TANDEM DIABETES CARE INCTNDM

TANDEM DIABETES CARE INC Fair Value Disclosure

10-KFiled Feb 26, 20252 min read
Fair Value Measurements
The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 and December 31, 2023, and indicates the fair value hierarchy of the valuation techniques used by the Company to determine such fair value (in thousands):
Fair Value Measurements at
December 31, 2024
TotalLevel 1Level 2Level 3
Assets
Cash equivalents(1)
$56,234 $56,234 $— $— 
United States Government-sponsored enterprises133,280 — 133,280 — 
United States Treasury securities103,702 103,702 — — 
Commercial paper23,264 — 23,264 — 
Corporate debt securities105,836 — 105,836 — 
Foreign government bonds
3,013 — 3,013 — 
Total assets$425,329 $159,936 $265,393 $— 

Fair Value Measurements at
December 31, 2023
TotalLevel 1Level 2Level 3
Assets
Cash equivalents(1)
$48,033 $48,033 $— $— 
United States Government-sponsored enterprises182,154 — 182,154 — 
United States Treasury securities115,004 115,004 — — 
Commercial paper72,511 — 72,511 — 
Corporate debt securities39,375 — 39,375 — 
Total assets$457,077 $163,037 $294,040 $— 
(1)Generally, cash equivalents include money market funds and investments with a maturity of three months or less from the date of purchase.
The Company’s Level 1 financial instruments, which are in active markets, are valued using unadjusted quoted market prices for identical instruments.
The Company’s Level 2 financial instruments are valued using market prices on less active markets with observable valuation inputs such as interest rates and yield curves. The Company obtains the fair value of Level 2 financial instruments from quoted market prices, calculated prices or quotes from third-party pricing services. The Company validates these prices through independent valuation testing and review of portfolio valuations provided by the Company’s investment managers.
There were no transfers into or out of Level 3 assets during the three months ended December 31, 2024 and 2023, respectively.
Fair Value of Financial Instruments
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and employee-related liabilities are reasonable estimates of their fair values because of the short-term nature of these assets and liabilities. Short-term investments are carried at fair value.
In March 2024, the Company issued $316.3 million aggregate principal amount of the Company’s Convertible Senior Notes Due 2029, and repurchased $246.7 million of principal of the Company’s Convertible Senior Notes due 2025 (see Note 7, “Debt”).
The Company’s Convertible Senior Notes are carried at amortized cost on the consolidated balance sheets (see Note 7, “Debt”). The Company estimated the fair value of its convertible senior notes based on Level 2 quoted market prices as follows (in thousands):
Fair Value Measurements at
December 31, 2024December 31, 2023
Convertible Senior Notes due 2025
$39,130 $271,688 
Convertible Senior Notes due 2029
407,752 *
Total fair value of outstanding convertible senior notes
$446,882 $271,688 
* Not applicable as no notes were outstanding at this date.

Historical Timeline

Fiscal YearFiled
2024Feb 26, 2025Showing above
2023Feb 21, 2024
2022Feb 22, 2023
2020Feb 24, 2021
2018Feb 26, 2019
2017Mar 1, 2018
2016Mar 8, 2017
2015Feb 24, 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.

Other Available Disclosures

Income TaxesLeasesSegmentsDebtCommitmentsNew StandardsPay vs Performance