OFS Capital CorpOFS
OFS Capital Corp Fair Value Disclosure
Fair Value of Financial Instruments
Investments
The Company’s investments are carried at fair value and determined in accordance with ASC 820 and a documented valuation policy that is applied in a consistent manner. Pursuant to Rule 2a-5 of the 1940 Act (“Rule 2a-5”), the Board designated OFS Advisor as the valuation designee to perform fair value determinations relating to the Company’s investments, and the Board maintains oversight of OFS Advisor in its capacity as valuation designee, as prescribed in Rule 2a-5. The Company engages third-party valuation firms to provide assistance to OFS Advisor in determining the fair value for a majority of its investments.
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. Fair values are determined with models or other valuation techniques, valuation inputs, and assumptions that market participants would use in pricing an asset or liability. Valuation inputs are organized in a hierarchy that gives the highest priority to prices for identical assets or liabilities quoted in active markets (Level 1) and the lowest priority to fair values based on unobservable inputs (Level 3). The three levels of inputs in the fair value hierarchy are described below:
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2: Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability, and situations where there is little, if any, market activity for the asset or liability at the measurement date.
The inputs into the determination of fair value are based upon the best information under the circumstances and may require management to exercise significant judgment or estimation. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is 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 in its entirety requires judgment, and considers factors specific to the investment. The Company generally categorizes its investment portfolio into Level 3, and to a lesser extent Level 2, of the hierarchy.
The Company assesses the levels of the investments at each measurement date, and transfers between levels are recognized on the measurement date. The following table presents the Company’s transfers of Level 2 and Level 3 debt investments for the years ended December 31, 2025 and 2024, respectively:
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Transfers from Level 2 to Level 3 | $ | 1,289 | $ | 2,596 | |||||||
| Transfers from Level 3 to Level 2 | — | 8,591 | |||||||||
Certain of the Company’s investments are exchanged in the non-public market among banks, CLOs and other institutional investors for loans to large U.S. corporations. The Company classifies these loan investments as Level 2 when a sufficient number of market quotations or indicative prices from pricing services or broker/dealers (collectively, “Indicative Prices”) are available, and the depth of the market is sufficient, in management's judgment, to transact at those prices in amounts approximating the Company’s investment position at the measurement date. Investments for which sufficient Indicative Prices exist are generally valued consistent with such Indicative Prices. Transfers between levels during the reporting periods were due to the availability of reliable Indicative Prices in those periods.
In addition, each quarter, the Company assesses whether an arm’s length transaction occurred in the same security, including the Company’s new investments during the quarter, the cost of which (“Transaction Prices”), may be considered a reasonable indication of fair value for a period of time, generally up to three months after the transaction date or until the initial payment date, in the case of new issue Structured Finance Securities. Portfolio investments with a fair value of $10,432 and $22,086, respectively, were valued at their Transaction Prices at December 31, 2025 and December 31, 2024.
Investments that are not valued using Indicative Prices or Transaction Prices are typically valued using two different valuation techniques. The Company typically estimates the fair value of debt investments by a discounted cash flows technique in which a current price is imputed for the investment based upon an assessment of the expected market yield (or discount rate) for similarly structured investments with a similar level of risk. The Company considers the current contractual interest rate, the maturity and other terms of the investment relative to risk of the portfolio company and various market indices. A key determinant of portfolio-company risk is the leverage through the investment relative to earnings metrics of the portfolio company.
The fair value of Structured Finance Securities are also estimated primarily by discounted cash flow techniques. In valuing such investments, the Company considers underlying CLO performance metrics, including prepayment rates, default rates, loss-on-default and recovery rates, and estimated market yields as a primary source for discounted cash flow fair value estimates, supplemented by actual trades executed in the market at or around period-end, as well as the Indicative Prices provided by broker-dealers in its estimate of the fair value of such investments. The Company also considers operating metrics, typically included in
the governing documents of CLO vehicles, including collateralization tests, concentration limits, defaults, restructuring activity and prepayment rates on the underlying loans, if applicable.
The fair value of the Company’s equity investments, as well as certain of its impaired debt investments, are generally estimated through analysis of the portfolio company's enterprise value under a market approach. Enterprise value means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The primary method for determining enterprise value under the market approach involves an analysis, whereby appropriate multiples are applied to an earnings metric of the portfolio company, typically earnings before net interest expense, income tax expense, depreciation and amortization (“EBITDA”) or revenue. EBITDA and revenue multiples are typically determined based upon review of market comparable transactions and publicly traded comparable companies, if any. The Company may also utilize other portfolio-company earnings metrics to determine enterprise value, such as forecast EBITDA or revenue, or a weighting of multiple factors. At times, the Company may also use a discounted cash flow technique to value its equity securities. Application of these valuation methodologies involves a significant degree of judgment by management.
Due to the inherent uncertainty of determining the fair value of Level 3 investments, the fair value of the investments may differ significantly from the values that would have been used had a ready market or observable inputs existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions, or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company might realize significantly less than the value at which such investment had previously been recorded and incur a realized capital loss. The Company’s investments are subject to market risk as a result of economic and political developments, including impacts from interest rate and inflation rate changes, the ongoing war between Russia and Ukraine, the escalated armed conflict and heightened regional tensions in the Middle East, activity in South America, instability in the U.S. and international banking systems, the agenda of the U.S. presidential administration, including the impact of tariff enactment and tax reductions, trade disputes with other countries, the risk of recession or the impact of the prolonged shutdown of U.S. government services, and related market volatility. Market risk is directly impacted by the volatility and liquidity in the markets in which certain investments are traded and can affect the fair value of the Company’s investments. The Company’s investments are also subject to interest rate risk. Changes in interest rates, including any further potential interest rate reductions approved by the U.S. Federal Reserve, may impact both its cost of funding and the valuation of its investment portfolio.
The following tables present the Company’s investment portfolio measured at fair value on a recurring basis as of December 31, 2025 and 2024, respectively.
| Security | Level 1 | Level 2 | Level 3 | Fair Value at December 31, 2025 | ||||||||||||||||||||||
| Debt investments | $ | — | $ | 14,809 | $ | 165,005 | $ | 179,814 | ||||||||||||||||||
| Equity investments | — | — | 100,596 | 100,596 | ||||||||||||||||||||||
| Structured Finance Securities | — | — | 61,605 | 61,605 | ||||||||||||||||||||||
| $ | — | $ | 14,809 | $ | 327,206 | $ | 342,015 | |||||||||||||||||||
| Security | Level 1 | Level 2 | Level 3 | Fair Value at December 31, 2024 | ||||||||||||||||||||||
| Debt investments | $ | — | $ | 21,837 | $ | 202,368 | $ | 224,205 | ||||||||||||||||||
| Equity investments | — | — | 108,585 | 108,585 | ||||||||||||||||||||||
| Structured Finance Securities | — | — | 76,875 | 76,875 | ||||||||||||||||||||||
| $ | — | $ | 21,837 | $ | 387,828 | $ | 409,665 | |||||||||||||||||||
The following tables provide the primary quantitative information about valuation techniques and the Company’s unobservable inputs to its Level 3 fair value measurements as of December 31, 2025 and 2024. The Company may make changes to the valuation techniques, among techniques otherwise commonly utilized in accordance with its valuation policies, and/or the weighting of techniques used for particular investments based on changes in facts-and-circumstances and depending on the availability of, or changes in, information in order to produce the best estimate of fair value as of the measurement date. In addition to the techniques and unobservable inputs noted in the tables below and in accordance with OFS Advisor’s valuation policy, OFS Advisor, as valuation designee, may also use other valuation techniques and methodologies when determining the fair value measurements of the Company’s investment assets. The tables are not intended to be all-inclusive and only present the most significant unobservable input(s) relevant to the valuation designee’s determination of fair value.
| Fair Value at December 31, 2025 | Valuation technique | Unobservable inputs | Range (Weighted average)(1) | ||||||||||||||||||||
| Debt investments: | |||||||||||||||||||||||
| First lien | $ | 115,014 | Discounted cash flow | Discount rates | 8.61% - 37.50% (12.77%) | ||||||||||||||||||
| 21,925 | Market approach | EBITDA multiples | 3.00x - 8.00x (6.11x) | ||||||||||||||||||||
| 8,225 | Market approach | Revenue multiples | 0.35x - 0.50x (0.35x) | ||||||||||||||||||||
| 10,432 | Market approach | Transaction Price | |||||||||||||||||||||
| Second lien | 2,500 | Discounted cash flow | Discount rates | 13.70% - 13.70% (13.70%) | |||||||||||||||||||
| 448 | Market approach | EBITDA multiples | 9.00x - 9.00x (9.00x) | ||||||||||||||||||||
| 6,461 | Market approach | Revenue multiples | 0.35x - 0.90x (0.70x) | ||||||||||||||||||||
| Structured Finance Securities: | |||||||||||||||||||||||
Subordinated notes(2) | 53,368 | Discounted cash flow | Discount rates | 13.00% - 27.50% (18.73%) | |||||||||||||||||||
| Constant default rate | 2.00% - 3.00% (2.08%) | ||||||||||||||||||||||
| Recovery rate | 65.00% - 65.00% (65.00%) | ||||||||||||||||||||||
Mezzanine debt(2) | 8,074 | Discounted cash flow | Discount margin | 9.10% - 10.70% (9.62%) | |||||||||||||||||||
| Constant default rate | 2.00% - 2.00% (2.00%) | ||||||||||||||||||||||
| Recovery rate | 65.00% - 65.00% (65.00%) | ||||||||||||||||||||||
| Subordinated notes | 163 | Market approach | Net asset value liquidation(3) | ||||||||||||||||||||
| Equity investments: | |||||||||||||||||||||||
| Preferred equity | 12,448 | Market approach | EBITDA multiples | 7.25x - 8.50x (8.46x) | |||||||||||||||||||
| 119 | Market approach | Revenue multiples | 0.50x - 0.50x (0.50x) | ||||||||||||||||||||
| Common equity, warrants and other | 88,029 | Market approach | EBITDA multiples | 6.00x - 14.75x (12.33x) | |||||||||||||||||||
| — | Market approach | Revenue multiples | 0.35x - 0.50x (0.44x) | ||||||||||||||||||||
| $ | 327,206 | ||||||||||||||||||||||
(1) Weighted average is calculated based on the fair value of investments.
(2) The cash flows utilized in the discounted cash flow calculations assume: (i) liquidation of (a) certain distressed investments and (b) all investments currently in default held by the issuing CLO at their current market prices; and (ii) redeployment of proceeds at the issuing CLO’s assumed reinvestment rate.
(3) NAV liquidation represents the fair value, or estimated expected residual value, of the investment.
| Fair Value at December 31, 2024 | Valuation technique | Unobservable inputs | Range (Weighted average)(1) | ||||||||||||||||||||
| Debt investments: | |||||||||||||||||||||||
| First lien | $ | 123,028 | Discounted cash flow | Discount rates | 9.01% - 32.50% (13.07%) | ||||||||||||||||||
| 16,684 | Market approach | EBITDA multiples | 3.00x - 7.27x (5.43x) | ||||||||||||||||||||
| 9,232 | Market approach | Revenue multiples | 0.40x - 0.40x (0.40x) | ||||||||||||||||||||
| 19,093 | Market approach | Transaction Price | |||||||||||||||||||||
| Second lien | 27,400 | Discounted cash flow | Discount rates | 10.84% - 33.45% (15.31%) | |||||||||||||||||||
| 4,913 | Market approach | EBITDA multiples | 8.43x - 8.43x (8.43x) | ||||||||||||||||||||
| 2,018 | Market approach | Revenue multiples | 0.40x - 0.40x (0.40x) | ||||||||||||||||||||
Structured Finance Securities(2): | |||||||||||||||||||||||
| Subordinated notes | 61,308 | Discounted cash flow | Discount rates | 15.00% - 40.00% (22.25%) | |||||||||||||||||||
| Constant default rate | 2.00% - 3.00% (2.07%) | ||||||||||||||||||||||
| Recovery rate | 65.00% - 65.00% (65.00%) | ||||||||||||||||||||||
| 2,993 | Market approach | Transaction Price | |||||||||||||||||||||
| Mezzanine debt | 12,574 | Discounted cash flow | Discount margin | 7.60% - 9.90% (8.89%) | |||||||||||||||||||
| Constant default rate | 2.00% - 3.00% (2.25%) | ||||||||||||||||||||||
| Recovery rate | 65.00% - 65.00% (65.00%) | ||||||||||||||||||||||
| Equity investments: | |||||||||||||||||||||||
| Preferred equity | 12,248 | Market approach | EBITDA multiples | 7.00x - 8.50x (8.46x) | |||||||||||||||||||
| Common equity, warrants and other | 96,337 | Market approach | EBITDA multiples | 5.85x - 15.75x (13.66x) | |||||||||||||||||||
| — | Market approach | Revenue multiples | 0.00x - 0.40x (0.40x) | ||||||||||||||||||||
| $ | 387,828 | ||||||||||||||||||||||
(1) Weighted average is calculated based on the fair value of investments.
(2) The cash flows utilized in the discounted cash flow calculations assume: (i) liquidation of (a) certain distressed investments and (b) all investments currently in default held by the issuing CLO at their current market prices; and (ii) redeployment of proceeds at the issuing CLO’s assumed reinvestment rate.
Changes in market credit spreads or events impacting the credit quality of the underlying portfolio company (both of which could impact the discount rate), as well as changes in enterprise value and/or EBITDA multiples, among other things, could have a significant impact on fair values, with the fair value of a particular debt investment susceptible to change in inverse relation to the changes in the discount rate. Changes in enterprise value and/or EBITDA multiples, as well as changes in the discount rate, could have a significant impact on fair values, with the fair value of an equity investment susceptible to change in tandem with the changes in enterprise value and/or EBITDA multiples, and in inverse relation to changes in the discount rate. Due to the wide range of approaches in developing input assumptions to these valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.
The following tables present changes in investments measured at fair value using Level 3 inputs for the years ended December 31, 2025 and 2024:
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||
| First Lien Debt Investments | Second Lien Debt Investments | Preferred Equity | Common Equity and Warrants | Structured Finance Securities | Total | ||||||||||||||||||||||||||||||
| Level 3 assets, December 31, 2024 | $ | 168,037 | $ | 34,331 | $ | 12,248 | $ | 96,337 | $ | 76,875 | $ | 387,828 | |||||||||||||||||||||||
| Net realized gain (loss) on investments | 7 | (3,786) | — | (498) | (6,933) | (11,210) | |||||||||||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) on investments | 2,521 | (7,533) | (3,777) | (19,264) | (3,920) | (31,973) | |||||||||||||||||||||||||||||
| Amortization of Net Loan Fees | 473 | 198 | — | — | 231 | 902 | |||||||||||||||||||||||||||||
| Accretion of interest income on Structured Finance Securities | — | — | — | — | 11,558 | 11,558 | |||||||||||||||||||||||||||||
| Capitalized PIK interest and dividends | 523 | 850 | 1,346 | — | — | 2,719 | |||||||||||||||||||||||||||||
| Amendment fees received | (58) | — | — | — | — | (58) | |||||||||||||||||||||||||||||
| Purchase and origination of portfolio investments | 25,172 | — | 2,750 | — | 19,628 | 47,550 | |||||||||||||||||||||||||||||
| Proceeds from principal payments on portfolio investments | (10,544) | (7,061) | — | — | (9,133) | (26,738) | |||||||||||||||||||||||||||||
| Sale and redemption of portfolio investments | (19,174) | (7,590) | — | (927) | (12,048) | (39,739) | |||||||||||||||||||||||||||||
| Distributions received from portfolio investments | — | — | — | (269) | (14,653) | (14,922) | |||||||||||||||||||||||||||||
| Conversion from debt investments to equity investments | (12,650) | — | — | 12,650 | — | — | |||||||||||||||||||||||||||||
| Transfers from Level 2 to Level 3 | 1,289 | — | — | — | — | 1,289 | |||||||||||||||||||||||||||||
| Level 3 assets, December 31, 2025 | $ | 155,596 | $ | 9,409 | $ | 12,567 | $ | 88,029 | $ | 61,605 | $ | 327,206 | |||||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
| First Lien Debt Investments | Second Lien Debt Investments | Subordinated Debt Investments | Preferred Equity | Common Equity and Warrants | Structured Finance Securities | Total | |||||||||||||||||||||||||||||||||||
| Level 3 assets, December 31, 2023 | $ | 186,831 | $ | 48,429 | $ | — | $ | 13,240 | $ | 76,689 | $ | 79,045 | $ | 404,234 | |||||||||||||||||||||||||||
| Net realized gain (loss) on investments | (2,663) | (2,136) | (4,376) | (2,911) | 807 | (3,518) | (14,797) | ||||||||||||||||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) on investments | (18) | (498) | 4,680 | 221 | 18,820 | 5,967 | 29,172 | ||||||||||||||||||||||||||||||||||
| Amortization of Net Loan Fees | 937 | 413 | — | — | — | 243 | 1,593 | ||||||||||||||||||||||||||||||||||
| Accretion of interest income on Structured Finance Securities | — | — | — | — | — | 8,731 | 8,731 | ||||||||||||||||||||||||||||||||||
| Capitalized PIK interest and dividends | 669 | 966 | — | 1,098 | — | — | 2,733 | ||||||||||||||||||||||||||||||||||
| Amendment fees received | (281) | — | — | — | — | — | (281) | ||||||||||||||||||||||||||||||||||
| Purchase and origination of portfolio investments | 49,662 | 8,291 | — | — | — | 27,369 | 85,322 | ||||||||||||||||||||||||||||||||||
| Proceeds from principal payments on portfolio investments | (44,511) | (14,069) | (304) | — | — | (5,250) | (64,134) | ||||||||||||||||||||||||||||||||||
| Sale and redemption of portfolio investments | (13,925) | (7,065) | — | (669) | (1,379) | (20,117) | (43,155) | ||||||||||||||||||||||||||||||||||
| Distributions received from portfolio investments | — | — | — | — | — | (15,595) | (15,595) | ||||||||||||||||||||||||||||||||||
| Conversion from debt investments to equity investments | (2,669) | — | — | 1,269 | 1,400 | — | — | ||||||||||||||||||||||||||||||||||
| Transfers from Level 2 to Level 3 | 2,596 | — | — | — | — | — | 2,596 | ||||||||||||||||||||||||||||||||||
| Transfers from Level 3 to Level 2 | (8,591) | — | — | — | — | — | (8,591) | ||||||||||||||||||||||||||||||||||
| Level 3 assets, December 31, 2024 | $ | 168,037 | $ | 34,331 | $ | — | $ | 12,248 | $ | 96,337 | $ | 76,875 | $ | 387,828 | |||||||||||||||||||||||||||
The net unrealized appreciation (depreciation) reported in the Company’s consolidated statements of operations for the years ended December 31, 2025 and 2024, attributable to the Company’s Level 3 assets still held at those respective year ends was as follows:
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Debt investments | $ | (6,688) | $ | (6,518) | |||||||
| Equity investments | (23,541) | 18,680 | |||||||||
| Structured Finance Securities | (9,081) | 2,190 | |||||||||
| Net unrealized appreciation (depreciation) on investments held | $ | (39,310) | $ | 14,352 | |||||||
Other Financial Assets and Liabilities
GAAP requires disclosure of the fair value of financial instruments not reported at fair value on a recurring basis for which it is practical to estimate such values. The Company believes that the carrying amounts of its other financial instruments such as cash, cash equivalents, receivables and payables approximate the fair value of such items due to the short maturity of such financial instruments. The senior secured revolving credit facility between the Company and Banc of California (formally known as Pacific Western Bank), as lender (“Banc of California Credit Facility”) and the secured revolving credit facility that provided for borrowings in an aggregate principal amount up to $80,000 during its reinvestment period, issued pursuant to a Revolving Credit and Security Agreement by and among OFSCC-FS, the lenders from time to time parties thereto, BNP Paribas, as administrative agent, OFSCC-FS Holdings, LLC, a wholly owned subsidiary of the Company, as equity holder, the Company, as servicer, Citibank, N.A., as collateral agent and Virtus Group, LP, as collateral administrator (“BNP Facility”) are variable rate instruments and fair value is approximately book value.
The following tables present the fair value measurements of the Company’s debt and the level within the fair value hierarchy of the significant unobservable inputs used to determine such fair values as of December 31, 2025 and 2024:
| December 31, 2025 | |||||||||||||||||||||||
| Description | Level 1(1) | Level 2 | Level 3(2) | Total | |||||||||||||||||||
Banc of California Credit Facility | $ | — | $ | — | $ | 4,500 | $ | 4,500 | |||||||||||||||
| BNP Facility | — | — | 50,950 | 50,950 | |||||||||||||||||||
OFS Capital Corporation 4.75% Notes due 2026 | — | — | 15,961 | 15,961 | |||||||||||||||||||
OFS Capital Corporation 7.50% Notes due 2028 | 70,877 | — | — | 70,877 | |||||||||||||||||||
OFS Capital Corporation 4.95% Notes due 2028 | 52,118 | — | — | 52,118 | |||||||||||||||||||
OFS Capital Corporation 8.00% Note due 2029 | — | — | 25,333 | 25,333 | |||||||||||||||||||
| Total debt | $ | 122,995 | $ | — | $ | 96,744 | $ | 219,739 | |||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||
| Description | Level 1(1) | Level 2 | Level 3(2) | Total | ||||||||||||||||||||||
Banc of California Credit Facility | $ | — | $ | — | $ | 1,000 | $ | 1,000 | ||||||||||||||||||
| BNP Facility | — | — | 67,350 | 67,350 | ||||||||||||||||||||||
OFS Capital Corporation 4.75% Notes due 2026 | — | — | 121,326 | 121,326 | ||||||||||||||||||||||
OFS Capital Corporation 4.95% Notes due 2028 | 49,698 | — | — | 49,698 | ||||||||||||||||||||||
| Total debt | $ | 49,698 | $ | — | $ | 189,676 | $ | 239,374 | ||||||||||||||||||
(1) For Level 1 measurements, fair value is estimated by using the closing price of the security on The Nasdaq Global Select Market.
(2) For Level 3 measurements, fair value is estimated through discounting remaining payments using current market rates for similar instruments at the measurement date through the legal maturity date.
The following are the carrying values and fair values of the Company’s debt as of December 31, 2025 and 2024:
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||
| Description | Carrying Value(1) | Fair Value | Carrying Value(1) | Fair Value | ||||||||||||||||||||||
Banc of California Credit Facility | $ | 4,500 | $ | 4,500 | $ | 1,000 | $ | 1,000 | ||||||||||||||||||
| BNP Facility | 50,950 | 50,950 | 67,350 | 67,350 | ||||||||||||||||||||||
OFS Capital Corporation 4.75% Notes due 2026 | 15,988 | 15,961 | 124,097 | 121,326 | ||||||||||||||||||||||
OFS Capital Corporation 7.50% Notes due 2028 | 67,498 | 70,877 | — | — | ||||||||||||||||||||||
OFS Capital Corporation 4.95% Notes due 2028 | 54,420 | 52,118 | 54,215 | 49,698 | ||||||||||||||||||||||
OFS Capital Corporation 8.00% Note due 2029 | 24,282 | 25,333 | — | — | ||||||||||||||||||||||
| Total debt | $ | 217,638 | $ | 219,739 | $ | 246,662 | $ | 239,374 | ||||||||||||||||||
(1) Carrying value is calculated as the outstanding principal amount less unamortized deferred debt issuance costs. See Note 2 for details.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 3, 2026 | Showing above |
| 2024 | Mar 4, 2025 | |
| 2023 | Mar 5, 2024 | |
| 2022 | Mar 3, 2023 | |
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.