OSHKOSH CORP Fair Value Disclosure
23. Fair Value Measurement
FASB ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability (i.e., exit price) in an orderly transaction between market participants at the measurement date. FASB ASC Topic 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e., inputs) used in the valuation. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment.
The three levels are defined as follows:
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2: Observable inputs other than quoted prices in active markets for identical assets or liabilities, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.
The fair values of the Company’s financial assets and liabilities were as follows (in millions):
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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December 31, 2025 |
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Assets: |
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Rabbi trust(a) |
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$ |
11.0 |
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$ |
— |
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$ |
— |
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$ |
11.0 |
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Investments in equity securities(b) |
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7.0 |
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— |
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— |
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7.0 |
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Foreign currency exchange derivatives(c) |
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— |
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0.4 |
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— |
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0.4 |
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Liabilities: |
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Foreign currency exchange derivatives(c) |
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$ |
— |
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$ |
0.6 |
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$ |
— |
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$ |
0.6 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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December 31, 2024 |
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Assets: |
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Rabbi trust(a) |
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$ |
13.6 |
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$ |
— |
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$ |
— |
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$ |
13.6 |
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Investments in equity securities(b) |
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5.2 |
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— |
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— |
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5.2 |
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Foreign currency exchange derivatives(c) |
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— |
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1.7 |
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— |
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1.7 |
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Liabilities: |
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Foreign currency exchange derivatives(c) |
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$ |
— |
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$ |
1.0 |
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$ |
— |
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$ |
1.0 |
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See Notes 6, 14 and 16 for fair value information related to pension assets, investments and debt.
Items Measured at Fair Value on a Nonrecurring Basis — In addition to items that are measured at fair value on a recurring basis, the Company also has assets and liabilities that are measured at fair value on a nonrecurring basis. As these assets and liabilities are not measured at fair value on a recurring basis, they are not included in the tables above. Assets and liabilities that are measured at fair value on a nonrecurring basis include long-lived assets (See Note 3 for fair value of assets acquired and liabilities assumed through acquisitions and Note 12 for impairment valuation analysis of intangible assets). The Company has determined that the fair value measurements related to each of these assets rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets, as observable inputs are not available. As such, the Company has determined that each of these fair value measurements reside within Level 3 of the fair value hierarchy.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Nov 16, 2021 | |
| 2020 | Nov 18, 2020 | |
| 2019 | Nov 19, 2019 | |
| 2018 | Nov 20, 2018 | |
| 2017 | Nov 21, 2017 | |
| 2016 | Nov 22, 2016 | |
| 2015 | Nov 13, 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.