PATRICK INDUSTRIES INC Fair Value Disclosure
| As of December 31, | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| ($ in millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
1.75% convertible notes due 2028 (1) | $ | — | $ | 442.4 | $ | — | $ | — | $ | 351.3 | $ | — | ||||||||||||||
4.75% senior notes due 2029 (1) | $ | — | $ | 347.1 | $ | — | $ | — | $ | 330.3 | $ | — | ||||||||||||||
6.375% senior notes due 2032 (1) | $ | — | $ | 514.1 | $ | — | $ | — | $ | 485.0 | $ | — | ||||||||||||||
Term loan due 2029 (1) (2) | $ | — | $ | 117.2 | $ | — | $ | — | $ | 123.4 | $ | — | ||||||||||||||
Revolver due 2029 (1) (2) | $ | — | $ | 75.0 | $ | — | $ | — | $ | 100.0 | $ | — | ||||||||||||||
Contingent consideration (3) | $ | — | $ | — | $ | 2.4 | $ | — | $ | — | $ | 3.6 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
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.