SKYWORKS SOLUTIONS, INC.SWKS

SKYWORKS SOLUTIONS, INC. Fair Value Disclosure

10-KFiled Nov 7, 20252 min read
4.    FAIR VALUE

Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis
The Company measures certain assets and liabilities at fair value on a recurring basis such as its financial instruments. There have been no transfers between Level 1, 2, or 3 assets or liabilities during fiscal 2025.

Assets and liabilities recorded at fair value on a recurring basis consisted of the following (in millions):
As of
October 3, 2025September 27, 2024
Fair Value MeasurementsFair Value Measurements
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Assets
Cash and cash equivalents (1)$1,161.3 $1,120.3 $41.0 $— $1,368.6 $1,199.1 $169.5 $— 
U.S. Treasury and government securities126.6 109.1 17.5 — 50.1 36.5 13.6 — 
Corporate bonds and notes100.5 — 100.5 — 155.3 — 155.3 — 
Municipal bonds— — — — 0.1 — 0.1 — 
Total assets at fair value$1,388.4 $1,229.4 $159.0 $— $1,574.1 $1,235.6 $338.5 $— 
(1) Cash equivalents included in Levels 1 and 2 consist of money market funds, municipal bonds, corporate bonds and notes, and U.S. Treasury and government securities purchased with less than ninety days until maturity.

Assets Measured and Recorded at Fair Value on a Nonrecurring Basis
The Company’s non-financial assets and liabilities, such as goodwill, intangible assets, and other long-lived assets resulting from business combinations, are measured at fair value using income approach valuation methodologies at the date of acquisition and are subsequently re-measured if there are indicators of impairment. There were no indicators of impairment identified during fiscal 2025. During fiscal 2024, the Company recorded impairment charges of $147.9 million primarily related to the abandonment or delay of previously capitalized in-process research and development (“IPR&D”) projects recorded within restructuring, impairment, and other charges. During fiscal 2023, the Company recorded impairment charges of $64.5 million primarily due to reduced overall market demand related to long-term supply capacity deposits of $47.5 million recorded within cost of goods sold and a loss on divested assets of $12.3 million recorded within restructuring, impairment, and other charges.

Fair Value of Debt
The Company’s debt is carried at amortized cost and is measured at fair value quarterly for disclosure purposes. The estimated fair values are based on Level 2 inputs as the fair value is based on quoted prices for the Company’s debt and comparable instruments in inactive markets.

The carrying amount and estimated fair value of debt consists of the following (in millions):
As of
October 3, 2025September 27, 2024
Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
1.80% Senior Notes due 2026$499.4 $491.1 $498.5 $478.4 
3.00% Senior Notes due 2031496.4 453.4 495.8 441.2 
Total debt under Senior Notes$995.8 $944.5 $994.3 $919.6 

Historical Timeline

Fiscal YearFiled
2025Nov 7, 2025Showing above
2024Nov 15, 2024
2023Nov 17, 2023
2022Nov 23, 2022
2021Nov 24, 2021
2020Nov 17, 2020
2019Nov 14, 2019
2018Nov 15, 2018
2017Nov 13, 2017
2016Nov 22, 2016
2015Nov 24, 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.

Other Available Disclosures

Income TaxesRevenueEarnings Per SharePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsNew StandardsPay vs Performance