PTC INC. Fair Value Disclosure
14. Fair Value Measurements
Money market funds, time deposits and corporate notes/bonds are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets.
The principal market in which we execute our foreign currency derivatives is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants are generally large financial institutions. Our foreign currency derivatives’ valuation inputs are based on quoted prices and quoted pricing intervals from public data sources and do not involve management judgment. These contracts are typically classified within Level 2 of the fair value hierarchy.
Our significant financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 and 2024 were as follows:
(in thousands) |
|
September 30, 2025 |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Financial assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash equivalents(1) |
|
$ |
38,031 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
38,031 |
|
Forward contracts |
|
|
— |
|
|
|
6,007 |
|
|
|
— |
|
|
|
6,007 |
|
Option contracts |
|
|
— |
|
|
|
6,228 |
|
|
|
— |
|
|
|
6,228 |
|
|
|
$ |
38,031 |
|
|
$ |
12,235 |
|
|
$ |
— |
|
|
$ |
50,266 |
|
Financial liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forward contracts |
|
|
— |
|
|
|
4,773 |
|
|
|
— |
|
|
|
4,773 |
|
|
|
$ |
— |
|
|
$ |
4,773 |
|
|
$ |
— |
|
|
$ |
4,773 |
|
(in thousands) |
|
September 30, 2024 |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Financial assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash equivalents(1) |
|
$ |
48,509 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
48,509 |
|
Forward contracts |
|
|
— |
|
|
|
1,202 |
|
|
|
— |
|
|
|
1,202 |
|
|
|
$ |
48,509 |
|
|
$ |
1,202 |
|
|
$ |
— |
|
|
$ |
49,711 |
|
Financial liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forward contracts |
|
|
— |
|
|
|
4,166 |
|
|
|
— |
|
|
|
4,166 |
|
|
|
$ |
— |
|
|
$ |
4,166 |
|
|
$ |
— |
|
|
$ |
4,166 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 21, 2025 | Showing above |
| 2024 | Nov 14, 2024 | |
| 2023 | Nov 20, 2023 | |
| 2022 | Nov 15, 2022 | |
| 2021 | Nov 22, 2021 | |
| 2020 | Nov 20, 2020 | |
| 2019 | Nov 18, 2019 | |
| 2018 | Nov 16, 2018 | |
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.