Utz Brands, Inc.UTZ

Utz Brands, Inc. Fair Value Disclosure

10-KFiled Feb 12, 20263 min read
FAIR VALUE MEASUREMENTS
The Company follows the guidance relating to fair value measurements and disclosures with respect to financial assets and liabilities that are re-measured and reported at fair value each reporting period, and with respect to non-financial assets and liabilities that are not required to be measured at fair value on a recurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I) and the lowest priority to unobservable pricing inputs (Level III). A financial asset or liability’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are described below:
Level I - Valuations are based on unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities;
Level II - Valuations are based on quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active. Financial assets or liabilities which are included in this category are securities where all significant inputs are observable, either directly or indirectly; and
Level III - Prices or valuations that are unobservable and where there is little, if any, market activity for these financial assets or liabilities. The inputs into the determination of fair value inputs for these investments require significant management judgment or estimation. The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors. To the extent that valuation is based on inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment.
The fair values of the Company’s Level 2 derivative instruments were determined using valuation models that use market observable inputs including interest rate curves and both forward and spot prices for commodities. Derivative assets and liabilities included in Level 2 primarily represent commodity and interest rate swap contracts.
The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of December 28, 2025:
(in millions)Level ILevel IILevel IIITotal
Assets:
Cash and cash equivalents$120.4 $— $— $120.4 
Interest rate swaps— 0.8 — 0.8 
Total assets$120.4 $0.8 $— $121.2 
Liabilities:
Commodity contracts$— $1.2 $— $1.2 
Interest rate swaps$— $1.1 $— $1.1 
Debt— 849.6 — 849.6 
Total liabilities$— $851.9 $— $851.9 
The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based upon the level within the fair value hierarchy in which the fair value measurements fall, as of December 29, 2024: 
(in millions)Level ILevel IILevel IIITotal
Assets:
Cash and cash equivalents$56.1 $— $— $56.1 
Commodity contracts— 0.1 — 0.1 
Interest rate swaps— 25.0 — 25.0 
Total assets$56.1 $25.1 $— $81.2 
Liabilities:
Commodity contracts— 1.4 — 1.4 
Warrants— 33.0 — 33.0 
Debt— 768.6 — 768.6 
Total liabilities$— $803.0 $— $803.0 
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Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 20, 2025
2023Mar 2, 2023
2022Mar 3, 2022
2021Mar 18, 2021
2019Mar 12, 2020
2018Mar 28, 2019

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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