TransMedics Group, Inc. Fair Value Disclosure
The Company did not have assets measured at fair value on a recurring basis as of December 31, 2022.
The following table presents the Company’s fair value hierarchy for its assets that were measured at fair value on a recurring basis as of December 31, 2021 (in thousands):
|
|
Fair Value Measurements at December 31, 2021 Using: |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash equivalents: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds |
|
$ |
11,169 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
11,169 |
|
Marketable securities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury securities |
|
|
— |
|
|
|
63,874 |
|
|
|
— |
|
|
|
63,874 |
|
U.S. government agency bonds |
|
|
— |
|
|
|
2,998 |
|
|
|
— |
|
|
|
2,998 |
|
|
|
$ |
11,169 |
|
|
$ |
66,872 |
|
|
$ |
— |
|
|
$ |
78,041 |
|
Money market funds were valued by the Company based on quoted market prices, which represent a Level 1 measurement within the fair value hierarchy. U.S. Treasury securities and U.S. government agency bonds were valued by the Company using quoted prices in active markets for similar securities, which represent a Level 2 measurement within the fair value hierarchy.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2022 | Feb 27, 2023 | Showing above |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 11, 2021 | |
| 2019 | Mar 17, 2020 | |
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.