UNIVERSAL DISPLAY CORP \PA\ Fair Value Disclosure
The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2025 (in thousands):
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|
|
|
|
Fair Value Measurements, Using |
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Total Carrying Value |
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|
Quoted Prices in |
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Significant Other |
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Significant Unobservable |
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||||
Short-term U.S. Government bonds |
|
$ |
455,398 |
|
|
$ |
455,398 |
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|
$ |
— |
|
|
$ |
— |
|
Long-term U.S. Government bonds |
|
|
352,987 |
|
|
|
352,987 |
|
|
|
— |
|
|
|
— |
|
Cash equivalents |
|
|
27,461 |
|
|
|
27,461 |
|
|
|
— |
|
|
|
— |
|
Short-term marketable equity securities |
|
|
8,606 |
|
|
|
8,606 |
|
|
|
— |
|
|
|
— |
|
Convertible notes |
|
|
2,000 |
|
|
|
— |
|
|
|
— |
|
|
|
2,000 |
|
The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2024 (in thousands):
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|
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|
Fair Value Measurements, Using |
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|
|
Total Carrying Value |
|
|
Quoted Prices in |
|
|
Significant Other |
|
|
Significant Unobservable |
|
||||
Short-term U.S. Government bonds |
|
$ |
393,536 |
|
|
|
393,536 |
|
|
|
— |
|
|
|
— |
|
Long-term U.S. Government bonds |
|
|
435,473 |
|
|
|
435,473 |
|
|
|
— |
|
|
|
— |
|
Cash equivalents |
|
|
2,662 |
|
|
|
2,662 |
|
|
|
— |
|
|
|
— |
|
Short-term marketable equity securities |
|
|
154 |
|
|
|
154 |
|
|
|
— |
|
|
|
— |
|
Convertible notes |
|
|
3,500 |
|
|
|
— |
|
|
|
— |
|
|
|
3,500 |
|
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on management’s own assumptions used to measure assets and liabilities at fair value. A financial asset’s or liability’s classification is determined based on the lowest level input that is significant to the fair value measurement.
Changes in fair value of the debt investments are recorded as unrealized gains and losses in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets and any credit losses on debt investments are recorded as an allowance for credit losses with an offset recognized in other income (loss), net on the Consolidated Statements of Income. There were no credit losses on debt investments as of December 31, 2025 or 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 23, 2017 | |
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.