Seneca Foods Corp Fair Value Disclosure
11. Fair Value of Financial Instruments
Cash and cash equivalents, restricted cash, accounts receivable, refundable income taxes, accounts payable, note payable, income taxes payable, and accrued expenses are reflected in the Consolidated Balance Sheets at carrying value, which approximates fair value due to the short-term maturity of these instruments.
Utilizing the fair value hierarchy, the Company determines fair value of money market funds using Level 1 inputs of quoted prices in active markets. Fair value of commercial paper is determined by using Level 2 inputs of quoted prices for similar assets in active markets.
The carrying value and estimated fair values of the Company's long-term debt and finance obligation are summarized as follows (in thousands):
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As of: |
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March 31, 2025 |
March 31, 2024 |
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Carrying value |
$ | 369,878 | $ | 604,786 | ||||
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Estimated fair value |
$ | 364,276 | $ | 599,408 | ||||
The estimated fair value for long-term debt and finance obligation (classified as Level 2 in the fair value hierarchy) is determined by the quoted market prices for similar debt (comparable to the Company’s financial strength) or current rates offered to the Company for debt with the same maturities. Since quoted prices for identical instruments in active markets are not available (Level 1), the Company makes use of observable market-based inputs to calculate fair value, which is Level 2.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 12, 2025 | Showing above |
| 2024 | Jun 13, 2024 | |
| 2023 | Jun 13, 2023 | |
| 2022 | Jun 10, 2022 | |
| 2021 | Jun 11, 2021 | |
| 2020 | Jul 2, 2020 | |
| 2019 | Jun 13, 2019 | |
| 2018 | Jun 29, 2018 | |
| 2017 | May 25, 2017 | |
| 2016 | Jun 8, 2016 | |
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.