Vishay Precision Group, Inc. Fair Value Disclosure

Note 16 – Fair Value Measurements

 

ASC Topic 820, Fair Value Measurements and Disclosures, establishes a valuation hierarchy of the inputs used to measure fair value. This hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

 

Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

 

Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

 

Level 3: Unobservable inputs that reflect the Company’s own assumptions.

 

An asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

 

Note 16 – Fair Value Measurements (continued)

 

The following tables provide the financial assets and liabilities carried at fair value measured on a recurring basis (in thousands):

 

As of December 31, 2025						Fair value measurements at reporting date using:
		Total Fair Value				Level 1 Inputs				Level 2 Inputs				Level 3 Inputs
Assets:
Assets held in rabbi trusts		$	6,576			$	52			$	6,524			$	—

 

As of December 31, 2024						Fair value measurements at reporting date using:
		Total Fair Value				Level 1 Inputs				Level 2 Inputs				Level 3 Inputs
Assets:
Assets held in rabbi trusts		$	6,228			$	45			$	6,183			$	—

 

The Company maintains nonqualified trusts, referred to as “rabbi” trusts, to fund payments under deferred compensation and nonqualified pension plans. Rabbi trust assets consist primarily of marketable securities, classified as available-for-sale money market funds at December 31, 2025 and December 31, 2024, and company-owned life insurance assets. The marketable securities held in the rabbi trusts are valued using quoted market prices on the last business day of the year. The company-owned life insurance assets are valued in consultation with the Company’s insurance brokers using the value of underlying assets of the insurance contracts. The fair value measurement of cash and cash equivalents held in the rabbi trust is considered a Level 1 measurement and the measurement of the company-owned life insurance assets is considered a Level 2 measurement within the fair value hierarchy.

 

The fair value of the long-term debt, excluding capitalized deferred financing costs at December 31, 2025 and December 31, 2024 approximates its carrying value, as the revolving debt and term loans are reset monthly based on current market rates, plus a base rate as specified in the 2024 Credit Agreement. The fair value measurement of long-term debt is considered a Level 2 measurement.

 

The Company’s financial instruments include cash and cash equivalents, accounts receivable, short-term notes payable, and accounts payable. The carrying amounts for these financial instruments reported in the consolidated balance sheets approximate their fair values.