TransUnionTRU
TransUnion Fair Value Disclosure
Fair Value
The following table summarizes financial instruments measured at fair value, on a recurring basis, as of December 31, 2025:
| Total | Level 1 - Prices in Active Markets for Identical Assets | Level 2 -Significant Other Observable Inputs | Level 3 -Significant Unobservable Inputs | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
Interest rate swaps (Note 7 and 12) | $ | 31.7 | $ | — | $ | 31.7 | $ | — | |||||||||||||||
Convertible notes receivable (Note 7) | 23.0 | — | — | 23.0 | |||||||||||||||||||
Available-for-sale debt securities (Note 3) | 2.7 | — | 2.7 | — | |||||||||||||||||||
Foreign exchange forward contract (Note 3) | 2.9 | — | 2.9 | — | |||||||||||||||||||
| Total | $ | 60.3 | $ | — | $ | 37.3 | $ | 23.0 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Interest rate swaps (Note 9 and Note 12) | $ | 12.0 | $ | — | $ | 12.0 | $ | — | |||||||||||||||
Total | $ | 12.0 | $ | — | $ | 12.0 | $ | — | |||||||||||||||
The following table summarizes financial instruments measured at fair value, on a recurring basis, as of December 31, 2024:
| Total | Level 1 - Prices in Active Markets for Identical Assets | Level 2 -Significant Other Observable Inputs | Level 3 -Significant Unobservable Inputs | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
Interest rate swaps (Note 7 and 12) | $ | 110.0 | $ | — | $ | 110.0 | $ | — | |||||||||||||||
Note receivable (Note 3 and 7) | 89.7 | 89.7 | |||||||||||||||||||||
Available-for-sale debt securities (Note 3) | 2.5 | — | 2.5 | — | |||||||||||||||||||
| Total | $ | 202.2 | $ | — | $ | 202.2 | $ | — | |||||||||||||||
Level 2 instruments include interest rate swaps, a foreign currency cash flow hedge, a note receivable and available-for-sale marketable securities consisting of foreign exchange-traded corporate bonds.
We determine the fair value of the interest rate swaps each reporting period using the market standard methodology of discounting the future expected net cash receipts or payments that would occur if variable interest rates rise above or fall below the fixed rates of the swaps, with changes in fair value recognized in other comprehensive income. The variable interest rates used in the calculations of projected receipts on the swaps are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. Each individual swap contract is valued independently and recorded on a gross basis in other assets and other current liabilities.
In November 2025, we entered into a foreign currency forward contract to economically hedge our exposure of a portion of the purchase price of our pending acquisition of a majority ownership interest in Trans Union de Mexico, S.A., S.I.C. (“Trans Union de Mexico”). The notional amount of the foreign exchange forward contract is MXN 2.9 billion. We determined the fair value of this contract using observable market inputs and standard valuation technique using the contracted forward rate and the current market forward rate for a contract with the same remaining term, with changes in fair value recognized in other income and (expense), net in the Consolidated Statement of Operations each period.
We determine the fair value of the note receivable each reporting period using an income approach for fixed income securities where contractual cash flows are discounted to present value at a risk-adjusted rate of return in a lattice model framework using changes to the risk-adjusted rate of return given observed changes to the interest rate environment, market pricing of credit risk, and issuer-specific credit risk, with changes in fair value recognized in earnings each period. In December 2022, we sold the non-core businesses from our Verisk Financial acquisition, with a portion of the consideration received in the form of a $72.0 million note receivable. The note receivable accrued interest semiannually at a per annum rate of 10.6% and was payable at maturity. The note was initially recorded at fair value of $70.3 million. The note had an original maturity date of June 30, 2025, subject to an option of the note issuer to extend the maturity date for two successive terms of three months each, at an increased rate of interest at each extension. The note issuer exercised both of the three-month maturity extension options and repaid the outstanding principal and accrued interest during 2025.
We determine the fair value of the marketable securities, which are available-for-sale foreign exchange-traded corporate bonds, at their current quoted prices and they mature between 2027 and 2033. Unrealized gains and losses on the foreign exchange-traded corporate bonds, which are not material, are included in other comprehensive income.
Level 3 instruments consist of convertible notes receivable we obtained in 2025 totaling $24.3 million, from the variable interest entity we discuss in Note 1, “Significant Accounting Policies,” under the sub-heading “Variable Interest Entities.”
The convertible notes receivable are measured at fair value each period using an option pricing model with inputs based on the contractual terms of the convertible notes. The significant unobservable inputs into the model include our estimates of the timing and probabilities of repayment or various conversion scenarios that result in a payoff in the form of preferred equity of the note issuer, and the value of the underlying preferred equity, which in part is based on forecasted revenue of the note issuer. We have elected to initially and subsequently measure this hybrid financial instrument at fair value, with changes in fair value recognized in interest income for the interest accretion component, and other income and (expense), net in the Consolidated Statements of Operations for other changes to fair value. The convertible notes have a face amount of $24.3 million, with simple interest at 13% per annum, and mature on January 13, 2028. The notes may be converted into various equity shares based on certain events, or may be repaid in cash.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 14, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 13, 2018 | |
| 2016 | Feb 15, 2017 | |
| 2015 | Feb 19, 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.