UNITED THERAPEUTICS CorpUTHR
UNITED THERAPEUTICS Corp Fair Value Disclosure
Fair Value Measurements
Assets and liabilities subject to fair value measurements are required to be disclosed within a fair value hierarchy. The fair value hierarchy ranks the quality and reliability of inputs used to determine fair value. Accordingly, assets and liabilities carried at, or permitted to be carried at, fair value are classified within the fair value hierarchy in one of the following categories based on the lowest level input that is significant in measuring fair value:
Level 1—Fair value is determined by using unadjusted quoted prices that are available in active markets for identical assets and liabilities.
Level 2—Fair value is determined by using inputs other than Level 1 quoted prices that are directly or indirectly observable. Inputs can include quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets and liabilities in inactive markets. Related inputs can also include those used in valuation or other pricing models such as interest rates and yield curves that can be corroborated by observable market data.
Level 3—Fair value is determined by using inputs that are unobservable and not corroborated by market data. Use of these inputs involves significant and subjective judgment.
We account for certain assets and liabilities at fair value and classify these assets and liabilities within the fair value hierarchy. Our other current assets and other current liabilities have fair values that approximate their carrying values. Assets and liabilities subject to fair value measurements are as follows (in millions):
| As of December 31, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Balance | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
Money market funds(1) | $ | 753.1 | $ | — | $ | — | $ | 753.1 | |||||||||||||||
Time deposits(1) | — | — | — | — | |||||||||||||||||||
U.S. government and agency securities(2) | — | 2,443.2 | — | 2,443.2 | |||||||||||||||||||
Corporate debt securities(2) | — | 606.8 | — | 606.8 | |||||||||||||||||||
Equity securities(3) | 126.9 | — | — | 126.9 | |||||||||||||||||||
| Total assets | $ | 880.0 | $ | 3,050.0 | $ | — | $ | 3,930.0 | |||||||||||||||
| Liabilities | |||||||||||||||||||||||
Contingent consideration(4) | — | — | 32.5 | 32.5 | |||||||||||||||||||
| Total liabilities | $ | — | $ | — | $ | 32.5 | $ | 32.5 | |||||||||||||||
| As of December 31, 2024 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Balance | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
Money market funds(1) | $ | 649.8 | $ | — | $ | — | $ | 649.8 | |||||||||||||||
Time deposits(1) | 155.9 | — | — | 155.9 | |||||||||||||||||||
U.S. government and agency securities(2) | — | 2,473.3 | — | 2,473.3 | |||||||||||||||||||
Corporate debt securities(2) | — | 569.4 | — | 569.4 | |||||||||||||||||||
Equity securities(3) | 23.9 | — | — | 23.9 | |||||||||||||||||||
| Total assets | $ | 829.6 | $ | 3,042.7 | $ | — | $ | 3,872.3 | |||||||||||||||
| Liabilities | |||||||||||||||||||||||
Contingent consideration(4) | — | — | 24.7 | 24.7 | |||||||||||||||||||
| Total liabilities | $ | — | $ | — | $ | 24.7 | $ | 24.7 | |||||||||||||||
(1)Included in cash and cash equivalents in our consolidated balance sheets.
(2)Included in cash and cash equivalents and current and non-current marketable investments in our consolidated balance sheets. See Note 4—Investments—Marketable Investments—Available-for-Sale Debt Securities for further information. The fair value of these securities is principally measured or corroborated by trade data for identical securities for which related trading activity is not sufficiently frequent to be considered a Level 1 input or comparable securities that are more actively traded.
(3)Included in current marketable investments in our consolidated balance sheets. The fair value of these securities is based on quoted market prices for identical instruments in active markets. During the years ended December 31, 2025 and 2024, we recorded $43.0 million and $9.0 million of net unrealized gains in the aggregate, respectively, on these securities. We recorded these gains and losses in our consolidated statements of operations within . See Note 4—Investments—Marketable Investments—Investments in Equity Securities with Readily Determinable Fair Values.
(4)Included in other current liabilities and other non-current liabilities in our consolidated balance sheets. The fair value of our contingent consideration obligations is estimated using probability-weighted discounted cash flow models (DCFs). The DCFs incorporate Level 3 inputs, including estimated discount rates, that we believe market participants would consider relevant in pricing and the projected timing and amount of cash flows, which are estimated and developed, in part, based on the requirements specific to each acquisition agreement. The fair value of our contingent consideration liabilities increased by $7.8 million from December 31, 2024 to December 31, 2025. The loss was recorded within research and development in our consolidated statements of operations.
Fair Value of Financial Instruments
The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate fair value because of their short maturities. The fair values of our marketable investments and contingent consideration are reported above within the fair value hierarchy. See Note 4—Investments.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 21, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 25, 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.