min read
Note 11 — Fair value measurements
The inputs to the valuation techniques used to measure fair value are classified into the following 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 tables present the classification of our assets and liabilities measured at fair value on a recurring basis:
2025TotalLevel 1Level 2Level 3
Net derivative contracts (1)
$(55,367)$— $(55,367)$— 
Deferred compensation plans (2)
$(11,885)$— $(11,885)$— 
2024TotalLevel 1Level 2Level 3
Net derivative contracts (1)
$(16,388)$— $(16,388)$— 
Deferred compensation plans (2)
$(9,615)$— $(9,615)$— 
(1) Derivative contracts are valued using an industry standard market approach, in which prices and other relevant information is generated by market transactions involving identical or comparable assets or liabilities. Refer to Note 12 for balance sheet classification of derivatives.
(2) Executive officers and other highly compensated employees may defer up to 100 percent of their salary and annual cash incentive compensation and for executive officers, up to 90 percent of their long-term incentive compensation, into various non-qualified deferred compensation plans. Deferrals can be allocated to various market performance measurement funds. Changes in the value of compensation deferred under these plans are recognized each period based on the fair value of the underlying measurement funds.
The carrying amounts and fair values of financial instruments, other than cash and cash equivalents, receivables and accounts payable, are shown in the table below. The carrying values of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term nature of these instruments.
20252024
Carrying
Amount		Fair ValueCarrying
Amount		Fair Value
Long-term debt (including current portion)$1,996,254 $2,038,869 $2,186,840 $2,219,414 
Long-term debt is valued by discounting future cash flows at currently available rates for borrowing arrangements with similar terms and conditions, which are considered to be Level 2 inputs under the fair value hierarchy. The carrying amount of long-term debt is shown net of unamortized debt issuance costs and bond discounts as described in the Long-term debt Note.

Historical Timeline

Fiscal YearFiled
2025Dec 17, 2025Showing above
2024Dec 18, 2024
2023Dec 20, 2023
2022Dec 19, 2022
2021Dec 17, 2021
2020Dec 18, 2020
2019Dec 13, 2019
2018Dec 14, 2018
2017Dec 15, 2017
2016Dec 15, 2016
2015Dec 15, 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.

Other Available Disclosures

Income TaxesRevenueGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance