UNISYS CORPUIS

UNISYS CORP Fair Value Disclosure

10-KFiled Feb 25, 20262 min read
Financial instruments and concentration of credit risks
Due to its foreign operations, the company is exposed to the effects of foreign currency exchange rate fluctuations on the U.S. dollar, principally related to intercompany account balances. In 2025, the company ceased its use of foreign currency forward contracts.
At December 31, 2025, there is no notional amount of foreign currency forward contracts and at December 31, 2024, the notional amount was $501.3 million. These contracts generally had maturities of three months or less and were not designated as hedging instruments.
The following table summarizes the fair value of the company’s foreign exchange forward contracts. The fair value of these forward contracts was based on quoted prices for similar but not identical financial instruments; as such, the inputs were considered Level 2 inputs.
As of December 31,2024
Balance Sheet Location
Prepaid expenses and other current assets$0.1 
Other accrued liabilities9.5 
Total fair value$(9.4)
The following table summarizes the location and amount of gains (losses) recognized on foreign exchange forward contracts.
Year Ended December 31,202520242023
Statement of Income Location
Other (expense), net$46.4 $(35.6)$13.5 
Other financial instruments include temporary cash investments and customer accounts receivable. Temporary investments are placed with creditworthy financial institutions, primarily in money market funds, time deposits and certificate of deposits, which may be withdrawn at any time at the discretion of the company without penalty. At December 31, 2025 and 2024, the company’s cash equivalents principally have maturities of less than one month or can be withdrawn at any time at the discretion of the company without penalty. Due to the short maturities of these instruments, they are carried on the consolidated balance sheets at cost plus accrued interest, which approximates fair value. Receivables are due from a large number of customers that are dispersed worldwide across many industries. At December 31, 2025 and 2024, the company had no significant concentrations of credit risk with any one customer.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 21, 2025

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

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