UNIVERSAL TECHNICAL INSTITUTE INCUTI

UNIVERSAL TECHNICAL INSTITUTE INC Fair Value Disclosure

10-KFiled Nov 26, 20253 min read
Note 8 - Fair Value Measurements
The accounting framework for determining fair value includes a hierarchy for ranking the quality and reliability of the information used to measure fair value, which enables the reader of the financial statements to assess the inputs used to develop those measurements. The fair value hierarchy consists of three tiers:
Level 1:    Defined as quoted market prices in active markets for identical assets or liabilities.
Level 2:    Defined as inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, model-based valuation techniques for
which all significant assumptions are observable in the market or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3:    Defined as unobservable inputs that are not corroborated by market data.
Any transfers of investments between levels occur at the end of the reporting period. Assets measured or disclosed at fair value on a recurring basis consisted of the following:
  Fair Value Measurements Using
 September 30, 2025Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Money market funds(1)
$97,619 $97,619 $— $— 
Corporate and government bonds(2)
46,056 46,056 — — 
Notes receivable(3)
47,706 — — 47,706 
Total assets at fair value on a recurring basis$191,381 $143,675 $— $47,706 
Revolving credit facility and term loans(4)
83,556 — 83,556 — 
Total liabilities at fair value on a recurring basis$83,556 $— $83,556 $— 

  Fair Value Measurements Using
 September 30, 2024Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Money market funds(1)
$94,772 $94,772 $— $— 
Corporate and government bonds(2)
— — — — 
Notes receivable(3)
42,467 — — 42,467 
Total assets at fair value on a recurring basis$137,239 $94,772 $— $42,467 
Revolving credit facility and term loans(4)
121,319 — 121,319 — 
Total liabilities at fair value on a recurring basis$121,319 $— $121,319 $— 

(1)    Money market funds and other highly liquid investments with maturity dates less than 90 days are reflected as “Cash and cash equivalents” on our consolidated balance sheets as of September 30, 2025 and 2024.
(2)     See Note 7 for further discussion on the corporate and government bonds.
(3)    Notes receivable relate to the proprietary loan program and are reflected as “Notes receivable, current portion” and “Notes receivable, less current portion” on our consolidated balance sheets as of September 30, 2025 and 2024. See Note 2 for further discussion over the proprietary loan program.
(4)     The Revolving credit facility and term loans bear interest at rates commensurate with market rates, and therefore, the respective carrying values approximate fair value (Level 2).

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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