Company: PAMT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001437749-25-033356
Chunk: 62

Company: PAMT CORP
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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 or corroborated by, observable market data. 
      
  Level 3:   Unobservable inputs that are supported by little or no market activity. 

   The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.
    
   At  September 30, 2025, the following items are measured at fair value on a recurring basis:

       Total    Level 1    Level 2    Level 3  
   (in thousands)  
                 
 Marketable equity securities  $46,802  $46,802   -   - 

   The Company’s investments in marketable securities are recorded at fair value based on quoted market prices. The carrying value of other financial instruments, including cash, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short maturities.
    
   The carrying amount for the line of credit approximates fair value because the line of credit interest rate is adjusted frequently.
    
   For long-term debt other than the lines of credit, the fair values are estimated using discounted cash flow analyses, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The carrying value and estimated fair value of this other long-term debt at  September 30, 2025 was as follows:

       Carrying Value    Estimated Fair Value  
   (in thousands)  
         
 Long-term debt  $342,427  $340,931 

   The Company has not elected the fair value option for any of its financial instruments.

   NOTE K: NOTES PAYABLE
   During the first nine months of 2025, the Company’s subsidiaries entered into installment obligations totaling approximately $76.3 million for the purpose of purchasing revenue equipment and other assets. These obligations are payable in monthly installments and are recorded in long-term debt and current maturities on the condensed consolidated balance sheets. The terms of these obligations range from 60 to 84 months.

   NOTE L: COMMITMENTS AND CONTINGENCIES
   We are involved in certain claims and pending litigation arising from the ordinary conduct of business. We also provide accruals for claims within our self-insured retention amounts. Since  September 1, 2020, we have been self-insured for certain layers of auto liability claims in excess of $2.